Interior Dept. Paid $44.4M for CPA Audits, Awarded Competitively to KPMG LLP

Contract Overview

Contract Amount: $44,385,961 ($44.4M)

Contractor: Kpmg LLP

Awarding Agency: Department of the Interior

Start Date: 2006-03-01

End Date: 2011-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $24.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONSOLIDATED FINANCIAL AUDITS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20240, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $44.4 million to KPMG LLP for work described as: CONSOLIDATED FINANCIAL AUDITS Key points: 1. Spending of $44.4M on CPA services over 5 years. 2. Competition was present via a competitive delivery order. 3. Risk appears low due to established CPA firm and fixed-price contract. 4. Sector is professional services, specifically accounting and auditing.

Value Assessment

Rating: good

The $44.4M spent on CPA audits appears reasonable for a 5-year engagement covering departmental offices. Benchmarking against similar large-scale audit contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded via a competitive delivery order, indicating multiple bids were likely considered. This method generally promotes price discovery and fair market value.

Taxpayer Impact: Taxpayer funds were used for essential financial audits, ensuring accountability and transparency in government operations.

Public Impact

Ensures financial integrity of the Department of the Interior. Provides independent assurance on financial reporting. Supports regulatory compliance and good governance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Competitive award process
Firm fixed-price contract
Experienced audit firm (KPMG)

Sector Analysis

This spending falls within the professional services sector, specifically accounting and auditing. Government spending on these services is crucial for oversight and compliance, with benchmarks varying based on agency size and complexity.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The award to KPMG LLP, a large firm, suggests small businesses were not primary recipients of this particular contract.

Oversight & Accountability

The use of a competitive delivery order and a firm fixed-price contract suggests a structured procurement process. Oversight would involve monitoring contract performance and deliverables.

Related Government Programs

Offices of Certified Public Accountants
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Lack of specific performance metrics
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $44.4 million to KPMG LLP. CONSOLIDATED FINANCIAL AUDITS

Who is the contractor on this award?

The obligated recipient is KPMG LLP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $44.4 million.

What is the period of performance?

Start: 2006-03-01. End: 2011-02-28.

What was the average annual cost per year for these audits?

The total contract value was $44,385,961.01 over a duration of 1825 days (5 years). This equates to an average annual cost of approximately $8.88 million per year. This figure represents the total cost for comprehensive financial audits across the Department of the Interior's offices.

What specific risks were mitigated by awarding this contract competitively?

Awarding this contract competitively mitigated risks associated with price inflation and potential vendor lock-in. It ensured the Department of the Interior received fair market value for audit services and encouraged the selected firm to provide high-quality work to meet contractual obligations.

How effective was KPMG LLP in fulfilling the audit requirements?

The provided data does not contain information on the effectiveness or quality of KPMG LLP's performance. To assess effectiveness, one would need to review audit reports, client satisfaction surveys, and any performance evaluations conducted by the Department of the Interior.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kpmg L.L.P. (UEI: 001667906)

Address: 2001 M ST NW, WASHINGTON, DC, 20036

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $44,385,961

Exercised Options: $44,385,961

Current Obligation: $44,385,961

Parent Contract

Parent Award PIID: GS23F8127H

IDV Type: FSS

Timeline