USMC Spends $38.1M on Audit Services with KPMG LLP for Financial Improvement and Audit Readiness
Contract Overview
Contract Amount: $38,139,943 ($38.1M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 2020-09-29
End Date: 2023-11-29
Contract Duration: 1,156 days
Daily Burn Rate: $33.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: USMC FIAR AUDIT SERVICES FOR P&R, AUDIT REMEDIATION, RESPONSE/COORDINATION, ENGAGEMENT, AUDIT COACHING, AUDIT REMEDIATION AND OMB-A123 FIN AND IT CONTROLS
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $38.1 million to KPMG LLP for work described as: USMC FIAR AUDIT SERVICES FOR P&R, AUDIT REMEDIATION, RESPONSE/COORDINATION, ENGAGEMENT, AUDIT COACHING, AUDIT REMEDIATION AND OMB-A123 FIN AND IT CONTROLS Key points: 1. Contract awarded to KPMG LLP for comprehensive audit support, including remediation and coaching. 2. Spending is concentrated in 'Other Accounting Services' (NAICS 541219). 3. The contract spans nearly three years, indicating a sustained need for audit services. 4. No small business participation was noted in this contract.
Value Assessment
Rating: good
The $38.1M contract value over 1156 days suggests a significant investment in audit services. Benchmarking against similar large-scale audit support contracts would be necessary for a precise value assessment, but the scale implies a substantial need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing, though specific price discovery details are not provided.
Taxpayer Impact: Taxpayer funds are being utilized for essential financial audit and remediation services, aiming to improve financial accountability within the USMC.
Public Impact
Ensures compliance with financial reporting standards and government audit requirements. Aids in the remediation of identified audit findings, strengthening financial controls. Supports the USMC's broader efforts towards achieving Financial Improvement and Audit Readiness (FIAR).
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- High contract value requires diligent oversight.
Positive Signals
- Awarded via full and open competition.
- Addresses critical financial audit readiness.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Government spending on audit services is substantial, driven by regulatory requirements and the need for financial transparency and accountability.
Small Business Impact
This contract did not include small business participation. Given the specialized nature and scale of the services required, it's possible that larger firms were better positioned to bid.
Oversight & Accountability
The contract was awarded as a delivery order under a larger contract, indicating a structured procurement process. Oversight would focus on performance against deliverables and adherence to the firm-fixed-price terms.
Related Government Programs
- Other Accounting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High contract value.
- Long performance period.
- No small business participation.
- Reliance on a single contractor for extensive audit support.
Tags
other-accounting-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.1 million to KPMG LLP. USMC FIAR AUDIT SERVICES FOR P&R, AUDIT REMEDIATION, RESPONSE/COORDINATION, ENGAGEMENT, AUDIT COACHING, AUDIT REMEDIATION AND OMB-A123 FIN AND IT CONTROLS
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $38.1 million.
What is the period of performance?
Start: 2020-09-29. End: 2023-11-29.
What specific audit findings or control deficiencies prompted this significant investment in audit remediation services?
The data does not specify the exact audit findings or control deficiencies. However, the contract's focus on 'AUDIT REMEDIATION' and 'OMB-A123 FIN AND IT CONTROLS' suggests it addresses issues related to financial reporting accuracy, internal control effectiveness, and compliance with federal financial management regulations like OMB Circular A-123.
How does the cost of these audit services compare to industry benchmarks for similar government contracts?
Without specific line-item costs for services rendered and detailed contract terms, a direct comparison to industry benchmarks is challenging. However, the total award of $38.1M over nearly three years for comprehensive audit support indicates a significant investment, suggesting the need for detailed cost analysis against comparable large-scale government audit support contracts.
What is the expected long-term impact of this contract on the USMC's financial audit readiness and overall financial management posture?
The expected long-term impact is improved financial audit readiness and a stronger financial management posture for the USMC. By addressing audit remediation, enhancing controls, and providing coaching, the contract aims to resolve outstanding audit issues and build sustainable capabilities, ultimately leading to a more auditable financial statement and better stewardship of taxpayer funds.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: M9549420Q0005
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kpmg L.L.P.
Address: 1676 INTERNATIONAL DR STE 7000, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,184,818
Exercised Options: $38,181,610
Current Obligation: $38,139,943
Actual Outlays: $10,093,472
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $9,127,080
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018918DZ014
IDV Type: IDC
Timeline
Start Date: 2020-09-29
Current End Date: 2023-11-29
Potential End Date: 2023-11-29 00:00:00
Last Modified: 2023-11-17
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