Marine Corps Audit Readiness Contract Awarded to KPMG LLP for $131M

Contract Overview

Contract Amount: $130,982,806 ($131.0M)

Contractor: Kpmg LLP

Awarding Agency: Department of Defense

Start Date: 2020-09-28

End Date: 2023-09-27

Contract Duration: 1,094 days

Daily Burn Rate: $119.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE PERIOD - FINANCIAL IMPROVEMENT AND AUDIT READINESS SUPPORT SERVICES FOR THE U.S. MARINE CORPS.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $131.0 million to KPMG LLP for work described as: BASE PERIOD - FINANCIAL IMPROVEMENT AND AUDIT READINESS SUPPORT SERVICES FOR THE U.S. MARINE CORPS. Key points: 1. KPMG LLP secured a $131M contract for financial improvement and audit readiness support. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The service category is 'Other Accounting Services', crucial for government financial accountability. 4. This spending supports the Department of Defense's ongoing audit readiness initiatives.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar large-scale financial advisory contracts suggests the pricing is within a reasonable range, though specific performance metrics would refine this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method likely fostered competitive pricing. The delivery order structure within a larger contract vehicle suggests a structured procurement process aimed at achieving best value.

Taxpayer Impact: The investment aims to improve financial accuracy and audit compliance, ultimately enhancing taxpayer trust and efficient use of defense funds.

Public Impact

Enhances financial transparency and accountability within the U.S. Marine Corps. Supports critical government functions related to financial auditing and compliance. Contributes to the broader Department of Defense goal of achieving audit readiness. Ensures efficient allocation of resources through improved financial management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in audit readiness services.
Dependence on a single contractor for critical financial functions.
Complexity of government financial systems may impact service delivery timelines.

Positive Signals

Firm fixed price contract provides cost predictability.
Awarded through full and open competition, suggesting competitive pricing.
Supports a critical government mandate for financial accountability.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and financial consulting. Spending benchmarks for similar government contracts in this area vary widely based on scope, but large-scale financial improvement initiatives often represent significant investments.

Small Business Impact

The data indicates this contract was awarded to a large business (KPMG LLP) and does not show any specific small business set-aside or subcontracting goals. Therefore, the direct impact on small businesses appears minimal for this specific award.

Oversight & Accountability

The contract's performance will be overseen by the Department of the Navy, a component of the Department of Defense. Standard government oversight mechanisms for contract performance and financial reporting are expected to be in place.

Related Government Programs

Other Accounting Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract duration is substantial (3 years).
Service is critical for government financial compliance.
Potential for high cost overruns if scope is not managed.
Dependence on contractor expertise for a core function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $131.0 million to KPMG LLP. BASE PERIOD - FINANCIAL IMPROVEMENT AND AUDIT READINESS SUPPORT SERVICES FOR THE U.S. MARINE CORPS.

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 $131.0 million.

What is the period of performance?

Start: 2020-09-28. End: 2023-09-27.

What specific metrics are used to measure the success of financial improvement and audit readiness support services?

Success is typically measured by the contractor's ability to help the agency meet audit standards, reduce audit findings, improve financial reporting accuracy, and achieve auditable financial statements. Key Performance Indicators (KPIs) often include the number of audit deficiencies resolved, the timeliness of financial statement preparation, and the successful completion of audit readiness reviews.

What are the primary risks associated with relying on external contractors for audit readiness?

Key risks include potential over-reliance on the contractor, leading to a lack of internal expertise; the possibility of scope creep, increasing costs beyond the initial estimate; and challenges in knowledge transfer upon contract completion. Ensuring robust government oversight and clear performance expectations are crucial to mitigate these risks.

How does this contract contribute to the overall effectiveness of the Marine Corps' financial management?

This contract is designed to directly enhance the effectiveness of the Marine Corps' financial management by providing specialized expertise to address complex audit requirements. By improving financial data integrity and compliance, it supports better decision-making, resource allocation, and ultimately, the successful execution of the Marine Corps' mission.

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

Offers Received: 1

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: $130,982,806

Exercised Options: $130,982,806

Current Obligation: $130,982,806

Actual Outlays: $111,015,254

Subaward Activity

Number of Subawards: 60

Total Subaward Amount: $62,673,583

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