DoD's $33M FIAR SAIA ARS TO contract with KPMG LLP awarded via full and open competition
Contract Overview
Contract Amount: $33,079,324 ($33.1M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 2024-01-05
End Date: 2027-01-04
Contract Duration: 1,095 days
Daily Burn Rate: $30.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIAR SAIA ARS TO
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $33.1 million to KPMG LLP for work described as: FIAR SAIA ARS TO Key points: 1. Contract awarded to KPMG LLP for financial improvement and audit readiness services. 2. Significant value of $33M over 3 years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The sector is professional services, specifically accounting and auditing. 5. Potential risk lies in the complexity of financial improvement and audit readiness.
Value Assessment
Rating: good
The contract value of $33M for a 3-year period appears reasonable for specialized financial audit readiness services. Benchmarking against similar large-scale financial improvement contracts would provide further context, but the fixed-price nature suggests a degree of cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors were solicited. This method generally promotes price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential financial improvement and audit readiness, which is crucial for government accountability and efficient resource management.
Public Impact
Ensures compliance with financial reporting standards. Supports the Department of Defense's audit readiness efforts. Enhances transparency and accountability in financial management. Potentially improves the accuracy of financial statements. Contributes to the overall financial health of the agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of financial audit readiness
- Potential for scope creep in long-term contracts
- Reliance on a single contractor for critical services
Positive Signals
- Full and open competition utilized
- Firm fixed-price contract type
- Clear contract duration
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Spending in this area is critical for government agencies to meet regulatory requirements and maintain financial integrity. Benchmarks for similar large-scale financial improvement contracts can vary widely based on scope and agency.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded under full and open competition. Therefore, small businesses were likely not the primary focus, though they may have participated as subcontractors.
Oversight & Accountability
The use of full and open competition and a firm fixed-price contract suggests a structured approach to oversight. However, ongoing monitoring of performance and deliverables will be crucial to ensure the contractor meets all requirements and taxpayer value.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Contract complexity
- Potential for cost overruns if not managed tightly
- Dependence on contractor expertise
- Long-term nature of audit readiness efforts
Tags
offices-of-certified-public-accountants, department-of-defense, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.1 million to KPMG LLP. FIAR SAIA ARS TO
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $33.1 million.
What is the period of performance?
Start: 2024-01-05. End: 2027-01-04.
What specific financial systems and processes are covered under this FIAR SAIA ARS TO contract?
The contract likely covers a broad range of financial systems and processes critical for the Defense Logistics Agency's audit readiness. This would include areas such as accounting, financial reporting, internal controls, and transaction processing. The specific systems would depend on the agency's existing infrastructure and audit requirements, aiming to bring them into compliance with federal financial management standards.
What are the key performance indicators (KPIs) used to measure the success of this contract?
Key performance indicators would likely focus on the contractor's ability to achieve specific audit readiness milestones, improve the accuracy and completeness of financial data, and ensure compliance with relevant regulations. This could include metrics related to the reduction of audit findings, the successful implementation of new financial processes, and timely delivery of required reports and analyses.
How does this contract contribute to the broader financial management modernization efforts within the Department of Defense?
This contract directly supports the DoD's overarching goal of achieving auditable financial statements. By engaging KPMG LLP for financial improvement and audit readiness, the DLA is addressing critical gaps in its financial management. This contributes to modernization by ensuring systems and processes are robust, transparent, and compliant, laying the groundwork for more efficient and effective financial operations across the department.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8350 BROAD ST STE 900, MC LEAN, 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: $55,296,853
Exercised Options: $33,079,324
Current Obligation: $33,079,324
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $4,432,879
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: SP470423A0506
IDV Type: BPA
Timeline
Start Date: 2024-01-05
Current End Date: 2027-01-04
Potential End Date: 2027-01-04 00:00:00
Last Modified: 2025-12-03
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