SSA's $28.3M Financial Audit Services Contract Awarded to Grant Thornton LLP
Contract Overview
Contract Amount: $28,268,127 ($28.3M)
Contractor: Grant Thornton LLP
Awarding Agency: Social Security Administration
Start Date: 2009-12-03
End Date: 2016-02-28
Contract Duration: 2,278 days
Daily Burn Rate: $12.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS ACQUISITION IS TO OBTAIN AUDIT SERVICES RELATING TO SSA'S FINANCIAL STATEMENTS. THIS CONTRACT WILL COVER A BASE YEAR (2010) AND FOUR OPTION YEARS. FUNDING SOURCES ARE: "SSA" APPROP. 2808704 AND "OIG" APPROP. 2800400.
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Social Security Administration obligated $28.3 million to GRANT THORNTON LLP for work described as: THE PURPOSE OF THIS ACQUISITION IS TO OBTAIN AUDIT SERVICES RELATING TO SSA'S FINANCIAL STATEMENTS. THIS CONTRACT WILL COVER A BASE YEAR (2010) AND FOUR OPTION YEARS. FUNDING SOURCES ARE: "SSA" APPROP. 2808704 AND "OIG" APPROP. 2800400. Key points: 1. Grant Thornton LLP secured a significant contract for audit services. 2. The contract spans a base year and four option years, indicating long-term need. 3. Funding is sourced from SSA and OIG appropriations. 4. The North American Industry Classification System (NAICS) code 541219 points to 'Other Accounting Services'.
Value Assessment
Rating: good
The contract value of $28.3 million over approximately 7.5 years suggests a competitive pricing strategy for comprehensive audit services. Benchmarking against similar large-scale financial audit contracts would provide further insight into its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives the best value. The specific pricing discovery mechanism within this competitive process is not detailed.
Taxpayer Impact: Competitive bidding in this full and open process likely resulted in a fair price, maximizing taxpayer value for essential audit services.
Public Impact
Ensures financial accountability and transparency for the Social Security Administration. Supports the integrity of SSA's financial reporting. Provides essential oversight of federal funds managed by SSA. The services are critical for regulatory compliance and public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is substantial, requiring ongoing monitoring.
- Small business participation is not indicated.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
The 'Other Accounting Services' sector involves firms providing a range of accounting, auditing, and bookkeeping services. Spending in this sector is driven by regulatory requirements and the need for financial oversight across government agencies.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss=false, sb=false). This suggests the contract was awarded to a large firm capable of handling the extensive audit requirements.
Oversight & Accountability
The contract is overseen by the Social Security Administration (SSA) and funded by SSA and OIG appropriations, implying a level of internal and external oversight. The firm fixed price structure also aids in accountability.
Related Government Programs
- Other Accounting Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Long contract duration may reduce competitive pressure over time.
- No indication of small business participation.
- Potential for auditor 'capture' or reduced objectivity with prolonged engagement.
- Dependence on a single firm for critical financial oversight.
Tags
other-accounting-services, social-security-administration, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $28.3 million to GRANT THORNTON LLP. THE PURPOSE OF THIS ACQUISITION IS TO OBTAIN AUDIT SERVICES RELATING TO SSA'S FINANCIAL STATEMENTS. THIS CONTRACT WILL COVER A BASE YEAR (2010) AND FOUR OPTION YEARS. FUNDING SOURCES ARE: "SSA" APPROP. 2808704 AND "OIG" APPROP. 2800400.
Who is the contractor on this award?
The obligated recipient is GRANT THORNTON LLP.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $28.3 million.
What is the period of performance?
Start: 2009-12-03. End: 2016-02-28.
What is the average annual cost of these audit services?
The total contract value is $28,268,126.98 over a period of approximately 7.5 years (2278 days). Dividing the total value by the duration in years (7.5) yields an approximate average annual cost of $3.77 million. This figure represents the overall expenditure for financial audit services.
What specific risks are associated with relying on a single firm for multi-year audits?
Key risks include potential complacency, reduced incentive for innovation, and a lack of fresh perspectives over time. Over-reliance could also create knowledge silos, making future transitions more challenging. However, the competitive award process and fixed-price structure mitigate some of these concerns by ensuring initial value and cost control.
How effectively does this contract ensure the accuracy of SSA's financial statements?
The contract's effectiveness hinges on the auditor's independence, expertise, and the thoroughness of their procedures. Awarded via full and open competition to Grant Thornton LLP, a reputable firm, suggests a strong likelihood of competent service. The multi-year duration allows for deep institutional knowledge, potentially enhancing audit accuracy over time.
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: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Grant Thornton International Ltd (UEI: 347201258)
Address: 333 JOHN CARLYLE ST STE 500, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $28,291,212
Exercised Options: $28,268,127
Current Obligation: $28,268,127
Parent Contract
Parent Award PIID: GS23F8196H
IDV Type: FSS
Timeline
Start Date: 2009-12-03
Current End Date: 2016-02-28
Potential End Date: 2016-02-28 00:00:00
Last Modified: 2015-09-30
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