Treasury's $18.6M internal control support contract with PwC awarded via full and open competition
Contract Overview
Contract Amount: $18,636,089 ($18.6M)
Contractor: Pricewaterhousecoopers LLP
Awarding Agency: Department of the Treasury
Start Date: 2010-01-23
End Date: 2012-03-31
Contract Duration: 798 days
Daily Burn Rate: $23.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: INTERNAL CONTROL SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20507, UNITED STATES OF AMERICA
Plain-Language Summary
Department of the Treasury obligated $18.6 million to PRICEWATERHOUSECOOPERS LLP for work described as: INTERNAL CONTROL SUPPORT SERVICES Key points: 1. Contract awarded to a single, highly reputable vendor, suggesting a focus on specialized expertise. 2. The contract duration of nearly 2.5 years indicates a sustained need for these services. 3. Awarded under a Blanket Purchase Agreement (BPA), which can streamline procurement for recurring needs. 4. The 'Administrative Management and General Management Consulting Services' NAICS code points to a broad scope of support. 5. The contract was not set aside for small businesses, indicating a focus on larger, established firms. 6. The use of Time and Materials pricing may present cost control challenges if not closely managed.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without more granular data on the services provided and their impact. However, the award to a large, well-known firm like PwC for administrative management consulting at this value is not unusual. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs if not meticulously tracked and managed against defined deliverables. Comparing this to similar contracts for internal control support would require access to a broader dataset of government consulting engagements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it was awarded under a BPA suggests that a broader contract vehicle was already in place, and this specific task order was competed. The number of bidders is not specified, but full and open competition generally promotes price discovery and encourages competitive pricing among qualified offerors.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value by allowing a wide range of qualified contractors to compete, potentially driving down costs and improving service quality.
Public Impact
The Department of the Treasury benefits from enhanced internal control support, crucial for financial integrity and compliance. Services delivered likely include assessments, recommendations, and implementation support for internal control systems. The geographic impact is primarily within the District of Columbia, where the Treasury Department is headquartered. The contract supports a workforce of consultants, contributing to the professional services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost overruns if not strictly monitored against project scope and milestones.
- The broad NAICS code may obscure the specific nature and cost-effectiveness of the services rendered.
- Lack of specific performance metrics makes it difficult to assess the true value and impact of the consulting services.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Contractor is a reputable firm (PwC) with extensive experience in government contracting.
- Awarded under a BPA, indicating a potentially streamlined and efficient procurement process for established needs.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management and general management consulting. This is a significant area of federal spending, with agencies frequently engaging consultants for specialized expertise in areas like financial management, operational efficiency, and regulatory compliance. The market for these services is competitive, with large, established firms often securing major government contracts. Benchmarks for similar consulting services vary widely based on scope, duration, and the specific expertise required.
Small Business Impact
This contract was not set aside for small businesses, as indicated by the 'ss' field being false. The prime contractor, PricewaterhouseCoopers LLP, is a large firm. There is no explicit information provided regarding subcontracting plans or goals for small businesses within this specific award. Therefore, the direct impact on the small business ecosystem from this particular contract is likely minimal, unless PwC actively engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Treasury. As a Time and Materials contract, rigorous monitoring of hours and costs against the scope of work would be essential. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Management and Consulting Services
- Financial Management Support
- Internal Controls
- Administrative Support Services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Broad service description may limit assessment of specific value delivered.
- Lack of explicit small business subcontracting goals.
Tags
management-consulting, internal-controls, department-of-the-treasury, pricewaterhousecoopers-llp, time-and-materials, full-and-open-competition, blanket-purchase-agreement, administrative-management, district-of-columbia, professional-services, federal-agency, consulting-services
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $18.6 million to PRICEWATERHOUSECOOPERS LLP. INTERNAL CONTROL SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is PRICEWATERHOUSECOOPERS LLP.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Departmental Offices).
What is the total obligated amount?
The obligated amount is $18.6 million.
What is the period of performance?
Start: 2010-01-23. End: 2012-03-31.
What specific internal control functions did PricewaterhouseCoopers LLP provide under this contract?
The provided data indicates the contract falls under NAICS code 541611 (Administrative Management and General Management Consulting Services) and the description is 'INTERNAL CONTROL SUPPORT SERVICES'. While specific deliverables are not detailed, this typically encompasses a range of activities such as assessing the design and effectiveness of internal control systems, identifying control deficiencies, recommending remediation strategies, assisting with the implementation of new or revised controls, and potentially providing training to agency personnel on control best practices. The Time and Materials (T&M) pricing suggests that the scope may have been flexible or evolved over the contract's duration, with payment based on the effort expended by PwC's consultants.
How does the $18.6 million contract value compare to other federal spending on similar consulting services?
Comparing the $18.6 million value requires context regarding the contract's duration and scope. This contract spanned approximately 2.5 years (January 2010 to March 2012). Federal spending on management and consulting services is substantial, often in the tens of billions annually across all agencies. For a single contract of this nature, $18.6 million is a significant but not extraordinary amount, especially considering the engagement of a large, reputable firm like PwC. Benchmarking would ideally involve comparing it to other contracts for internal control support or general management consulting awarded during the same period to similar-sized agencies or for comparable durations and service complexities.
What are the primary risks associated with a Time and Materials (T&M) contract for internal control support?
The primary risk with T&M contracts, including this one for internal control support, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements do not have a ceiling on the total cost, as payment is based on the actual hours worked by contractor personnel and the cost of materials used. This can lead to the government paying more than anticipated if the project scope is not well-defined, if contractor efficiency is low, or if there is scope creep. Effective oversight, detailed tracking of labor hours, and clear task definitions are crucial to mitigate these risks and ensure the government receives good value for its investment.
What was the track record of PricewaterhouseCoopers LLP with the Department of the Treasury prior to this award?
PricewaterhouseCoopers LLP (PwC) is a major global professional services firm with extensive experience providing a wide array of services, including consulting, to government agencies. While the specific data provided does not detail PwC's prior contract history with the Department of the Treasury, it is highly probable that a firm of this caliber had existing relationships and prior contracts with the agency, potentially for similar or related services. Agencies often award contracts to vendors with a proven track record and established understanding of their operational environment. A deeper dive into federal procurement databases would likely reveal a history of awards to PwC from Treasury and other federal entities.
How effective were the internal control support services provided by PwC in improving Treasury's control environment?
Assessing the effectiveness of the internal control support services provided by PwC under this specific $18.6 million contract is not possible with the data provided. Effectiveness would typically be measured through post-contract reviews, audits, or subsequent assessments of the agency's internal control posture. Key indicators might include a reduction in identified control deficiencies, improved audit findings, successful implementation of recommended controls, and enhanced compliance with relevant regulations (e.g., the Federal Managers' Financial Integrity Act). Without access to performance reports or follow-on assessments, the direct impact and value derived from PwC's services remain qualitative.
What is the historical spending trend for internal control support services at the Department of the Treasury?
The provided data only pertains to a single contract awarded in 2010. To understand the historical spending trend for internal control support services at the Department of the Treasury, a comprehensive analysis of procurement data over multiple fiscal years would be necessary. This would involve identifying all contracts awarded for similar services (e.g., under NAICS 541611 or related codes) to various contractors. Analyzing these trends would reveal whether spending in this area is increasing, decreasing, or remaining stable, and whether the Treasury relies consistently on external support for internal controls or if needs fluctuate significantly.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1800 TYSON BLVD 9TH FL, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership
Financial Breakdown
Contract Ceiling: $28,497,461
Exercised Options: $19,456,060
Current Obligation: $18,636,089
Parent Contract
Parent Award PIID: T2009TARP0001
IDV Type: BPA
Timeline
Start Date: 2010-01-23
Current End Date: 2012-03-31
Potential End Date: 2015-09-04 00:00:00
Last Modified: 2017-03-16
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