Treasury's $60.5M Financial Auditing Contract with KPMG LLP: A Decade of Service
Contract Overview
Contract Amount: $60,543,604 ($60.5M)
Contractor: Kpmg LLP
Awarding Agency: Department of the Treasury
Start Date: 2005-01-31
End Date: 2010-05-31
Contract Duration: 1,946 days
Daily Burn Rate: $31.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: FINANCIAL AUDITING SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036, UNITED STATES OF AMERICA
Plain-Language Summary
Department of the Treasury obligated $60.5 million to KPMG LLP for work described as: FINANCIAL AUDITING SERVICES Key points: 1. The contract, valued at $60.5 million, was awarded to KPMG LLP for financial auditing services. 2. This represents a significant expenditure in the professional services sector, specifically for accounting and auditing. 3. The duration of the contract (2005-2010) suggests a long-term engagement for critical financial oversight. 4. The use of Time and Materials pricing could lead to cost variability, warranting close monitoring.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure, while flexible, can make precise cost benchmarking difficult. Without specific per-unit data, it's challenging to definitively assess if the $60.5M over five years was optimal compared to fixed-price alternatives for similar large-scale auditing engagements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, indicating multiple bids were likely considered. This method generally promotes price discovery and competition, suggesting the initial pricing was deemed reasonable at the time of award.
Taxpayer Impact: Taxpayer funds were utilized for essential financial auditing services, contributing to government accountability and transparency.
Public Impact
Ensures financial integrity and accountability within the Department of the Treasury. Supports regulatory compliance and the accurate reporting of government finances. Provides essential services that underpin public trust in financial management.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration may not reflect current market rates or evolving needs.
Positive Signals
- Competitive award process.
- Essential service for government financial oversight.
Sector Analysis
This contract falls under professional services, specifically accounting and auditing (NAICS 541211). Government spending in this sector is crucial for maintaining financial controls and compliance. Benchmarks for similar large-scale federal auditing contracts would typically consider the complexity, duration, and specific requirements of the audit.
Small Business Impact
The data indicates the award was made to KPMG LLP, a large, established firm. There is no explicit indication of small business participation in this specific contract, suggesting opportunities for small businesses in this service area may be limited or were not prioritized for this particular award.
Oversight & Accountability
As a delivery order under a larger contract, oversight would likely involve the Bureau of the Fiscal Service. The long duration necessitates ongoing monitoring to ensure performance standards are met and costs remain justified.
Related Government Programs
- Offices of Certified Public Accountants
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Time and Materials pricing
- Long contract duration
- Lack of specific performance metrics in summary data
- No indication of small business subcontracting
Tags
offices-of-certified-public-accountants, department-of-the-treasury, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $60.5 million to KPMG LLP. FINANCIAL AUDITING SERVICES
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $60.5 million.
What is the period of performance?
Start: 2005-01-31. End: 2010-05-31.
What was the average annual cost per auditor or audit engagement under this contract?
Without detailed breakdowns of hours and rates, calculating an average annual cost per auditor or engagement is not possible from the provided data. The Time and Materials structure means costs fluctuated based on actual effort expended, making a fixed per-unit benchmark difficult to establish retrospectively.
Were there any performance issues or cost variances reported during the contract's five-year term?
The provided data does not contain information on performance issues or cost variances. Further investigation into contract performance reports, payment histories, and any contract modification documentation would be necessary to assess these aspects.
How did the final cost compare to initial estimates or the bids received?
The data does not include initial cost estimates or a comparison of the final cost against submitted bids. While the award was competitive, the total expenditure of $60.5M needs to be evaluated against the specific terms and pricing structure agreed upon during the bidding process.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: RFQ-05-002
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kpmg L.L.P. (UEI: 001667906)
Address: 2001 M ST NW, WASHINGTON, DC, 20036
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $70,015,052
Exercised Options: $65,716,292
Current Obligation: $60,543,604
Parent Contract
Parent Award PIID: GS23F8127H
IDV Type: FSS
Timeline
Start Date: 2005-01-31
Current End Date: 2010-05-31
Potential End Date: 2010-05-31 00:00:00
Last Modified: 2015-04-01
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