FDIC Information System Audit contract awarded to SIKICH CPA LLC for $3.7M over 5 years

Contract Overview

Contract Amount: $3,725,628 ($3.7M)

Contractor: Sikich CPA LLC

Awarding Agency: Government Accountability Office

Start Date: 2022-05-31

End Date: 2027-03-31

Contract Duration: 1,765 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FINANCIAL MANAGEMENT AND ASSURANCE (FMA) FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) INFORMATION SYSTEM (IS) AUDIT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Government Accountability Office obligated $3.7 million to SIKICH CPA LLC for work described as: FINANCIAL MANAGEMENT AND ASSURANCE (FMA) FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) INFORMATION SYSTEM (IS) AUDIT Key points: 1. Value for money appears reasonable given the specialized nature of federal IT audits. 2. Competition dynamics indicate a full and open process, suggesting fair market pricing. 3. Risk indicators are low, with a firm-fixed-price contract and established contractor. 4. Performance context is within the scope of standard financial management and assurance services. 5. Sector positioning is within the government's IT audit and financial services domain.

Value Assessment

Rating: good

The contract value of $3.7M over approximately 5 years for an IT audit by the FDIC is within a reasonable range for specialized government services. Benchmarking against similar federal IT audit contracts would provide a more precise value-for-money assessment, but the firm-fixed-price structure suggests cost predictability. The award to SIKICH CPA LLC, a firm with experience in accounting and auditing, indicates a potentially good fit for the required services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of four bidders (no=4) suggests a healthy level of competition for this service. This competitive process is expected to drive more competitive pricing and ensure the government receives services at a fair market value.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

The FDIC benefits from independent audits to ensure the integrity of its financial systems. Services delivered include comprehensive audits of the FDIC's Information System. Geographic impact is national, supporting the FDIC's nationwide operations. Workforce implications are minimal, primarily involving the contracted audit firm's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if audit requirements are not clearly defined.
Reliance on contractor expertise for complex IT systems requires careful oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an established firm suggests a lower risk of performance issues.
Full and open competition indicates a robust selection process.

Sector Analysis

The government's need for IT audits is a significant segment within the broader professional services sector. This contract falls under the accounting and auditing services sub-sector, specifically focusing on IT systems. Comparable spending benchmarks for federal IT audits vary widely based on agency size and system complexity, but this contract appears to be of moderate size within this category.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not specified in the provided data. The absence of a set-aside means larger firms were eligible and likely competed.

Oversight & Accountability

Oversight is likely managed by the FDIC's internal audit or financial management departments, with the Government Accountability Office (GAO) providing an additional layer of review, as indicated by the awarding agency (ag='Government Accountability Office') and the statement 'Except Comptroller General'. Transparency is facilitated through public contract databases. Accountability measures are inherent in the firm-fixed-price contract and the potential for GAO review.

Related Government Programs

Federal Information Security Management Act (FISMA) Audits
Financial Statement Audits
IT Security Assessments
Government Auditing Standards

Risk Flags

Potential for contractor performance issues
Risk of inadequate scope definition
Over-reliance on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $3.7 million to SIKICH CPA LLC. FINANCIAL MANAGEMENT AND ASSURANCE (FMA) FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) INFORMATION SYSTEM (IS) AUDIT

Who is the contractor on this award?

The obligated recipient is SIKICH CPA LLC.

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2022-05-31. End: 2027-03-31.

What is the track record of SIKICH CPA LLC in performing federal IT audits?

SIKICH CPA LLC is a large public accounting firm that provides a range of services, including IT audits and cybersecurity. While specific details on their federal IT audit track record are not provided in this data snippet, their engagement by the FDIC suggests they possess the necessary qualifications and experience. A deeper dive into their past performance on similar government contracts, including client feedback and any past performance issues, would be beneficial for a comprehensive assessment. Their presence in the market and the award of this contract imply a level of competence recognized by the awarding agency.

How does the $3.7M contract value compare to similar FDIC IT audit contracts?

Without access to historical FDIC IT audit contract data, a direct comparison is challenging. However, the contract value of $3.7M spread over approximately five years (1765 days duration) suggests an average annual expenditure of around $740,000. This figure needs to be contextualized by the scope and complexity of the FDIC's information systems. For a federal agency of the FDIC's size and importance, this annual spend for comprehensive IT audits appears to be within a reasonable range, especially considering the specialized expertise required. Further analysis would involve comparing this to IT audit spending by peer agencies or previous FDIC contracts of similar scope.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this contract include potential scope creep, where the audit's boundaries expand beyond the initial agreement, leading to cost overruns or delays. Another risk is the reliance on the contractor's expertise, where any deficiencies in their performance could impact the quality of the audit. Mitigation strategies are embedded in the contract structure: the firm-fixed-price (pt='FIRM FIXED PRICE') nature limits cost escalation, and the full and open competition (ct='FULL AND OPEN COMPETITION') process aims to select a highly qualified contractor. Clear statement of work, regular progress reviews, and performance monitoring by the FDIC are crucial for managing these risks effectively.

How effective is the 'full and open competition' approach for ensuring value in federal IT audits?

The 'full and open competition' approach is generally considered the most effective method for ensuring value in federal IT audits. It maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. When multiple qualified firms vie for the contract, they are incentivized to offer their best services at the most competitive rates. The data indicates four bidders (no=4), which suggests a reasonable level of competition. This process allows the government to select the offer that provides the best overall value, considering both price and technical qualifications, rather than simply the lowest bid.

What is the historical spending pattern for FDIC IT audits?

The provided data only details one specific contract award. To understand historical spending patterns for FDIC IT audits, one would need to analyze contract awards over several fiscal years. This would involve querying federal procurement databases for all IT audit contracts awarded by the FDIC, noting the award amounts, contract durations, and awarded contractors. Analyzing this historical data would reveal trends in spending, identify key service providers, and highlight any significant fluctuations in contract values or competition levels over time, providing a richer context for the current contract.

What is the significance of the NAICS code 541211 for this contract?

The North American Industry Classification System (NAICS) code 541211, 'Offices of Certified Public Accountants,' signifies that the primary business activity of the contractor, SIKICH CPA LLC, is providing accounting and auditing services. This code is crucial for categorizing the contract within the federal procurement system and for understanding the type of services being procured. It confirms that the contract is for professional accounting and auditing expertise, which is directly relevant to the FDIC's need for an Information System (IS) Audit. This classification helps in benchmarking the contract against similar services across the government.

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

Solicitation ID: 05GA0A22Q0003

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 333 JOHN CARLYLE ST STE 500, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,725,628

Exercised Options: $3,725,628

Current Obligation: $3,725,628

Actual Outlays: $933,397

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F144CA

IDV Type: FSS

Timeline