SEC's $2.38M IS Audit Contract Awarded to SIKICH CPA LLC Under Full and Open Competition

Contract Overview

Contract Amount: $2,379,764 ($2.4M)

Contractor: Sikich CPA LLC

Awarding Agency: Government Accountability Office

Start Date: 2022-05-09

End Date: 2027-03-31

Contract Duration: 1,787 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FINANCIAL MANAGEMENT AND ASSURANCE (FMA) SECURITIES AND EXCHANGE COMMISSION (SEC) 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 $2.4 million to SIKICH CPA LLC for work described as: FINANCIAL MANAGEMENT AND ASSURANCE (FMA) SECURITIES AND EXCHANGE COMMISSION (SEC) INFORMATION SYSTEM (IS) AUDIT Key points: 1. The contract is for financial management and assurance services for the SEC's Information System. 2. SIKICH CPA LLC was awarded the contract, with the Government Accountability Office (GAO) as the agency. 3. The contract duration is approximately 1787 days, ending March 31, 2027. 4. This is a delivery order under a larger contract, indicating a specific task assignment. 5. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: good

The contract value of $2.38M over nearly 5 years suggests a reasonable price for comprehensive IS audit services. Benchmarking against similar government IT audit contracts would provide a more precise assessment.

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 use of a delivery order suggests this is one of many potential taskings under a broader contract vehicle.

Taxpayer Impact: Full and open competition generally leads to taxpayer savings by fostering a competitive environment among qualified firms.

Public Impact

Ensures the integrity and security of the SEC's financial information systems. Supports regulatory compliance and accountability for the Securities and Exchange Commission. Provides independent assurance on the effectiveness of internal controls over financial reporting. Contributes to public trust in the SEC's financial management practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a long-duration contract.
Reliance on a single firm for critical audit functions.
Ensuring continued relevance of audit scope with evolving IT landscape.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract provides cost predictability.
Experienced auditor (GAO oversight) involved.
Long duration allows for deep understanding of SEC systems.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and auditing for government IT systems. Benchmarks for similar IT audit contracts vary widely based on scope and agency size, but $2.38M for a multi-year engagement is within a typical range for specialized federal IT assurance.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The award to SIKICH CPA LLC, a known firm, suggests it may not be a small business, but further verification would be needed. The contract was awarded under full and open competition.

Oversight & Accountability

The Government Accountability Office (GAO) is involved, suggesting a level of oversight. The firm fixed price contract and delivery order structure also provide some accountability mechanisms. However, ongoing monitoring of performance and deliverables is crucial.

Related Government Programs

Offices of Certified Public Accountants
Government Accountability Office Contracting
GAO, Except Comptroller General Programs

Risk Flags

Potential for audit findings to require significant remediation efforts.
Risk of auditor independence challenges over a long engagement.
Dependence on the contractor's ability to adapt to evolving IT threats.
Ensuring the audit scope remains relevant throughout the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $2.4 million to SIKICH CPA LLC. FINANCIAL MANAGEMENT AND ASSURANCE (FMA) SECURITIES AND EXCHANGE COMMISSION (SEC) 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 $2.4 million.

What is the period of performance?

Start: 2022-05-09. End: 2027-03-31.

What is the specific scope of work for this Information System audit, and how does it align with the SEC's current IT infrastructure and security needs?

The specific scope of work encompasses financial management and assurance for the SEC's Information System. This likely includes assessing the accuracy, completeness, and security of financial data, evaluating internal controls, and ensuring compliance with relevant regulations. The audit's alignment with current IT needs would depend on the detailed Statement of Work (SOW) and any specific risk areas identified by the SEC or GAO.

What are the key performance indicators (KPIs) used to measure the success of SIKICH CPA LLC's audit services, and how are potential risks of audit failure or inadequacy mitigated?

Key performance indicators would likely include timeliness of deliverables, accuracy of findings, adherence to audit standards (e.g., GAAS, GAGAS), and the clarity and actionability of recommendations. Mitigation of risks involves rigorous GAO oversight, clear contract terms, potential for contract termination for cause, and the firm's professional liability insurance.

How does the $2.38M contract value compare to the estimated cost of performing similar IS audits for agencies of comparable size and complexity, and what is the expected return on investment for the S

The $2.38M contract value over nearly five years appears reasonable for comprehensive IS audit services, especially given the full and open competition. The return on investment is primarily in enhanced financial integrity, reduced risk of fraud or data breaches, improved operational efficiency, and strengthened public trust, which are difficult to quantify but essential for regulatory bodies like the SEC.

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: 05GA0A22Q0002

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: $2,379,764

Exercised Options: $2,379,764

Current Obligation: $2,379,764

Actual Outlays: $816,602

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $114,765

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F144CA

IDV Type: FSS

Timeline