DOJ's $775K FY26 IREO Services Contract Awarded to Ernst & Young LLP

Contract Overview

Contract Amount: $774,889 ($774.9K)

Contractor: Ernst & Young LLP

Awarding Agency: Department of Justice

Start Date: 2026-03-31

End Date: 2027-03-30

Contract Duration: 364 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FY26 IREO A-123 SERVICES FOR DOJ IMPLEMENTATION AND COMPLIANCE

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10001

State: New York Government Spending

Plain-Language Summary

Department of Justice obligated $774,888.59 to ERNST & YOUNG LLP for work described as: FY26 IREO A-123 SERVICES FOR DOJ IMPLEMENTATION AND COMPLIANCE Key points: 1. Contract focuses on implementation and compliance for DOJ's IREO. 2. Ernst & Young LLP is the sole awardee. 3. The contract is for a duration of 364 days. 4. Spending is categorized under Offices of Certified Public Accountants (NAICS 541211).

Value Assessment

Rating: fair

The contract value of $774,888.59 for a 364-day duration appears reasonable for specialized implementation and compliance services. Benchmarking against similar government contracts for professional accounting and consulting services would provide a clearer assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to promote price discovery and potentially secure a fair market price for the services rendered.

Taxpayer Impact: Taxpayer funds are being used for essential government operational support. The competitive award process aims to ensure efficient use of these funds.

Public Impact

Ensures DOJ's compliance with federal regulations and implementation of key initiatives. Supports the operational efficiency of the Offices, Boards and Divisions within DOJ. Leverages specialized accounting and consulting expertise for critical government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope expands beyond initial estimates.
Dependence on a single contractor for critical services.
Limited visibility into specific deliverables and performance metrics.

Positive Signals

Awarded through full and open competition.
Addresses a clear need for specialized compliance and implementation services.
Contract duration aligns with the scope of work.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and auditing services. Government spending in this area often supports regulatory compliance, financial management, and system implementation projects.

Small Business Impact

The contract was awarded to Ernst & Young LLP, a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.

Oversight & Accountability

Standard oversight mechanisms for federal contracts will apply. The Department of Justice is responsible for monitoring performance and ensuring compliance with contract terms and conditions.

Related Government Programs

Offices of Certified Public Accountants
Department of Justice Contracting
Offices, Boards and Divisions Programs

Risk Flags

Time and Materials contract type can lead to cost overruns.
No explicit small business participation noted.
Potential for vendor lock-in if services are highly specialized.
Limited duration may require follow-on contracts for sustained needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $774,888.59 to ERNST & YOUNG LLP. FY26 IREO A-123 SERVICES FOR DOJ IMPLEMENTATION AND COMPLIANCE

Who is the contractor on this award?

The obligated recipient is ERNST & YOUNG LLP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $774,888.59.

What is the period of performance?

Start: 2026-03-31. End: 2027-03-30.

What specific implementation and compliance initiatives does IREO encompass, and how will these services directly benefit the DOJ's mission?

The IREO (Information Resources Executive Order) likely refers to initiatives related to managing and securing federal information resources, aligning with executive orders on cybersecurity and data management. These services are crucial for ensuring the DOJ adheres to federal mandates, protects sensitive data, and maintains operational integrity, ultimately supporting its core mission of enforcing laws and administering justice.

What are the key performance indicators (KPIs) for this contract, and how will Ernst & Young LLP's performance be measured to ensure effective service delivery?

Key performance indicators would typically include metrics related to timely completion of milestones, adherence to budget, quality of deliverables (e.g., compliance reports, implementation plans), and responsiveness to DOJ requests. Performance will likely be measured through regular progress reviews, acceptance of deliverables by the Contracting Officer's Representative (COR), and potentially through contractor performance assessment reporting (CPARs).

Given the time and materials (T&M) contract type, what measures are in place to control costs and prevent scope creep over the 364-day period?

While T&M contracts offer flexibility, they carry inherent cost risks. The DOJ should have established not-to-exceed (NTE) limits within the contract, require detailed timesheets and expense reports, and implement a robust change control process to manage any proposed scope adjustments. Regular budget reviews and close monitoring by the COR are essential to mitigate cost overruns and scope creep.

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

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1 MANHATTAN WEST, NEW YORK, NY, 10001

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

Financial Breakdown

Contract Ceiling: $1,464,575

Exercised Options: $1,464,575

Current Obligation: $774,889

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 15JPSS20A00000060

IDV Type: BPA

Timeline