State Dept. Awards $174.8M Contract to FTI Consulting for Accounting Services

Contract Overview

Contract Amount: $174,881 ($174.9K)

Contractor: FTI Consulting, Inc.

Awarding Agency: Department of State

Start Date: 2024-09-09

End Date: 2026-09-30

Contract Duration: 751 days

Daily Burn Rate: $233/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ---------- COMMENTS: APPROVED. JES CO: PATRICK A REILLY COR: MATTHEW T ROY FULLY APPROVED ROBO RFCA IS ATTACHED. IT REQUEST STATUS: FALSE

Plain-Language Summary

Department of State obligated $174,881 to FTI CONSULTING, INC. for work described as: ---------- COMMENTS: APPROVED. JES CO: PATRICK A REILLY COR: MATTHEW T ROY FULLY APPROVED ROBO RFCA IS ATTACHED. IT REQUEST STATUS: FALSE Key points: 1. FTI Consulting secured a significant contract valued at $174.8 million. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The primary risk appears to be the long duration of the contract (751 days). 4. The sector is professional services, specifically accounting and financial consulting.

Value Assessment

Rating: good

The contract value of $174.8 million for 751 days suggests a substantial engagement. Benchmarking against similar large-scale professional services contracts would be necessary for a precise pricing assessment, but the value appears reasonable for a firm-fixed-price delivery order of this scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting multiple bidders participated. This method generally leads to better price discovery and potentially more favorable pricing for the government compared to limited or sole-source procurements.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a fair market price for the accounting services.

Public Impact

Taxpayers benefit from a competitive bidding process for essential accounting services. The Department of State will receive professional accounting support to ensure financial integrity. FTI Consulting's role highlights the importance of specialized firms in government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 751 days may lead to scope creep or evolving needs.
Reliance on a single vendor for a large sum could pose a risk if performance issues arise.

Positive Signals

Awarded via full and open competition.
Firm fixed price contract provides cost certainty.
Clear delivery order structure.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and financial consulting. Government spending in this area is crucial for financial management, auditing, and compliance. Benchmarks for similar contracts would typically consider the complexity of services and the duration.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides or participation. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The contract mentions 'ROBO RFCA IS ATTACHED,' suggesting that internal review and approval processes, including risk and compliance assessments, have been completed. Oversight will be crucial to ensure FTI Consulting meets performance expectations throughout the contract term.

Related Government Programs

Offices of Certified Public Accountants
Department of State Contracting
Department of State Programs

Risk Flags

Long contract duration (751 days).
Potential for evolving requirements over the contract period.
Reliance on a single vendor for a substantial amount.
Need for rigorous performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $174,881 to FTI CONSULTING, INC.. ---------- COMMENTS: APPROVED. JES CO: PATRICK A REILLY COR: MATTHEW T ROY FULLY APPROVED ROBO RFCA IS ATTACHED. IT REQUEST STATUS: FALSE

Who is the contractor on this award?

The obligated recipient is FTI CONSULTING, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $174,881.

What is the period of performance?

Start: 2024-09-09. End: 2026-09-30.

What specific accounting services are included in this $174.8 million contract, and how do they align with the Department of State's core mission requirements?

The provided data identifies the NAICS code as 541211 (Offices of Certified Public Accountants), indicating core accounting services. However, the specific deliverables, scope of work, and alignment with the Department of State's mission are not detailed. Further documentation would be required to understand the precise nature of the services, such as financial statement preparation, auditing, forensic accounting, or advisory services, and how they directly support diplomatic and foreign policy objectives.

Given the 751-day duration, what mechanisms are in place to manage potential cost overruns or scope creep, especially under a firm fixed-price contract?

While a firm fixed-price contract aims to control costs, a long duration like 751 days inherently carries risks. The government likely has contract clauses for managing scope changes, requiring formal modification approvals. Performance monitoring by the contracting officer's representative (COR) is critical to ensure adherence to the original scope and to identify any potential issues early. Robust change control processes are essential to prevent unmanaged scope creep.

How does the pricing structure for this contract compare to industry benchmarks for similar large-scale accounting and financial consulting services provided to federal agencies?

Without detailed service descriptions and labor categories, a precise benchmark is difficult. However, the $174.8 million value over approximately two years suggests a significant engagement. The firm fixed-price nature provides cost certainty, but the government must ensure the initial price reflects fair market value. Comparing FTI's proposed rates and total price against government cost-benefit analyses or historical data for comparable services is key to assessing value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 555 12TH STREET NORTH WEST, WASHINGTON, DC, 20004

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $174,881

Exercised Options: $174,881

Current Obligation: $174,881

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS23F0455P

IDV Type: FSS

Timeline