HUD Financial Audit Support Contract Awarded to SIKICH CPA LLC for $8.58M

Contract Overview

Contract Amount: $8,578,486 ($8.6M)

Contractor: Sikich CPA LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-08-29

End Date: 2027-01-14

Contract Duration: 868 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HUD CONSOLIDATED, GINNIE MAE, AND FHA FINANCIAL STATEMENT AUDIT SUPPORT SERVICES REPLACEMENT CONTRACT FOR TO: GS-00F-279DA/20342823F00013

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $8.6 million to SIKICH CPA LLC for work described as: HUD CONSOLIDATED, GINNIE MAE, AND FHA FINANCIAL STATEMENT AUDIT SUPPORT SERVICES REPLACEMENT CONTRACT FOR TO: GS-00F-279DA/20342823F00013 Key points: 1. Contract awarded to SIKICH CPA LLC for financial statement audit support. 2. The contract is a replacement for existing services, indicating a need for continuity. 3. The award value is $8.58 million over its period of performance. 4. The service is categorized under 'Other Accounting Services' (NAICS 541219).

Value Assessment

Rating: good

The contract value of $8.58M for approximately 2.8 years of service appears reasonable for specialized financial audit support. Benchmarking against similar large-scale government audit contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple qualified vendors can bid.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.

Public Impact

Ensures continued financial integrity and audit compliance for HUD, Ginnie Mae, and FHA. Supports critical government functions related to housing finance and mortgage insurance. Provides essential services for maintaining public trust in federal financial reporting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this is a sole-source replacement.
Dependence on a single firm for critical audit functions.
Risk of cost overruns if scope expands beyond initial estimates.

Positive Signals

Awarded via full and open competition.
Firm Fixed Price contract type limits cost uncertainty.
Experienced vendor likely to provide quality services.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and auditing. Government spending in this area is crucial for regulatory compliance and financial oversight, with benchmarks varying widely based on contract scope and duration.

Small Business Impact

The contract was awarded through full and open competition and the prime contractor is SIKICH CPA LLC, which is not explicitly identified as a small business. There is no indication of small business subcontracting goals in the provided data.

Oversight & Accountability

The contract is managed by the Bureau of the Fiscal Service under the Department of the Treasury, indicating established oversight mechanisms. The firm fixed price structure provides some cost control, but ongoing monitoring of performance and deliverables is essential.

Related Government Programs

Other Accounting Services
Department of the Treasury Contracting
Bureau of the Fiscal Service Programs

Risk Flags

Potential for scope creep
Reliance on a single vendor for critical services
Need for robust performance monitoring
Ensuring continued compliance with audit standards

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $8.6 million to SIKICH CPA LLC. HUD CONSOLIDATED, GINNIE MAE, AND FHA FINANCIAL STATEMENT AUDIT SUPPORT SERVICES REPLACEMENT CONTRACT FOR TO: GS-00F-279DA/20342823F00013

Who is the contractor on this award?

The obligated recipient is SIKICH CPA LLC.

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 $8.6 million.

What is the period of performance?

Start: 2024-08-29. End: 2027-01-14.

What is the specific scope of work for these audit support services, and how does it compare to previous contracts?

The scope of work likely includes providing independent audit services for the consolidated financial statements of HUD, Ginnie Mae, and FHA. This replacement contract suggests a need for updated or enhanced support compared to the previous arrangement. A detailed review of the PWS would clarify specific tasks, deliverables, and performance metrics, allowing for a comparison to assess if the new contract offers improved value or addresses identified shortcomings.

What are the key performance indicators (KPIs) for this contract, and how will SIKICH CPA LLC's performance be measured?

Key performance indicators would typically include timeliness of audit report delivery, accuracy of findings, adherence to professional standards, and responsiveness to agency inquiries. Performance will likely be measured through regular progress reports, client feedback, and formal evaluations at contract milestones. The agency's contract officer and technical representatives will monitor these KPIs to ensure the contractor meets all requirements and provides high-quality audit support.

How does the pricing structure ensure cost-effectiveness for taxpayers over the contract's duration?

The Firm Fixed Price (FFP) contract type is designed to provide cost certainty for the government. This means SIKICH CPA LLC assumes the risk of cost overruns. The pricing was determined through a competitive bidding process, which should have yielded a fair market price. However, ongoing vigilance is needed to ensure the scope remains controlled and that the services delivered provide the expected value for the $8.58 million investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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: 20342324Q00013

Offers Received: 2

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

Financial Breakdown

Contract Ceiling: $25,015,317

Exercised Options: $13,487,582

Current Obligation: $8,578,486

Actual Outlays: $7,575,614

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $3,292,345

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F279DA

IDV Type: FSS

Timeline