DHS awards $15M in accounting services, with 2 bids received for transportation audit needs

Contract Overview

Contract Amount: $14,986 ($15.0K)

Contractor: Auditech & Associates Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-02-18

End Date: 2026-02-17

Contract Duration: 1,825 days

Daily Burn Rate: $8/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRANSPORTATION AUDIT SERVICES

Place of Performance

Location: HIGH POINT, GUILFORD County, NORTH CAROLINA, 27265

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14,986.3 to AUDITECH & ASSOCIATES INC for work described as: TRANSPORTATION AUDIT SERVICES Key points: 1. Contract value of $14.99 million for transportation audit services. 2. Services are provided by AUDITECH & ASSOCIATES INC. 3. Contract duration spans 5 years, from February 2021 to February 2026. 4. The contract was awarded under full and open competition. 5. The North Carolina-based firm will provide services to U.S. Customs and Border Protection. 6. This contract falls under the 'Other Accounting Services' NAICS code.

Value Assessment

Rating: good

The contract value of $14.99 million for five years of transportation audit services appears reasonable given the scope. Benchmarking against similar large-scale audit contracts is challenging without more specific service details. However, the fixed-price nature of the contract suggests that the government has a clear understanding of the expected costs, which can lead to better value if the contractor performs efficiently. The number of bids received (2) indicates some level of market interest, but a higher number could potentially drive prices lower.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, but specific exclusions may have been applied. Two bids were received, suggesting a moderate level of competition. While two bidders are better than one, a more robust competition with a larger number of offers could have potentially led to more aggressive pricing and a wider range of innovative solutions.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, but there may be missed opportunities for even greater savings or enhanced service offerings that a more competitive environment could have fostered.

Public Impact

Benefits U.S. Customs and Border Protection by ensuring the integrity of transportation-related financial activities. Delivers essential audit services to support the agency's oversight of transportation assets and operations. Services are likely concentrated within the operational areas of CBP, with potential national implications for financial accountability. Supports a specialized professional services workforce in the accounting and auditing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may not have secured the absolute best price for taxpayers.
The 'exclusion of sources' clause warrants further investigation to understand its impact on competition.
Performance metrics and quality assurance details are not readily available, making it hard to assess contractor performance risks.

Positive Signals

Awarded under full and open competition, ensuring a broad market was considered.
Fixed-price contract type provides cost certainty for the government.
Long-term contract (5 years) offers stability and continuity for essential audit services.
The contractor, AUDITECH & ASSOCIATES INC, is established and likely has relevant experience.

Sector Analysis

The accounting and auditing services sector is a critical component of government operations, ensuring financial accountability and compliance. This contract, valued at $14.99 million over five years, fits within the broader category of professional services procured by federal agencies. Comparable spending in this sector can vary widely based on agency size and specific needs, but this contract represents a significant investment in specialized audit capabilities for transportation-related functions within DHS.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Customs and Border Protection's contracting and financial management offices. The fixed-price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency is facilitated by the contract award notice, but detailed performance reports or Inspector General audits related to this specific contract are not publicly detailed here. The contract duration and value suggest it would be subject to standard federal procurement oversight.

Related Government Programs

Federal Audit Services
Transportation Logistics Management
Government Financial Oversight
Department of Homeland Security Procurement

Risk Flags

Limited Competition
Potential for Unjustified Source Exclusion
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14,986.3 to AUDITECH & ASSOCIATES INC. TRANSPORTATION AUDIT SERVICES

Who is the contractor on this award?

The obligated recipient is AUDITECH & ASSOCIATES INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $14,986.3.

What is the period of performance?

Start: 2021-02-18. End: 2026-02-17.

What is the specific nature of the 'transportation audit services' being provided under this contract?

The contract specifies 'TRANSPORTATION AUDIT SERVICES' under NAICS code 541219 (Other Accounting Services). While the exact scope is not detailed in the provided data, these services likely involve reviewing financial records, compliance with regulations, and operational efficiency related to the transportation assets and logistics managed by U.S. Customs and Border Protection. This could include audits of fuel consumption, maintenance costs, carrier contracts, customs brokerage fees, and inventory management for transportation-related goods. The goal is to ensure fiscal responsibility, identify potential waste or fraud, and improve the effectiveness of CBP's transportation operations.

How does the pricing of this contract compare to similar federal audit service contracts?

Direct price comparison is difficult without knowing the specific deliverables and service levels. However, a $15 million contract over five years averages $3 million annually. This figure needs to be contextualized by the size and complexity of CBP's transportation operations. Generally, federal audit services can range significantly in cost. Contracts for broad financial statement audits might be higher, while specialized, targeted audits could be lower. The fact that only two bids were received suggests the market for this specific niche might be limited, potentially impacting price competitiveness. Further analysis would require benchmarking against contracts with similar scope and duration for agencies of comparable size and complexity.

What are the primary risks associated with this contract for the government?

The primary risks include potential underperformance by the contractor, leading to incomplete or inaccurate audits that could mask financial irregularities or inefficiencies. Given the limited competition (two bidders), there's a risk that the government did not secure the most cost-effective solution. Another risk is scope creep, where the services required expand beyond the initial agreement, potentially increasing costs if not managed carefully under the fixed-price structure. Finally, reliance on a single contractor for five years could pose a risk if the contractor's capabilities diminish or if unforeseen regulatory changes necessitate different audit approaches not covered by the current contract.

What is the track record of AUDITECH & ASSOCIATES INC with federal contracts?

Information on AUDITECH & ASSOCIATES INC's specific track record with federal contracts is not provided in the data snippet. To assess their reliability, one would need to examine their past performance on similar government contracts, including client feedback, any history of contract disputes or terminations, and their ability to meet deadlines and quality standards. A review of the Federal Procurement Data System (FPDS) or other government contracting databases would be necessary to gather this information and evaluate their past performance in delivering accounting and auditing services.

How does the $15 million award compare to historical spending on transportation audit services by DHS or CBP?

Without historical spending data specifically for transportation audit services at DHS or CBP, a direct comparison is not possible. This $15 million award over five years represents a significant, ongoing investment in this function. To understand if this is an increase or decrease in spending, one would need to analyze prior fiscal years' obligations for similar services. Factors such as changes in agency size, regulatory requirements, or audit priorities could influence historical spending patterns. This current award suggests a sustained or potentially increased focus on auditing transportation-related finances within CBP.

What does the 'exclusion of sources' in the competition type imply for taxpayer value?

The 'full and open competition after exclusion of sources' designation implies that while the solicitation was broadly advertised, certain potential bidders were intentionally excluded. The reasons for exclusion are not specified but could be due to specific qualifications, past performance issues, or the nature of the services requiring specialized expertise. If the exclusions were justified and based on objective criteria necessary for the service, it could lead to a more focused competition among highly qualified firms, potentially resulting in better quality. However, if the exclusions were overly restrictive or arbitrary, it could limit competition, potentially leading to higher prices and reduced value for taxpayers.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2207 EASTCHESTER DR, HIGH POINT, NC, 27265

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,986

Exercised Options: $14,986

Current Obligation: $14,986

Actual Outlays: $9,131

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS23F0087W

IDV Type: FSS

Timeline