HHS awards $381.6M contract for tax and relocation support to KPMG LLP

Contract Overview

Contract Amount: $381,645 ($381.6K)

Contractor: Kpmg LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2022-04-16

End Date: 2027-04-15

Contract Duration: 1,825 days

Daily Burn Rate: $209/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NONRESIDENT ALIEN TAX & RELOCATION SUPPORT SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $381,644.93 to KPMG LLP for work described as: NONRESIDENT ALIEN TAX & RELOCATION SUPPORT SERVICES Key points: 1. Contract provides essential support for non-resident alien tax and relocation. 2. KPMG LLP, a large professional services firm, is the awardee. 3. The contract duration is 5 years, indicating a long-term need. 4. This award falls under the Offices of Certified Public Accountants NAICS code. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The award was made via Full and Open Competition, suggesting broad market access.

Value Assessment

Rating: fair

The total award amount of $381.6 million over five years for tax and relocation support services appears substantial. Benchmarking this against similar contracts for comprehensive relocation and tax advisory services for federal agencies is difficult without more specific service details. However, given the duration and scope, the pricing will need careful monitoring, especially under a Time and Materials contract, to ensure value for money. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through Full and Open Competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings. The open competition suggests that the government sought the best value from the widest possible pool of qualified contractors.

Taxpayer Impact: Full and Open Competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions, potentially leading to cost savings and improved service delivery.

Public Impact

Benefits non-resident aliens working with or for the CDC by facilitating their tax compliance and relocation. Ensures the Centers for Disease Control and Prevention (CDC) can effectively manage its international workforce. Supports the operational needs of a key federal health agency. May involve workforce support in Georgia, where the award is noted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
The substantial award amount requires diligent oversight to ensure cost-effectiveness.
Lack of specific performance metrics in the provided data makes outcome assessment difficult.

Positive Signals

Awarded through Full and Open Competition, suggesting a competitive process.
Long-term contract (5 years) indicates a stable and ongoing need for these critical services.
KPMG LLP is a well-established firm with significant experience in professional services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to accounting and tax preparation services (NAICS 541211). This sector is crucial for government operations, providing specialized expertise that agencies often cannot maintain in-house. The market for such services is competitive, with large firms like KPMG playing a significant role. Government spending in this area supports compliance, efficiency, and specialized operational needs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large contract awarded to a major firm, there may be opportunities for small businesses to participate as subcontractors if KPMG chooses to engage them for specific components of the service delivery.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program officials within the Centers for Disease Control and Prevention (CDC). As a Time and Materials contract, rigorous monitoring of labor hours and costs is essential. Transparency would be enhanced through regular reporting requirements and potential reviews by the HHS Office of Inspector General, particularly concerning the expenditure of federal funds.

Related Government Programs

Federal Relocation Assistance Programs
Tax Compliance Services for Federal Employees
Global Mobility Services Contracts
Professional Services for Public Health Agencies

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust oversight to ensure value for money over the 5-year term.
Complexity of international tax laws and relocation logistics presents inherent challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $381,644.93 to KPMG LLP. NONRESIDENT ALIEN TAX & RELOCATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is KPMG LLP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $381,644.93.

What is the period of performance?

Start: 2022-04-16. End: 2027-04-15.

What is KPMG LLP's track record with federal government contracts, particularly for similar services?

KPMG LLP is a major professional services firm with extensive experience contracting with the U.S. federal government across various agencies and service areas. They frequently secure contracts related to financial management, audit, tax advisory, and consulting services. While specific details on their past performance for 'non-resident alien tax and relocation support' are not provided here, their general track record suggests a capacity to handle large, complex federal engagements. A deeper dive into their contract history, including past performance evaluations and any reported issues, would be necessary for a comprehensive assessment. However, their status as a 'Big Four' accounting firm implies a robust infrastructure and established processes for government contracting.

How does the $381.6 million award compare to historical spending on similar services by the CDC or other agencies?

Without specific historical data on 'non-resident alien tax and relocation support services' for the CDC or comparable agencies, a direct comparison is challenging. However, $381.6 million over five years ($76.3 million annually on average) represents a significant investment. Large federal agencies often engage professional services firms for specialized functions like global mobility and tax compliance, especially for international personnel. The cost is likely influenced by the volume of non-resident aliens supported, the complexity of tax regulations, and the scope of relocation assistance. Benchmarking against contracts for broader HR consulting or international employee support services could provide some context, but the specific nature of tax and relocation for non-residents is a niche area.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk with a Time and Materials contract of this magnitude ($381.6 million) is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or increased labor hours if not meticulously managed and overseen. For the government, risks include difficulty in predicting the final cost, potential for inefficient performance if oversight is lax, and the need for robust tracking and auditing mechanisms to ensure that billed hours and materials are reasonable and necessary for the work performed. Effective contract administration and clear performance standards are crucial to mitigate these risks.

How effective is the 'Full and Open Competition' process likely to be in ensuring value for money for this specific service?

Full and Open Competition is designed to maximize competition, which generally leads to better value for money by driving down prices and encouraging innovation. For a service like non-resident alien tax and relocation support, which requires specialized expertise, this process allows a wide range of qualified firms to bid. The effectiveness in ensuring value depends on several factors: the clarity of the government's requirements (Performance Work Statement), the evaluation criteria used, the number and quality of bidders, and the government's ability to negotiate favorable terms. If the competition is robust and the government effectively evaluates proposals based on both technical merit and price, it should yield good value. However, the T&M nature of the contract requires ongoing vigilance to ensure costs remain aligned with performance.

What are the potential workforce implications for the CDC or its non-resident alien employees?

This contract directly impacts the non-resident alien workforce by providing essential services that facilitate their employment and integration into the U.S. workforce. It ensures compliance with tax laws and eases the logistical challenges of relocation, which can be significant barriers for international hires. For the CDC, outsourcing these functions allows the agency to focus its internal resources on its core public health mission rather than administrative complexities. It can also enhance the CDC's ability to attract and retain international talent by offering comprehensive support, thereby strengthening its global health initiatives and collaborations.

Are there specific performance metrics or KPIs associated with this contract that are publicly available?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. Typically, such details are outlined in the Performance Work Statement (PWS) or contract clauses, which are often not publicly disclosed in summary data. For a contract of this nature, potential KPIs could include timeliness of tax filing assistance, accuracy of tax advice, efficiency of relocation logistics, client satisfaction rates (both for the agency and the relocated individuals), and adherence to budget. The absence of publicly available metrics makes it difficult to independently assess the contractor's performance and the overall effectiveness of the service delivery.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8350 BROAD ST STE 900, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $656,160

Exercised Options: $381,645

Current Obligation: $381,645

Actual Outlays: $11,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD19DU208

IDV Type: IDC

Timeline