KPMG LLP awarded $218M contract by Ex-Im Bank for accounting services, highlighting significant federal investment in financial oversight

Contract Overview

Contract Amount: $218,136 ($218.1K)

Contractor: Kpmg LLP

Awarding Agency: Export-Import Bank of the United States

Start Date: 2025-03-10

End Date: 2026-03-09

Contract Duration: 364 days

Daily Burn Rate: $599/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STRANDED ASSETS REVIEW

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Export-Import Bank of the United States obligated $218,135.74 to KPMG LLP for work described as: STRANDED ASSETS REVIEW Key points: 1. The contract value represents a substantial commitment to specialized accounting and financial advisory services. 2. Full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The fixed-price nature of the contract provides cost certainty for the agency. 4. The duration of one year with a single delivery order indicates a focused scope of work. 5. The contract's focus on accounting services aligns with the agency's mission of facilitating U.S. exports. 6. The geographic location in Washington D.C. is typical for federal agency contracting.

Value Assessment

Rating: good

The contract value of $218.1 million for a one-year term for accounting services appears to be within a reasonable range for large-scale federal engagements of this nature. Benchmarking against similar contracts for comprehensive financial advisory and accounting services for federal agencies of the Export-Import Bank's size and scope would provide a more precise value-for-money assessment. However, given the firm fixed-price structure, the agency has established cost certainty for the duration of the contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to drive down costs and improve the quality of services offered. The agency's decision to use full and open competition suggests confidence in the market's ability to meet its needs effectively.

Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower prices and higher quality services, as multiple firms vie for the contract. This process ensures that federal funds are utilized efficiently by selecting the most cost-effective and capable provider.

Public Impact

The Export-Import Bank of the United States benefits directly by receiving essential accounting and financial advisory services. This contract supports the agency's mission to promote and facilitate the export of U.S. goods and services. The services delivered will likely enhance the bank's financial reporting, compliance, and operational efficiency. The primary impact is on the internal operations and financial integrity of the Ex-Im Bank, rather than direct public services or broad geographic reach.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'STRANDED ASSETS REVIEW' is more complex than initially defined.
Reliance on a single large contractor (KPMG LLP) could limit flexibility if needs change rapidly.
The fixed-price nature might disincentivize innovation or going 'above and beyond' if not explicitly detailed in the SOW.

Positive Signals

Award to a well-established firm (KPMG LLP) suggests a high likelihood of successful delivery and adherence to standards.
The firm fixed-price contract provides budget predictability for the agency.
Full and open competition indicates a thorough vetting process and likely competitive pricing.

Sector Analysis

The accounting and auditing services sector is a critical component of the federal government's operational infrastructure, ensuring financial accountability and compliance. This contract falls within the professional services category, specifically targeting certified public accounting firms. The market for these services is mature, with several large, established firms capable of handling complex federal requirements. The $218 million award is significant and reflects the scale of financial operations at the Export-Import Bank, which requires specialized expertise for its international trade finance activities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false' and 'sb: false'. The award to a large firm like KPMG LLP suggests that the primary focus was on specialized expertise and capacity rather than small business participation. There is no explicit information regarding subcontracting plans for small businesses. This could mean limited opportunities for small businesses to participate in this specific contract, though the agency may have other avenues for engaging small businesses.

Oversight & Accountability

The Export-Import Bank of the United States is subject to various oversight mechanisms, including internal audits, Inspector General reviews, and congressional oversight. The contract's firm fixed-price nature and the established reputation of KPMG LLP suggest a degree of accountability. Transparency regarding the contract's performance and outcomes would typically be available through agency reporting and potentially through public contract databases, although specific details of the 'STRANDED ASSETS REVIEW' might be sensitive.

Related Government Programs

Federal Financial Management Services
Government Auditing Services
Contracting for Professional Services
Export Finance Support Programs

Risk Flags

Potential for complex financial valuations
Reliance on contractor expertise for critical financial assessment

Frequently Asked Questions

What is this federal contract paying for?

Export-Import Bank of the United States awarded $218,135.74 to KPMG LLP. STRANDED ASSETS REVIEW

Who is the contractor on this award?

The obligated recipient is KPMG LLP.

Which agency awarded this contract?

Awarding agency: Export-Import Bank of the United States (Export-Import Bank of the United States).

What is the total obligated amount?

The obligated amount is $218,135.74.

What is the period of performance?

Start: 2025-03-10. End: 2026-03-09.

What is the specific scope and objective of the 'STRANDED ASSETS REVIEW' being conducted by KPMG LLP?

The provided data does not detail the specific objectives or scope of the 'STRANDED ASSETS REVIEW.' However, in a federal context, 'stranded assets' typically refer to assets that have suffered from unanticipated or premature write-downs, devaluations, or conversions to liabilities. For an export credit agency like the Export-Import Bank, this review could involve assessing financial assets (loans, guarantees, investments) that may have become impaired due to geopolitical risks, market shifts, regulatory changes, or borrower defaults, particularly in international markets. KPMG LLP, as a certified public accounting firm, would likely be tasked with identifying, quantifying, and analyzing these assets, assessing their financial impact on the bank, and recommending strategies for mitigation or resolution. The review's findings would be crucial for the bank's financial health, risk management, and accurate financial reporting to Congress and the public.

How does the $218.1 million contract value compare to historical spending on similar accounting services by the Export-Import Bank or comparable agencies?

Without historical spending data specific to the Export-Import Bank (Ex-Im Bank) for similar accounting services, a direct comparison is challenging. However, $218.1 million for a one-year contract awarded under full and open competition to a major accounting firm like KPMG LLP suggests a significant engagement. Comparable federal agencies with large international finance or trade promotion mandates, such as the U.S. International Development Finance Corporation (DFC) or elements within the Treasury Department, might award contracts in the tens to hundreds of millions for comprehensive financial advisory, auditing, and specialized reviews. The value reflects the complexity and scale of Ex-Im Bank's operations, which involve managing substantial financial instruments and international trade risks. A detailed analysis would require benchmarking against specific contracts for financial advisory, risk assessment, and audit services awarded to large accounting firms by agencies of similar size and mission.

What are the key performance indicators (KPIs) or deliverables expected under this contract for KPMG LLP?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. However, for a 'STRANDED ASSETS REVIEW' conducted by a firm like KPMG LLP for the Export-Import Bank, typical deliverables would likely include comprehensive reports detailing the methodology used, the identification and quantification of stranded assets, an analysis of the financial impact, risk assessments associated with these assets, and strategic recommendations for management. Performance would be evaluated based on the accuracy and completeness of these reports, adherence to professional accounting standards (e.g., GAAP, GASB), timeliness of delivery, and the clarity of findings and recommendations. The firm fixed-price contract implies that meeting these defined deliverables within the agreed-upon cost is paramount for successful performance.

What is KPMG LLP's track record with the federal government, particularly with financial advisory and auditing contracts?

KPMG LLP is a major global professional services firm with a long-standing and extensive track record of serving the U.S. federal government across various agencies and departments. They are consistently awarded large contracts for a wide range of services, including auditing, financial advisory, management consulting, cybersecurity, and tax services. Their experience spans complex financial management, risk assessment, compliance, and strategic planning for entities like the Department of Defense, Treasury, Health and Human Services, and numerous other civilian agencies. Given their status as one of the 'Big Four' accounting firms, they possess the resources, expertise, and security clearances necessary to handle high-value, sensitive federal contracts. Their history suggests a strong capability to meet the demanding requirements of agencies like the Export-Import Bank.

Are there any specific risks associated with the 'STRANDED ASSETS REVIEW' or the contractor's performance that warrant attention?

Potential risks associated with this contract include the inherent complexity and potential subjectivity in identifying and valuing 'stranded assets,' especially in volatile international markets. There's a risk that the review might uncover more significant financial issues than anticipated, requiring substantial remediation efforts or impacting the Ex-Im Bank's financial standing. For the contractor, KPMG LLP, risks could involve challenges in obtaining complete and accurate data from the agency or third parties, potential scope creep if the review's parameters are not tightly managed, and reputational risk if their findings are contested or their methodology is questioned. Ensuring clear communication, robust data validation, and adherence to the defined scope will be critical to mitigating these risks for both the agency and the contractor.

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

Solicitation ID: 83310125Q0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $218,136

Exercised Options: $218,136

Current Obligation: $218,136

Actual Outlays: $218,136

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