Department of Education awards $12.6M contract to SIKICH CPA LLC for accounting services
Contract Overview
Contract Amount: $12,615,040 ($12.6M)
Contractor: Sikich CPA LLC
Awarding Agency: Department of Education
Start Date: 2001-06-15
End Date: 2007-06-30
Contract Duration: 2,206 days
Daily Burn Rate: $5.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 51
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Education obligated $12.6 million to SIKICH CPA LLC for work described as: Key points: 1. Contract awarded to SIKICH CPA LLC for $12.6 million. 2. Service category is Offices of Certified Public Accountants (NAICS 541211). 3. Contract type is Fixed Price with Economic Price Adjustment. 4. Competition method was Competitive Delivery Order. 5. Contract duration is 2206 days.
Value Assessment
Rating: fair
The contract value of $12.6 million over approximately 6 years suggests a moderate annual spend. Benchmarking against similar CPA contracts would be necessary to fully assess value, but the fixed-price with economic adjustment structure aims to manage cost fluctuations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded via a Competitive Delivery Order, indicating that multiple vendors likely competed for this award. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the accounting services rendered.
Public Impact
Ensures essential accounting and financial management services for the Department of Education. Supports the department's mission by maintaining financial integrity and compliance. The long duration indicates a sustained need for these professional services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment could lead to costs exceeding initial estimates.
- Long contract duration may not reflect current market rates.
- Potential for vendor lock-in if not managed effectively.
Positive Signals
- Competitive award process likely secured a reasonable price.
- Fixed-price structure provides some cost certainty.
- Services are critical for departmental operations.
Sector Analysis
This contract falls within the professional services sector, specifically accounting. Government spending on professional services like accounting is substantial, supporting agency operations and compliance. Benchmarks for similar contracts would typically focus on hourly rates or project-based fees.
Small Business Impact
The data does not indicate if small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The competitive delivery order process suggests a degree of oversight in the award. However, ongoing monitoring of performance and adherence to the economic price adjustment clauses is crucial for accountability.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for cost overruns due to economic price adjustment.
- Long contract duration may not reflect current market conditions.
- Lack of transparency on small business participation.
- Need for robust performance monitoring to ensure value.
Tags
offices-of-certified-public-accountants, department-of-education, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $12.6 million to SIKICH CPA LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SIKICH CPA LLC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $12.6 million.
What is the period of performance?
Start: 2001-06-15. End: 2007-06-30.
What was the specific scope of work for SIKICH CPA LLC, and how did it align with the Department of Education's needs?
The scope of work likely encompassed a range of accounting services, such as financial statement preparation, auditing support, accounting system maintenance, and compliance reporting. This aligns with the Department of Education's critical need for accurate financial management to ensure accountability and efficient allocation of educational funds.
How effectively did the economic price adjustment clause protect the government from excessive cost increases?
The effectiveness of the economic price adjustment (EPA) clause depends on the specific index used and the rate of inflation during the contract period. While EPAs are designed to account for market fluctuations, they can also lead to costs exceeding initial projections if inflation is high. Monitoring the application of the EPA is key to ensuring fair pricing.
What was the overall value proposition of using SIKICH CPA LLC compared to alternative service providers?
The value proposition was likely determined through the competitive bidding process. SIKICH CPA LLC's ability to meet the technical requirements, offer competitive pricing under the fixed-price with EPA structure, and demonstrate relevant experience would have contributed to their selection as the best value provider for the Department of Education.
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: COMPETITIVE DELIVERY ORDER
Offers Received: 51
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Contractor Details
Address: 333 N FAIRFAX ST STE 401, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $12,615,040
Exercised Options: $12,615,040
Current Obligation: $12,615,040
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F9807H
IDV Type: FSS
Timeline
Start Date: 2001-06-15
Current End Date: 2007-06-30
Potential End Date: 2007-06-30 00:00:00
Last Modified: 2021-12-06
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