Air Force's $12.3M KPMG Contract for Program Management Support Under Scrutiny
Contract Overview
Contract Amount: $12,332,051 ($12.3M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 2019-09-20
End Date: 2023-09-23
Contract Duration: 1,464 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AIR FORCE CATEGORY MANAGEMENT PROGRAM SUPPORT OFFICE SUPPORT.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $12.3 million to KPMG LLP for work described as: AIR FORCE CATEGORY MANAGEMENT PROGRAM SUPPORT OFFICE SUPPORT. Key points: 1. The contract awarded to KPMG LLP for $12.3 million focuses on program management support for the Air Force. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration is 1464 days, ending in September 2023. 4. The primary sector appears to be professional services, specifically accounting. 5. The contract type is Firm Fixed Price, which helps manage cost certainty.
Value Assessment
Rating: fair
The contract's value of $12.3 million for program management support needs comparison against similar contracts for accounting and consulting services. Without specific deliverables and benchmarks, assessing value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were allowed. This method generally promotes competitive pricing, but the specific price discovery mechanism and its effectiveness are not detailed.
Taxpayer Impact: The impact on taxpayers depends on whether the competitive process resulted in the best possible price for the services rendered.
Public Impact
Air Force program management efficiency may be impacted by the services provided. Taxpayer funds are allocated to this contract, necessitating oversight for value. The use of a large consulting firm like KPMG raises questions about cost-effectiveness compared to other potential providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Potential for cost overruns despite fixed price.
- Limited transparency on deliverables.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type.
- Experienced contractor (KPMG LLP).
Sector Analysis
This contract falls within the professional services sector, specifically accounting and business consulting. Spending benchmarks for similar program management support contracts within the Department of Defense can vary widely based on scope and duration.
Small Business Impact
The contract was awarded to KPMG LLP, a large business. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award.
Oversight & Accountability
Oversight is crucial to ensure the Air Force receives adequate value for the $12.3 million spent. Accountability rests with the contracting officers and program managers to monitor performance and adherence to contract terms.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed performance metrics.
- Potential for contractor lock-in.
- Limited transparency on specific services rendered.
- High contract value without clear justification.
Tags
offices-of-certified-public-accountants, department-of-defense, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.3 million to KPMG LLP. AIR FORCE CATEGORY MANAGEMENT PROGRAM SUPPORT OFFICE SUPPORT.
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $12.3 million.
What is the period of performance?
Start: 2019-09-20. End: 2023-09-23.
What specific program management functions were supported by KPMG, and how did these services contribute to Air Force operational effectiveness?
The provided data lacks specifics on the exact program management functions supported. To assess effectiveness, details on deliverables, performance metrics, and the impact on Air Force program execution are needed. Without this, it's difficult to determine if the $12.3 million investment yielded tangible improvements or efficiencies.
Given the full and open competition, were there any indications that the winning bid from KPMG LLP represented a significantly better value proposition compared to other proposals?
While full and open competition suggests a competitive environment, the data doesn't reveal comparative pricing or qualitative aspects of the bids. To assess value, we would need to know the range of bids received, the evaluation criteria used, and why KPMG's proposal was deemed the best value, ensuring taxpayer funds were used efficiently.
What mechanisms were in place to ensure accountability and prevent potential cost overruns or scope creep, despite the firm fixed-price contract?
Firm Fixed Price contracts aim to limit cost overruns, but accountability also relies on robust contract administration. Key mechanisms include regular performance reviews, clear deliverable tracking, and change control processes. The absence of detailed oversight reports makes it hard to confirm the effectiveness of these controls in this specific case.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $40,126,868
Exercised Options: $28,416,859
Current Obligation: $12,332,051
Actual Outlays: $6,198,390
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $625,280
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA701418A5011
IDV Type: BPA
Timeline
Start Date: 2019-09-20
Current End Date: 2023-09-23
Potential End Date: 2023-09-23 00:00:00
Last Modified: 2025-09-10
More Contracts from Kpmg LLP
- Audit of the Army Fiscal Years 2021-2025 — $206.0M (Department of Defense)
- Fiar Program Services - Base Period — $169.0M (Department of Defense)
- Base Period - Financial Improvement and Audit Readiness Support Services for the U.S. Marine Corps — $131.0M (Department of Defense)
- US Department of Army Financial Statement Audits/Exams Fy17-Fy21 — $122.2M (Department of Defense)
- Pks-Terry-Ward-Af A1 Digital Transformation STS — $102.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)