DCSA awards $22M contract to KPMG LLP for administrative management consulting services

Contract Overview

Contract Amount: $22,001,566 ($22.0M)

Contractor: Kpmg LLP

Awarding Agency: Department of Defense

Start Date: 2024-07-20

End Date: 2026-01-19

Contract Duration: 548 days

Daily Burn Rate: $40.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DEFENSE COUNTERINTELLIGENCE AND SECURITY AGENCY (DCSA)/ OFFICE OF THE CHIEF FINANCIAL OFFICER (OCFO)

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to KPMG LLP for work described as: DEFENSE COUNTERINTELLIGENCE AND SECURITY AGENCY (DCSA)/ OFFICE OF THE CHIEF FINANCIAL OFFICER (OCFO) Key points: 1. Contract awarded to KPMG LLP for administrative management and general management consulting services. 2. The contract has a total value of $22,001,565.56. 3. Competition was full and open, indicating a competitive bidding process. 4. The contract duration is 548 days, ending January 19, 2026. 5. The primary sector is administrative management consulting.

Value Assessment

Rating: good

The contract value of $22M for administrative management consulting services appears reasonable given the scope and duration. Benchmarking against similar large-scale consulting contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This method typically fosters competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of this award is expected to yield fair pricing, maximizing the value of taxpayer funds allocated for these essential consulting services.

Public Impact

Enhances DCSA's financial operations and administrative management. Supports critical security and counterintelligence functions within the Department of Defense. Potential for improved efficiency and effectiveness in agency operations. KPMG LLP's expertise will be leveraged for strategic guidance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for scope creep in consulting engagements.
Reliance on a single vendor for critical services.

Positive Signals

Awarded through full and open competition.
Clear contract duration and end date.
Firm fixed price contract type provides cost certainty.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, which is crucial for government agencies to optimize operations. Spending in this sector can vary widely based on agency needs and project complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large firm, KPMG LLP. There is no indication of small business participation in this specific award.

Oversight & Accountability

Oversight will be crucial to ensure KPMG LLP meets performance expectations and delivers value within the agreed-upon budget and timeline. The Department of Defense's contracting officers will monitor contract execution.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Contract value is substantial.
Duration of the contract is significant.
Consulting services can be subjective to measure effectiveness.
Potential for vendor dependency.
No specific small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to KPMG LLP. DEFENSE COUNTERINTELLIGENCE AND SECURITY AGENCY (DCSA)/ OFFICE OF THE CHIEF FINANCIAL OFFICER (OCFO)

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 $22.0 million.

What is the period of performance?

Start: 2024-07-20. End: 2026-01-19.

What specific deliverables are expected from KPMG LLP under this contract, and how will their performance be measured to ensure value for money?

Specific deliverables are not detailed in the provided data. However, typical consulting engagements involve strategic plans, process improvements, and operational assessments. Performance measurement would likely involve adherence to timelines, quality of recommendations, and achievement of agreed-upon objectives, monitored by the contracting officer's representative (COR) to ensure the $22M investment yields tangible benefits for DCSA's financial and administrative functions.

What are the potential risks associated with relying on a single large consulting firm for administrative management services, and what mitigation strategies are in place?

Risks include vendor lock-in, potential for complacency, and a lack of diverse perspectives. Mitigation strategies could involve robust contract management, clear performance standards, regular reviews, and maintaining open communication channels to address issues proactively. The government also retains the option to compete future requirements to ensure ongoing value and explore alternative solutions.

How will the effectiveness of KPMG LLP's consulting services be evaluated post-contract to inform future procurement decisions?

Effectiveness will be evaluated through post-contract reviews assessing the impact of KPMG's recommendations on DCSA's operational efficiency, cost savings, and achievement of strategic goals. Feedback from key stakeholders within DCSA, performance metrics achieved against baseline data, and lessons learned will be documented to guide future contracting strategies and vendor selection processes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Offers Received: 3

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: $22,001,566

Exercised Options: $22,001,566

Current Obligation: $22,001,566

Actual Outlays: $2,429,212

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $7,300,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701420D0009

IDV Type: IDC

Timeline