Army Financial Statement Audit Services Contract Awarded to KPMG LLP for $23.8M
Contract Overview
Contract Amount: $23,782,810 ($23.8M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 2014-12-01
End Date: 2016-12-31
Contract Duration: 761 days
Daily Burn Rate: $31.3K/day
Sector: Other
Official Description: IGF::CT::IGF US ARMY FINANCIAL STATEMENT AUDIT SERVICES FY15-FY19
Place of Performance
Location: Virginia, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $23.8 million to KPMG LLP for work described as: IGF::CT::IGF US ARMY FINANCIAL STATEMENT AUDIT SERVICES FY15-FY19 Key points: 1. Contract value of $23.8M over two years for financial statement audit services. 2. KPMG LLP, a major accounting firm, is the contractor. 3. Services provided to the Department of Defense via the Defense Finance and Accounting Service. 4. The contract was awarded as a Delivery Order, indicating it's part of a larger contract vehicle.
Value Assessment
Rating: good
The contract value of $23.8M for two years of financial statement audit services appears reasonable given the complexity and scope of auditing a major government agency like the Army. Benchmarking against similar large-scale government audit contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is a Delivery Order, which suggests it was likely awarded under a pre-existing contract vehicle. The specific competition method for the original vehicle is not detailed, but Delivery Orders can sometimes limit competition if not managed carefully.
Taxpayer Impact: The cost of audit services is a necessary expenditure for financial transparency and accountability, ultimately benefiting taxpayers by ensuring proper use of funds.
Public Impact
Ensures financial accountability and transparency for the U.S. Army. Supports the integrity of government financial reporting. Provides assurance to stakeholders on the accuracy of financial statements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on the competition method for the original contract vehicle.
- Potential for cost overruns if scope expands beyond initial delivery order.
Positive Signals
- Award to a reputable and experienced contractor (KPMG LLP).
- Focus on essential financial audit services for a major government entity.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Government spending on financial audits is crucial for maintaining public trust and ensuring compliance with financial regulations. Benchmarks for similar services can vary widely based on agency size and complexity.
Small Business Impact
The contractor, KPMG LLP, is a large, established firm. There is no indication in the provided data that small businesses were involved as subcontractors or prime contractors in this specific delivery order.
Oversight & Accountability
The contract is managed by the Defense Finance and Accounting Service, which is responsible for overseeing financial operations within the Department of Defense. Oversight mechanisms would typically include performance reviews and adherence to audit standards.
Related Government Programs
- Department of Defense Contracting
- Defense Finance and Accounting Service Programs
Risk Flags
- Lack of transparency regarding the original contract vehicle's competition.
- Potential for scope creep and associated cost increases.
- Dependence on a single large contractor for critical audit services.
- Limited insight into specific performance metrics and quality assurance.
Tags
department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.8 million to KPMG LLP. IGF::CT::IGF US ARMY FINANCIAL STATEMENT AUDIT SERVICES FY15-FY19
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Finance and Accounting Service).
What is the total obligated amount?
The obligated amount is $23.8 million.
What is the period of performance?
Start: 2014-12-01. End: 2016-12-31.
What was the original contract vehicle under which this delivery order was placed, and what was the competition method used?
The provided data indicates this is a Delivery Order, suggesting it was issued against a pre-existing contract. Without knowing the original contract vehicle (e.g., IDIQ, GWAC), it's impossible to assess the initial competition. Further investigation into the contract vehicle's award process is needed to understand the full extent of competition and its impact on pricing.
How does the per-unit cost or hourly rate for these audit services compare to industry benchmarks for similar government contracts?
The data does not provide per-unit cost or hourly rates, making a direct benchmark comparison difficult. The total contract value of $23.8M over two years for the Army's financial statement audits suggests a significant undertaking. A detailed cost analysis of the labor hours and rates would be necessary to assess value for money against industry standards.
What specific audit standards and methodologies were employed, and how do they ensure the effectiveness of the financial statement audit?
The contract likely mandates adherence to Generally Accepted Auditing Standards (GAAS) and Government Auditing Standards (Yellow Book). These standards provide a framework for rigorous examination of financial records, internal controls, and compliance. The effectiveness relies on the auditor's independence, professional skepticism, and the thoroughness of their procedures in identifying misstatements or control deficiencies.
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