Interior Department's $69M accounting services contract awarded to Clifton Gunderson LLP shows fair value

Contract Overview

Contract Amount: $69,069,839 ($69.1M)

Contractor: Clifton Gunderson LLP

Awarding Agency: Department of the Interior

Start Date: 2005-02-01

End Date: 2010-07-31

Contract Duration: 2,006 days

Daily Burn Rate: $34.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: Other

Official Description: 40992 - CD&L

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $69.1 million to CLIFTON GUNDERSON LLP for work described as: 40992 - CD&L Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. Performance period spanned over five years, indicating a need for sustained accounting support. 3. The contract was a labor hour type, allowing flexibility in service delivery. 4. No small business set-aside was utilized, potentially limiting opportunities for smaller firms. 5. The contract was awarded to a single vendor, Clifton Gunderson LLP. 6. The geographic location of performance was Washington D.C.

Value Assessment

Rating: good

The contract's total value of approximately $69 million over five years for accounting services appears reasonable when benchmarked against similar large-scale federal contracts for professional services. While specific per-unit cost data is not provided, the competitive award process suggests that pricing was scrutinized. The duration and scope indicate a significant need for specialized accounting expertise, and the award to a single, established firm implies a focus on capability and reliability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 6 bidders indicates a healthy level of interest and competition for this accounting services requirement. This competitive environment likely drove down prices and ensured the government received proposals from a range of qualified firms, allowing for a thorough evaluation of technical capabilities and cost-effectiveness.

Taxpayer Impact: The robust competition for this contract suggests taxpayers benefited from potentially lower prices and a wider selection of qualified service providers, ensuring value for the funds expended.

Public Impact

Federal agencies, particularly within the Department of the Interior, benefited from specialized accounting and auditing services. The contract supported the financial integrity and operational efficiency of departmental offices. Services were delivered in Washington D.C., impacting the local federal workforce and support infrastructure. The contract provided employment opportunities for accounting professionals through Clifton Gunderson LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's efficiency and effectiveness beyond basic service delivery.
The contract's duration and significant value could indicate a reliance on a single vendor for critical functions, posing a potential risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process that likely yielded fair pricing.
The contractor, Clifton Gunderson LLP, is a known entity in the accounting services sector, suggesting established expertise.
The contract spanned over five years, demonstrating a consistent need and likely successful delivery of services over an extended period.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and auditing services. The federal government is a significant consumer of such services to manage its complex financial operations, ensure compliance, and conduct audits. The market for these services is competitive, with both large, established firms and smaller specialized companies vying for government contracts. Benchmarks for similar accounting services contracts often vary widely based on scope, duration, and specific requirements, but a $69 million award over five years for comprehensive accounting support is substantial.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field indicates 'false'. This suggests that the requirement was likely too large or complex to be effectively fulfilled by small businesses alone, or that the competition was opened broadly to all responsible sources. Consequently, there may be limited direct subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime contractor. The overall impact on the small business ecosystem for accounting services would be minimal in terms of direct set-aside awards for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arose during the contract's performance.

Related Government Programs

Federal Financial Management
Government Auditing Services
Professional Services Contracts
Department of the Interior Financial Operations

Risk Flags

Contract Duration
Labor Hour Contract Type
Single Award Contract

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $69.1 million to CLIFTON GUNDERSON LLP. 40992 - CD&L

Who is the contractor on this award?

The obligated recipient is CLIFTON GUNDERSON LLP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $69.1 million.

What is the period of performance?

Start: 2005-02-01. End: 2010-07-31.

What specific accounting services were provided under this contract?

While the contract number and award details are available, the specific breakdown of accounting services rendered under this $69 million Department of the Interior contract is not explicitly detailed in the provided data. Generally, contracts for 'Other Accounting Services' (NAICS code 541219) can encompass a wide range of activities. These might include financial statement preparation, general ledger maintenance, accounts payable/receivable processing, internal control assessments, audit support, and potentially forensic accounting or financial analysis. The labor hour contract type suggests flexibility in the scope of services that could be adjusted based on the Department's evolving needs over the five-year performance period. Further details would likely be found in the contract's statement of work (SOW) or task orders issued against it.

How does the awarded amount compare to similar accounting service contracts within the federal government?

The $69 million award for accounting services over approximately five years (February 2005 to July 2010) represents a significant investment. To benchmark this, one would typically compare it to other large-scale contracts for similar professional accounting services awarded by agencies like the Department of Defense, Treasury, or HHS. Factors influencing comparison include the specific services required (e.g., audit vs. transactional accounting), the labor categories and rates involved, and the overall economic conditions at the time of award. Without direct comparative data for contracts of identical scope and duration from the same period, it's challenging to provide a precise benchmark. However, the full and open competition with multiple bidders suggests the pricing was considered competitive within the market for such substantial federal accounting support.

What was the track record of Clifton Gunderson LLP prior to or during this contract?

Clifton Gunderson LLP, now known as CliftonLarsonAllen (CLA), is a large, well-established accounting firm with a significant presence in both the private and public sectors. Prior to and during the period of this Department of the Interior contract (2005-2010), the firm had a history of serving government clients. Information regarding their specific performance on this particular $69 million contract, such as client satisfaction, adherence to deadlines, or any disputes, would typically be documented in internal government performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), which are not publicly accessible in detail. However, their continued operation and growth suggest a generally positive track record in delivering professional services.

What are the potential risks associated with a sole-source award for such a large contract?

This contract was awarded under 'full and open competition,' not sole-source. The data indicates there were 6 bidders, which is a healthy level of competition. Therefore, the risks typically associated with a sole-source award (such as potentially higher prices due to lack of competition, limited innovation, and reduced vendor accountability) are not directly applicable here. The risks for a competitively awarded contract of this size and duration would instead focus on performance, cost overruns if not managed tightly, and the potential for vendor lock-in if follow-on work is heavily reliant on the incumbent. However, the competitive nature of the initial award mitigates many of the primary risks associated with non-competitive procurements.

How did the labor hour contract type affect cost and flexibility?

A 'Labor Hours' contract type, as indicated for this Department of the Interior agreement, means the government pays for the direct labor hours expended by the contractor at specified fixed hourly rates. This type of contract offers significant flexibility, allowing the scope of work to evolve over time without requiring formal contract modifications for every change in effort, provided the overall ceiling is not exceeded. For the government, it can be cost-effective when the exact amount of work is uncertain at the outset. However, it places a greater burden on the government to closely monitor contractor effort and ensure that hours billed are reasonable and necessary for the work performed. It also shifts some of the cost risk to the government, as the final price is not fixed upfront.

What is the significance of the NAICS code 541219 (Other Accounting Services) in this context?

The North American Industry Classification System (NAICS) code 541219 signifies 'Other Accounting Services.' This broad category covers establishments primarily engaged in providing accounting, tax preparation, bookkeeping, and payroll processing services. For this Department of the Interior contract, it indicates that the services procured were not limited to a single, highly specialized area like auditing (which might have a different code) but encompassed a wider range of accounting support functions. This flexibility allowed the Department to procure various accounting needs under one contract vehicle, potentially streamlining procurement and management processes for diverse financial support requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Contractor Details

Address: 301 SW ADAMS ST STE 600, PEORIA, IL, 17

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $72,682,547

Exercised Options: $69,827,959

Current Obligation: $69,069,839

Parent Contract

Parent Award PIID: INN05PA10453

IDV Type: BPA

Timeline