Interior's $41.8M FTI Contract for Accounting Services Awarded via Full and Open Competition

Contract Overview

Contract Amount: $41,772,840 ($41.8M)

Contractor: FTI Consulting, Inc.

Awarding Agency: Department of the Interior

Start Date: 2005-02-01

End Date: 2010-07-31

Contract Duration: 2,006 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: Other

Official Description: 42029 - FTI

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $41.8 million to FTI CONSULTING, INC. for work described as: 42029 - FTI Key points: 1. Contract awarded to FTI Consulting, Inc. for "Other Accounting Services". 2. Significant contract duration of over 5 years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the "Other Accounting Services" NAICS code, indicating a broad scope.

Value Assessment

Rating: fair

The contract value of $41.8M over 5 years averages approximately $8.36M annually. Benchmarking this against similar large-scale accounting service contracts is difficult without more specific service details, but the duration and value suggest a substantial engagement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors were likely solicited, fostering price discovery and potentially leading to a more competitive price. The award to FTI Consulting, Inc. suggests they offered the best value under the established criteria.

Taxpayer Impact: Taxpayer funds were utilized through a competitive process, which generally aims to secure services at a reasonable cost. The specific value for money achieved is not immediately apparent without further analysis of the services rendered.

Public Impact

Government agencies rely on accounting services for financial management and compliance. Contracts like this support the operational efficiency of federal departments. The duration of the contract implies a long-term need for these specialized services. Transparency in awarding contracts through open competition is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes value assessment difficult.
Potential for cost overruns in long-term labor-hour contracts.
Limited insight into the specific deliverables and performance metrics.

Positive Signals

Awarded through full and open competition.
Contract supports essential government functions.
Established vendor with a significant contract history.

Sector Analysis

This contract falls under professional services, specifically accounting. The "Other Accounting Services" NAICS code (541219) is broad and can encompass a wide range of financial support. Benchmarking requires understanding the specific tasks performed, but large contracts in this sector often involve complex financial analysis and reporting.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large corporation (FTI Consulting, Inc.). There is no indication of small business participation in this specific award.

Oversight & Accountability

The use of full and open competition suggests a structured procurement process. However, ongoing oversight of performance, cost control, and adherence to contract terms by the Department of the Interior is essential to ensure accountability and value for taxpayer money.

Related Government Programs

Other Accounting Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Long contract duration may lead to price escalation.
Labor hour contracts can be susceptible to cost overruns.
Lack of specific service details hinders performance assessment.
Potential for vendor lock-in over the contract's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $41.8 million to FTI CONSULTING, INC.. 42029 - FTI

Who is the contractor on this award?

The obligated recipient is FTI CONSULTING, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $41.8 million.

What is the period of performance?

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

What specific accounting services were provided under this contract, and how did they contribute to the Department of the Interior's mission?

The contract, NAICS 541219, covers 'Other Accounting Services.' Without further details, it's impossible to specify the exact services. These could range from audit support, financial statement preparation, forensic accounting, to advisory services. Their contribution would depend on the specific needs of the Departmental Offices, likely supporting financial integrity, compliance, and operational efficiency.

Given the contract's duration and value, what are the primary risks associated with its execution and oversight?

Key risks include potential scope creep, leading to cost overruns on the labor-hour basis. Ensuring consistent quality of service over five years and managing the contractor's performance against evolving departmental needs are critical. Furthermore, maintaining competitive pricing throughout the contract lifecycle and preventing vendor lock-in are also significant considerations for oversight.

How effective was the full and open competition in ensuring the best value for the government in this specific contract?

Full and open competition is designed to maximize value by encouraging broad participation and price competition. While the process itself is sound, the ultimate effectiveness hinges on the clarity of the solicitation, the evaluation criteria, and the actual bids received. Without access to the bid details and the final award justification, it's difficult to definitively assess the value achieved beyond the procedural compliance.

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: 909 COMMERCE RD, ANNAPOLIS, MD, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $73,533,648

Exercised Options: $41,969,879

Current Obligation: $41,772,840

Parent Contract

Parent Award PIID: INN05PA10455

IDV Type: BPA

Timeline