DoD's $23.3M Program Management Contract with KPMG LLP Raises Value and Competition Questions
Contract Overview
Contract Amount: $23,284,681 ($23.3M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 1999-10-01
End Date: 2011-04-23
Contract Duration: 4,222 days
Daily Burn Rate: $5.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200006!1700!001048!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017800C2006 !A!*!* !19991001!20040930!083658880!097485275!097485275!N!00L89!KPMG LLP !2001 M STREET, N.W. !WASHINGTON !DC!20036!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !0001!+000000300000!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8742!3!*!*!*!B!A!*!A !N!U!2!001!B!* !Z!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!Y!*!
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $23.3 million to KPMG LLP for work described as: 200006!1700!001048!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017800C2006 !A!*!* !19991001!20040930!083658880!097485275!097485275!N!00L89!KPMG LLP !2001 M STREET, N.W. !WASHINGTON !DC!20036!21008!099!51!DAHLGREN !KIN… Key points: 1. The contract awarded to KPMG LLP for program management services appears to be a significant expenditure for the services rendered. 2. While listed as full and open competition, the lack of detailed award data makes it difficult to assess true market competitiveness. 3. The cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns and value for money. 4. The sector is Defense, specifically program management support, which is a common area for contracting but requires careful oversight.
Value Assessment
Rating: questionable
The contract's total value of $23.3 million over its extended period raises questions about its cost-effectiveness. Benchmarking against similar program management contracts is difficult without more detailed service descriptions and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the limited public data available hinders a thorough assessment of the price discovery process and whether the government secured the best possible price.
Taxpayer Impact: Taxpayer funds were used for this contract. The value and efficiency of the services provided will ultimately determine the impact on taxpayers.
Public Impact
Defense spending on program management services impacts the allocation of resources for military readiness and operations. The use of large consulting firms like KPMG for government contracts raises discussions about private sector involvement in public services. Transparency in contract awards is crucial for public trust and ensuring accountability in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 55 / 10
Warning Flags
- Lack of detailed performance metrics
- Extended contract duration
- Cost-plus-fixed-fee structure
Positive Signals
- Awarded under full and open competition
- Experienced contractor (KPMG LLP)
Sector Analysis
This contract falls within the Defense sector, specifically for program management and support services. Spending in this area is critical for effective military operations, but requires robust oversight to ensure value and prevent waste.
Small Business Impact
There is no specific indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine any small business participation.
Oversight & Accountability
The contract's extended duration and cost-plus-fixed-fee nature necessitate strong oversight from the Naval Surface Warfare Center and the Defense Contract Management Agency to ensure compliance and control costs.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited transparency on specific services rendered
- Difficulty in benchmarking against similar contracts
- Extended contract performance period raises questions about initial scope and ongoing need
Tags
department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to KPMG LLP. 200006!1700!001048!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017800C2006 !A!*!* !19991001!20040930!083658880!097485275!097485275!N!00L89!KPMG LLP !2001 M STREET, N.W. !WASHINGTON !DC!20036!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !0001!+000000300000!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8742!3!*!*!*!B!A!*!A !N!U!
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $23.3 million.
What is the period of performance?
Start: 1999-10-01. End: 2011-04-23.
What specific program management services were provided, and how did they contribute to the Naval Surface Warfare Center's mission?
The provided data indicates 'PROGRAM MANAGEMENT/SUPPORT SERVICES' but lacks specific details on the tasks performed. To assess value, a breakdown of services like strategic planning, logistical support, technical oversight, and financial management, along with their direct impact on naval warfare capabilities, would be necessary.
How was the 'full and open competition' process managed to ensure fair pricing and prevent potential collusion?
While the award states 'full and open competition,' the limited public information makes it difficult to scrutinize the process. A thorough review would examine the solicitation details, the number of bids received, the evaluation criteria used, and any debriefings provided to unsuccessful bidders to confirm fair competition and optimal price discovery.
What mechanisms were in place to monitor and control costs under the Cost Plus Fixed Fee (CPFF) structure?
The CPFF structure requires diligent oversight to manage costs effectively. Key mechanisms would include regular audits, performance reviews, strict adherence to the fixed fee, and clear protocols for managing any scope changes to prevent cost overruns and ensure the contractor remains incentivized to control expenses.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 2001 M STREET, N.W., WASHINGTON, DC, 98
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-10-01
Current End Date: 2011-04-23
Potential End Date: 2011-04-23 00:00:00
Last Modified: 2010-04-23
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