DoD Awards KPMG $20.3M for Accounting Services Under Full and Open Competition
Contract Overview
Contract Amount: $20,309,704 ($20.3M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 2023-11-30
End Date: 2026-11-29
Contract Duration: 1,095 days
Daily Burn Rate: $18.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LABOR - BASE PERIOD
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376
Plain-Language Summary
Department of Defense obligated $20.3 million to KPMG LLP for work described as: LABOR - BASE PERIOD Key points: 1. Significant contract value of $20.3 million for accounting services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risk associated with the duration of the contract (3 years). 4. Spending falls within the 'Other Accounting Services' sector.
Value Assessment
Rating: good
The contract value of $20.3 million for a 3-year period appears reasonable for specialized accounting services. Benchmarking against similar contracts for 'Other Accounting Services' would provide a more precise assessment, but the scale suggests a competitive market price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The competitive nature of the award is likely to result in fair pricing, maximizing the value of taxpayer funds for essential accounting services.
Public Impact
Ensures continued financial management and accounting support for the Department of the Navy. Supports critical operational functions within the Department of Defense. Provides opportunities for a large, established firm (KPMG LLP) to deliver services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 3 years may limit flexibility for future needs.
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if scope expands beyond initial estimates.
Positive Signals
- Awarded via full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Experienced contractor (KPMG LLP) likely to deliver quality services.
Sector Analysis
This contract falls under 'Other Accounting Services,' a broad category encompassing a range of financial support functions. Spending in this sector can vary widely based on agency size and complexity, but this award represents a substantial investment in specialized expertise.
Small Business Impact
The contract was awarded to KPMG LLP, a large business. There is no indication in the provided data that small businesses were involved as subcontractors, which could be an area for future consideration.
Oversight & Accountability
The Department of Defense and Department of the Navy are responsible for oversight. The firm fixed price contract type and the competitive award process suggest a degree of accountability, but ongoing monitoring of performance and costs is crucial.
Related Government Programs
- Other Accounting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration
- Lack of detailed service scope
- Potential for unaddressed small business participation
- Limited visibility into specific performance metrics
Tags
other-accounting-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.3 million to KPMG LLP. LABOR - BASE PERIOD
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 Navy).
What is the total obligated amount?
The obligated amount is $20.3 million.
What is the period of performance?
Start: 2023-11-30. End: 2026-11-29.
What specific accounting services are included in this contract, and how do they align with the Navy's strategic financial goals?
The contract specifies 'Other Accounting Services' (NAICS 541219). While the exact services aren't detailed, they likely encompass areas such as financial reporting, auditing support, accounting system maintenance, and compliance. These services are fundamental to the Navy's ability to manage its budget, track expenditures, and ensure fiscal responsibility, directly supporting its operational readiness and strategic objectives.
What are the potential risks associated with a 3-year firm fixed-price contract for accounting services, and how can they be mitigated?
A key risk is that the fixed price may not adequately account for unforeseen changes in regulations or agency needs over three years, potentially leading to scope creep or the contractor being unable to meet evolving requirements within budget. Mitigation strategies include clear contract language, robust change control processes, and regular performance reviews to identify and address potential issues proactively.
How does the $20.3 million award compare to typical spending for similar accounting services within the Department of Defense?
Without specific benchmarks for 'Other Accounting Services' within the DoD, a direct comparison is difficult. However, $20.3 million over three years for a major agency like the Department of the Navy suggests a significant engagement. It's likely competitive given the full and open award, but further analysis of contract databases and agency spending patterns would be needed for a precise benchmark.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0018921RZ050
Offers Received: 5
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: $24,763,378
Exercised Options: $20,309,704
Current Obligation: $20,309,704
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,512,171
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018922DZ015
IDV Type: IDC
Timeline
Start Date: 2023-11-30
Current End Date: 2026-11-29
Potential End Date: 2027-05-29 00:00:00
Last Modified: 2025-11-26
More Contracts from Kpmg LLP
- Audit of the Army Fiscal Years 2021-2025 — $206.0M (Department of Defense)
- Fiar Program Services - Base Period — $169.0M (Department of Defense)
- Base Period - Financial Improvement and Audit Readiness Support Services for the U.S. Marine Corps — $131.0M (Department of Defense)
- US Department of Army Financial Statement Audits/Exams Fy17-Fy21 — $122.2M (Department of Defense)
- Pks-Terry-Ward-Af A1 Digital Transformation STS — $102.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)