DoD Awards $12.7M Contract to KPMG LLP for WCF Inventory Remediation Services
Contract Overview
Contract Amount: $12,679,651 ($12.7M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 2025-04-11
End Date: 2026-04-10
Contract Duration: 364 days
Daily Burn Rate: $34.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: WCF INVENTORY REMEDIATION - BASE PERIOD
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376
Plain-Language Summary
Department of Defense obligated $12.7 million to KPMG LLP for work described as: WCF INVENTORY REMEDIATION - BASE PERIOD Key points: 1. The contract value is $12.7 million for a 1-year period. 2. KPMG LLP, a large firm, was awarded the contract. 3. The contract is for 'Other Accounting Services' (NAICS 541219). 4. The award was made under full and open competition.
Value Assessment
Rating: good
The contract value of $12.7 million for a 1-year period appears reasonable for specialized accounting services. Benchmarking against similar large-scale inventory remediation or accounting support contracts would provide further context on pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely led to fair market pricing. The award type is a delivery order, indicating it's part of a larger contract vehicle.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving fair value for the services rendered, minimizing the risk of overpayment.
Public Impact
Ensures compliance and accuracy in Department of Defense inventory management. Supports financial accountability and operational efficiency within the Navy. Leverages specialized accounting expertise for complex remediation tasks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively short (1 year), potentially leading to future re-competition costs.
- No specific small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Clear scope of work for inventory remediation.
Sector Analysis
This contract falls under professional services, specifically accounting and financial consulting. Spending in this sector for government support services can be substantial, with benchmarks varying widely based on the complexity and scale of the engagement.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no indication of small business subcontracting goals or participation in this specific award.
Oversight & Accountability
The award was made under full and open competition, which inherently provides a level of oversight through the bidding process. Further oversight would involve monitoring contract performance and adherence to the firm-fixed-price terms.
Related Government Programs
- Other Accounting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of small business participation.
- Short contract duration may lead to future competition costs.
- Potential for knowledge transfer gaps if not managed.
- Reliance on a single large contractor.
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 $12.7 million to KPMG LLP. WCF INVENTORY REMEDIATION - 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 $12.7 million.
What is the period of performance?
Start: 2025-04-11. End: 2026-04-10.
What specific inventory remediation challenges does this contract address, and how does KPMG's proposed solution ensure value for money?
The contract aims to address challenges related to the accuracy and completeness of Department of the Navy's WCF (Working Capital Fund) inventory. KPMG's solution likely involves detailed auditing, reconciliation, and process improvement recommendations. Value for money is expected through improved inventory accuracy, reduced carrying costs, and enhanced financial reporting, though specific metrics for success would need to be defined in the contract's performance standards.
What are the potential risks associated with relying on a single large firm like KPMG for critical inventory remediation, and how are these mitigated?
Risks include potential over-reliance, lack of competitive pressure post-award, and knowledge transfer challenges. Mitigation strategies could involve clear performance metrics, defined deliverables, regular progress reviews, and potentially incorporating knowledge transfer requirements into the contract. The initial full and open competition helps mitigate initial pricing risks.
How will the effectiveness of KPMG's services be measured to ensure the Department of Defense achieves its inventory management objectives?
Effectiveness will likely be measured through key performance indicators (KPIs) tied to inventory accuracy rates, reduction in discrepancies, timeliness of remediation activities, and successful implementation of recommended process improvements. Regular reporting and performance reviews by the Department of the Navy will be crucial to assess whether the contract is meeting its intended objectives and delivering tangible benefits.
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: 2
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: $26,755,905
Exercised Options: $12,679,651
Current Obligation: $12,679,651
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: 2025-04-11
Current End Date: 2026-04-10
Potential End Date: 2027-04-10 00:00:00
Last Modified: 2025-12-17
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