KPMG LLP awarded $13.1M for accounting support services to NASA, competed under SAP
Contract Overview
Contract Amount: $13,149,163 ($13.1M)
Contractor: Kpmg LLP
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2007-01-30
End Date: 2009-12-20
Contract Duration: 1,055 days
Daily Burn Rate: $12.5K/day
Competition Type: COMPETED UNDER SAP
Sector: Other
Official Description: THE CONTRACTOR SHALL PROVIDE ACCOUNTING SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20546, UNITED STATES OF AMERICA
Plain-Language Summary
National Aeronautics and Space Administration obligated $13.1 million to KPMG LLP for work described as: THE CONTRACTOR SHALL PROVIDE ACCOUNTING SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the scope of accounting support services. 2. Competition dynamics indicate a streamlined process under Simplified Acquisition Procedures (SAP). 3. Risk indicators are low, suggesting a standard service contract with predictable outcomes. 4. Performance context is within the realm of routine financial and accounting operations. 5. Sector positioning places this contract within professional services supporting government administration.
Value Assessment
Rating: good
The contract value of $13.1 million for accounting support services over approximately 3 years appears to be within a reasonable range for a large federal agency like NASA. Benchmarking against similar accounting support contracts awarded to major professional services firms would provide a more precise value-for-money assessment. However, the nature of the services suggests a standard offering where pricing is often competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchase thresholds but is less formal than full and open competition for larger contracts. While the specific number of bidders is not provided, SAP aims to increase efficiency and competition for acquisitions below certain dollar thresholds.
Taxpayer Impact: Competition under SAP generally leads to better price discovery for taxpayers compared to sole-source awards, ensuring that the government receives competitive pricing for these essential accounting services.
Public Impact
NASA benefits from essential accounting support services, ensuring financial integrity and compliance. The services delivered include a range of accounting functions critical to agency operations. The geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications involve skilled accounting professionals contributing to federal financial management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if service level agreements are not clearly defined.
- Reliance on a single large contractor for critical accounting functions could pose a risk if performance falters.
Positive Signals
- KPMG LLP is a well-established firm with a strong reputation in accounting and auditing.
- The contract's duration and value suggest a stable, ongoing need for these services.
- Competition under SAP indicates an effort to secure fair pricing.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on accounting services. This sector is a significant component of federal spending, supporting a wide array of government functions. Comparable spending benchmarks for accounting support services can vary widely based on agency size, complexity, and specific service requirements. The market for these services is dominated by large, established firms like KPMG.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major firm, it is unlikely to involve significant subcontracting opportunities for small businesses unless specifically mandated. The focus is on securing specialized accounting expertise from a large, capable provider.
Oversight & Accountability
Oversight for this contract would typically be managed by NASA's contracting officers and program managers, ensuring adherence to the contract terms and service level agreements. Accountability measures are embedded within the contract's performance requirements and payment schedules. Transparency is generally maintained through contract databases, though specific performance metrics may not always be publicly detailed.
Related Government Programs
- Federal Financial Management
- Government Accounting Services
- Professional Services Contracts
- NASA Administrative Support
Risk Flags
- Contract competed under SAP - ensure adequate competition was achieved.
- Potential for cost overruns if scope is not well-defined.
- Data security and confidentiality risks inherent in accounting services.
Tags
accounting-services, professional-services, nasa, competed-under-sap, large-contract, kpmg-llp, district-of-columbia, financial-management, federal-agency, support-services
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $13.1 million to KPMG LLP. THE CONTRACTOR SHALL PROVIDE ACCOUNTING SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $13.1 million.
What is the period of performance?
Start: 2007-01-30. End: 2009-12-20.
What is KPMG LLP's track record with federal accounting support contracts?
KPMG LLP has a substantial track record of providing accounting, auditing, and financial advisory services to various federal agencies. Their experience spans complex financial management, compliance, and system implementation projects. While this specific contract with NASA is for accounting support, KPMG's broader federal portfolio demonstrates their capability in handling large-scale government financial requirements. Past performance reviews and contract awards from agencies like the Department of Defense, Treasury, and others would offer further insight into their reliability and quality of service in similar engagements.
How does the $13.1 million value compare to similar accounting support contracts?
The $13.1 million value for approximately three years of accounting support services to NASA is a significant but not extraordinary figure for a major federal agency. Large professional services firms often secure contracts in this range for specialized support. To provide a precise comparison, one would need to analyze contracts with similar scope (e.g., general accounting, financial reporting, internal controls) awarded to firms of comparable size (e.g., Big Four accounting firms) by agencies of similar scale and complexity (e.g., other cabinet-level departments). Without such a detailed benchmark, it's assessed as reasonable for the scope.
What are the primary risks associated with this type of accounting support contract?
The primary risks associated with this type of accounting support contract often revolve around performance and continuity. If the contractor, KPMG LLP, fails to deliver the agreed-upon accounting services effectively, it could lead to financial reporting errors, compliance issues, or delays in financial operations for NASA. Another risk is the potential for cost overruns if the scope of work expands beyond initial projections or if contract management is not robust. Data security and confidentiality are also critical risks, as accounting services involve access to sensitive financial information. Ensuring strong oversight and clear performance metrics are key to mitigating these risks.
How effective are Simplified Acquisition Procedures (SAP) in ensuring value for accounting services?
Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for acquisitions below certain dollar thresholds (currently $250,000, though historical thresholds may differ and larger contracts can be broken down). For accounting services, SAP can increase efficiency and reduce administrative burden. When properly executed with adequate competition among qualified vendors, SAP can lead to good value for taxpayers by facilitating quicker awards and potentially competitive pricing. However, the effectiveness hinges on the agency's ability to define requirements clearly and solicit bids from a sufficient number of capable sources within the SAP framework to ensure robust price discovery.
What is the historical spending pattern for accounting support services at NASA?
Analyzing historical spending patterns for accounting support services at NASA would require access to detailed procurement data over multiple fiscal years. Generally, large agencies like NASA have consistent needs for financial management and accounting support due to the complexity of their operations, research grants, and procurement activities. Spending in this category can fluctuate based on specific initiatives, system upgrades, or changes in regulatory requirements. A review of past NASA contracts for similar services would reveal trends in contract values, durations, and the incumbent contractors, providing context for the current $13.1 million award.
What are the implications of awarding this contract to KPMG LLP versus a smaller firm?
Awarding this accounting support contract to KPMG LLP, a large, established firm, implies a need for extensive resources, specialized expertise, and the capacity to handle complex, large-scale financial operations at NASA. Larger firms often bring deep industry knowledge, robust methodologies, and a proven track record. However, this often comes at a higher price point compared to smaller, niche firms. The implications include potentially higher direct costs but also potentially lower risk in terms of performance and capacity. For taxpayers, the trade-off is between potentially higher fees for a large firm and potentially lower fees but possibly higher risk with a smaller firm, depending on the specific services required.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Evaluated Preference: NONE
Contractor Details
Parent Company: Kpmg L.L.P. (UEI: 001667906)
Address: 2001 M ST NW, WASHINGTON, DC, 20036
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: NNH06CE01Z
IDV Type: BPA
Timeline
Start Date: 2007-01-30
Current End Date: 2009-12-20
Last Modified: 2015-04-01
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