DLA Awards KPMG $14M Contract for Business Integrator Task Order Under Full and Open Competition
Contract Overview
Contract Amount: $13,994,479 ($14.0M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 2023-08-01
End Date: 2026-07-31
Contract Duration: 1,095 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BUSINESS INTEGRATOR TASK ORDER
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.0 million to KPMG LLP for work described as: BUSINESS INTEGRATOR TASK ORDER Key points: 1. The contract value is $13,994,479.13. 2. KPMG LLP is the sole awardee. 3. The contract is for a Business Integrator Task Order. 4. The period of performance is from August 1, 2023, to July 31, 2026. 5. This is a Firm Fixed Price contract.
Value Assessment
Rating: good
The contract value of $13.99 million for a 3-year period appears reasonable for specialized business integration services. Benchmarking against similar large-scale IT or professional services contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: The competitive award process is expected to yield fair market value, minimizing unnecessary taxpayer expenditure for these services.
Public Impact
Supports critical business integration functions for the Defense Logistics Agency. Ensures continuity of essential services through a multi-year contract. Leverages expertise from a well-established professional services firm. Potential for improved operational efficiency within the DLA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for scope creep in complex integration projects.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Long-term contract ensures service continuity.
Sector Analysis
The Defense Logistics Agency (DLA) operates within the broader federal IT and professional services sector. Spending benchmarks for similar business integration or IT support contracts within defense agencies can vary significantly based on scope and complexity.
Small Business Impact
The awardee, KPMG LLP, is a large business. There is no indication in the provided data that small businesses were specifically included or subcontracted for this task order.
Oversight & Accountability
The contract is managed by the Defense Logistics Agency, a component of the Department of Defense, which has established oversight mechanisms. Further details on specific oversight activities would require access to contract management documentation.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Contract awarded to a large business.
- Specific performance metrics not detailed.
- Potential for integration complexity and scope creep.
- Reliance on a single vendor for critical integration tasks.
Tags
offices-of-certified-public-accountants, department-of-defense, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.0 million to KPMG LLP. BUSINESS INTEGRATOR TASK ORDER
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $14.0 million.
What is the period of performance?
Start: 2023-08-01. End: 2026-07-31.
What specific business integration functions will KPMG LLP perform under this task order, and how do these align with DLA's strategic objectives?
The task order likely involves enhancing or maintaining DLA's business systems, processes, and data integration to improve operational efficiency and decision-making. This could include areas like supply chain management, financial systems, or enterprise resource planning. The alignment with strategic objectives would depend on DLA's current modernization and efficiency goals.
What are the key performance indicators (KPIs) for this contract, and how will KPMG's performance be measured to ensure value for money?
Key performance indicators are crucial for assessing value. While not detailed here, typical KPIs for such contracts might include system uptime, data accuracy rates, project completion timelines, user satisfaction, and cost savings achieved. DLA's contract management team would monitor these KPIs against agreed-upon targets to ensure KPMG delivers the expected outcomes and justifies the $14 million investment.
How does the $13.99 million contract value compare to industry benchmarks for similar business integration services provided to large federal agencies?
Without specific details on the scope of work, a precise benchmark is difficult. However, for a 3-year task order involving a major federal agency like DLA, $14 million for comprehensive business integration services from a large firm like KPMG is within a plausible range. It suggests a significant undertaking, potentially involving complex system integration, process re-engineering, or major IT support.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8350 BROAD ST STE 900, MC LEAN, 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: $21,087,566
Exercised Options: $13,994,479
Current Obligation: $13,994,479
Actual Outlays: $1,024,780
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $884,900
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP470423A0506
IDV Type: BPA
Timeline
Start Date: 2023-08-01
Current End Date: 2026-07-31
Potential End Date: 2028-07-31 00:00:00
Last Modified: 2025-12-17
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