DoD's $13M FIAR ICAM Support Contract Awarded to KPMG LLP for Audit Remediation

Contract Overview

Contract Amount: $12,972,334 ($13.0M)

Contractor: Kpmg LLP

Awarding Agency: Department of Defense

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIAR ICAM SUPPORT. THE IDENTITY, CREDENTIAL, AND ACCESS MANAGEMENT (ICAM) AND SEGREGATION OF DUTIES (SOD) SUPPORT WILL AID IN THE REMEDIATION OF AUDIT ISSUES AUDIT ROADMAP GOALS AND OBJECTIVES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to KPMG LLP for work described as: FIAR ICAM SUPPORT. THE IDENTITY, CREDENTIAL, AND ACCESS MANAGEMENT (ICAM) AND SEGREGATION OF DUTIES (SOD) SUPPORT WILL AID IN THE REMEDIATION OF AUDIT ISSUES AUDIT ROADMAP GOALS AND OBJECTIVES Key points: 1. Contract aims to address audit issues and support FIAR roadmap objectives. 2. KPMG LLP, a major accounting firm, is the awardee. 3. The contract is for Identity, Credential, and Access Management (ICAM) and Segregation of Duties (SOD) support. 4. Spending is concentrated in the professional services sector, specifically accounting and auditing. 5. The contract duration is 729 days, indicating a medium-term project.

Value Assessment

Rating: good

The contract value of $12.97 million for a 729-day period appears reasonable for specialized audit support services. Benchmarking against similar large-scale IT audit and compliance 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, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple qualified vendors can bid.

Taxpayer Impact: The use of full and open competition is expected to yield fair pricing, maximizing the value of taxpayer funds spent on critical audit remediation efforts.

Public Impact

Enhances financial accountability and transparency within the Department of Defense. Supports the achievement of audit readiness goals, a key government priority. Improves cybersecurity posture through better identity and access management. Potentially reduces future audit findings and associated remediation costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in audit remediation projects.
Reliance on a single large firm for critical audit support.

Positive Signals

Clear objective to address audit issues.
Awarded through full and open competition.
Supports a high-priority government initiative (FIAR).

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting and auditing services. Spending in this area is often driven by regulatory compliance and audit requirements, with significant government investment in financial improvement and audit readiness.

Small Business Impact

The awardee, KPMG LLP, is a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which is common for large, specialized professional service contracts.

Oversight & Accountability

The contract's success will depend on robust oversight from the Defense Logistics Agency to ensure deliverables meet FIAR requirements and audit roadmap objectives. Performance metrics and regular reviews are crucial for accountability.

Related Government Programs

Offices of Certified Public Accountants
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Potential for delays in audit remediation.
Complexity of integrating ICAM/SOD solutions.
Dependence on contractor expertise.
Ensuring long-term sustainability of implemented controls.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to KPMG LLP. FIAR ICAM SUPPORT. THE IDENTITY, CREDENTIAL, AND ACCESS MANAGEMENT (ICAM) AND SEGREGATION OF DUTIES (SOD) SUPPORT WILL AID IN THE REMEDIATION OF AUDIT ISSUES AUDIT ROADMAP GOALS AND OBJECTIVES

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 $13.0 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

What specific FIAR audit issues will this ICAM support directly address, and what is the expected impact on the overall auditability of the DoD?

This contract is intended to address auditability gaps related to Identity, Credential, and Access Management (ICAM) and Segregation of Duties (SOD). By strengthening these controls, the support aims to remediate findings in financial statements, improve the accuracy of financial reporting, and facilitate the DoD's progress towards a clean audit opinion, thereby enhancing overall financial transparency and accountability.

What are the key performance indicators (KPIs) for this contract, and how will success be measured in terms of audit remediation progress?

Success will likely be measured by the successful implementation of ICAM and SOD solutions, the reduction in audit findings related to these areas, and demonstrable progress towards FIAR roadmap objectives. KPIs may include metrics on system integration, user access provisioning/deprovisioning efficiency, audit trail completeness, and the number of SOD conflicts identified and resolved.

Given the specialized nature of ICAM and SOD support, what is the risk of vendor lock-in or over-reliance on KPMG LLP for future audit-related needs?

While KPMG LLP is a leading firm, the risk of vendor lock-in can be mitigated through clear contract terms, knowledge transfer requirements, and the development of internal DoD expertise. The contract's duration and scope should be carefully managed to ensure that the DoD retains control over its systems and future strategic decisions, rather than becoming overly dependent on a single contractor.

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: $33,654,971

Exercised Options: $12,972,334

Current Obligation: $12,972,334

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $150,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SP470423A0506

IDV Type: BPA

Timeline