DLA awards $20M+ contract to KPMG LLP for FIAR program management support

Contract Overview

Contract Amount: $20,055,027 ($20.1M)

Contractor: Kpmg LLP

Awarding Agency: Department of Defense

Start Date: 2025-07-03

End Date: 2026-07-02

Contract Duration: 364 days

Daily Burn Rate: $55.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SAIA TO PROVIDE DLA SENIOR LEADERSHIP WITH ADVICE TO MANAGE THE FIAR PROGRAM AND SAIA / SDVOSB FIAR BPAS TO DELIVERABLES. THE APMO SHALL IDENTIFY PROGRESS AND CHALLENGES AGAINST AWARDED TASK ORDERS.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to KPMG LLP for work described as: SAIA TO PROVIDE DLA SENIOR LEADERSHIP WITH ADVICE TO MANAGE THE FIAR PROGRAM AND SAIA / SDVOSB FIAR BPAS TO DELIVERABLES. THE APMO SHALL IDENTIFY PROGRESS AND CHALLENGES AGAINST AWARDED TASK ORDERS. Key points: 1. Contract aims to enhance financial improvement and audit readiness for the Defense Logistics Agency. 2. KPMG LLP, a large established firm, will provide senior leadership advice and program management. 3. The contract is structured as a Blanket Purchase Agreement (BPA) Call, indicating a flexible ordering mechanism. 4. Performance period is one year, with a potential for extensions based on needs. 5. The contract is not set aside for small businesses, suggesting a focus on specialized expertise. 6. The fixed-price nature of the contract shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of over $20 million for a one-year period for specialized financial advisory services appears reasonable given the complexity of managing a Financial Improvement and Audit Readiness (FIAR) program for a major agency like the DLA. Benchmarking against similar large-scale consulting engagements for federal agencies suggests that this pricing is within expected ranges for expert advisory and program management support. The fixed-price contract structure also provides cost certainty for the government, assuming the contractor can effectively manage their resources to meet the defined objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific mechanism used was a BPA Call, which is typically established through a competitive process itself, allowing for further competitive calls against it. The presence of full and open competition generally promotes price discovery and encourages contractors to offer competitive terms to secure the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to drive down costs and ensure the government receives the best value for its investment in critical program management services.

Public Impact

The primary beneficiaries are the Department of Defense and the Defense Logistics Agency, which will receive improved financial management and audit readiness. Services delivered include expert advice to senior leadership, program management, and identification of progress and challenges within the FIAR program. The geographic impact is primarily within the DLA's operational areas, with a focus on financial systems and processes. Workforce implications include the engagement of specialized financial and program management professionals from KPMG LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the FIAR program's complexity is underestimated.
Reliance on a single large contractor for critical financial advisory services.
Ensuring effective knowledge transfer from contractor personnel to government staff.

Positive Signals

Award to a reputable firm with demonstrated experience in financial advisory and audit readiness.
Fixed-price contract structure aligns incentives and manages cost risk.
Clear objectives for managing the FIAR program and identifying progress/challenges.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on accounting and financial advisory services. The market for such services within the federal government is substantial, driven by mandates for audit readiness and financial transparency. Large consulting firms like KPMG LLP are key players in this space, often competing for multi-million dollar contracts to support complex government programs. Benchmarks for similar financial management and audit support contracts can range widely based on scope and duration, but a $20M+ annual value is indicative of a significant engagement.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb': false parameter. The award to KPMG LLP, a large, established firm, suggests that the requirements of the FIAR program management likely demanded a scale of resources and specialized expertise that favored larger contractors. There is no explicit mention of subcontracting requirements for small businesses in the provided data, but large prime contractors are often encouraged or required to engage small businesses in their subcontracting plans.

Oversight & Accountability

Oversight will likely be managed by the Defense Logistics Agency's contracting officers and program managers. The contract's fixed-price nature provides a degree of accountability by tying payment to deliverables and performance. Transparency is expected through regular reporting on progress and challenges within the FIAR program, as mandated by the contract. While specific Inspector General jurisdiction isn't detailed, the Department of Defense OIG would typically have oversight over DLA activities.

Related Government Programs

DLA FIAR Program
Department of Defense Financial Management
Federal Audit Readiness Initiatives
Government Consulting Services
Program Management Support

Risk Flags

Potential for contractor performance issues
Risk of program scope expansion
Dependency on key personnel

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to KPMG LLP. SAIA TO PROVIDE DLA SENIOR LEADERSHIP WITH ADVICE TO MANAGE THE FIAR PROGRAM AND SAIA / SDVOSB FIAR BPAS TO DELIVERABLES. THE APMO SHALL IDENTIFY PROGRESS AND CHALLENGES AGAINST AWARDED TASK ORDERS.

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 $20.1 million.

What is the period of performance?

Start: 2025-07-03. End: 2026-07-02.

What is KPMG LLP's track record with similar federal financial advisory contracts?

KPMG LLP has a significant track record of providing financial advisory, audit, and management consulting services to various federal agencies, including the Department of Defense. They have been involved in numerous large-scale financial improvement and audit readiness (FIAR) initiatives across different branches of the government. Their experience often includes assisting agencies in developing financial management systems, implementing accounting standards, and preparing for and undergoing financial statement audits. This extensive background suggests a strong capability to manage complex programs like the one awarded by DLA, although specific performance metrics for past contracts would require deeper investigation into contract databases and performance reports.

How does the $20M+ contract value compare to other DLA or DoD FIAR support contracts?

The $20 million+ contract value for a one-year period for DLA's FIAR program management support is substantial and aligns with the significant investment required for such critical initiatives within large federal organizations. Contracts for FIAR support can vary widely based on the scope, duration, and specific needs of the agency. For major components of the DoD, annual spending on FIAR-related consulting and support services can easily reach tens or even hundreds of millions of dollars across various contracts. This particular award appears to be a significant, but not unprecedented, investment for specialized advisory services aimed at achieving audit readiness for a complex agency like DLA.

What are the primary risks associated with this contract and how are they mitigated?

Key risks include the potential for the FIAR program's complexity to be underestimated, leading to cost overruns or schedule delays, although the fixed-price nature mitigates direct cost risk to the government. Another risk is the contractor's ability to effectively integrate with DLA's senior leadership and existing processes. Mitigation strategies likely involve robust contract oversight by DLA, clear performance metrics, regular progress reporting, and the requirement for KPMG to identify challenges proactively. The selection of a well-established firm like KPMG also reduces the risk associated with contractor capability and performance.

How effective is the BPA Call mechanism for managing this type of specialized service?

The Blanket Purchase Agreement (BPA) Call mechanism is generally effective for acquiring specialized services like financial advisory and program management support, especially when an agency anticipates recurring needs but with potentially varying task requirements. A BPA is established through a competitive process, and then individual calls against the BPA allow for specific task orders to be issued, often competitively or on a sole-source basis depending on the BPA's terms and agency policy. This provides flexibility and can streamline the procurement process for follow-on work. For DLA's FIAR program, it allows them to quickly task KPMG for specific advisory needs as they arise within the program's lifecycle, while maintaining oversight and control over the overall BPA.

What is the historical spending trend for FIAR program management support at DLA?

Historical spending data for FIAR program management support at the Defense Logistics Agency (DLA) would typically show a trend of increasing investment over the past decade, driven by congressional mandates and DoD-wide initiatives to achieve auditable financial statements. Agencies like DLA have progressively allocated more resources towards financial improvement and audit readiness efforts. While specific annual figures for DLA's FIAR program management alone are not provided, the overall DoD spending in this area has been substantial. This $20M+ award reflects the ongoing commitment and resource allocation necessary to tackle the complexities of financial auditability within a large, complex logistics enterprise.

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

Solicitation ID: SP470424Q0017

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: $20,055,027

Exercised Options: $20,055,027

Current Obligation: $20,055,027

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470423A0506

IDV Type: BPA

Timeline