DLA awards $3.1M task order to KPMG for strategic planning services
Contract Overview
Contract Amount: $3,094,521 ($3.1M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 2024-03-01
End Date: 2026-11-30
Contract Duration: 1,004 days
Daily Burn Rate: $3.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TASK ORDER TO ACQUIRE SERVICES IN SUPPORT OF DLA STRATEGIC PLANNING AND FUTURES PROGRAM.
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $3.1 million to KPMG LLP for work described as: TASK ORDER TO ACQUIRE SERVICES IN SUPPORT OF DLA STRATEGIC PLANNING AND FUTURES PROGRAM. Key points: 1. KPMG LLP, a large business, secured this contract. 2. The contract is for IT services under NAICS 541519. 3. The award was made under full and open competition. 4. The contract duration is approximately 3 years.
Value Assessment
Rating: good
The contract value of $3.1M appears reasonable for a 3-year strategic planning engagement. Benchmarking against similar IT consulting contracts of this scope and duration would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing taxpayer value for the services rendered.
Public Impact
Enhances strategic planning capabilities for the Defense Logistics Agency. Supports critical future-oriented programs within the DoD. Leverages external expertise for complex planning initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in strategic planning.
- Reliance on a single large contractor for critical functions.
Positive Signals
- Clear objective for strategic planning.
- Competitive award process ensures market-based pricing.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically IT consulting. Spending in this area is substantial across the federal government, with benchmarks varying widely based on service type and duration.
Small Business Impact
The contract was awarded to a large business (KPMG LLP) and does not indicate any specific set-asides or participation goals for small businesses.
Oversight & Accountability
The task order structure suggests it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which may have its own oversight mechanisms. The Defense Logistics Agency is responsible for ensuring performance and accountability.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Contract awarded to a large business, potentially limiting small business participation.
- Strategic planning can be subjective, making performance measurement challenging.
- Potential for vendor lock-in if knowledge is not adequately transferred.
- Scope creep is a common risk in long-term strategic initiatives.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.1 million to KPMG LLP. TASK ORDER TO ACQUIRE SERVICES IN SUPPORT OF DLA STRATEGIC PLANNING AND FUTURES PROGRAM.
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 $3.1 million.
What is the period of performance?
Start: 2024-03-01. End: 2026-11-30.
What specific deliverables are expected from KPMG for this strategic planning task order, and how will their success be measured?
The specific deliverables are not detailed in the provided data but typically include strategic plans, future-state analyses, risk assessments, and implementation roadmaps. Success measurement would likely involve adherence to timelines, quality of analysis, stakeholder buy-in, and the actionable nature of the recommendations provided to the Defense Logistics Agency.
What are the key risks associated with relying on an external contractor for strategic planning, and what mitigation strategies are in place?
Key risks include a lack of institutional knowledge transfer, potential misalignment with agency culture, and over-reliance on contractor recommendations. Mitigation strategies could involve close government oversight, defined knowledge transfer requirements, and ensuring government personnel are actively involved in the planning process to maintain continuity and internal expertise.
How does this $3.1M investment in strategic planning align with the DLA's overall mission and long-term objectives?
This investment aims to enhance the DLA's ability to anticipate future challenges and opportunities, ensuring its strategic direction remains relevant and effective. By leveraging external expertise, the DLA seeks to improve its foresight capabilities, optimize resource allocation, and maintain operational readiness in a dynamic environment, ultimately supporting its core mission.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: SP470924Q2004
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: $3,094,521
Exercised Options: $3,094,521
Current Obligation: $3,094,521
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $810,000
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP470917D0056
IDV Type: IDC
Timeline
Start Date: 2024-03-01
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2026-01-05
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