Deloitte wins $800M Air Force audit readiness job
Deloitte has won a potential five-year, $800 million contract to help the Air Force produce financial statements in order to prepare the service branch for an audit as the Defense Department moves forward on an agency-wide audit.
A FedBizOpps award notice posted Tuesday details the scope of work as also including support for enduring audit readiness, development and implementation of corrective action plans, assessing and documenting IT compliance.
The “Financial Improvement & Audit Readiness” effort seeks to support the Air Force comptroller with change management and production of accurate reports to keep the branch in an audit ready state.
DOD announced in December of last year it would conduct the first ever department-wide financial audit in its history with the report due in November of this year. DOD’s inspector general hired independent public accounting firms to conduct audits of individual components that include the service branches, agencies and activities.
Those audits will help feed into a department-wide consolidated audit to summarize all results and conclusions. DOD estimates it has around 700,000 civilian employees and $2.4 trillion in assets.
The Air Force has a budget of almost $160 billion and nearly 650,000 military and civilian personnel, according to the Deloitte contract award notice. Two other offers were submitted for that contract.
PricewaterhouseCoopers is the incumbent contractor for the Air Force FIAR program and first won the work in 2012 with a $300 million ceiling. PwC is selling its U.S. public sector business to private equity firm Veritas Capital through a deal first announced in February.
The Navy awarded its almost $600 million Financial Improvement and Audit Readiness support contract in December of last year to Deloitte and KPMG but that was subsequently protested by incumbents Accenture and Booz Allen Hamilton.
The Government Accountability Office is set to rule on Accenture’s protest by May 3 and on Booz Allen’s protests by May 7, according to the agency’s bid protest docket.
IBM also protested the awards on Jan 23 but withdrew its challenge March 5.