More Help for USN’s Financial Improvement Plan

Apr 26, 2005 08:28 UTC by Defense Industry Daily staff

The Fleet and Industrial Supply Center Norfolk Detachment in Philadelphia, PA continues to issue cost-plus-fixed-fee, indefinite-delivery/ indefinite-quantity contracts in support of the implementation of the Department of the Navy (DON) Financial Improvement Plan (FIP). These contracts were competitively procured via the Navy Electronic Commerce Online website, and nine offers were received. The FIP is a corrective program designed to achieve an unqualified audit opinion for its Annual Financial Statements.

Initial contracts with a one-year value of $72.4 million were issued recently to SAIC and IBM Consulting, with options that could expand their combined total to $212.7 million over several years. These two contracts are cumulative with a combined $72.4 million in contracts issued on March 15, 2005 to Bearing Point and Deloitte Consulting LLP, with options that could raise their combined long-term value to $213.5 million.

Science Applications International Corp. in McLean, VA won a $37.7 million contract (N00140-05-D-0055) whose options would bring the total cumulative value of the contract to an estimated $109.5 million if exercised. Work will be performed in the Washington Metropolitan area (50%); Norfolk, VA (10%); San Diego, CA (10%); Cleveland, OH (10%), Kansas City, MO (3%), Pensacola, FL (3%); Charleston SC (5%); Mechanicsburg, PA (3%); Pearl Harbor, HI (2%); New Orleans, LA (2%); Europe (1%); and the Far East (1%), and is expected to be completed March 2006.

IBM Business Consulting Services in Fairfax, VA won a $34.7 million contract (N00140-05-D-0054), with four option years that could bring the total estimated value of the contract to $103.2 million. Work will be performed in the Washington Metropolitan area (50%); Norfolk, VA (10%); San Diego, CA (10%); Cleveland, OH (10%), Kansas City, MO (3%), Pensacola, FL (3%); Charleston SC (5%); Mechanicsburg, PA (3%); Pearl Harbor, HI (2%); New Orleans, LA (2%); Europe (1%); and the Far East (1%), and is expected to be completed March 2006.

The March 15, 2005 contracts went to Bearing Point Inc. in Alexandria, VA and Deloitte Consulting LLP in Reston, VA. The contract awards encompass a base year and four one-year option periods. For Bearing Point, the base year amount was $37 million, and the contract’s estimated value if all options are exercised is $107.6 million (N00140-05-D-0019). For Deloitte Consulting LLP, the base year amount was $35.3 million, and the contract’s estimated value if all options are exercised is $105.8 million (N00140-05-D-0020). Work on these two contracts will be performed in various locations around the world and will be directed at the task order level.

The DON FIP team’s primary objectives are the identification and implementation of corrective actions to resolve established deficiencies related to the DON Annual Financial Statements and the preparation, documentation, and validation of processes, data, and systems that materially affect the DON Annual Financial Statements. A dedicated team within the Financial Management Office maintains the DON FIP and coordinates execution of the plan.