The Department of the Navy is preparing to increase the ceiling of its Financial Improvement Program IV multiple-award contract by $825 million, citing accelerated auditability mandates that require continued performance by incumbent vendors.
According to a notice published Dec. 18 on SAM.gov, the Naval Supply Systems Command Fleet Logistics Center Norfolk intends to raise the contract’s total ceiling from $999 million to $1.82 billion under a limited-source justification.
Why Is the Navy Increasing the FIP IV Contract Ceiling?
The Navy said the ceiling increase is driven by congressional and departmental audit deadlines that have significantly accelerated performance requirements under the FIP IV vehicle.
The FY2024 National Defense Authorization Act mandates that all components of the Department of War be auditable by fiscal year 2028. Navy leadership has set earlier internal targets, calling for an unmodified audit opinion on the Navy’s general fund by FY2027 and on its working capital fund by FY2026.
According to the Navy, those timelines make it essential to continue work with the current FIP IV contractors, which the service described as the only sources capable of meeting auditability objectives within the required timeframe.
Which Companies Hold the FIP IV Contract?
The FIP IV contract was originally awarded in April 2022 as a five-year multiple-award indefinite-delivery/indefinite-quantity vehicle.
The companies awarded spots on the IDIQ are:
- Deloitte & Touche
- Kearney & Co.
- Guidehouse
- KPMG
- Sehlke Consulting, which merged with Artlin Consulting in September 2022 to form Aeyon. CGI Federal acquired Aeyon in 2024.
The contract has an ordering period ending on April 21, 2027, with performance duration running through April 21, 2028.
According to the service branch, the notice is for informational purposes only and does not constitute a request for proposals.
Interested vendors may submit capability documentation, demonstrating that a competitive procurement process would provide a distinct advantage to the government.
