- Both competitive solicitations drew one quote each
- Navy award covers general funds and the working capital fund through 2031
- Air Force contract succeeds EY’s 2022 award for the same work
Ernst & Young has won two labor-hour contracts with a combined maximum value of $869.4 million to audit Navy and Air Force financial statements.
The Department of War said Thursday the larger award, valued at up to $455.4 million, covers audits of the Navy general fund, the Marine Corps general fund and the Navy working capital fund for the Department of War Office of Inspector General, running fiscal 2027 through 2031. The second, worth up to $414 million, covers the Air Force general fund and working capital fund. The Defense Finance and Accounting Service’s Contract Services Directorate in Columbus, Ohio, is the contracting activity for both.
What Are the EY-DFAS Contract Terms?
Each contract carries a 12-month base period and four one-year options. The Navy work is expected to conclude Dec. 31, 2031, and will be performed in Tysons, Virginia, and other sites inside and outside the continental United States. The Air Force work is expected to conclude Dec. 31, 2027, and will be performed in McLean, Virginia.
Subject to the availability of funds, the department will obligate $96.5 million in fiscal 2027 operations and maintenance funds on the Navy contract and $58.8 million in Air Force operations and maintenance funds on the second, both before performance begins.
Each award followed a competitive acquisition that drew a single quote.
What Audit Work Has EY Held Before?
The Air Force award follows a potential five-year, $200.2 million labor-hour contract that DFAS awarded to EY in December 2022 for the same general fund and working capital fund work, which also drew one bid. A December 2023 modification exercised an option and obligated $40 million, bringing cumulative value to $112 million at that point.
EY audited the Marine Corps over two years and issued an unmodified opinion in February 2024, finding that the service’s fiscal 2023 financial statements fairly represented its finances while identifying material weaknesses in internal controls over financial reporting. That audit covered $46.3 billion in assets and involved more than 3,000 documents, over 25 million sample items and more than 70 site visits.
