Ernst & Young Wins $455 Million Navy and Marine Corps Audit Contract

Ernst & Young LLP has won a labor-hour contract worth up to $455.4 million to provide financial-statement audit services for the Department of War Office of Inspector General. The work covers the Navy General Fund, Marine Corps General Fund and Department of the Navy Working Capital Fund for fiscal years 2027 through 2031. EY will perform the work in Tysons, Virginia, and at other locations inside and outside the continental United States. Completion is expected by Dec. 31, 2031.

Navy and Marine Corps Financial Statement Audit Details

EY will audit the financial statements of three distinct funds: the Navy and Marine Corps general funds, which account for their respective organizations’ activities, and the Navy Working Capital Fund. The Inspector General’s announcement for an earlier Working Capital Fund audit describes the office’s role in overseeing the independent accounting firm’s work, including its compliance with government auditing standards.

The contract spans five fiscal years and calls for work across multiple U.S. and overseas locations. Earlier EY Navy and Marine Corps audit work included audit opinion reports for each fund. Recent results illustrate the different financial-reporting issues the audits address: the Marine Corps received a clean opinion on its fiscal 2025 General Fund statements, while the Navy General Fund received a disclaimer of opinion, according to the Government Accountability Office.

Award and Contractor Background

The Defense Finance and Accounting Service made the award after a competitive acquisition that drew one quote. EY also holds the earlier Navy and Marine Corps financial-statement audit contract covering fiscal years 2021 through 2025, later extended to include fiscal 2026 work. A December 2024 award announcement put that contract’s cumulative maximum value at $267.3 million following a $55.2 million action.

In July 2025, the government announced a further $69.4 million modification to EY’s earlier contract, bringing its cumulative face value to $337.5 million. That action added fiscal 2026 Navy and Marine Corps General Fund audits and changed the Navy Working Capital Fund audit from a one-year to a two-year cycle. The newly awarded contract covers the subsequent fiscal 2027–2031 audit work.

This award was disclosed by the DoW in its daily press release. Additional contract details will be available on HigherGov in approximately 90 days under HQ042327FE001 after the contract is formally disclosed by the government.