Records reviewed by CBS News point to a gap between KPMG's bid rates and some billed work under a four-year, $24 million California high-speed rail advisory contract.
The California High-Speed Rail Authority's award notice records KPMG LLP's final score as 204.44, compared with 202.29 for CohnReznick LLP. CohnReznick had the higher technical score, 117.5 to 110.5, while KPMG's cost score was 61, against 52.35. The final tally also included interview results and small-business and disabled-veteran-business participation preferences and incentives.
CBS reported that KPMG's bid listed rates of $35 per hour for managing directors, managers and senior associates, compared with $425 per hour for associates. Task orders assigned more than 9,000 hours to manager and senior-associate roles, CBS said, while invoices billed thousands of those hours at the associate rate. The outlet estimated the difference at about $2 million over the four months it reviewed. CBS also reported that the Authority used a weighted average of proposed hourly rates to compare costs.
The Authority's January 2026 contracts report lists the agreement as worth $24 million for financial advisory services. It runs from Oct. 1, 2025, through Sept. 30, 2029, and is paid for by the Authority.
CohnReznick protested the award, alleging that KPMG's low rates for senior roles improved its price score, CBS reported. The California Department of General Services denied the protest, according to CBS. A hearing officer described as “mere speculation” the claim that KPMG intended to charge more, while instructing Authority contract managers to check that the work classifications and rates matched.
CBS said the records did not establish who authorized changes to assignments or billing classifications, or what justified the higher rates. The protest allegation that KPMG intended to charge more was described by the hearing officer as “mere speculation.” KPMG told CBS, “KPMG is investigating the facts and circumstances related to the proposal process and contract with California High-Speed Rail Authority.”
The Authority's board chair told CBS he planned to request an independent review by the Office of Inspector General.
