Commerce Dept. awards $2.26M audit contract to Kearney & Company for accounting services

Contract Overview

Contract Amount: $2,257,978 ($2.3M)

Contractor: Kearney & Company, P.C.

Awarding Agency: Department of Commerce

Start Date: 2026-04-06

End Date: 2027-02-26

Contract Duration: 326 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FINANCIAL STATEMENT AUDIT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $2.3 million to KEARNEY & COMPANY, P.C. for work described as: FINANCIAL STATEMENT AUDIT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 326 days indicates a focused scope for the audit services. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The award to a single contractor, Kearney & Company, highlights specialized expertise in financial statement audits. 5. The geographic location of the service delivery in Washington D.C. aligns with the agency's headquarters.

Value Assessment

Rating: good

The contract value of approximately $2.26 million for 326 days of financial statement audit services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for federal audit services is challenging without more granular data on scope and complexity. However, the fixed-price nature of the award suggests that the government has secured a defined cost for the services, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 4 bidders suggests a healthy level of competition for this type of service. This competitive process is expected to drive more favorable pricing and ensure the selection of a contractor offering the best value.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to lower prices and higher quality services through market forces.

Public Impact

The Office of the Secretary within the Department of Commerce will benefit from these audit services. The primary service delivered is financial statement auditing, crucial for accountability and transparency. Services will be delivered in Washington D.C., the seat of federal government operations. The contract supports the accounting and auditing profession, likely involving certified public accountants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited contractor innovation due to fixed-price structure.
Reliance on a single contractor for a critical function like financial audits.

Positive Signals

Awarded via full and open competition, indicating a robust selection process.
Fixed-price contract type provides cost certainty.
Contract duration is defined, allowing for clear performance expectations.
Contractor has a specific NAICS code (541211) indicating relevant expertise.

Sector Analysis

The financial statement audit services sector for the federal government is a critical component of ensuring accountability and transparency. This contract falls under professional services, specifically accounting and auditing. The NAICS code 541211, Offices of Certified Public Accountants, indicates a specialized market. Federal agencies regularly procure these services to comply with auditing standards and regulations. The total value of this award is modest within the broader context of federal contracting for professional services.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award is likely minimal, though the prime contractor may engage small businesses in other capacities not detailed here.

Oversight & Accountability

The Department of Commerce's Office of the Secretary is responsible for overseeing this contract. Standard government procurement regulations and contract management practices will apply. Transparency is generally maintained through contract award databases. Inspector General oversight may be applicable depending on the nature of any potential issues or investigations related to the audit.

Related Government Programs

Federal Financial Audit Services
Government Contract Auditing
Department of Commerce Financial Management
Professional Services Contracts

Risk Flags

Potential for insufficient competition if only a few firms can perform specialized audits.
Risk of contractor performance issues impacting audit quality or timeliness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $2.3 million to KEARNEY & COMPANY, P.C.. FINANCIAL STATEMENT AUDIT SERVICES

Who is the contractor on this award?

The obligated recipient is KEARNEY & COMPANY, P.C..

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2026-04-06. End: 2027-02-26.

What is the track record of Kearney & Company, P.C. in performing federal financial statement audits?

Kearney & Company, P.C. is a well-established firm specializing in government auditing and accounting services. They have a significant history of working with various federal agencies, including the Department of Defense, the Department of Justice, and others. Their experience typically includes performing financial statement audits, reviews, and providing accounting advisory services. The firm is known for its focus on public sector clients and adherence to government auditing standards. Information regarding specific past performance metrics, such as audit timeliness, findings, or client satisfaction, would typically be available through government performance evaluation systems or past performance questionnaires submitted during the procurement process. Their designation under NAICS code 541211 further supports their specialization in this area.

How does the awarded price compare to similar federal financial statement audit contracts?

Directly comparing the awarded price of approximately $2.26 million for 326 days to similar federal financial statement audit contracts is challenging without access to detailed scope, complexity, and duration data for those other contracts. However, the contract is a Firm Fixed Price (FFP) award, which is generally favorable for the government as it caps the cost. The competition level (4 bidders) suggests that market forces were at play, likely leading to a competitive price. To perform a robust comparison, one would need to analyze contracts with similar agency types (e.g., other cabinet-level departments), similar audit scopes (e.g., full financial statements vs. specific components), and comparable contract durations and labor mixes. Without such granular data, the price is considered reasonable based on the FFP structure and competitive award.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential for scope creep if the audit requirements are not clearly defined, contractor performance issues (e.g., delays, quality of work), and potential for cost overruns if the fixed-price structure is not managed effectively. Mitigation strategies include the clear definition of the audit scope in the contract, the use of a Firm Fixed Price (FFP) contract type which places the cost risk on the contractor, and the government's oversight through contract administration. The selection process under full and open competition also aims to mitigate risk by choosing a qualified contractor with a proven track record. Regular communication and performance monitoring by the contracting officer's representative (COR) are crucial for timely identification and resolution of any emerging issues.

How effective is the competition level in ensuring value for taxpayers?

The competition level of 4 bidders for this financial statement audit contract is generally considered adequate to ensure value for taxpayers. Full and open competition, by definition, allows any responsible source to submit an offer, maximizing the pool of potential bidders. Having multiple bidders (four in this case) creates a competitive environment where contractors are incentivized to offer their best pricing and technical solutions to win the contract. This process helps prevent single-source price gouging and encourages efficiency. While more bidders could theoretically lead to even greater price pressure, four bidders typically indicate sufficient market interest and a reasonable likelihood that the government secured a competitive price and a qualified contractor.

What is the historical spending pattern for financial statement audit services at the Department of Commerce?

Analyzing historical spending patterns for financial statement audit services at the Department of Commerce would require access to historical contract data over several fiscal years. This specific award of $2.26 million represents a single contract action. To understand the pattern, one would need to aggregate spending on similar services (NAICS 541211) awarded by the Department of Commerce over time. This would reveal trends in contract values, number of awards, types of competition (full and open vs. other), and the primary contractors utilized. Such analysis could identify whether spending has been consistent, increasing, or decreasing, and whether the department relies on a few key audit firms or disperses contracts more broadly. Without that historical data, this single award provides limited insight into the department's overall audit spending trends.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: E.F. Kearney, Limited

Address: 1701 DUKE ST STE 500, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,897,120

Exercised Options: $2,330,678

Current Obligation: $2,257,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F031DA

IDV Type: FSS

Timeline