Department of Labor awards $3M contract for financial accountability services to Kearney & Company

Contract Overview

Contract Amount: $3,026,684 ($3.0M)

Contractor: Kearney & Company, P.C.

Awarding Agency: Department of Labor

Start Date: 2025-01-27

End Date: 2026-02-26

Contract Duration: 395 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ETA FINANCIAL SERVICES FOR ACCOUNTABILITY, VALIDATION, OVERSIGHT, AND PROCESS IMPROVEMENT OPPORTUNITIES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $3.0 million to KEARNEY & COMPANY, P.C. for work described as: ETA FINANCIAL SERVICES FOR ACCOUNTABILITY, VALIDATION, OVERSIGHT, AND PROCESS IMPROVEMENT OPPORTUNITIES Key points: 1. Contract focuses on enhancing financial accountability, validation, oversight, and process improvement. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of 395 days indicates a medium-term engagement for specific services. 4. The fixed-price nature of the contract aims to control costs and provide budget certainty. 5. The services align with the agency's need for robust financial management and compliance. 6. Kearney & Company, P.C. is the selected contractor, implying a track record in relevant services.

Value Assessment

Rating: good

The contract value of approximately $3 million for a period of 395 days appears reasonable for specialized financial consulting services. Benchmarking against similar contracts for financial accountability and process improvement within federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost predictability for the Department of Labor, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While more bidders could potentially drive prices lower, two offers generally provide a basis for price comparison and selection of the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple firms to offer competitive pricing and innovative solutions, leading to better value for the government's investment.

Public Impact

The Department of Labor's Office of the Assistant Secretary for Administration and Management will benefit from improved financial processes. Services delivered will enhance accountability, validation, and oversight of financial operations. The geographic impact is primarily within the Department of Labor's administrative functions, likely centered in Washington D.C. and potentially remote. The contract supports the agency's administrative workforce by providing tools and expertise for better financial management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Dependence on contractor expertise could limit internal knowledge transfer if not managed proactively.

Positive Signals

Clear objective of improving financial accountability and process efficiency.
Firm fixed-price contract provides cost certainty.
Awarded through full and open competition, suggesting a competitive selection process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on accounting and auditing services (NAICS 541211). The market for these services within the federal government is substantial, with agencies consistently seeking external expertise to ensure compliance, improve efficiency, and manage complex financial operations. Comparable spending benchmarks for financial consulting and auditing services often range from hundreds of thousands to several million dollars, depending on the scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. However, the prime contractor, Kearney & Company, P.C., may engage small businesses as subcontractors if their expertise is required to fulfill the contract's objectives, though this is not explicitly stated.

Oversight & Accountability

Oversight will likely be managed by the Department of Labor's contracting officer and the Office of the Assistant Secretary for Administration and Management. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within budget. Transparency is facilitated by the contract award being made under full and open competition, with details available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Financial Management Services
Government Auditing Services
Contractor Performance Management
Agency Financial Improvement and Reform

Risk Flags

Contract duration may be insufficient for deep process transformation.
Limited number of bidders could indicate market concentration or insufficient outreach.
Success hinges on clear definition and management of contractor deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $3.0 million to KEARNEY & COMPANY, P.C.. ETA FINANCIAL SERVICES FOR ACCOUNTABILITY, VALIDATION, OVERSIGHT, AND PROCESS IMPROVEMENT OPPORTUNITIES

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2025-01-27. End: 2026-02-26.

What is Kearney & Company's track record with federal financial consulting contracts?

Kearney & Company, P.C. has a history of performing financial management and auditing services for various federal agencies. Their experience typically includes areas such as financial statement audits, internal control assessments, and compliance reviews. The Department of Labor's selection of Kearney & Company suggests they met the agency's requirements for expertise and past performance in financial accountability and process improvement. Further analysis of their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability and effectiveness in similar engagements.

How does the $3.03 million contract value compare to similar federal financial consulting contracts?

The $3.03 million contract value for approximately 13 months of service (395 days) for financial accountability, validation, oversight, and process improvement appears to be within a reasonable range for specialized federal consulting. Contracts of this nature often involve significant analytical work, compliance expertise, and reporting. Similar engagements for large federal agencies can range from several hundred thousand to several million dollars, depending on the complexity, scope, and duration. The firm fixed-price nature of this award also contributes to its comparability, as it sets a clear cost expectation.

What are the primary risks associated with this contract for the Department of Labor?

Key risks for the Department of Labor include potential underperformance by the contractor, leading to delays or failure to achieve desired improvements in financial accountability. There's also a risk of the contractor not fully understanding the nuances of the Department's specific financial systems and processes, requiring extensive ramp-up time or leading to suboptimal solutions. Scope creep, where the project expands beyond its initial definition without corresponding adjustments to cost or schedule, is another common risk. Finally, ensuring effective knowledge transfer from the contractor to agency personnel to sustain improvements post-contract is crucial.

How effective is the 'full and open competition' strategy for ensuring value in this type of contract?

Full and open competition is generally considered the most effective strategy for ensuring value in federal contracting. It allows a wide range of qualified vendors to submit proposals, fostering a competitive environment that can drive down prices and encourage innovation. For financial consulting services, this means the Department of Labor can solicit bids from numerous firms, compare their proposed methodologies, technical expertise, and pricing, and select the offer that represents the best overall value. While only two bids were received in this instance, the process itself provides a baseline for evaluating the fairness of the selected price and the quality of the proposed solution.

What is the historical spending pattern for financial accountability and process improvement services at the Department of Labor?

Analyzing historical spending patterns for financial accountability and process improvement services at the Department of Labor would reveal trends in the agency's investment in these areas. This contract, valued at approximately $3 million over 13 months, suggests a significant, albeit potentially periodic, investment. Understanding if this is a recurring need, an increase in focus, or a one-time initiative would provide context. Historical data might show fluctuations based on audit findings, regulatory changes, or strategic priorities. Comparing this award to previous contracts for similar services would indicate whether spending is increasing, decreasing, or remaining stable.

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: 2

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: $3,026,684

Exercised Options: $3,026,684

Current Obligation: $3,026,684

Actual Outlays: $2,705,710

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $935,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1605DC19A0024

IDV Type: BPA

Timeline