Department of Labor awards $17.7M contract to Kearney & Company for accounting services
Contract Overview
Contract Amount: $17,773,647 ($17.8M)
Contractor: Kearney & Company, P.C.
Awarding Agency: Department of Labor
Start Date: 2019-12-31
End Date: 2024-12-30
Contract Duration: 1,826 days
Daily Burn Rate: $9.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ETA - FINANCIAL SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210
Plain-Language Summary
Department of Labor obligated $17.8 million to KEARNEY & COMPANY, P.C. for work described as: ETA - FINANCIAL SERVICES Key points: 1. The contract value of $17.7M over five years suggests a significant need for accounting expertise. 2. Full and open competition was utilized, indicating a competitive bidding process. 3. The fixed-price contract type aims to control costs for the government. 4. The sector is professional services, specifically accounting, which is crucial for financial management.
Value Assessment
Rating: good
The contract's fixed-price nature with a 5-year duration suggests a well-defined scope. Benchmarking against similar large-scale accounting service contracts would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, benefiting taxpayers by avoiding overpayment for essential accounting services.
Public Impact
Ensures continued financial integrity and compliance for the Department of Labor. Supports the Office of the Assistant Secretary for Administration and Management's operational needs. Provides essential accounting and auditing services critical for government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in a 5-year contract.
- Reliance on a single awardee for critical accounting functions.
Positive Signals
- Competitive award process.
- Firm fixed-price contract type.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Government spending in this area is consistent with the need for financial oversight and compliance.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting larger firms dominated the competitive landscape for these specialized services.
Oversight & Accountability
The use of a BPA call under a broader agreement implies some level of pre-qualification and oversight. However, ongoing monitoring of performance and costs is essential.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Contract duration of 5 years.
- Potential for vendor lock-in.
- Reliance on a single contractor for critical functions.
Tags
offices-of-certified-public-accountants, department-of-labor, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $17.8 million to KEARNEY & COMPANY, P.C.. ETA - FINANCIAL 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 Labor (Office of the Assistant Secretary for Administration and Management).
What is the total obligated amount?
The obligated amount is $17.8 million.
What is the period of performance?
Start: 2019-12-31. End: 2024-12-30.
What is the benchmark cost for similar accounting services provided to federal agencies of comparable size?
Benchmarking similar accounting services requires detailed analysis of contract scope, duration, and specific deliverables. However, contracts for large federal agencies often range from several million to tens of millions annually, depending on complexity and the specific services rendered. Factors like the number of audits, financial reporting requirements, and system integration needs significantly influence pricing.
What are the key performance indicators (KPIs) used to measure the effectiveness of Kearney & Company's services under this contract?
Effective oversight would involve tracking KPIs such as audit timeliness, accuracy of financial reporting, compliance with regulations, and client satisfaction from the Department of Labor. Regular performance reviews and adherence to the contract's statement of work are crucial for ensuring the contractor meets expectations and delivers value.
How does the firm fixed-price structure mitigate risks associated with potential cost overruns for the government?
The firm fixed-price (FFP) contract shifts the majority of cost risk to the contractor. Kearney & Company is obligated to complete the work within the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to manage their resources efficiently and provides budget certainty for the Department of Labor.
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
Solicitation ID: 1605DC-20-R-00007
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: $21,667,248
Exercised Options: $21,517,248
Current Obligation: $17,773,647
Actual Outlays: $21,630,425
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $25,240,651
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 1605DC19A0024
IDV Type: BPA
Timeline
Start Date: 2019-12-31
Current End Date: 2024-12-30
Potential End Date: 2024-12-30 00:00:00
Last Modified: 2025-07-15
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