Treasury's IRS awards $29.3M task order for accounting support to Kearney & Company
Contract Overview
Contract Amount: $29,255,243 ($29.3M)
Contractor: Kearney & Company, P.C.
Awarding Agency: Department of the Treasury
Start Date: 2019-09-01
End Date: 2025-03-31
Contract Duration: 2,038 days
Daily Burn Rate: $14.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: Other
Official Description: CFO FINANCIAL AUDIT AND ACCOUNTING SUPPORT SERVICES TASK ORDER
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $29.3 million to KEARNEY & COMPANY, P.C. for work described as: CFO FINANCIAL AUDIT AND ACCOUNTING SUPPORT SERVICES TASK ORDER Key points: 1. Significant contract value for accounting services. 2. Full and open competition indicates a competitive market. 3. Potential risk in labor hour pricing if not managed. 4. Accounting services sector is crucial for government operations.
Value Assessment
Rating: good
The contract value of $29.3M over approximately 5 years appears reasonable for comprehensive financial audit and accounting support. Benchmarking against similar large-scale government accounting support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, driving competitive pricing and potentially better value.
Taxpayer Impact: Taxpayers benefit from efficient and accurate financial management, ensuring accountability and proper use of public funds.
Public Impact
Ensures financial integrity and compliance for the IRS. Supports critical audit functions, enhancing government accountability. Provides essential accounting expertise for complex financial operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor hour pricing can lead to cost overruns if not closely monitored.
- Potential for scope creep without clear deliverables.
- Reliance on a single vendor for critical accounting functions.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for essential services.
- Supports a key agency's financial operations.
Sector Analysis
This contract falls within the 'Other Accounting Services' NAICS code (541219). Spending in this sector supports essential government functions like auditing, tax preparation, and financial consulting, with benchmarks varying widely based on scope and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded under full and open competition. This suggests that large businesses were likely the primary bidders, with limited direct opportunity for small businesses on this specific award.
Oversight & Accountability
The award is a delivery order under a larger contract, implying existing oversight mechanisms. However, continuous monitoring of labor hours, performance, and adherence to scope is crucial for accountability.
Related Government Programs
- Other Accounting Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns due to labor hour pricing.
- Risk of vendor lock-in if not managed effectively.
- Dependence on contractor performance for critical financial functions.
- Need for robust oversight to ensure quality and prevent scope creep.
Tags
other-accounting-services, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $29.3 million to KEARNEY & COMPANY, P.C.. CFO FINANCIAL AUDIT AND ACCOUNTING SUPPORT SERVICES TASK ORDER
Who is the contractor on this award?
The obligated recipient is KEARNEY & COMPANY, P.C..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $29.3 million.
What is the period of performance?
Start: 2019-09-01. End: 2025-03-31.
What is the estimated hourly rate for the labor provided under this contract, and how does it compare to market rates for similar accounting expertise?
The provided data does not specify the hourly rate. To assess value, a comparison of the blended hourly rates or total labor costs against industry benchmarks for certified public accountants and financial analysts with government experience would be necessary. This would reveal if the pricing is competitive and reflects fair market value for the specialized skills required.
What are the key performance indicators (KPIs) for this task order, and how will performance be measured to mitigate risks associated with labor hour contracts?
Key performance indicators would likely focus on timeliness of deliverables, accuracy of financial reporting, successful completion of audit support tasks, and adherence to IRS financial regulations. Performance measurement should involve regular reviews of progress reports, quality checks on outputs, and feedback from IRS stakeholders to ensure the contractor meets expectations and to identify any deviations early.
How does the scope of these accounting support services align with the IRS's core mission and strategic financial management goals?
These services are fundamental to the IRS's mission by ensuring the integrity of its financial operations, supporting accurate tax administration, and facilitating compliance with federal financial management standards. Effective accounting support is crucial for transparency, accountability, and the overall efficient functioning of the agency, directly contributing to its ability to manage national tax obligations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services
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: LABOR HOURS (Z)
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: $29,355,907
Exercised Options: $29,255,243
Current Obligation: $29,255,243
Actual Outlays: $28,846,852
Subaward Activity
Number of Subawards: 35
Total Subaward Amount: $44,118,725
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU210
IDV Type: IDC
Timeline
Start Date: 2019-09-01
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-04-23
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