VA Awards $13.3M Financial Audit Contract to Kearney & Company for Two Years
Contract Overview
Contract Amount: $13,356,657 ($13.4M)
Contractor: Kearney & Company, P.C.
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-01-01
End Date: 2026-12-31
Contract Duration: 729 days
Daily Burn Rate: $18.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FINANCIAL STATEMENT AUDIT CONTRACT
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $13.4 million to KEARNEY & COMPANY, P.C. for work described as: FINANCIAL STATEMENT AUDIT CONTRACT Key points: 1. Contract value of $13.36 million for a 2-year period. 2. Awarded via full and open competition, indicating market availability. 3. Potential risk related to reliance on a single firm for critical financial audits. 4. Sector is professional services, specifically accounting and auditing. 5. Firm Fixed Price contract type helps control costs.
Value Assessment
Rating: good
The contract value of $13.36 million over two years, with a firm fixed price, suggests reasonable pricing for specialized financial audit services. Benchmarking against similar large-scale government audit contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing any qualified firm to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for essential financial oversight services.
Public Impact
Ensures financial integrity and accountability within the Department of Veterans Affairs. Supports transparency in government spending and operations. Provides essential services for the proper management of public funds. Impacts the VA's ability to meet federal financial reporting requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if performance is exceptional.
- Dependence on a single firm for critical financial audits.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type.
- Clear contract duration and defined scope.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Government spending in this area is crucial for regulatory compliance and financial oversight, with benchmarks often varying based on agency size and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large firm. There is no direct indication of small business participation in this specific award.
Oversight & Accountability
The award is managed by the Department of Veterans Affairs, implying internal oversight mechanisms. Further details on specific oversight procedures, performance reviews, and accountability measures would be needed for a comprehensive assessment.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for vendor lock-in.
- Dependence on a single firm for critical financial audits.
- Lack of specific performance metrics in the provided data.
- Need for historical performance data of the contractor.
Tags
offices-of-certified-public-accountants, department-of-veterans-affairs, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $13.4 million to KEARNEY & COMPANY, P.C.. FINANCIAL STATEMENT AUDIT CONTRACT
Who is the contractor on this award?
The obligated recipient is KEARNEY & COMPANY, P.C..
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $13.4 million.
What is the period of performance?
Start: 2025-01-01. End: 2026-12-31.
What is the historical performance of Kearney & Company, P.C. with the VA or similar agencies?
Assessing Kearney & Company's past performance is crucial. Reviewing their track record with the VA and other federal agencies for similar financial audit contracts can reveal their reliability, quality of service, and adherence to deadlines. Positive past performance would increase confidence in this award, while negative performance might raise concerns about value and effectiveness.
How does the per-unit cost of this audit compare to industry benchmarks for similar government contracts?
Benchmarking the cost against similar government financial audit contracts is essential for evaluating value. If the cost per audit hour or per deliverable is significantly higher than industry averages for comparable agencies, it could indicate potential overpricing or inefficiencies. Conversely, costs aligned with or below benchmarks would suggest fair pricing.
What are the key performance indicators (KPIs) and deliverables for this contract, and how will they be measured?
Understanding the specific KPIs and deliverables is vital for assessing effectiveness. Clearly defined metrics for audit quality, timeliness, and accuracy, along with robust measurement and reporting processes, ensure accountability. Without these, it's difficult to gauge whether the contract is achieving its intended objectives and providing value for taxpayer money.
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) › PROFESSIONAL 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: $75,024,926
Exercised Options: $23,194,519
Current Obligation: $13,356,657
Actual Outlays: $4,421,535
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $5,419,407
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F031DA
IDV Type: FSS
Timeline
Start Date: 2025-01-01
Current End Date: 2026-12-31
Potential End Date: 2029-12-31 00:00:00
Last Modified: 2026-02-05
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