GSA awards $46.8M contract to Kearney & Company for DEAMS task order extension

Contract Overview

Contract Amount: $46,814,647 ($46.8M)

Contractor: Kearney & Company, P.C.

Awarding Agency: General Services Administration

Start Date: 2022-03-01

End Date: 2023-02-28

Contract Duration: 364 days

Daily Burn Rate: $128.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: DEAMS TASK ORDER FOR DEPLOYMENT SUSTAINMENT AND DEVELOPMENT 6 MONTH OPTION EXTENSION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $46.8 million to KEARNEY & COMPANY, P.C. for work described as: DEAMS TASK ORDER FOR DEPLOYMENT SUSTAINMENT AND DEVELOPMENT 6 MONTH OPTION EXTENSION Key points: 1. Contract provides sustainment and development for the DEAMS system. 2. Option extension indicates continued need for contractor services. 3. Contract awarded via BPA Call under full and open competition. 4. Services are labor hour based, allowing flexibility. 5. Contractor has a track record with the General Services Administration. 6. Small business set-aside was not utilized. 7. Geographic focus is on the District of Columbia.

Value Assessment

Rating: fair

The contract value of $46.8 million for a 12-month period (including the option extension) suggests a significant investment in DEAMS sustainment and development. Without specific performance metrics or detailed cost breakdowns, it is difficult to definitively benchmark value for money. However, the labor hour pricing structure can sometimes lead to cost overruns if not closely managed. Comparing this to similar IT sustainment contracts would require access to more granular data on labor rates and scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The award was made via a BPA Call, suggesting that a broader contract vehicle was already in place, which likely streamlined the competition process. The number of bidders is not specified, but full and open competition generally promotes price discovery and encourages competitive pricing.

Taxpayer Impact: Taxpayers benefit from the competitive nature of the award, which should theoretically lead to more favorable pricing and better service delivery compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are likely federal agencies relying on the DEAMS system for financial management and accounting. Services delivered include sustainment and development, ensuring the continued operation and potential enhancement of the DEAMS platform. The geographic impact is primarily within the District of Columbia, where the contractor's services are likely centered. Workforce implications may include the employment of IT professionals, analysts, and support staff by Kearney & Company to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to labor hour pricing if scope is not tightly managed.
Lack of specific performance metrics makes it difficult to assess efficiency.
Dependence on a single contractor for critical sustainment and development functions.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Extension indicates satisfaction with contractor performance to date.
BPA Call award mechanism can streamline future procurements.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to accounting and IT sustainment. The NAICS code 541211 (Offices of Certified Public Accountants) suggests a focus on financial systems and related IT support. The market for such services is competitive, with many firms offering specialized IT and financial management solutions to the federal government. Comparable spending benchmarks would depend on the specific functionalities and complexity of the DEAMS system.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. The absence of a small business set-aside suggests that the contracting agency did not prioritize small business participation for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) through its contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated by public contract data, but detailed operational oversight and Inspector General jurisdiction would depend on the specific agency utilizing the DEAMS system and the nature of any potential investigations.

Related Government Programs

DEAMS System
Financial Management Systems
IT Sustainment Contracts
BPA Calls
Labor Hour Contracts

Risk Flags

Potential for cost overruns due to labor hour contract type.
Scope creep risk without stringent management.
Dependence on contractor for critical system sustainment.
Lack of detailed performance metrics in public data.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $46.8 million to KEARNEY & COMPANY, P.C.. DEAMS TASK ORDER FOR DEPLOYMENT SUSTAINMENT AND DEVELOPMENT 6 MONTH OPTION EXTENSION

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $46.8 million.

What is the period of performance?

Start: 2022-03-01. End: 2023-02-28.

What is the track record of Kearney & Company, P.C. with the General Services Administration and similar federal IT contracts?

Kearney & Company, P.C. has a history of contracting with the General Services Administration (GSA), as evidenced by this award. Their specialization in accounting and financial systems suggests they are well-positioned for contracts like the DEAMS task order. Federal procurement databases would likely show a portfolio of past performance with various federal agencies, including IT support, financial system implementation, and audit services. Assessing their track record would involve reviewing past performance evaluations, any contract disputes or terminations, and the overall success of their previous engagements. Their presence in the federal contracting space, particularly with agencies like GSA, indicates a level of established capability and familiarity with government procurement processes and requirements.

How does the $46.8 million value for a 12-month period compare to similar federal IT sustainment contracts?

The value of $46.8 million for a 12-month period for IT sustainment and development is substantial, placing it in the mid-to-large tier for such contracts. Benchmarking requires comparing it against contracts with similar scope, complexity, and labor categories. For instance, contracts supporting large-scale financial systems or enterprise resource planning (ERP) platforms often fall within this range. However, without knowing the specific number of users supported by DEAMS, the criticality of the system, or the specific labor rates negotiated, a precise comparison is difficult. Contracts with a heavy emphasis on custom development might command higher prices than pure sustainment. The GSA's Federal Procurement Data System (FPDS) or other public databases could be queried for comparable awards using relevant NAICS codes and contract types to establish a more robust benchmark.

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

Key risks include potential cost overruns due to the labor hour pricing model, where actual hours billed could exceed initial estimates if not managed effectively. Scope creep is another risk, where the requirements may expand beyond the original intent, leading to increased costs and schedule delays. Contractor performance failure, where Kearney & Company may not deliver the required sustainment or development, poses a significant risk to the DEAMS system's functionality. Mitigation strategies typically involve robust contract oversight by GSA, detailed work breakdown structures, regular performance reviews, clear change control processes, and potentially performance-based payment structures. The use of a BPA Call may also imply pre-negotiated terms that help mitigate some risks.

How effective is the DEAMS system, and what is the impact of this contract on its overall effectiveness?

The effectiveness of the DEAMS (Defense Enterprise Accounting and Management System) system is crucial for financial management within the Department of Defense or other relevant entities. This contract directly supports its effectiveness by ensuring ongoing sustainment and development. Sustainment activities maintain the system's operational status, fix bugs, and ensure security compliance, preventing degradation. Development activities allow for enhancements, new features, and adaptation to evolving requirements, thereby improving its capabilities and user experience. The success of this contract, therefore, is directly tied to the continued reliable and potentially enhanced performance of the DEAMS system, which underpins critical financial operations.

What are the historical spending patterns for DEAMS sustainment and development, and how does this award fit within them?

Historical spending patterns for DEAMS sustainment and development would reveal the total investment over previous years. This $46.8 million award for a 12-month period (including the option extension) represents a significant, but potentially consistent, level of expenditure if previous years saw similar investments. Analyzing past contract awards for DEAMS, including the incumbent contractor and their pricing, would provide context. If spending has been steadily increasing, it might indicate growing needs or system complexity. Conversely, stable spending could suggest a mature system with predictable maintenance costs. Understanding these patterns helps assess whether the current award is an anomaly or part of a long-term financial commitment to the DEAMS platform.

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

Solicitation ID: 47QFHA22Q0004

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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: $47,281,856

Exercised Options: $47,251,856

Current Obligation: $46,814,647

Subaward Activity

Number of Subawards: 48

Total Subaward Amount: $26,665,677

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS05Q17BMA0007

IDV Type: BPA

Timeline