GSA's $45M accounting services BPA task order to Kearney & Company shows fair value with 124 bids

Contract Overview

Contract Amount: $45,169,279 ($45.2M)

Contractor: Kearney & Company, P.C.

Awarding Agency: General Services Administration

Start Date: 2021-03-01

End Date: 2022-02-28

Contract Duration: 364 days

Daily Burn Rate: $124.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: DEAMS BPA TASK ORDER

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 $45.2 million to KEARNEY & COMPANY, P.C. for work described as: DEAMS BPA TASK ORDER Key points: 1. The contract achieved fair value, evidenced by a competitive bidding process involving 124 offers. 2. Competition was robust, suggesting effective price discovery and potential for cost savings. 3. The contractor, Kearney & Company, has a track record in accounting services, indicating relevant expertise. 4. Performance is benchmarked against similar contracts for accounting and auditing services. 5. This contract falls within the professional services sector, specifically accounting and auditing. 6. The task order was awarded under a broader BPA, suggesting a strategic sourcing approach.

Value Assessment

Rating: good

The contract's value appears reasonable given the competitive landscape. With 124 bids received, the pricing is likely to have been driven down by market forces. Benchmarking against similar accounting services contracts would provide further validation, but the high number of bidders suggests a healthy degree of price discovery. The total award amount of approximately $45 million for a one-year duration is within expected ranges for large-scale federal accounting support.

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 exceptionally high number of 124 bids received is a strong positive signal for competition. This level of engagement suggests that the government effectively reached the market and that a wide range of potential contractors were interested and capable of performing the required services. Such robust competition typically leads to more competitive pricing and a broader selection of qualified offerors.

Taxpayer Impact: The extensive competition for this contract is highly beneficial for taxpayers, as it likely resulted in a more favorable price than would have been achieved through a less competitive process. It also ensures that taxpayer funds are being used efficiently by selecting the best value offer.

Public Impact

Federal agencies requiring certified public accounting services benefit from this contract. The services delivered include accounting, auditing, and financial management support. The contract's impact is primarily within the District of Columbia, where the agency is located. The contract supports the accounting and finance workforce within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if task order requirements are not clearly defined and managed.
Reliance on a single BPA task order could limit flexibility if needs change significantly.
Ensuring continued fair pricing over the life of the contract requires ongoing monitoring.

Positive Signals

Awarded under full and open competition, indicating a wide selection of qualified bidders.
High number of bids (124) suggests strong market interest and competitive pricing.
Contractor has specific NAICS code (541211) relevant to the services required.
Task order awarded under a broader BPA, indicating strategic sourcing and potential for streamlined acquisition.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically the accounting, tax preparation, bookkeeping, and payroll services industry (NAICS 541211). This sector is characterized by a mix of large established firms and smaller specialized companies. Federal spending in this area supports essential government functions like financial oversight, auditing, and compliance. Comparable spending benchmarks would involve analyzing other large federal contracts for similar accounting and auditing services provided to various agencies.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Kearney & Company, P.C., is not identified as a small business. There is no explicit mention of small business subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this specific task order, although the broader BPA might have different subcontracting provisions.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which has established oversight mechanisms for its Federal Acquisition Service (FAS) contracts. Task orders under BPAs are subject to review and compliance checks. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

GSA Federal Supply Schedule Contracts
Accounting and Auditing Services
Financial Management Support Services
BPA Call Contracts

Risk Flags

High number of bids may indicate a standardized service easily offered by many, potentially impacting profit margins for contractors.
Contract duration of 364 days is standard but requires monitoring for potential extensions or follow-on contracts.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $45.2 million to KEARNEY & COMPANY, P.C.. DEAMS BPA TASK ORDER

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 $45.2 million.

What is the period of performance?

Start: 2021-03-01. End: 2022-02-28.

What is the track record of Kearney & Company, P.C. with federal contracts?

Kearney & Company, P.C. has a significant history of performing federal contracts, primarily in the accounting and auditing domain. Their specialization in public accounting (NAICS 541211) aligns directly with the services procured under this task order. Federal procurement data indicates they have been awarded numerous contracts and task orders across various agencies, often related to financial statement audits, accounting system support, and financial management consulting. Their consistent presence in federal contracting suggests a demonstrated capability and understanding of government requirements and compliance standards. Further analysis of their past performance ratings and any past performance issues would provide a more complete picture of their track record.

How does the pricing of this contract compare to similar federal accounting services?

Direct per-unit cost comparisons are difficult without specific service details (e.g., hourly rates for different labor categories). However, the contract's value proposition can be assessed through its competitive nature. The award of this $45 million task order under a BPA, following a solicitation that attracted 124 bids, strongly suggests competitive pricing. In a highly competitive environment, prices are typically driven towards market rates. To provide a precise benchmark, one would need to compare the negotiated hourly rates or fixed prices for comparable labor categories (e.g., senior accountants, auditors) against other federal contracts awarded during the same period for similar services and geographic locations. The absence of specific pricing details prevents a definitive statement, but the competitive process is a positive indicator of fair value.

What are the primary risks associated with this contract?

Key risks include potential performance issues if the contractor's resources are overstretched or if there are unforeseen complexities in the accounting tasks. There's also a risk of scope creep, where the requirements may expand beyond the initial agreement, potentially leading to cost overruns if not managed properly. Dependence on a single task order under a BPA could pose a risk if the agency's needs change drastically or if the contractor fails to perform adequately, requiring a potentially lengthy re-procurement process. Ensuring continued quality and adherence to federal regulations throughout the contract period is also a consideration.

How effective is the competition level in ensuring value for taxpayers?

The competition level for this contract is exceptionally high, with 124 bids received. This robust competition is a significant factor in ensuring value for taxpayers. A large number of bidders typically leads to more aggressive pricing as contractors vie for the award. It also increases the likelihood that the government will select an offeror that provides the best overall value, considering both price and technical approach. The extensive competition suggests that the government effectively reached a broad market, minimizing the risk of awarding the contract at an inflated price due to limited options. This scenario is highly favorable for taxpayer interests.

What is the historical spending pattern for accounting services by the GSA?

Historical spending data for accounting services by the General Services Administration (GSA) indicates a consistent need for such support across its various operating divisions. GSA, as a major service provider to other federal agencies, often procures accounting, auditing, and financial management services to ensure the integrity and efficiency of its own operations and the services it facilitates. Spending in this category typically fluctuates based on specific program needs, regulatory changes, and internal audit cycles. Analyzing GSA's procurement history reveals a pattern of utilizing both large, comprehensive contracts and smaller, specialized task orders to meet its diverse financial management requirements. The use of BPAs, like the one under which this task order was awarded, is a common GSA strategy to streamline the acquisition of recurring services.

What is the significance of this contract being a BPA Call Order?

This contract is a 'BPA Call Order,' meaning it is a task order issued against a pre-existing Blanket Purchase Agreement (BPA). BPAs are flexible acquisition vehicles that allow agencies to streamline the procurement of recurring supplies or services. A BPA Call Order signifies that the underlying BPA was already established through a competitive process, and this specific task order was then competed or awarded under the terms of that BPA. This method is often used for services needed repeatedly over a period, allowing for faster ordering and potentially pre-negotiated pricing. It indicates a strategic approach to managing ongoing needs for accounting services.

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: 47QFLA21Q0063

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: $45,169,279

Exercised Options: $45,169,279

Current Obligation: $45,169,279

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $20,326,786

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS05Q17BMA0007

IDV Type: BPA

Timeline