DHS awards $36.9M to Kearney & Company for accounting support, highlighting a need for specialized financial expertise

Contract Overview

Contract Amount: $36,902,265 ($36.9M)

Contractor: Kearney & Company, P.C.

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-29

End Date: 2025-04-24

Contract Duration: 1,303 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FMFO TECHNICAL ACCOUNTING SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $36.9 million to KEARNEY & COMPANY, P.C. for work described as: FMFO TECHNICAL ACCOUNTING SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The duration of the contract (over 3 years) indicates a sustained need for accounting support. 3. The BPA Call award type suggests a pre-negotiated framework, potentially streamlining future task orders. 4. The contractor, Kearney & Company, has a track record in government contracting, implying familiarity with federal requirements. 5. The specific NAICS code (541211) points to a specialized service area within accounting. 6. The contract value is significant, reflecting the complexity and importance of financial management within DHS.

Value Assessment

Rating: good

The contract value of $36.9 million over approximately 3.5 years for accounting support services appears reasonable given the scope. Benchmarking against similar large-scale financial support contracts within federal agencies suggests that pricing is likely competitive, especially considering it was awarded under full and open competition. The specific services required for technical accounting support within a large agency like DHS often involve complex regulatory compliance and financial reporting, justifying the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders, as suggested by the 'no' field, implies a degree of competition, though further details on the bidding process would be needed to fully assess its intensity. A competitive bidding process generally leads to better price discovery and ensures the government receives offers from a range of capable firms.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down costs and ensures the government secures the best value for its money. This process also promotes transparency and fairness in federal procurement.

Public Impact

The Department of Homeland Security (DHS) benefits directly through enhanced financial management and accounting accuracy. Services delivered include technical accounting support, crucial for compliance with federal financial regulations. The geographic impact is primarily national, supporting DHS operations across various locations. Workforce implications include the potential for specialized accounting roles within the contractor's organization and support for federal financial personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the technical accounting requirements are not clearly defined and managed.
Reliance on a single contractor for critical accounting functions could pose a risk if performance issues arise.
The complexity of federal accounting standards may lead to challenges in ensuring consistent application.

Positive Signals

Awarded through full and open competition, indicating a healthy market and competitive pricing.
Contractor has experience in government contracting, suggesting a lower risk of performance issues.
The contract is structured as a BPA Call, which can offer efficiencies and pre-negotiated terms.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting services (NAICS 541211). This sector is vital for government operations, providing essential expertise in financial management, auditing, and compliance. Federal spending in this area is substantial, driven by the need for accurate financial reporting, regulatory adherence, and efficient resource allocation. Comparable spending benchmarks would involve looking at other large federal agencies' contracts for similar accounting and financial advisory services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary focus of this contract is on specialized accounting services likely requiring a firm with significant resources and expertise, which may favor larger, established companies.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security. Accountability measures are embedded in the contract terms, performance standards, and payment schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

DHS Financial Management
Federal Accounting Standards Advisory Board (FASAB)
Government Accountability Office (GAO) Audits
Financial Improvement and Audit Remediation (FIAR) initiatives

Risk Flags

Potential for performance issues if contractor personnel lack specific DHS system knowledge.
Risk of cost escalation if contract scope is not tightly managed.
Dependence on contractor expertise could create knowledge gaps within DHS staff if not managed proactively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $36.9 million to KEARNEY & COMPANY, P.C.. FMFO TECHNICAL ACCOUNTING SUPPORT 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 Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $36.9 million.

What is the period of performance?

Start: 2021-09-29. End: 2025-04-24.

What is the track record of Kearney & Company, P.C. with federal contracts, particularly within the Department of Homeland Security?

Kearney & Company, P.C. has a significant history of performing federal contracts across various agencies, including the Department of Defense and the Department of Health and Human Services, often focusing on financial management, auditing, and accounting services. Their experience with the Department of Homeland Security (DHS) specifically would be detailed in contract databases, but their general profile suggests familiarity with federal procurement processes and compliance requirements. Analyzing past performance reviews and any past performance questionnaires (PPQs) associated with their previous DHS contracts would provide a clearer picture of their reliability and effectiveness in delivering similar services. Their sustained presence in the federal contracting space indicates a capacity to meet government demands.

How does the awarded value of $36.9 million compare to similar accounting support contracts awarded by DHS or other large federal agencies?

The awarded value of $36.9 million for technical accounting support services over approximately 3.5 years is substantial, reflecting the scale and complexity of financial operations within a department like DHS. To benchmark this value, one would compare it to contracts for similar services (e.g., financial audit, accounting advisory, financial system support) awarded by agencies such as the Department of Defense, Treasury, or HHS. Factors like contract duration, labor mix (e.g., certified public accountants, financial analysts), and specific deliverables (e.g., audit support, policy development, system implementation) are crucial for a fair comparison. Given that this was awarded under full and open competition, the pricing is likely reflective of market rates for specialized expertise.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract could include performance-related issues, such as delays in delivering critical accounting support, inaccuracies in financial reporting, or failure to meet compliance deadlines. There's also a risk of cost overruns if the scope of work expands beyond initial estimates or if unforeseen complexities arise. A significant risk could be the contractor's ability to retain qualified personnel throughout the contract duration. Mitigation strategies likely include robust performance monitoring by DHS contracting officers, clearly defined deliverables and key performance indicators (KPIs), regular progress meetings, and potentially financial incentives or penalties tied to performance outcomes. The use of a BPA Call structure might also offer some mitigation by allowing for task-order level oversight.

What is the expected impact of this contract on the effectiveness of DHS's financial management and audit readiness?

This contract is expected to significantly enhance the effectiveness of DHS's financial management and audit readiness. By providing specialized technical accounting support, Kearney & Company, P.C. will likely assist DHS in navigating complex federal accounting standards, improving the accuracy and completeness of financial statements, and strengthening internal controls. This support is crucial for achieving and maintaining audit readiness, which is a key objective for most federal agencies. Improved financial management can lead to more efficient resource allocation, better decision-making, and increased accountability, ultimately bolstering the agency's overall operational effectiveness and public trust.

How has DHS's spending on accounting and financial support services evolved over the past five years, and does this contract represent a trend?

Analyzing DHS's historical spending on accounting and financial support services over the past five years would reveal trends in their reliance on external expertise. This $36.9 million contract, awarded in late 2021 for a duration extending into 2025, represents a significant investment. If DHS has consistently awarded large contracts for similar services, it suggests a sustained need and potentially an ongoing strategy to leverage external expertise for complex financial functions. Conversely, if this contract is an outlier, it might indicate a specific initiative or a response to a particular challenge, such as improving audit readiness or implementing new financial systems. A trend analysis would require examining contract databases for similar awards and their values over time.

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

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: $42,377,082

Exercised Options: $36,902,265

Current Obligation: $36,902,265

Actual Outlays: $29,276,894

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $7,257,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70RDAD19A00000009

IDV Type: BPA

Timeline