DHS awards $1.07M for accounting services to Kearney & Company, Inc. under full and open competition

Contract Overview

Contract Amount: $1,069,689 ($1.1M)

Contractor: Kearney & Company, P.C.

Awarding Agency: Department of Homeland Security

Start Date: 2025-03-01

End Date: 2026-12-17

Contract Duration: 656 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARD FOR RM&A FINANCIAL REPORTING SECTION 2(D) EXCEPTION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20228

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.1 million to KEARNEY & COMPANY, P.C. for work described as: AWARD FOR RM&A FINANCIAL REPORTING SECTION 2(D) EXCEPTION Key points: 1. Contract awarded for essential financial reporting services, indicating a need for specialized accounting expertise. 2. The fixed-price contract structure aims to control costs and provide predictability for the government. 3. Competition was robust, suggesting a healthy market for these accounting services. 4. The duration of the contract extends over a significant period, allowing for sustained support. 5. The award is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. Services are concentrated in the District of Columbia, aligning with federal agency locations.

Value Assessment

Rating: good

The award amount of $1.07 million for accounting services appears reasonable given the contract duration of over 650 days. Benchmarking against similar contracts for 'Other Accounting Services' (NAICS 541219) would provide a more precise value assessment. However, the firm-fixed-price nature suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The absence of specific performance metrics in the provided data makes a deep dive into value-for-money challenging, but the competitive award process implies a degree of market validation.

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 offers. The data does not specify the number of bidders, but the designation 'full-and-open' suggests a competitive environment. This approach is designed to foster price discovery and ensure the government receives the best possible value by leveraging market forces. The absence of any set-aside for small businesses further broadens the potential bidder pool.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing for taxpayers by allowing a wide range of qualified vendors to bid on government contracts.

Public Impact

The U.S. Secret Service benefits from enhanced financial reporting capabilities, crucial for operational integrity. Specialized accounting services ensure compliance with financial regulations and reporting standards. The contract supports federal financial management and accountability within the Department of Homeland Security. Workforce implications are minimal for the government, as the service is outsourced to a private firm. Geographic impact is primarily within the District of Columbia, where the agency is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the extended duration.
Reliance on a single contractor for critical financial reporting could pose a risk if performance falters.
Ensuring continued alignment with evolving financial regulations requires proactive contract management.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potentially favorable pricing.
Firm-fixed-price contract structure shifts cost risk to the contractor, promoting budget certainty.
The contractor, Kearney & Company, P.C., likely possesses specialized expertise in government financial reporting.
The contract duration allows for stable, long-term support for essential financial functions.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting services. The NAICS code 541219 categorizes 'Other Accounting Services.' The federal government is a significant consumer of such services, often requiring specialized expertise for financial reporting, auditing, and compliance, particularly within agencies like Homeland Security. Market size for government accounting services is substantial, driven by regulatory requirements and the complexity of federal financial management. This contract represents a typical procurement for specialized support within this sector.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. The award to Kearney & Company, P.C., a firm that may or may not be classified as a small business itself, does not inherently benefit the small business ecosystem directly through set-asides. However, if Kearney & Company is a large business, it may be subject to overall subcontracting goals for federal contracts, which could indirectly involve small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Secret Service contracting officer and program managers. Accountability measures are inherent in the firm-fixed-price contract type, where performance must meet defined standards to justify payment. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Department of Homeland Security Financial Management
U.S. Secret Service Operations
Federal Accounting Standards Advisory Board (FASAB) Compliance
Government Auditing Services
Professional and Technical Services Contracts

Risk Flags

Potential for performance issues if contractor expertise is insufficient.
Risk of inadequate oversight if government contracting personnel are stretched thin.
Dependency on a single vendor for critical financial functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.1 million to KEARNEY & COMPANY, P.C.. AWARD FOR RM&A FINANCIAL REPORTING SECTION 2(D) EXCEPTION

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 (U.S. Secret Service).

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-12-17.

What is the track record of Kearney & Company, P.C. in performing similar federal financial reporting contracts?

Kearney & Company, P.C. has a notable history of serving federal agencies with accounting and financial management services. They are frequently awarded contracts for audit, financial reporting, and advisory services across various departments, including the Department of Defense and other civilian agencies. Their experience often includes navigating complex federal regulations and reporting requirements. A review of their past performance on similar contracts, particularly those involving financial reporting for law enforcement or security-focused agencies, would provide insight into their reliability and expertise. Data from contract databases often shows a pattern of successful contract completions, though specific details on performance ratings would require deeper investigation into individual contract files.

How does the awarded amount of $1.07 million compare to the average cost for similar accounting services provided to federal agencies?

The awarded amount of $1.07 million for approximately 656 days of service (roughly 22 months) translates to an approximate daily rate of $1,631. This figure needs to be contextualized by the specific services rendered and the complexity involved. For 'Other Accounting Services' (NAICS 541219), average contract values can vary significantly based on the scope, duration, and the specific agency's needs. Without detailed service descriptions, a precise comparison is difficult. However, given that this is a firm-fixed-price contract awarded under full and open competition, the price is likely competitive. Benchmarking against other similar delivery orders or IDIQ task orders for financial reporting and accounting support within DHS or comparable agencies would be necessary for a robust comparison.

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

Primary risks include potential performance deficiencies by the contractor, leading to inaccurate or delayed financial reporting, and the risk of cost overruns if the fixed-price nature is not strictly managed. Another risk is the potential for contractor personnel turnover, impacting institutional knowledge. Mitigation strategies likely involve robust contract oversight by the U.S. Secret Service, clear performance standards and deliverables outlined in the contract, and regular progress reviews. The firm-fixed-price structure inherently mitigates cost risk for the government by placing it on the contractor. Ensuring continuity of service can be addressed through contractor staffing plans and potentially through the government's ability to exercise options or seek alternative support if performance is unsatisfactory.

What is the historical spending pattern for 'Other Accounting Services' by the U.S. Secret Service and the Department of Homeland Security?

Historical spending on 'Other Accounting Services' (NAICS 541219) by the U.S. Secret Service and the broader Department of Homeland Security (DHS) indicates a consistent need for specialized financial expertise. Both entities require robust financial reporting and accounting support to manage their complex operations and comply with federal mandates. Spending in this category typically fluctuates based on specific project needs, audits, system implementations, or changes in regulatory requirements. Analyzing past contract awards for similar services would reveal trends in contract values, durations, and the types of firms engaged. This particular award of $1.07 million appears to be a standard procurement for ongoing support rather than an exceptionally large or unusual expenditure, suggesting a sustained requirement.

How does the 'full and open competition' award mechanism impact the overall value and efficiency for taxpayers?

Awarding contracts through 'full and open competition' is designed to maximize value and efficiency for taxpayers. By allowing all responsible sources to compete, the government benefits from a wider pool of potential vendors, which typically drives down prices through competitive bidding. This process encourages innovation and efficiency as contractors strive to offer the most cost-effective solutions to win the contract. Furthermore, it ensures that the government is not limited to a select few providers, fostering a more dynamic market. While the administrative effort to manage a broad competition can be higher initially, the long-term benefits of potentially lower costs, higher quality services, and increased accountability generally outweigh these costs for taxpayers.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $4,951,885

Exercised Options: $1,644,559

Current Obligation: $1,069,689

Actual Outlays: $364,040

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