HHS awards $30M+ to Kearney & Company for financial reporting and analysis support

Contract Overview

Contract Amount: $30,113,832 ($30.1M)

Contractor: Kearney & Company, P.C.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-05-22

End Date: 2025-09-26

Contract Duration: 1,953 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: HHS FINANCIAL REPORTING AND ANALYSIS SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.1 million to KEARNEY & COMPANY, P.C. for work described as: HHS FINANCIAL REPORTING AND ANALYSIS SUPPORT Key points: 1. Contract provides essential financial reporting and analysis services to HHS. 2. Services are critical for maintaining financial integrity and compliance within the agency. 3. The contract duration extends over five years, indicating a long-term need. 4. Awarded via a BPA Call, suggesting a pre-competed framework. 5. The contractor, Kearney & Company, is a certified public accounting firm. 6. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: good

The contract value of over $30 million for a five-year period for financial reporting and analysis support appears reasonable given the scope and criticality of services for a large agency like HHS. Benchmarking against similar contracts for financial advisory services at federal agencies suggests this is within expected ranges. The Time and Materials pricing structure, while common, warrants close monitoring to ensure cost efficiency and prevent scope creep.

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 use of a BPA Call suggests that the underlying framework was previously competed, and this specific call order was then awarded competitively among BPA holders. This approach generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a competitive marketplace, driving down costs and encouraging innovation from multiple firms.

Public Impact

Beneficiaries include the Department of Health and Human Services, enabling better financial management. Services delivered include financial reporting, analysis, and likely audit support. Geographic impact is primarily within the District of Columbia, where the agency is headquartered. Workforce implications include support for HHS's internal finance and accounting teams.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
The long duration of the contract (over five years) requires ongoing performance monitoring.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Contractor is a specialized firm (Kearney & Company, P.C.) with expertise in accounting.
Services are essential for agency operations and compliance.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and financial consulting. The market for these services within the federal government is substantial, with agencies consistently requiring support for complex financial operations, regulatory compliance, and auditing. Comparable spending benchmarks for similar financial advisory and reporting contracts at large federal departments often range in the tens of millions of dollars over several years, reflecting the scale and complexity of government finance.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the primary awardee is a large firm, there may be opportunities for small businesses to participate as subcontractors, depending on the specific needs and subcontracting plans outlined by Kearney & Company, P.C. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically reside within the Office of the Assistant Secretary for Administration at HHS, which awarded the contract. Standard government oversight mechanisms, including contract performance reviews, financial audits, and potentially Inspector General reviews, would apply. Transparency is generally maintained through contract databases and reporting requirements.

Related Government Programs

HHS Financial Management Support
Federal Financial Reporting Services
Accounting and Auditing Services
Government Financial Advisory Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for diligent oversight to manage scope creep and ensure efficient service delivery.
Reliance on contractor expertise requires strong performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.1 million to KEARNEY & COMPANY, P.C.. HHS FINANCIAL REPORTING AND ANALYSIS SUPPORT

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $30.1 million.

What is the period of performance?

Start: 2020-05-22. End: 2025-09-26.

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

Kearney & Company, P.C. has a significant history of performing federal contracts, including work with the Department of Health and Human Services (HHS). Their specialization in accounting, auditing, and financial consulting makes them a frequent awardee for such services across various government agencies. Reviewing their past performance on similar contracts, including any performance evaluations or past performance questionnaires, would provide further insight into their reliability and effectiveness. Data on contract awards and performance history is often available through federal procurement databases, which can highlight their experience in delivering complex financial solutions and meeting government requirements.

How does the pricing structure (Time and Materials) compare to other federal financial reporting contracts?

Time and Materials (T&M) is a common contract type for services where the extent or duration of the work cannot be predetermined, such as certain types of consulting or support services. For federal financial reporting and analysis, T&M allows flexibility but requires robust oversight to control costs. Compared to fixed-price contracts, T&M can be more expensive if not managed diligently, as costs are directly tied to labor hours and material costs. However, it can be more cost-effective than fixed-price for projects with evolving scopes. Benchmarking T&M rates against government-wide contract vehicles or similar agency awards for comparable services is crucial for assessing value for money. Agencies often implement strict ceilings and require detailed justifications for hours billed.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract like this would likely focus on the accuracy, timeliness, and completeness of financial reports and analyses. Specific KPIs could include adherence to reporting deadlines (e.g., for OMB or Treasury submissions), the number of identified financial discrepancies or errors, the efficiency of analysis delivery, and client satisfaction feedback from HHS stakeholders. Compliance with relevant accounting standards (e.g., GASB, FASAB) and auditability of financial records are also critical performance measures. The contract's Service Level Agreements (SLAs) would typically define these KPIs and the acceptable performance thresholds.

What is the historical spending trend for financial reporting and analysis support at HHS?

Historical spending trends for financial reporting and analysis support at HHS are generally characterized by consistent, substantial investment due to the agency's large budget and complex operations. Over the past several fiscal years, HHS has consistently allocated significant funds towards ensuring accurate financial management, compliance, and reporting. This spending is driven by regulatory requirements, the need for robust internal controls, and the complexity of managing numerous programs and grants. While specific annual figures fluctuate based on agency priorities and specific project needs, the overall trend indicates a sustained and critical requirement for these professional services, often awarded through competitive contracts to specialized firms.

Are there any identified risks associated with the contractor's performance or the nature of the services provided?

Risks associated with this contract primarily stem from the Time and Materials (T&M) pricing structure, which can lead to cost overruns if not meticulously managed. Scope creep is a potential risk, where the project's objectives expand beyond the initial agreement without corresponding adjustments to cost and schedule. Another risk involves the potential for performance issues, such as delays in reporting or inaccuracies in analysis, which could impact HHS's financial operations and compliance. Ensuring the contractor maintains adequate staffing levels with qualified personnel is also a consideration. Robust contract management, including regular performance reviews and detailed monitoring of labor hours and expenses, is essential to mitigate these risks.

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: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $30,113,832

Exercised Options: $30,113,832

Current Obligation: $30,113,832

Actual Outlays: $23,220,939

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $2,016,556

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00119A00028

IDV Type: BPA

Timeline