GSA's $27.2M advisory contract to Kearney & Company shows fair value, but limited competition data raises questions

Contract Overview

Contract Amount: $27,244,278 ($27.2M)

Contractor: Kearney & Company, P.C.

Awarding Agency: General Services Administration

Start Date: 2016-03-01

End Date: 2017-02-28

Contract Duration: 364 days

Daily Burn Rate: $74.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: DEAMS ADVISORY AND ASSISTANCE SERVICES; IGF::OT::IGF

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 $27.2 million to KEARNEY & COMPANY, P.C. for work described as: DEAMS ADVISORY AND ASSISTANCE SERVICES; IGF::OT::IGF Key points: 1. The contract was awarded under full and open competition, suggesting a broad search for qualified vendors. 2. The contract's duration of 364 days and delivery order award indicate a need for specific, time-bound services. 3. The primary service category, 'Other Accounting Services,' points to specialized financial or management consulting. 4. The contract's value of approximately $27.2 million over one year suggests a significant engagement. 5. The absence of small business set-aside flags indicates this was not specifically targeted for small business participation. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract value of $27.2 million for a one-year period for advisory and assistance services appears within a reasonable range for large-scale federal engagements. Benchmarking against similar large-scale advisory contracts would provide a more precise value-for-money assessment. The provided data does not include specific deliverables or performance metrics to fully evaluate efficiency, but the price point suggests a substantial service requirement. Without more granular data on the specific services rendered and their impact, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' which theoretically allows all responsible sources to submit offers. However, the data does not specify the number of bids received or the evaluation process. A full and open competition is generally expected to foster price discovery and ensure the government receives competitive pricing. The lack of details on the number of bidders prevents a thorough analysis of the competitive landscape and its impact on the final price.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive rates by allowing a wide range of potential contractors to participate.

Public Impact

The primary beneficiary is likely the General Services Administration (GSA) itself, receiving advisory and assistance services to support its operations. The services delivered fall under 'Other Accounting Services,' suggesting support for financial management, auditing, or consulting. The contract's performance is geographically located in the District of Columbia, indicating a focus on federal agency support within the capital. The contract likely impacts a specialized workforce within the accounting and advisory services sector, potentially requiring experienced professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and impact of the advisory services.
Limited information on the number of bidders in the 'full and open competition' hinders a robust assessment of price competitiveness.
The 'Other Accounting Services' category is broad, making it hard to pinpoint the exact nature and necessity of the services provided without further detail.
The contract duration of nearly a full year suggests a significant, ongoing need that might warrant a more strategic, long-term solution rather than a single delivery order.

Positive Signals

Awarded under 'full and open competition,' indicating an effort to leverage the broadest possible market.
The contract value, while substantial, suggests a significant need for specialized advisory services within the GSA.
The contractor, Kearney & Company, P.C., is a known entity in government contracting, potentially bringing relevant expertise.
The contract was awarded as a delivery order, implying it aligns with a pre-existing IDIQ contract, which can streamline procurement processes.

Sector Analysis

The federal advisory and assistance services market is substantial, encompassing a wide range of support functions for government agencies. This contract, categorized under 'Other Accounting Services,' fits within the broader professional services sector, which includes management consulting, financial advisory, and auditing. The market is characterized by both large, established firms and specialized smaller businesses. Spending in this area is often driven by the need for specialized expertise, temporary workload augmentation, or independent reviews that agencies cannot perform internally. Benchmarks for similar advisory contracts vary widely based on scope, duration, and required expertise.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all responsible sources, including large businesses. While this maximizes the pool of potential contractors, it means that opportunities for small businesses to directly compete for this specific award were limited. However, it is possible that the prime contractor, Kearney & Company, P.C., may engage small businesses as subcontractors, depending on the nature of the services and subcontracting plans, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) contracting officers and program managers responsible for the advisory and assistance services. The Federal Acquisition Regulation (FAR) provides the framework for contract administration and oversight. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Specific Inspector General (IG) jurisdiction would depend on whether the services relate to areas typically audited or investigated by the GSA OIG, such as fraud, waste, or abuse. Without more details on the specific services, the extent of IG involvement is unclear.

Related Government Programs

GSA Federal Supply Schedule Contracts
Management and Consulting Services
Accounting and Auditing Services
Advisory and Assistance Services (A&AS)

Risk Flags

Performance Risk: Potential for contractor to not meet service level agreements or quality standards.
Cost Risk: Possibility of costs exceeding initial estimates if scope creep occurs or unforeseen issues arise.
Data Security Risk: If sensitive financial data is involved, there is a risk of breaches or unauthorized access.
Definition Risk: The broad category of 'Other Accounting Services' may lead to ambiguity in deliverables and expectations.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $27.2 million to KEARNEY & COMPANY, P.C.. DEAMS ADVISORY AND ASSISTANCE SERVICES; IGF::OT::IGF

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 $27.2 million.

What is the period of performance?

Start: 2016-03-01. End: 2017-02-28.

What specific types of advisory and assistance services were provided under this contract?

The contract falls under the NAICS code 541219, 'Other Accounting Services.' This broad category can encompass a range of activities, including financial advisory, management consulting related to financial operations, accounting system implementation support, internal control assessments, and potentially audit liaison services. Without more specific task orders or statements of work, the precise nature of the services remains undefined. However, given the contractor's specialization, it likely involved high-level financial expertise or support for complex financial management initiatives within the GSA.

How does the contract value of approximately $27.2 million compare to similar advisory contracts awarded by GSA or other agencies?

A direct comparison requires access to a broader dataset of similar contracts, including their scope, duration, and specific services. However, $27.2 million for a one-year advisory contract is a significant sum, indicative of a substantial requirement. Large federal agencies frequently award contracts in the tens of millions for specialized consulting and advisory support. For context, other large federal advisory contracts can range from a few million for targeted projects to hundreds of millions for large-scale, multi-year programs. This contract appears to be in the mid-to-high range for a single-year, specialized advisory engagement.

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

Kearney & Company, P.C. is a well-established accounting and consulting firm that frequently contracts with federal agencies. Publicly available data indicates they have a history of performing a variety of services, including audit, financial management, IT, and advisory support for agencies such as the Department of Defense, HHS, and others. Their experience suggests they possess the necessary qualifications and capacity to handle contracts of this nature. A deeper dive into their past performance evaluations and specific contract histories would provide a more granular understanding of their reliability and success rates.

What are the potential risks associated with a contract of this size and type?

Potential risks include cost overruns if the scope is not well-defined or managed, performance deficiencies if the contractor fails to deliver expected quality or expertise, and potential over-reliance on external advisors. For a contract focused on accounting services, risks could also involve data security breaches if sensitive financial information is handled, or conflicts of interest. The 'full and open competition' reduces some risk related to contractor selection, but ongoing performance monitoring remains crucial. The lack of specific performance metrics in the summary data makes risk assessment more challenging.

How has federal spending on 'Other Accounting Services' evolved over the past five years?

Federal spending on 'Other Accounting Services' (NAICS 541219) has generally remained robust, reflecting the continuous need for specialized financial expertise within government. While specific figures fluctuate annually based on agency budgets and priorities, the overall trend indicates a sustained demand. Agencies often rely on these services for financial statement preparation, audit support, internal control assessments, and financial system modernization. The total federal spending in this category can reach billions of dollars annually, driven by complex regulatory environments and the need for objective financial analysis and support.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID05160002

Offers Received: 1

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: $29,000,000

Exercised Options: $27,244,278

Current Obligation: $27,244,278

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $5,524,650

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F0092J

IDV Type: FSS

Timeline