DoD's $11.4M Accounting Services Contract Awarded to Kearney & Company for 2 Years
Contract Overview
Contract Amount: $11,381,567 ($11.4M)
Contractor: Kearney & Company, P.C.
Awarding Agency: Department of Defense
Start Date: 2024-09-30
End Date: 2026-08-29
Contract Duration: 698 days
Daily Burn Rate: $16.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: Other
Official Description: PROGRAM AND BUDGET ANALYTICS SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $11.4 million to KEARNEY & COMPANY, P.C. for work described as: PROGRAM AND BUDGET ANALYTICS SUPPORT SERVICES Key points: 1. Contract awarded to Kearney & Company for $11.4M over two years. 2. Services fall under 'Other Accounting Services' (NAICS 541219). 3. Full and open competition was utilized. 4. The contract is for labor hours, indicating flexibility in tasking. 5. The award is a delivery order, suggesting it's part of a larger contract vehicle.
Value Assessment
Rating: fair
The contract's value of $11.4M over nearly two years for accounting services appears reasonable given the labor hour pricing model. Benchmarking against similar large-scale accounting support contracts would provide a clearer picture of its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, theoretically driving down costs and ensuring the government receives competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential accounting support services within the Department of Defense, with competition aiming for efficient allocation.
Public Impact
Ensures financial integrity and accountability within the Department of Defense. Supports critical accounting functions necessary for government operations. Provides employment opportunities within the accounting services sector. The labor hour model allows for adaptable support based on evolving needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor hour contracts can sometimes lead to cost overruns if not managed tightly.
- The specific deliverables and performance metrics are not detailed in the provided data.
- Potential for scope creep if requirements are not clearly defined and controlled.
Positive Signals
- Full and open competition promotes a fair marketplace.
- Longer contract duration allows for continuity of essential services.
- Awarded to a known entity, suggesting established capabilities.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically accounting. Spending in this area is crucial for government financial management and oversight, with benchmarks varying widely based on agency size and complexity.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. This contract was awarded under full and open competition, suggesting larger firms may have been the primary bidders.
Oversight & Accountability
The Department of Defense, through Washington Headquarters Services, is responsible for overseeing this contract. Robust oversight will be critical to ensure performance, manage costs, and prevent scope creep, especially with a labor hour contract.
Related Government Programs
- Other Accounting Services
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Potential for cost overruns due to labor hour pricing.
- Lack of specific performance metrics in the provided data.
- Risk of scope creep if requirements are not tightly managed.
- Dependence on contractor's personnel quality and availability.
Tags
other-accounting-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.4 million to KEARNEY & COMPANY, P.C.. PROGRAM AND BUDGET ANALYTICS 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 Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $11.4 million.
What is the period of performance?
Start: 2024-09-30. End: 2026-08-29.
What are the specific accounting functions this contract will support, and how do they align with DoD's strategic financial goals?
The contract is for 'Other Accounting Services' under NAICS 541219. While specific functions aren't detailed, these typically include tasks like financial statement preparation, auditing support, accounting system maintenance, and compliance reporting. Alignment with DoD's strategic financial goals would depend on whether these services directly contribute to audit readiness, budget execution accuracy, or fraud prevention initiatives.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to measure the contractor's effectiveness and ensure value for money?
The provided data does not specify the KPIs or SLAs. For a labor hour contract, effective oversight would involve tracking hours worked against approved budgets, monitoring task completion timelines, and assessing the quality of deliverables. Without defined metrics, it's challenging to objectively assess contractor effectiveness and ensure optimal value for taxpayer funds.
How will the Department of Defense manage potential cost escalations inherent in a labor hour contract, especially given the nearly two-year duration?
Effective management of cost escalations requires stringent oversight, including detailed work breakdown structures, regular progress reviews, and strict adherence to pre-approved labor rates and estimated hours. The contracting officer's representative (COR) must actively monitor the contractor's performance and expenditures, ensuring that work remains within scope and budget, and that any deviations are justified and approved.
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: HQ003424R0168
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: $44,741,594
Exercised Options: $16,951,346
Current Obligation: $11,381,567
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $2,379,818
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
Start Date: 2024-09-30
Current End Date: 2026-08-29
Potential End Date: 2029-08-29 00:00:00
Last Modified: 2025-09-16
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