US Marine Corps Financial Audit Contract Awarded for $37.9M to Kearney & Company
Contract Overview
Contract Amount: $37,966,961 ($38.0M)
Contractor: Kearney & Company, P.C.
Awarding Agency: Department of Defense
Start Date: 2016-09-23
End Date: 2020-12-31
Contract Duration: 1,560 days
Daily Burn Rate: $24.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: LABOR HOURS
Sector: Other
Official Description: IGF::CT::IGF US MARINE CORPS FULL FINANCIAL STATEMENT AUDIT FISCAL YEARS 2017 - 2020
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $38.0 million to KEARNEY & COMPANY, P.C. for work described as: IGF::CT::IGF US MARINE CORPS FULL FINANCIAL STATEMENT AUDIT FISCAL YEARS 2017 - 2020 Key points: 1. Contract awarded for financial statement audit services for FY 2017-2020. 2. Kearney & Company, a public accounting firm, is the contractor. 3. The contract was awarded under full and open competition. 4. The total award value is $37,966,961. 5. The contract period spans from September 2016 to December 2020.
Value Assessment
Rating: good
The award value of $37.9M for a multi-year financial audit appears reasonable given the scope and duration. Benchmarking against similar large-scale government financial audits would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for soliciting bids and ensuring fair pricing. This method typically leads to competitive pricing as multiple qualified firms can participate.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging competitive bidding among qualified contractors.
Public Impact
Ensures accountability and transparency in Marine Corps financial reporting. Provides an independent assessment of financial statements, crucial for public trust. Supports the Department of Defense's overall financial management and audit readiness efforts. The audit findings can lead to improvements in internal controls and financial processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in multi-year audits.
- Reliance on contractor expertise for complex financial data.
- Timeliness of audit completion and reporting.
Positive Signals
- Awarded under full and open competition.
- Experienced contractor with relevant expertise.
- Clear objectives for financial statement audit.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Government spending on financial audits is essential for regulatory compliance and maintaining fiscal integrity across agencies.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The nature of large-scale financial audits often requires specialized expertise and resources typically found in larger firms.
Oversight & Accountability
The contract is subject to oversight by the Department of Defense and the Defense Finance and Accounting Service. The Inspector General's office may also play a role in reviewing audit processes and outcomes.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Defense Contracting
- Defense Finance and Accounting Service Programs
Risk Flags
- Potential for audit findings impacting future budgets.
- Dependency on contractor's ability to meet deadlines.
- Complexity of financial data may lead to unforeseen challenges.
- Need for robust government oversight to ensure quality.
Tags
offices-of-certified-public-accountants, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.0 million to KEARNEY & COMPANY, P.C.. IGF::CT::IGF US MARINE CORPS FULL FINANCIAL STATEMENT AUDIT FISCAL YEARS 2017 - 2020
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 (Defense Finance and Accounting Service).
What is the total obligated amount?
The obligated amount is $38.0 million.
What is the period of performance?
Start: 2016-09-23. End: 2020-12-31.
What was the specific methodology used for evaluating proposals and determining the winning bid?
The provided data indicates the contract was awarded under 'full and open competition,' suggesting a standard government procurement process. However, specific details regarding the evaluation criteria, scoring, and the basis for selecting Kearney & Company are not available in this summary. Further review of the contract award documentation would be necessary to understand the precise methodology.
Are there any identified risks associated with the contractor's past performance on similar government contracts?
The data does not provide information on Kearney & Company's past performance. A comprehensive risk assessment would require reviewing performance evaluations from previous contracts, any disputes or claims, and overall client satisfaction. Without this, it's difficult to assess performance-related risks.
How will the effectiveness of the audit be measured, and what are the key performance indicators (KPIs)?
The effectiveness of this financial audit is typically measured by the accuracy and completeness of the financial statements, the identification of material misstatements, and the timely issuance of an audit opinion. Key performance indicators would likely include adherence to audit standards, compliance with reporting deadlines, and the clarity and actionability of audit findings and recommendations.
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
Solicitation ID: HQ042316T0018
Offers Received: 4
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: $37,966,961
Exercised Options: $37,966,961
Current Obligation: $37,966,961
Actual Outlays: $1,749,144
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $12,026,068
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F031DA
IDV Type: FSS
Timeline
Start Date: 2016-09-23
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2022-03-28
More Contracts from Kearney & Company, P.C.
- Prism Deams FMO Support Task Order — $109.0M (General Services Administration)
- Deams Advisory and Assistance Services — $96.1M (General Services Administration)
- Deams 1-Year Bridge — $89.4M (General Services Administration)
- Base Period Audit Remediation — $73.1M (Department of Defense)
- A5/8 Analysis and Support — $59.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)