DISA Audit Contract Awarded to Kearney & Company for $34.6M, Covering FY22-FY26
Contract Overview
Contract Amount: $34,649,484 ($34.6M)
Contractor: Kearney & Company, P.C.
Awarding Agency: Department of Defense
Start Date: 2022-01-01
End Date: 2026-12-31
Contract Duration: 1,825 days
Daily Burn Rate: $19.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: Other
Official Description: DEFENSE INFORMATION SYSTEMS AGENCY WORKING CAPITAL FUND AND GENERAL FUND FINANCIAL STATEMENTS AUDIT FOR FISCAL YEARS 2022-2026.
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $34.6 million to KEARNEY & COMPANY, P.C. for work described as: DEFENSE INFORMATION SYSTEMS AGENCY WORKING CAPITAL FUND AND GENERAL FUND FINANCIAL STATEMENTS AUDIT FOR FISCAL YEARS 2022-2026. Key points: 1. Contract focuses on financial statement audits for DISA's Working Capital and General Funds. 2. Kearney & Company, a CPA firm, is the awardee. 3. The contract spans five fiscal years, indicating a long-term audit requirement. 4. The North American Industry Classification System (NAICS) code 541211 points to accounting services.
Value Assessment
Rating: good
The award amount of $34.6M over five years suggests a significant audit scope. Benchmarking against similar large-scale government financial statement audits would provide further context on pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive nature of this award is expected to yield fair pricing for the audit services, ensuring taxpayer funds are used efficiently for essential oversight.
Public Impact
Ensures financial accountability and transparency for the Defense Information Systems Agency. Supports the integrity of defense financial reporting. Provides assurance to stakeholders on the accuracy of DISA's financial statements. Contributes to the overall financial health and management of the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Audit scope and duration may lead to cost overruns if not managed effectively.
- Reliance on a single firm for a multi-year audit could present continuity risks.
Positive Signals
- Full and open competition likely secured competitive pricing.
- Long-term contract allows for consistent audit approach and expertise development.
- Focus on financial statement audits is critical for government accountability.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Government spending on financial audits is crucial for maintaining fiscal integrity and compliance across agencies.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses. Large accounting firms typically compete for and win these types of extensive audit contracts.
Oversight & Accountability
The contract is subject to standard government oversight mechanisms for audit quality and performance. The Defense Finance and Accounting Service (DFAS) likely plays a role in monitoring this contract.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Defense Contracting
- Defense Finance and Accounting Service Programs
Risk Flags
- Potential for scope creep leading to cost increases.
- Dependence on a single audit firm for an extended period.
- Risk of audit findings requiring significant remediation efforts.
- Ensuring consistent quality across multiple years and audit teams.
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 $34.6 million to KEARNEY & COMPANY, P.C.. DEFENSE INFORMATION SYSTEMS AGENCY WORKING CAPITAL FUND AND GENERAL FUND FINANCIAL STATEMENTS AUDIT FOR FISCAL YEARS 2022-2026.
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 $34.6 million.
What is the period of performance?
Start: 2022-01-01. End: 2026-12-31.
What is the estimated hourly rate for auditors under this contract, and how does it compare to industry benchmarks?
The contract is priced based on labor hours, with a total award of $34.6M over five years. Without specific breakdowns of labor categories and hours, calculating an exact average hourly rate is not possible from the provided data. However, the total value suggests rates are likely competitive within the specialized field of government defense audits, but a detailed comparison would require access to the contract's labor rate schedule and relevant industry benchmarks for CPA firms performing similar federal audits.
What are the key performance indicators (KPIs) for this audit contract, and how will performance be measured?
Key performance indicators for this contract would likely revolve around the timely and accurate completion of audit reports according to Generally Accepted Auditing Standards (GAAS) and government requirements. Performance measurement would involve adherence to the audit schedule, quality of findings, responsiveness to agency inquiries, and overall compliance with the contract terms. The Defense Finance and Accounting Service (DFAS) would typically oversee these metrics to ensure the contractor meets all obligations.
What is the potential impact on DISA's operational efficiency if audit findings reveal significant financial control weaknesses?
Significant audit findings could necessitate corrective actions, potentially diverting DISA resources from core operational missions to address financial control weaknesses. This might involve implementing new procedures, enhancing internal controls, or retraining staff, leading to temporary disruptions. However, addressing these weaknesses proactively through audit findings ultimately strengthens DISA's financial management and long-term operational stability.
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: HQ042321Q0016
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: $34,649,484
Exercised Options: $34,649,484
Current Obligation: $34,649,484
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $7,557,230
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F031DA
IDV Type: FSS
Timeline
Start Date: 2022-01-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-22
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