DTRA Financial Audit Contract Awarded to Kearney & Company for $8.1M Over 3 Years
Contract Overview
Contract Amount: $8,110,239 ($8.1M)
Contractor: Kearney & Company, P.C.
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2026-12-31
Contract Duration: 1,460 days
Daily Burn Rate: $5.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: LABOR HOURS
Sector: Other
Official Description: DEFENSE THREAT REDUCTION AGENCY GENERAL FUND FINANCIAL STATEMENT AUDIT FISCAL YEARS 2023 THROUGH 2027.
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $8.1 million to KEARNEY & COMPANY, P.C. for work described as: DEFENSE THREAT REDUCTION AGENCY GENERAL FUND FINANCIAL STATEMENT AUDIT FISCAL YEARS 2023 THROUGH 2027. Key points: 1. The contract supports the Defense Threat Reduction Agency's financial statement audit. 2. Kearney & Company, a CPA firm, was selected. 3. The audit covers fiscal years 2023-2027. 4. The total award value is $8,110,239.08. 5. This is a critical function for government accountability.
Value Assessment
Rating: good
The award value of $8.1M for a multi-year financial audit appears reasonable given the scope and duration. Benchmarking against similar large-scale government financial audits would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing and identify the most capable offeror.
Taxpayer Impact: The cost of the audit is a necessary expense for ensuring financial transparency and accountability of taxpayer funds.
Public Impact
Ensures accuracy and reliability of DTRA's financial reporting. Supports congressional oversight and public trust in defense spending. Identifies potential financial mismanagement or fraud. Contributes to the overall integrity of the Department of Defense's financial operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Audit scope may expand beyond initial projections.
- Potential for findings that require significant corrective action.
Positive Signals
- Independent verification of financial statements.
- Experienced audit firm selected through competition.
- Clear contract duration and award value.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Government financial audits are essential for maintaining fiscal responsibility and are typically awarded through competitive processes to specialized firms.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this particular contract award. The primary focus appears to be on specialized expertise for the financial audit.
Oversight & Accountability
The Defense Finance and Accounting Service (DFAS) is responsible for overseeing this contract. Regular reporting and adherence to audit standards are expected to ensure accountability.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Defense Contracting
- Defense Finance and Accounting Service Programs
Risk Flags
- Potential for scope creep
- Audit findings may necessitate significant corrective actions
- Dependence on a single audit firm for a critical function
- Complexity of defense agency financial statements
Tags
offices-of-certified-public-accountants, department-of-defense, va, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.1 million to KEARNEY & COMPANY, P.C.. DEFENSE THREAT REDUCTION AGENCY GENERAL FUND FINANCIAL STATEMENT AUDIT FISCAL YEARS 2023 THROUGH 2027.
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 $8.1 million.
What is the period of performance?
Start: 2023-01-01. End: 2026-12-31.
What is the primary objective of this financial statement audit?
The primary objective is to provide an independent and objective opinion on whether the Defense Threat Reduction Agency's (DTRA) general fund financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. This includes assessing internal controls over financial reporting and compliance with laws and regulations.
What are the potential risks associated with this audit contract?
Potential risks include the possibility of unforeseen complexities in DTRA's financial operations that could extend the audit timeline or increase costs. There's also the risk that the audit may uncover significant financial irregularities or control deficiencies requiring substantial corrective actions, which could have downstream impacts on DTRA's operations and reputation.
How does this audit contribute to the overall effectiveness of DTRA's mission?
By ensuring the accuracy and reliability of DTRA's financial data, this audit enhances the agency's operational effectiveness. It provides leadership with trustworthy information for decision-making, supports resource allocation, and demonstrates fiscal responsibility to taxpayers and oversight bodies, thereby bolstering confidence in DTRA's ability to execute its critical national security mission.
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: HQ042322Q0032
Offers Received: 4
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: $10,457,952
Exercised Options: $8,203,801
Current Obligation: $8,110,239
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,060,203
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ042321A5002
IDV Type: BPA
Timeline
Start Date: 2023-01-01
Current End Date: 2026-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2026-01-08
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