Army Corps of Engineers Audit Contract Awarded for $35.9M to Kearney & Company
Contract Overview
Contract Amount: $35,893,868 ($35.9M)
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: $24.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: UNITED STATES ARMY CORPS OF ENGINEERS AUDIT FISCAL YEARS 2023-2027.
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $35.9 million to KEARNEY & COMPANY, P.C. for work described as: UNITED STATES ARMY CORPS OF ENGINEERS AUDIT FISCAL YEARS 2023-2027. Key points: 1. The contract is for audit services for the Army Corps of Engineers for FY 2023-2027. 2. Kearney & Company, a CPA firm, was awarded the contract. 3. The contract was awarded under full and open competition. 4. The total value of the contract is $35,893,868.06. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: good
The contract value of $35.9M for a 4-year audit period appears reasonable when benchmarked against similar large-scale government audit contracts. The pricing is likely influenced by the complexity and scope of auditing the Army Corps of Engineers' finances.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple qualified firms had the opportunity to bid. This competitive process generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential audit services.
Public Impact
Ensures financial accountability and transparency for a major government agency. Supports the integrity of federal financial reporting. Provides essential oversight of the Army Corps of Engineers' operations. The audit findings will be crucial for identifying areas of financial risk and improvement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in audit requirements.
- Reliance on contractor for accurate financial reporting.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Experienced contractor with relevant certifications.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Government spending on audit services is a critical component of ensuring accountability and compliance across federal agencies, with benchmarks often set by the size and complexity of the audited entity.
Small Business Impact
The contract was awarded to Kearney & Company, P.C., a firm identified by its NAICS code (541211) as Offices of Certified Public Accountants. There is no indication of specific small business set-asides or participation in this particular award, suggesting it was competed broadly.
Oversight & Accountability
The Department of Defense, through the Defense Finance and Accounting Service, is responsible for overseeing this contract. The award process and subsequent performance monitoring are key elements of ensuring accountability and effective use of taxpayer funds.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Defense Contracting
- Defense Finance and Accounting Service Programs
Risk Flags
- Potential for audit findings to reveal significant financial issues.
- Dependence on contractor's expertise for accurate assessment.
- Risk of delays impacting financial reporting timelines.
- Scope creep could increase costs beyond initial estimates.
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 $35.9 million to KEARNEY & COMPANY, P.C.. UNITED STATES ARMY CORPS OF ENGINEERS AUDIT FISCAL YEARS 2023-2027.
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 $35.9 million.
What is the period of performance?
Start: 2023-01-01. End: 2026-12-31.
What specific areas will the audit focus on within the Army Corps of Engineers' operations?
The audit will likely focus on key financial areas such as financial statements, internal controls, compliance with laws and regulations, and potentially specific program or project expenditures. The scope will be defined by the contract's Statement of Work, aiming to provide a comprehensive assessment of the Corps' financial health and operational efficiency.
What are the potential risks associated with this audit contract?
Potential risks include the possibility of audit findings revealing significant financial irregularities or control weaknesses, which could lead to corrective actions and reputational damage. There's also a risk of delays in the audit process impacting timely financial reporting, or the contractor failing to identify critical issues, thereby undermining the audit's purpose.
How will the effectiveness of this audit contract be measured?
Effectiveness will be measured by the timeliness and accuracy of the audit reports, the identification of material financial misstatements or control deficiencies, and the contractor's ability to provide actionable recommendations. The ultimate measure is whether the audit enhances the Army Corps of Engineers' financial management and accountability.
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: HQ042322Q0040
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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: $47,740,428
Exercised Options: $35,893,868
Current Obligation: $35,893,868
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $7,781,295
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F031DA
IDV Type: FSS
Timeline
Start Date: 2023-01-01
Current End Date: 2026-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-12-17
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