DoD's $28.3M contract for USMC labor clinic remediation awarded to Kearney & Company, P.C

Contract Overview

Contract Amount: $28,340,410 ($28.3M)

Contractor: Kearney & Company, P.C.

Awarding Agency: Department of Defense

Start Date: 2023-09-25

End Date: 2026-03-24

Contract Duration: 911 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USMC LABOR CLIN - REMEDIATION

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 million to KEARNEY & COMPANY, P.C. for work described as: USMC LABOR CLIN - REMEDIATION Key points: 1. Value for money assessed through fixed-price contract type, aiming to control costs. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include contract duration and the nature of remediation services. 4. Performance context is within accounting services for the Department of the Navy. 5. Sector positioning is within professional services supporting defense operations.

Value Assessment

Rating: fair

The contract's fixed-price nature is a positive indicator for cost control. However, without specific benchmarks for labor clinic remediation services or detailed cost breakdowns, a precise value-for-money assessment is challenging. Comparing this to similar remediation contracts within the DoD or other federal agencies would provide better insight into whether the pricing is competitive. The duration of the contract (911 days) also suggests a significant scope of work that warrants careful cost management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access to a wide range of capabilities, the specific number of bidders can influence price discovery. A higher number of bidders typically leads to more robust price competition.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition. The presence of multiple bidders increases the likelihood that the government secured the most advantageous pricing and terms.

Public Impact

The primary beneficiaries are the U.S. Marine Corps, receiving essential labor clinic remediation services. Services delivered include accounting and potentially related administrative support for the clinic. Geographic impact is concentrated in the District of Columbia, where the contract is managed. Workforce implications may involve specialized accounting and administrative personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if remediation scope expands beyond initial estimates.
Dependence on contractor's expertise for effective and timely remediation.
Ensuring adequate oversight to confirm service delivery meets requirements.

Positive Signals

Fixed-price contract type helps mitigate cost uncertainty for the government.
Full and open competition suggests a competitive bidding process.
Contractor's experience in accounting services may lend efficiency to the project.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on accounting and related services. The market for government contracting in this area is substantial, with numerous firms capable of providing such expertise. The Department of Defense, as a major federal agency, frequently procures these types of services to support its vast operational and administrative needs. Benchmarking against other large-scale accounting or remediation contracts within the federal government would be necessary for a comprehensive understanding of its market position.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans or goals, it's difficult to assess the broader impact on the small business ecosystem. However, the presence of a larger prime contractor could offer avenues for specialized small businesses to engage.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance.

Related Government Programs

Department of Defense Financial Management Services
Marine Corps Base Operations Support
Federal Accounting and Auditing Services
Government Contract Remediation Services

Risk Flags

Contract Duration
Scope of Work Ambiguity
Contractor Performance History

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 million to KEARNEY & COMPANY, P.C.. USMC LABOR CLIN - REMEDIATION

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-03-24.

What is the specific nature of the 'labor clinic remediation' being undertaken, and what are the key performance indicators for success?

The provided data does not specify the exact nature of the 'labor clinic remediation.' This could range from physical infrastructure improvements, process optimization, or addressing compliance issues within a labor clinic. Key performance indicators (KPIs) would typically be defined in the contract's statement of work (SOW) and could include metrics such as completion timelines, adherence to budget, successful resolution of identified issues, compliance with relevant regulations, and stakeholder satisfaction (e.g., clinic staff, service members). Without the SOW, these KPIs remain undefined, making a precise assessment of success difficult.

How does the contractor, Kearney & Company, P.C., compare to other firms in terms of track record with similar government contracts?

Kearney & Company, P.C. is a known entity in government contracting, particularly in accounting and financial services. A review of their past performance on similar contracts, especially those involving remediation or complex service delivery for the Department of Defense or other federal agencies, would be necessary for a comprehensive assessment. Publicly available data, such as contract awards and performance evaluations (if accessible), can shed light on their reliability, efficiency, and ability to manage large-scale projects. Their history with fixed-price contracts and adherence to schedules and budgets would be key factors.

What is the historical spending pattern for 'USMC LABOR CLIN - REMEDIATION' or similar services within the Department of the Navy?

Analyzing historical spending for 'USMC LABOR CLIN - REMEDIATION' or analogous services within the Department of the Navy is crucial for context. This involves examining prior contract awards for similar scopes of work, including the number of contracts, their values, durations, and the contractors involved. Understanding if this $28.3 million award represents an increase, decrease, or stable level of spending compared to previous periods can indicate changes in program needs, efficiency improvements, or inflationary pressures. Without access to detailed historical procurement data for this specific service category, it's challenging to establish a definitive spending pattern.

Are there any specific risk factors associated with Kearney & Company, P.C. or the nature of this remediation contract that warrant attention?

Potential risk factors for this contract could include the complexity and scope of the remediation, which might be underestimated, leading to cost overruns despite the fixed-price structure. Contractor performance risk is always present; Kearney & Company's specific track record with similar remediation projects, their financial stability, and their ability to manage project timelines are critical. Furthermore, the effectiveness of the remediation itself is a risk – if it doesn't achieve the desired outcomes, further investment may be required. Government oversight effectiveness also plays a role; insufficient oversight could allow issues to escalate.

How does the $28.3 million contract value compare to the overall budget or spending on labor clinics within the USMC or Department of the Navy?

Placing the $28.3 million contract value in the context of the broader USMC or Department of the Navy budget is essential for understanding its significance. This requires comparing the award amount to the total allocated funds for labor clinics, health services, or administrative support within these entities. If this contract represents a substantial portion of the total budget for such services, it suggests a high level of importance or a significant undertaking. Conversely, if it's a small fraction, it might indicate a routine or localized effort. Without access to the relevant budget allocations, this comparison remains qualitative.

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: N0018921RZ050

Offers Received: 3

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: $28,757,910

Exercised Options: $28,757,910

Current Obligation: $28,340,410

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $7,909,973

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018922DZ014

IDV Type: IDC

Timeline