OPM's $464M Financial Audit Contract Awarded to Kearney & Company Under Full and Open Competition

Contract Overview

Contract Amount: $464,231 ($464.2K)

Contractor: Kearney & Company, P.C.

Awarding Agency: Office of Personnel Management

Start Date: 2026-02-23

End Date: 2031-01-31

Contract Duration: 1,803 days

Daily Burn Rate: $257/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPM ANNUAL FINANCIAL STATEMENT - FINANCIAL AUDIT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $464,230.69 to KEARNEY & COMPANY, P.C. for work described as: OPM ANNUAL FINANCIAL STATEMENT - FINANCIAL AUDIT Key points: 1. The contract value is substantial, reflecting the complexity of auditing a large federal agency. 2. Kearney & Company, a CPA firm, is the awardee, indicating specialized expertise. 3. The contract is structured as a Firm Fixed Price delivery order, providing cost certainty. 4. The duration of the contract (2026-2031) suggests a long-term need for financial oversight.

Value Assessment

Rating: good

The contract is a delivery order under a larger contract, making direct price comparison difficult. However, the fixed-price nature suggests a negotiated rate that should be reasonable for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, allowing multiple qualified firms to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: Competitive bidding on this audit contract helps ensure taxpayer funds are used efficiently for essential government oversight.

Public Impact

Ensures financial integrity and accountability within the Office of Personnel Management. Provides transparency to taxpayers regarding the management of federal funds. Supports OPM's mission by verifying the accuracy of its financial statements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term audit contracts.
Reliance on a single firm for critical financial oversight.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract provides cost predictability.
Long-term engagement allows for deep understanding of OPM's financial landscape.

Sector Analysis

The accounting and auditing sector is crucial for government financial oversight. This contract falls within the standard range for large federal agency financial statement audits, which often involve significant dollar values and multi-year commitments.

Small Business Impact

This contract was awarded under full and open competition and does not indicate specific set-asides for small businesses. The nature of large-scale financial audits often favors established firms with extensive resources and experience.

Oversight & Accountability

The contract is subject to standard federal procurement regulations and oversight. The long duration allows for continuous monitoring of performance and adherence to audit standards.

Related Government Programs

Offices of Certified Public Accountants
Office of Personnel Management Contracting
Office of Personnel Management Programs

Risk Flags

Contract duration may lead to contractor complacency.
Potential for cost overruns if scope is not tightly managed.
Reliance on a single audit firm for critical oversight.
Lack of specific small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $464,230.69 to KEARNEY & COMPANY, P.C.. OPM ANNUAL FINANCIAL STATEMENT - FINANCIAL AUDIT

Who is the contractor on this award?

The obligated recipient is KEARNEY & COMPANY, P.C..

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $464,230.69.

What is the period of performance?

Start: 2026-02-23. End: 2031-01-31.

What is the benchmark cost for similar federal financial statement audits of agencies of OPM's size?

Benchmarking the exact cost is challenging without detailed scope information. However, large federal agency financial statement audits typically range from several hundred thousand to millions of dollars annually, depending on agency complexity, transaction volume, and specific audit requirements. The $464M total contract value over five years suggests an average annual cost in the ballpark of $90M, which needs further context regarding the scope of services.

What are the key risks associated with a long-term sole-source audit contract?

While this contract is full and open, long-term engagements can present risks. These include potential complacency from the contractor, reduced incentive for innovation, and the risk of the contractor becoming too entrenched, making future transitions difficult. Regular performance reviews and clear contract modifications are essential to mitigate these risks and ensure continued value.

How effectively does this contract support OPM's mission and taxpayer value?

This contract is critical for OPM's mission by ensuring financial accountability and transparency. The competitive award process aims to maximize taxpayer value by securing auditing services at a fair price. The long-term nature allows for a deep understanding of OPM's financial operations, potentially leading to more efficient and insightful audits over time.

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

Offers Received: 1

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: $9,912,016

Exercised Options: $1,831,923

Current Obligation: $464,231

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F031DA

IDV Type: FSS

Timeline