DOE's $501,906 contract for incurred cost audits awarded to CohnReznick LLP
Contract Overview
Contract Amount: $501,907 ($501.9K)
Contractor: Cohnreznick LLP
Awarding Agency: Department of Energy
Start Date: 2024-09-26
End Date: 2026-04-17
Contract Duration: 568 days
Daily Burn Rate: $884/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NAVAL REACTORS LABORATORY FIELD OFFICE (NRLFO) IS REQUESTING SUPPORT WITH COMPLETING THE FISCAL YEAR (FY) 2023 INCURRED COST AUDITS FOR BWX TECHNOLOGIES, INC. (BWXT) CORPORATE, NUCLEAR FUEL SERVICES (NFS), AND NUCLEAR OPERATIONS GROUP (NOG).
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $501,906.6 to COHNREZNICK LLP for work described as: NAVAL REACTORS LABORATORY FIELD OFFICE (NRLFO) IS REQUESTING SUPPORT WITH COMPLETING THE FISCAL YEAR (FY) 2023 INCURRED COST AUDITS FOR BWX TECHNOLOGIES, INC. (BWXT) CORPORATE, NUCLEAR FUEL SERVICES (NFS), AND NUCLEAR OPERATIONS GROUP (NOG). Key points: 1. Value-for-money assessment indicates a fair price for specialized audit services. 2. Competition dynamics show a full and open process, suggesting market-driven pricing. 3. Risk indicators are low, given the established nature of incurred cost audits. 4. Performance context involves supporting critical fiscal year-end financial reporting. 5. Sector positioning places this within the professional services supporting government operations.
Value Assessment
Rating: fair
The contract value of $501,906 for incurred cost audits appears reasonable given the specialized nature of the work and the expertise required. Benchmarking against similar contracts for large-scale corporate audits suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government.
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 is expected to drive pricing towards market rates and ensure the government receives competitive proposals. The number of bidders is not specified but the method implies a robust selection process.
Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better pricing and service quality.
Public Impact
The Department of Energy (DOE) and its associated entities (BWXT Corporate, NFS, NOG) benefit from accurate and timely incurred cost audits. Services delivered include essential financial auditing to ensure compliance and proper cost accounting. Geographic impact is primarily within the operational areas of the audited entities, with the audit firm likely operating nationally. Workforce implications involve the engagement of specialized accounting and auditing professionals from CohnReznick LLP.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for audit findings that could require corrective actions by the audited entities.
- Reliance on the contractor's expertise for accurate financial assessment.
Positive Signals
- Award to a reputable firm (CohnReznick LLP) suggests a high likelihood of quality service delivery.
- Firm fixed-price contract provides budget predictability.
- Full and open competition indicates a thorough vetting process.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically accounting and auditing services. The market for these services supporting federal agencies is substantial, with numerous firms capable of performing incurred cost audits. This contract represents a small portion of the overall federal spending on professional services, focusing on a critical compliance function for government contractors.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests the primary focus was on securing the most qualified large audit firm for this specialized task, rather than specifically promoting small business participation.
Oversight & Accountability
Oversight will be managed by the Naval Reactors Laboratory Field Office (NRLFO) within the Department of Energy. Accountability measures are inherent in the firm fixed-price contract and the professional standards of the auditing firm. Transparency is facilitated through the public nature of federal contract awards, though specific audit details remain confidential.
Related Government Programs
- Federal Incurred Cost Audits
- Department of Energy Financial Management
- Government Contractor Auditing Services
- BWX Technologies, Inc. Contracts
Risk Flags
- Potential for audit findings requiring corrective action.
- Timeliness of audit completion impacting financial reporting.
Tags
professional-services, auditing, department-of-energy, naval-reactors-laboratory-field-office, firm-fixed-price, full-and-open-competition, maryland, accounting, fiscal-year-2023, bwxt
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $501,906.6 to COHNREZNICK LLP. NAVAL REACTORS LABORATORY FIELD OFFICE (NRLFO) IS REQUESTING SUPPORT WITH COMPLETING THE FISCAL YEAR (FY) 2023 INCURRED COST AUDITS FOR BWX TECHNOLOGIES, INC. (BWXT) CORPORATE, NUCLEAR FUEL SERVICES (NFS), AND NUCLEAR OPERATIONS GROUP (NOG).
Who is the contractor on this award?
The obligated recipient is COHNREZNICK LLP.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $501,906.6.
What is the period of performance?
Start: 2024-09-26. End: 2026-04-17.
What is the track record of CohnReznick LLP in performing incurred cost audits for federal agencies?
CohnReznick LLP is a well-established accounting firm with a significant presence in government contracting. They have a history of performing various audit and assurance services for federal agencies and their contractors. While specific details on their performance for NRLFO or similar entities are not publicly detailed in this context, their general reputation and experience in the field suggest a strong capability to handle complex incurred cost audits. Their expertise typically covers compliance with Cost Accounting Standards (CAS) and Federal Acquisition Regulation (FAR) requirements, which are critical for these types of audits. The firm's size and resources generally allow them to manage multiple large-scale engagements concurrently.
How does the $501,906 contract value compare to similar incurred cost audits for large federal contractors?
The contract value of $501,906 for incurred cost audits for BWXT's corporate, NFS, and NOG entities appears to be within a reasonable range for the scope of work. Incurred cost audits for large, complex organizations like those under BWXT can be extensive, involving detailed examination of cost accounting records, compliance with regulations, and preparation of audit reports. Factors influencing cost include the volume of transactions, the complexity of the cost structures, the number of locations, and the specific regulatory requirements. While precise benchmarks are difficult without knowing the exact scale of BWXT's operations covered by these audits, similar engagements for major government contractors often range from several hundred thousand to over a million dollars, depending on complexity and duration. This award suggests a competitive and fair pricing for the services rendered.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks associated with this contract revolve around the accuracy and timeliness of the audit. Inaccurate audits could lead to improper cost allowability, impacting the government's financial reporting and potentially leading to financial discrepancies. Delays in audit completion could affect the government's ability to finalize its financial statements or make timely payments. These risks are mitigated through several mechanisms. Firstly, the selection of CohnReznick LLP, a reputable firm, reduces the risk of substandard performance. Secondly, the contract is firm fixed-price, which incentivizes the contractor to complete the work efficiently and accurately within budget. Finally, the oversight provided by the NRLFO ensures that the audit progresses as planned and that the final report meets the required standards. The government also retains the right to review and question audit findings.
How effective is the full and open competition process in ensuring value for this specific contract?
The full and open competition process is generally highly effective in ensuring value for contracts like this one. By allowing all responsible sources to submit bids, it creates a competitive environment where firms like CohnReznick LLP are motivated to offer their best pricing and services to win the contract. This process helps prevent price gouging and encourages efficiency. For incurred cost audits, where technical expertise and reputation are crucial, competition ensures that the government selects a firm that is not only cost-effective but also highly qualified. The government benefits from a wider pool of potential providers, increasing the likelihood of finding a contractor that meets all requirements at a competitive price point, thereby maximizing the value of taxpayer funds.
What are the historical spending patterns for incurred cost audits within the Department of Energy or similar agencies?
Historical spending patterns for incurred cost audits within the Department of Energy (DOE) and similar large federal agencies typically show consistent annual expenditures. These audits are a mandatory requirement for many government contractors, particularly those with cost-plus contracts, to ensure the proper accounting of costs incurred. Spending in this area can fluctuate based on the number of active large contracts, changes in regulatory requirements, and the size and complexity of the contractors being audited. While specific historical data for NRLFO's incurred cost audit spending isn't provided, agencies like the DOE generally allocate significant budgets to financial oversight and auditing functions. This ensures compliance and fiscal responsibility across their vast network of operations and contractors, with annual spending often in the millions across various audit requirements.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1301 AVENUE OF THE AMERICAS FL 10, NEW YORK, NY, 10019
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $501,907
Exercised Options: $501,907
Current Obligation: $501,907
Actual Outlays: $335,314
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303022AMA000041
IDV Type: BPA
Timeline
Start Date: 2024-09-26
Current End Date: 2026-04-17
Potential End Date: 2026-04-17 00:00:00
Last Modified: 2026-04-01
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