DOE OIG Procures Audit Services for SRNS SRS Management and Operating Costs for $486K

Contract Overview

Contract Amount: $486,018 ($486.0K)

Contractor: Cohnreznick LLP

Awarding Agency: Department of Energy

Start Date: 2026-04-02

End Date: 2027-04-01

Contract Duration: 364 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE DEPARTMENT OF ENERGY, OFFICE OF INSPECTOR GENERAL (OIG) HAS DETERMINED A NEED TO PROCURE AN AUDIT OF SRNS SRS MANAGEMENT AND OPERATING INCURRED COST SUBMISSIONS FROM FISCAL YEAR 2023 TO FISCAL YEAR 2025.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $486,017.6 to COHNREZNICK LLP for work described as: THE DEPARTMENT OF ENERGY, OFFICE OF INSPECTOR GENERAL (OIG) HAS DETERMINED A NEED TO PROCURE AN AUDIT OF SRNS SRS MANAGEMENT AND OPERATING INCURRED COST SUBMISSIONS FROM FISCAL YEAR 2023 TO FISCAL YEAR 2025. Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a fair market approach for specialized audit services. 3. Risk indicators are moderate, focusing on the accuracy of incurred cost submissions. 4. Performance context involves auditing financial submissions for a significant DOE contractor. 5. Sector positioning is within professional services, specifically accounting and auditing for government contracts.

Value Assessment

Rating: good

The contract value of $486,017.60 for a 364-day period appears reasonable for specialized audit services. Benchmarking against similar government audits of management and operating contracts would provide a more precise value-for-money assessment. However, the use of a BPA Call suggests that pre-negotiated rates are likely in play, which can contribute to cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all eligible firms had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment, which is generally favorable for price discovery and obtaining competitive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure audit services at the best possible price, ensuring efficient use of federal funds.

Public Impact

The Office of Inspector General (OIG) of the Department of Energy benefits from enhanced oversight of contractor financial submissions. Services delivered include a critical audit of incurred cost submissions for fiscal years 2023-2025. Geographic impact is primarily within the Department of Energy's oversight functions, with potential implications for the SRNS SRS contractor's operational areas. Workforce implications are minimal, primarily affecting the specialized auditors performing the work and the DOE OIG staff overseeing the audit.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for audit findings to impact future funding or contractor performance evaluations.
  • Reliance on contractor-provided data for audit scope requires robust verification processes.

Positive Signals

  • Awarded through full and open competition, suggesting a competitive pricing environment.
  • The contract is for a defined period, allowing for focused audit objectives.
  • The contractor, CohnReznick LLP, is a known entity in the audit and accounting space.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting and auditing services. The market for government contract auditing is specialized, with a number of firms capable of performing these complex reviews. The Department of Energy, like other large federal agencies, frequently procures such services to ensure accountability and compliance with financial regulations.

Small Business Impact

The contract was awarded to CohnReznick LLP and does not indicate any small business set-aside provisions. Given the specialized nature of auditing management and operating contracts, it is unlikely that significant subcontracting opportunities for small businesses would arise directly from this specific audit engagement, though the prime contractor may have its own small business utilization goals.

Oversight & Accountability

Oversight is provided by the Department of Energy's Office of Inspector General (OIG), which has determined the need for this audit. Accountability measures are inherent in the audit process itself, with findings and recommendations reported by the OIG. Transparency is expected through the OIG's reporting mechanisms, though specific audit details may be sensitive.

Related Government Programs

  • Department of Energy Office of Inspector General Audits
  • Management and Operating Contractor Audits
  • Incurred Cost Audits
  • Federal Financial Audit Services

Risk Flags

  • Potential for audit findings to impact contractor reimbursements.
  • Reliance on contractor-provided data requires robust verification.

Tags

department-of-energy, office-of-inspector-general, audit-services, full-and-open-competition, time-and-materials, professional-services, cohnreznick-llp, district-of-columbia, bpa-call, fiscal-year-2023, fiscal-year-2024, fiscal-year-2025

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $486,017.6 to COHNREZNICK LLP. THE DEPARTMENT OF ENERGY, OFFICE OF INSPECTOR GENERAL (OIG) HAS DETERMINED A NEED TO PROCURE AN AUDIT OF SRNS SRS MANAGEMENT AND OPERATING INCURRED COST SUBMISSIONS FROM FISCAL YEAR 2023 TO FISCAL YEAR 2025.

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 $486,017.6.

What is the period of performance?

Start: 2026-04-02. End: 2027-04-01.

What is the track record of CohnReznick LLP in performing similar federal audits?

CohnReznick LLP is a well-established accounting firm with a significant presence in government contracting. They have experience performing audits for various federal agencies, including those related to incurred costs and compliance. While specific details of past performance on similar Department of Energy Management and Operating (M&O) contract audits are not publicly detailed in this data, their general expertise in the field suggests a capacity to undertake this work. Federal agencies often rely on established firms like CohnReznick for complex financial reviews due to their demonstrated capabilities and adherence to professional standards. Further investigation into their past performance ratings and any publicly available audit reports would provide a more comprehensive understanding of their track record.

How does the contract value compare to similar federal audit contracts?

The contract value of $486,017.60 for a 364-day audit of incurred costs for fiscal years 2023-2025 is within a typical range for specialized federal audits. The complexity of auditing Management and Operating (M&O) contracts, which involve extensive financial data and operational oversight, necessitates significant auditor effort. Without specific details on the scope and complexity of the SRNS SRS submissions, a direct comparison is challenging. However, considering the nature of M&O contracts and the typical duration and resources required for such audits, this price point appears reasonable. Federal audit contracts can range widely based on agency, contractor size, and audit complexity, but this figure suggests a focused engagement rather than a broad, multi-year program audit.

What are the primary risks associated with this contract?

The primary risks associated with this contract revolve around the accuracy and completeness of the incurred cost submissions by SRNS SRS. If these submissions are inaccurate or incomplete, the audit may be delayed, require additional resources, or result in findings that could impact the contractor's future reimbursements or performance evaluations. Another risk is the potential for the audit itself to uncover significant discrepancies, leading to further investigations or adjustments. For the government, there's a risk that the audit may not be sufficiently thorough, leading to missed issues. The contractor, CohnReznick LLP, faces risks related to meeting audit deadlines, maintaining audit quality, and managing client expectations within the scope of the contract.

How effective is the Department of Energy OIG in overseeing contractor finances?

The Department of Energy's Office of Inspector General (OIG) plays a crucial role in providing independent oversight of DOE programs and operations, including contractor finances. The OIG conducts audits, inspections, and investigations to promote economy, efficiency, and effectiveness within the Department and to prevent and detect fraud, waste, and abuse. The very existence of this contract, to audit incurred costs, demonstrates the OIG's commitment to financial oversight. The effectiveness of the OIG is generally measured by the impact of its findings and recommendations, the reduction of waste and fraud, and the improvement of program management. While specific metrics on the OIG's overall effectiveness are not provided here, their proactive procurement of audits for significant contracts like SRNS SRS indicates a functional oversight mechanism.

What are the historical spending patterns for similar audit services within the Department of Energy?

Historical spending patterns for audit services within the Department of Energy (DOE) typically show consistent procurement of such services to ensure financial accountability for its vast network of contractors, including those managing complex Management and Operating (M&O) sites. The DOE OIG regularly issues contracts for audits of incurred costs, financial statements, and compliance. Spending can fluctuate based on the number of M&O contracts up for renewal or audit, the complexity of those contracts, and specific OIG priorities. While the exact historical dollar amounts for similar audits are not detailed here, the recurring need for these services underscores their importance to the DOE's financial stewardship and oversight responsibilities. The $486K for this specific audit is likely in line with previous procurements for similar scope and duration.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesAccounting, Tax Preparation, Bookkeeping, and Payroll ServicesOffices 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: TIME AND MATERIALS (Y)

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: $486,018

Exercised Options: $486,018

Current Obligation: $486,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 89303022AMA000041

IDV Type: BPA

Timeline

Start Date: 2026-04-02

Current End Date: 2027-04-01

Potential End Date: 2027-04-01 00:00:00

Last Modified: 2026-04-02

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