DOE's $140K audit support contract awarded to Cohnreznick LLP for FY26-27
Contract Overview
Contract Amount: $140,000 ($140.0K)
Contractor: Cohnreznick LLP
Awarding Agency: Department of Energy
Start Date: 2026-04-01
End Date: 2028-03-31
Contract Duration: 730 days
Daily Burn Rate: $192/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: EMCBC AUDIT SUPPORT FY 26-27
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $140,000 to COHNREZNICK LLP for work described as: EMCBC AUDIT SUPPORT FY 26-27 Key points: 1. Value for money appears reasonable given the specialized nature of audit support. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration of two years provides stability for essential audit functions. 4. The contract type (Time and Materials) requires careful monitoring to control costs. 5. This contract supports the Department of Energy's financial integrity and compliance efforts. 6. The award is a BPA Call, indicating it leverages an existing agreement.
Value Assessment
Rating: good
The contract value of $140,000 for two years of audit support is modest. Without specific deliverables or hourly rates, a direct comparison to similar contracts is challenging. However, for specialized audit services, this price point seems within a reasonable range, especially considering the complexity of government financial audits. The Time and Materials pricing structure necessitates diligent oversight to ensure cost-effectiveness and prevent scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The specific number of bidders is not provided, but the method of competition suggests a healthy market for these services.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure audit support services at the best possible price, minimizing unnecessary expenditure.
Public Impact
The Department of Energy benefits from enhanced financial oversight and audit capabilities. Services delivered include independent audits and assessments of financial records. The geographic impact is primarily within the Department of Energy's operational areas. Workforce implications are minimal, as this contract supports existing internal functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing if not closely managed.
- Reliance on external auditors may limit the development of internal audit expertise.
Positive Signals
- Awarded through full and open competition, suggesting fair market pricing.
- Supports critical financial oversight functions for a major federal agency.
- Leverages an existing BPA Call, indicating efficient procurement practices.
Sector Analysis
The accounting and auditing services sector is a critical component of government operations, ensuring financial accountability and compliance. This contract falls under the NAICS code 541211 (Offices of Certified Public Accountants). The market for these services is competitive, with numerous firms capable of providing specialized audit support to federal agencies. The value of this specific contract is relatively small compared to the overall federal spending on professional services.
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 that the primary focus was on securing the most qualified vendor through open competition, rather than specifically promoting small business participation in this instance.
Oversight & Accountability
Oversight will be managed by the Department of Energy contracting officer and program officials. The Time and Materials contract type necessitates close monitoring of hours and costs to ensure adherence to the ceiling amount and prevent overspending. Transparency is maintained through standard federal procurement reporting mechanisms.
Related Government Programs
- Federal Audit Services
- Department of Energy Financial Management
- Government Contract Auditing
Risk Flags
- Potential for cost overruns with T&M contract type.
- Scope definition clarity is crucial for effective service delivery.
Tags
audit-support, department-of-energy, maryland, time-and-materials, full-and-open-competition, professional-services, financial-services, bpa-call, accountants, cohnreznick-llp
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $140,000 to COHNREZNICK LLP. EMCBC AUDIT SUPPORT FY 26-27
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 $140,000.
What is the period of performance?
Start: 2026-04-01. End: 2028-03-31.
What is the track record of Cohnreznick LLP with federal government contracts, particularly in audit support?
Cohnreznick LLP has a history of performing work for the federal government. While specific details on their federal audit support contracts are not provided in this data, their presence as a bidder in a full and open competition suggests they are an established player in the government contracting space. A deeper dive into federal procurement databases like FPDS or SAM.gov would reveal the extent and nature of their past federal awards, including performance ratings and any past performance issues. Their ability to secure this contract indicates they met the agency's requirements for experience and capability in audit services.
How does the $140,000 contract value compare to similar audit support contracts awarded by the Department of Energy or other agencies?
The $140,000 value for a two-year audit support contract is relatively modest. Federal audit support contracts can range significantly in value, from small, specialized engagements like this one to multi-million dollar contracts for comprehensive financial statement audits or complex forensic investigations. For the Department of Energy, which manages a vast and complex budget, this contract likely covers a specific, defined scope of audit support rather than a full agency-wide audit. Benchmarking would require identifying contracts with similar scopes of work, service levels, and contract types (e.g., Time and Materials) within the federal government.
What are the primary risks associated with a Time and Materials (T&M) contract for audit support, and how are they mitigated?
The primary risk with a T&M contract is the potential for cost overruns if the effort required exceeds initial estimates, as the contractor is paid for actual labor hours and materials used. This can lead to the contract exceeding its ceiling value. Mitigation strategies include establishing a firm ceiling price, requiring detailed timesheets and justifications for hours worked, implementing robust project management and oversight by the government, and defining clear deliverables and milestones. The contracting officer's representative (COR) plays a crucial role in monitoring progress and controlling costs.
What is the expected effectiveness of this contract in improving the Department of Energy's financial integrity?
The effectiveness of this contract hinges on the quality of the audit support provided by Cohnreznick LLP and the Department of Energy's ability to leverage that support. If the auditors provide thorough, accurate, and insightful assessments, they can help identify financial irregularities, improve internal controls, and ensure compliance with regulations. This, in turn, contributes to the overall financial integrity of the agency. However, the contract's scope is limited to 'audit support,' implying it's a component of a larger financial oversight framework, not a standalone solution.
What are the historical spending patterns for audit support services within the Department of Energy?
Historical spending patterns for audit support at the Department of Energy would likely show a consistent need for these services due to the agency's large budget and complex operations. Agencies typically allocate funds for both internal audits and external support to ensure independent verification. Spending can fluctuate based on audit cycles, specific program reviews, or the emergence of new financial risks. Analyzing past obligations for similar NAICS codes (like 541211) and contract types within the DOE would provide context on the typical investment in this area.
How does the use of a BPA Call impact the overall cost and efficiency of procuring these audit services?
Using a BPA Call (Blanket Purchase Agreement Call) generally enhances efficiency and can lead to cost savings. A BPA is a pre-negotiated agreement that allows agencies to quickly order supplies or services from pre-approved vendors under established terms and conditions. A 'call' is a specific order placed against that BPA. This method bypasses the need for a full, new solicitation process for each individual requirement, reducing administrative burden and lead time. Pricing is often pre-negotiated within the BPA, potentially offering better rates than ad-hoc contract awards, assuming the BPA itself was competitively established.
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: 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: $949,782
Exercised Options: $949,782
Current Obligation: $140,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303022AMA000041
IDV Type: BPA
Timeline
Start Date: 2026-04-01
Current End Date: 2028-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2026-04-01
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