GSA awards $12.6M contract for accounting system support to Kearney & Company, P.C

Contract Overview

Contract Amount: $12,616,614 ($12.6M)

Contractor: Kearney & Company, P.C.

Awarding Agency: General Services Administration

Start Date: 2006-12-31

End Date: 2008-11-30

Contract Duration: 700 days

Daily Burn Rate: $18.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SERVICES IN SUPPORT OF THE DEFENSE ENTERPRISE ACCOUNTING MANAGEMENT SYSTEM (DEAMS).

Place of Performance

Location: SCOTT AIR FORCE BASE, ST. CLAIR County, ILLINOIS, 62225, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $12.6 million to KEARNEY & COMPANY, P.C. for work described as: SERVICES IN SUPPORT OF THE DEFENSE ENTERPRISE ACCOUNTING MANAGEMENT SYSTEM (DEAMS). Key points: 1. Contract value of $12.6M for accounting system support indicates a significant investment in financial management infrastructure. 2. The competitive nature of this delivery order suggests potential for favorable pricing and service quality. 3. The relatively short duration of 700 days may indicate a need for agile support or a phased approach to system development. 4. The contract's focus on accounting system support aligns with broader government efforts to modernize financial operations. 5. The use of Time and Materials pricing could lead to cost overruns if not carefully managed. 6. The absence of small business set-aside suggests the primary contractor is not a small business, with potential implications for subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $12.6 million for accounting system support appears reasonable given the scope of services. Benchmarking against similar contracts for large-scale financial system maintenance and development would provide a more precise value assessment. The Time and Materials pricing structure, while flexible, carries inherent risks of cost escalation if not rigorously monitored and controlled by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors were likely solicited and evaluated. The presence of 4 bidders suggests a healthy level of competition for this type of service. This competitive environment generally benefits the government by driving down prices and encouraging innovation from offerors.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by securing the best possible price and quality for essential accounting system support.

Public Impact

The primary beneficiary is the Department of Defense, which relies on the Defense Enterprise Accounting Management System (DEAMS) for its financial operations. The services delivered will ensure the continued functionality, maintenance, and potential enhancement of a critical financial management system. The geographic impact is likely nationwide, supporting the distributed operations of the Department of Defense. Workforce implications may include the need for specialized accounting and IT professionals to support the DEAMS system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing if not closely managed.
Dependence on a single contractor for critical accounting system support could pose a risk if performance issues arise.
The relatively short contract duration might lead to a need for follow-on contracts, potentially disrupting long-term planning.

Positive Signals

Competitive award process likely secured favorable pricing and service terms.
Focus on a critical financial management system indicates alignment with government modernization priorities.
The contractor, Kearney & Company, P.C., is a known entity in accounting services, suggesting a degree of expertise.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting services. The market for government accounting and financial system support is substantial, driven by the complexity and scale of federal financial operations. Comparable spending benchmarks would involve analyzing other large IT and financial management contracts awarded by agencies like the DoD, GSA, and Treasury.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the contractor is not a small business. This suggests that the primary contract was awarded to a larger firm. There may be opportunities for small businesses to participate as subcontractors to Kearney & Company, P.C., depending on the firm's subcontracting plan and the specific needs of the DEAMS system support.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) and the specific program office within the Department of Defense utilizing the DEAMS system. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Enterprise Accounting Management System (DEAMS)
Federal Financial Management Systems
Accounting and Auditing Services
IT Professional Services

Risk Flags

Potential for cost overruns due to T&M pricing.
Contract duration is relatively short, potentially requiring follow-on actions.
Dependence on contractor performance for critical financial system.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.6 million to KEARNEY & COMPANY, P.C.. SERVICES IN SUPPORT OF THE DEFENSE ENTERPRISE ACCOUNTING MANAGEMENT SYSTEM (DEAMS).

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2006-12-31. End: 2008-11-30.

What is the track record of Kearney & Company, P.C. in supporting large-scale federal accounting systems?

Kearney & Company, P.C. is a well-established public accounting firm with significant experience in government contracting, particularly in financial management and audit services. They have a history of supporting various federal agencies with complex financial systems. Their expertise in accounting principles and federal financial regulations positions them as a capable provider for services like those required for the Defense Enterprise Accounting Management System (DEAMS). A deeper dive into their past performance on similar contracts, including client satisfaction and any documented performance issues, would provide a more comprehensive understanding of their capabilities and reliability for this specific engagement.

How does the $12.6 million contract value compare to similar accounting system support contracts within the federal government?

The $12.6 million contract value for accounting system support is a moderate figure within the context of large federal IT and financial management contracts. Contracts for enterprise-level financial systems can range from tens of millions to billions of dollars over their lifecycle, depending on the system's complexity, scope of services (e.g., development, maintenance, modernization), and duration. For a delivery order with a 700-day duration, this value suggests a focused scope of work, possibly for specific enhancements, maintenance, or specialized support rather than a full system overhaul. Benchmarking against contracts for similar services (e.g., ERP system support, financial data management) awarded by agencies like the DoD, GSA, or Treasury would provide a more precise comparison.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and material costs incurred. If the scope of work is not well-defined, or if project management and oversight are insufficient, the contractor may incur more hours or use more expensive materials than initially anticipated, leading to a higher final cost for the government. This necessitates robust monitoring by the contracting officer and technical team to ensure that efforts are efficient, necessary, and that costs remain within reasonable bounds and align with the expected value.

How effective is the competitive delivery order process in ensuring value for taxpayer money in this context?

The competitive delivery order process is generally effective in ensuring value for taxpayer money, especially when multiple qualified bidders participate. By soliciting proposals from several vendors, the government can compare pricing, technical approaches, and past performance to select the most advantageous offer. In this case, with 4 bidders, there was a reasonable level of competition, which typically drives down prices and encourages contractors to offer their best services. The effectiveness is further enhanced by clear performance metrics and diligent oversight throughout the contract's performance period to ensure the contractor meets all obligations.

What is the historical spending trend for accounting system support services by the General Services Administration (GSA)?

Historical spending data for accounting system support services by the General Services Administration (GSA) would reveal trends in investment in financial management technologies and services. Analyzing past contract awards for similar services, including their values, durations, and the types of contractors engaged, can indicate whether GSA's spending in this area is increasing, decreasing, or remaining stable. This context is crucial for understanding the significance of the $12.6 million award and for forecasting future budgetary needs. Such analysis would also highlight any shifts in procurement strategies, such as a move towards more competitive bidding or specific types of contract vehicles.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 5TP57070030

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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: $33,715,824

Exercised Options: $17,018,696

Current Obligation: $12,616,614

Parent Contract

Parent Award PIID: GS23F0092J

IDV Type: FSS

Timeline