Kearney & Company awarded $21M for Defense Enterprise Accounting Management System support

Contract Overview

Contract Amount: $20,989,423 ($21.0M)

Contractor: Kearney & Company, P.C.

Awarding Agency: General Services Administration

Start Date: 2008-12-01

End Date: 2011-03-27

Contract Duration: 846 days

Daily Burn Rate: $24.8K/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: FAIRVIEW HEIGHTS, ST. CLAIR County, ILLINOIS, 62208, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $21.0 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 appears reasonable given the duration and scope of accounting services. 2. Competition was robust, suggesting fair pricing and good value for the government. 3. Performance risk appears low due to the nature of accounting support services. 4. This contract supports a critical defense financial management system. 5. The contractor has a history of providing accounting services to the federal government.

Value Assessment

Rating: good

The contract value of approximately $21 million over 28 months for accounting services is within a reasonable range for supporting a large-scale federal system like DEAMS. Benchmarking against similar large IT and accounting support contracts, the average annual cost of around $7.5 million appears competitive. The Time and Materials pricing structure, while requiring careful oversight, is common for services where the scope can evolve. Without specific per-unit metrics, a direct cost comparison is difficult, but the overall value seems fair for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, indicating a full and open competition process. The presence of four bidders suggests a healthy level of competition for this type of specialized accounting support. This competitive environment is expected to drive more favorable pricing and ensure the government receives quality services at a reasonable cost.

Taxpayer Impact: The competitive nature of this award benefits taxpayers by ensuring that the selected contractor, Kearney & Company, P.C., was chosen based on a combination of technical merit and price, rather than a sole-source justification. This process helps prevent overspending and encourages efficiency.

Public Impact

The primary beneficiaries are the Department of Defense agencies relying on the Defense Enterprise Accounting Management System (DEAMS) for accurate financial reporting and management. Services delivered include crucial accounting and financial management support, ensuring the integrity of defense financial data. The geographic impact is nationwide, supporting a system used across various DoD components. Workforce implications include the employment of accounting professionals and IT specialists by the contractor to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in Time and Materials contracts requires diligent monitoring.
Ensuring consistent quality of accounting services across the contract duration is important.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contract supports a critical defense financial management system.
Contractor has experience in federal accounting services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting services. The federal government is a significant consumer of these services, particularly for complex financial systems like DEAMS. The market for federal accounting and financial management support is substantial, with numerous firms capable of providing such expertise. This contract represents a portion of the broader government spending on financial system modernization and maintenance.

Small Business Impact

This contract was awarded to Kearney & Company, P.C., which is not identified as a small business. There is no explicit indication of small business set-asides or subcontracting requirements within the provided data for this specific delivery order. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, though the prime contractor may engage small businesses for specific support needs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the General Services Administration (GSA) or the relevant Department of Defense component utilizing DEAMS. Performance monitoring, invoice review, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Defense Enterprise Accounting Management System (DEAMS)
Federal Financial Management Systems
DoD Accounting Services
Government Financial Auditing Support

Risk Flags

Time and Materials contract type requires close monitoring to prevent cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $21.0 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 $21.0 million.

What is the period of performance?

Start: 2008-12-01. End: 2011-03-27.

What is the track record of Kearney & Company, P.C. in providing similar accounting services to the federal government?

Kearney & Company, P.C. has a significant track record in providing accounting, auditing, and financial management services to various federal agencies. They are known for their expertise in government accounting standards and financial systems. Their past performance often includes support for large-scale financial systems, compliance audits, and financial statement preparation for agencies such as the Department of Defense, Department of Justice, and others. This experience suggests a strong capability to handle complex contracts like the DEAMS support.

How does the awarded amount compare to other contracts for similar accounting support services for large federal systems?

The awarded amount of approximately $21 million over 28 months translates to an average annual cost of roughly $7.5 million. This figure appears to be within a reasonable range when compared to other large federal IT and accounting support contracts. For instance, similar contracts supporting major financial systems within agencies like the IRS or HHS can range from several million to tens of millions of dollars annually, depending on the system's complexity, user base, and scope of services. The competitive nature of this award further suggests that the pricing is likely aligned with market rates for such specialized services.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential scope creep due to the Time and Materials (T&M) pricing structure, ensuring consistent service quality, and timely delivery of accounting support. Mitigation strategies typically involve robust contract management by the government, including detailed work breakdown structures, regular performance reviews, and vigilant oversight of contractor hours and expenses. Clear communication channels between the government and the contractor, along with defined performance metrics, also help manage these risks effectively.

How effective has the Defense Enterprise Accounting Management System (DEAMS) been, and how does this contract contribute to its effectiveness?

DEAMS is a critical system for the Department of Defense, aimed at providing a unified platform for financial management and accounting across various services and agencies. Its effectiveness is crucial for accurate financial reporting, audit readiness, and efficient resource allocation. This contract directly contributes to DEAMS' effectiveness by ensuring the system is properly maintained, supported, and that accounting functions operate smoothly. The accounting support services provided help in data integrity, transaction processing, and compliance with financial regulations, all of which are vital for the system's overall success.

What are the historical spending patterns for accounting support services related to DEAMS or similar systems within the DoD?

Historical spending on accounting support for large federal financial systems like DEAMS typically involves significant and sustained investment. The DoD, in particular, has a substantial budget allocated to maintaining and upgrading its complex financial infrastructure. Spending patterns for such services often reflect the lifecycle of the system, with initial implementation costs followed by ongoing operational, maintenance, and enhancement support. Contracts for these services can span multiple years and involve tens to hundreds of millions of dollars cumulatively, depending on the system's scale and the breadth of support required.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 5TP57070030A

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: $36,247,200

Exercised Options: $26,733,303

Current Obligation: $20,989,423

Parent Contract

Parent Award PIID: GS23F0092J

IDV Type: FSS

Timeline