GSA's $96M DEAMS Advisory Services Contract with Kearney & Company Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $96,088,022 ($96.1M)

Contractor: Kearney & Company, P.C.

Awarding Agency: General Services Administration

Start Date: 2011-03-11

End Date: 2016-02-29

Contract Duration: 1,816 days

Daily Burn Rate: $52.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: DEAMS ADVISORY AND ASSISTANCE SERVICES

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $96.1 million to KEARNEY & COMPANY, P.C. for work described as: DEAMS ADVISORY AND ASSISTANCE SERVICES Key points: 1. The contract awarded to Kearney & Company, P.C. for accounting services represents a significant investment. 2. Competition for this contract was full and open, suggesting a potentially competitive pricing environment. 3. However, the lack of small business participation raises concerns about broader economic impact. 4. The sector is accounting services, a critical but often opaque area of federal spending.

Value Assessment

Rating: fair

The contract's total value is substantial at over $96 million. Benchmarking against similar accounting advisory contracts is difficult without more granular data on specific services rendered and labor hours. The provided 'br' (benchmark rate) of $52,912 seems low for a contract of this scale and duration, potentially indicating a favorable rate or an incomplete benchmark.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the duration and specific nature of advisory services can sometimes limit the effectiveness of price discovery, especially if follow-on work is implicitly expected.

Taxpayer Impact: Taxpayer funds are being utilized for essential accounting advisory services. While competition was present, the overall value and the lack of small business involvement warrant scrutiny to ensure maximum value for money.

Public Impact

Federal agencies rely on accounting advisory services for financial management and compliance. The contract's duration (nearly 5 years) suggests a long-term need for these services. The absence of small business participation may limit opportunities for smaller, specialized firms. Transparency in the specific deliverables and outcomes of these advisory services is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Potential for limited price discovery despite full and open competition
Long contract duration may mask inefficiencies

Positive Signals

Awarded under full and open competition
Services support critical federal financial operations

Sector Analysis

This contract falls within the 'Other Accounting Services' (NAICS 541219) sector. Federal spending in professional services, including accounting and auditing, is substantial. Benchmarks for such contracts vary widely based on scope, duration, and specific expertise required, making direct comparisons challenging without detailed service descriptions.

Small Business Impact

The contract data indicates that small businesses were not involved in this award (ss=false, sb=false). This is a concern as it represents a missed opportunity to engage smaller, potentially more agile firms and to foster economic growth within the small business sector.

Oversight & Accountability

Oversight of this contract would involve monitoring the quality of advisory services provided by Kearney & Company, ensuring adherence to contract terms, and verifying that the services deliver the intended value to the General Services Administration. Regular performance reviews and audits are key accountability mechanisms.

Related Government Programs

Other Accounting Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of small business participation
Potential for limited price discovery despite full and open competition
Long contract duration may obscure performance issues
Lack of detailed service description hinders value assessment
Ambiguity in benchmark rate ('br')

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $96.1 million to KEARNEY & COMPANY, P.C.. DEAMS ADVISORY AND ASSISTANCE SERVICES

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 $96.1 million.

What is the period of performance?

Start: 2011-03-11. End: 2016-02-29.

What specific accounting advisory services were rendered under this contract, and how did they contribute to the agency's mission?

The contract was for 'DEAMS Advisory and Assistance Services,' likely supporting the Defense Enterprise Accounting and Management System. Specific services could include financial reporting, audit support, system implementation advice, or process improvement. The value contribution would be measured by improved financial accuracy, compliance, and operational efficiency within the defense financial management systems.

Given the full and open competition, what factors might have limited the effectiveness of price discovery for these long-term advisory services?

Long-term advisory contracts, even with full and open competition, can sometimes lead to less aggressive pricing over time. Factors include the specialized nature of the services, potential for follow-on work, and the difficulty in precisely defining all future needs at the outset. This can allow incumbent contractors to maintain pricing power if competition is not continuously re-established.

How effectively did the General Services Administration ensure that taxpayer funds were used efficiently for these advisory services, particularly given the lack of small business participation?

The GSA's effectiveness would be judged by its procurement process, including the solicitation's clarity and the evaluation criteria used. While full and open competition is a positive indicator, the absence of small business participation suggests a potential gap in outreach or a market structure that favors larger firms. Ensuring efficiency requires rigorous performance monitoring and a review of whether alternative, smaller-scale solutions could have met specific needs.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 5TP57100252

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $118,840,339

Exercised Options: $108,278,040

Current Obligation: $96,088,022

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $12,383,391

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS23F0092J

IDV Type: FSS

Timeline