DHS awards $357M for Admin Support Services to Accenture, raising concerns about value and competition

Contract Overview

Contract Amount: $357,155,066 ($357.2M)

Contractor: Accenture LLP

Awarding Agency: Department of Homeland Security

Start Date: 2003-03-15

End Date: 2008-12-31

Contract Duration: 2,118 days

Daily Burn Rate: $168.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OTHER ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $357.2 million to ACCENTURE LLP for work described as: OTHER ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Significant contract value of $357M for administrative support services. 2. Accenture LLP is the sole awardee, raising questions about competition. 3. Contract duration of 2118 days (approx. 5.8 years) indicates long-term reliance. 4. The 'OTHER ADMINISTRATIVE SUPPORT SERVICES' category is broad, potentially masking specific service needs.

Value Assessment

Rating: questionable

The contract value of $357M for administrative support services appears high, especially given the broad NAICS code. Benchmarking against similar contracts for management consulting services is difficult without more specific service details. The lack of a clear benchmark makes assessing value for money challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the contract was awarded under full and open competition, the fact that only one entity, Accenture LLP, received the award warrants further investigation. It's unclear if the competition was structured in a way that limited participation or if Accenture was the only capable bidder. This could impact price discovery and potentially lead to suboptimal pricing.

Taxpayer Impact: The substantial $357M award could represent a significant taxpayer investment. Without clear evidence of competitive pricing and value, taxpayers may not be receiving the best possible return on this expenditure.

Public Impact

Taxpayers may be overpaying for administrative support services if competition was not robust. The long contract duration suggests a sustained need, but the specific benefits to the public are not detailed. Lack of transparency on specific services provided makes it hard for the public to assess impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated costs due to limited effective competition.
Broad service description may obscure specific performance metrics.
Long contract duration could lead to vendor lock-in.

Positive Signals

Awarded under full and open competition, theoretically allowing broad participation.
Firm Fixed Price contract type can provide cost certainty if well-defined.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a common area of government spending. Benchmarks for this sector vary widely based on the specificity of services. This contract's broad scope makes direct comparison difficult, but the value is substantial.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). This represents a missed opportunity for small business participation in a significant federal contract.

Oversight & Accountability

Oversight of this contract is crucial given its large value and broad scope. The Department of Homeland Security and the Transportation Security Administration must ensure robust performance monitoring and accountability to justify the expenditure.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Potential lack of true competition despite 'full and open' designation.
High contract value for a broadly defined service category.
Long contract duration may indicate limited market alternatives or vendor lock-in.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $357.2 million to ACCENTURE LLP. OTHER ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ACCENTURE LLP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $357.2 million.

What is the period of performance?

Start: 2003-03-15. End: 2008-12-31.

What specific administrative support services were procured under this contract, and how do they align with TSA's mission objectives?

The contract falls under NAICS code 541611 (Administrative Management and General Management Consulting Services). However, the data lacks specific details on the exact services rendered. Understanding the granular breakdown of these services is essential to determine their direct contribution to the Transportation Security Administration's operational effectiveness and mission accomplishment.

Given the $357M value and Accenture LLP as the sole awardee, what steps were taken to ensure competitive pricing and prevent potential cost overruns?

Although listed as 'full and open competition,' the sole award to Accenture LLP raises questions about the effectiveness of the competition. Further analysis is needed to understand the solicitation's structure, the evaluation criteria, and any pre-award market research conducted. Robust post-award oversight and performance management are critical to mitigate risks associated with limited competition and ensure fair pricing.

What is the long-term strategic value of this contract for the TSA, and are there plans for future competition or service consolidation?

The contract's duration of over 2000 days suggests a long-term strategic need for administrative support. However, the broad nature of the services makes it difficult to assess specific strategic benefits. Agencies should regularly review such long-term contracts to ensure continued alignment with evolving needs and explore opportunities for re-competition or service optimization to maintain value and adapt to changing requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

Address: 11951 FREEDOM DRIVE, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $357,155,066

Exercised Options: $357,155,066

Current Obligation: $357,155,066

Timeline