Navy awards $34M for ERP support to Accenture Federal Services, raising questions on value and competition
Contract Overview
Contract Amount: $34,050,004 ($34.1M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Defense
Start Date: 2016-09-28
End Date: 2018-09-29
Contract Duration: 731 days
Daily Burn Rate: $46.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF NAVY ERP SPECIAL PROJECTS SUPPORT
Place of Performance
Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17050
Plain-Language Summary
Department of Defense obligated $34.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF NAVY ERP SPECIAL PROJECTS SUPPORT Key points: 1. Spending of $34M on ERP support over 2 years. 2. Accenture Federal Services is the sole awardee. 3. Potential concerns regarding competition and value for money. 4. IT sector spending with a focus on specialized services.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure for specialized IT services warrants scrutiny. Benchmarking against similar ERP support contracts is difficult without more granular data on deliverables and performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although advertised as full and open, the award to a single entity suggests limited effective competition or a highly specialized requirement. The pricing mechanism may not have driven the most cost-effective outcome.
Taxpayer Impact: Taxpayer funds are being utilized for specialized IT support, and the effectiveness of the competition process will determine the overall value realized.
Public Impact
Impacts Navy's enterprise resource planning capabilities. Supports critical IT infrastructure modernization efforts. Potential for cost overruns if not managed tightly.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation.
- Cost-plus-fixed-fee pricing can lead to higher costs.
- Lack of clear performance metrics for value assessment.
Positive Signals
- Addresses a critical Navy IT requirement.
- Contract awarded to a known IT services provider.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer-related services for enterprise resource planning. Spending in this area is substantial across government, with benchmarks varying widely based on complexity and scope.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this data.
Oversight & Accountability
Oversight is crucial for cost-plus-fixed-fee contracts to ensure efficient use of funds and prevent scope creep. The Department of the Navy's contracting office is responsible for monitoring performance and costs.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited visibility into the competitive process.
- Lack of detailed performance metrics for value assessment.
- High contract value for specialized IT services.
Tags
other-computer-related-services, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.1 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF NAVY ERP SPECIAL PROJECTS SUPPORT
Who is the contractor on this award?
The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $34.1 million.
What is the period of performance?
Start: 2016-09-28. End: 2018-09-29.
What specific ERP modules or functionalities does this contract support, and how does this align with the Navy's strategic IT goals?
The provided data does not specify the exact ERP modules or functionalities supported. Understanding this alignment is crucial for assessing the strategic value and necessity of this $34M expenditure. Further details would be needed to determine if it directly contributes to modernization or addresses critical operational needs.
Given the 'full and open' competition designation, why was only one award made, and what was the competitive landscape like?
The designation 'full and open' indicates the solicitation was broadly advertised, but it doesn't guarantee multiple bids or awards. A single award could result from a highly specialized requirement, a lack of qualified bidders, or a strategic decision by the agency. Investigating the number of proposals received and the evaluation process would clarify the competitive dynamics.
How is the 'fixed fee' component determined in this Cost Plus Fixed Fee (CPFF) contract, and what mechanisms are in place to ensure the fee remains fair and reflects performance?
In a CPFF contract, the fixed fee is negotiated upfront and represents the contractor's profit. It is intended to remain constant regardless of the actual cost incurred. Oversight mechanisms should ensure the fee is reasonable based on the contract's complexity, risk, and the contractor's performance, with potential adjustments tied to specific milestones or performance metrics.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0018915R0005
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Accenture Public Limited Company (UEI: 985015354)
Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,120,354
Exercised Options: $34,120,354
Current Obligation: $34,050,004
Subaward Activity
Number of Subawards: 62
Total Subaward Amount: $12,560,585
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018916D0013
IDV Type: IDC
Timeline
Start Date: 2016-09-28
Current End Date: 2018-09-29
Potential End Date: 2018-09-29 00:00:00
Last Modified: 2018-10-17
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