DoD's $114.8M IT services contract with Accenture awarded via full and open competition

Contract Overview

Contract Amount: $114,806,068 ($114.8M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2009-10-30

End Date: 2013-08-30

Contract Duration: 1,400 days

Daily Burn Rate: $82.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMPUTER RELATED SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $114.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: COMPUTER RELATED SERVICES Key points: 1. Contract value represents a significant investment in IT modernization for the Defense Logistics Agency. 2. Accenture Federal Services, a large established contractor, secured this award. 3. The contract was awarded using a firm-fixed-price structure, indicating defined scope and cost certainty. 4. Duration of 1400 days suggests a long-term need for these computer-related services. 5. The contract falls under the 'Other Computer Related Services' NAICS code, indicating a broad scope of IT support. 6. Awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $114.8 million contract is challenging without specific service details and comparable contract data. However, the firm-fixed-price structure suggests an attempt to control costs. The duration of nearly four years implies a substantial commitment, and the value per year is approximately $32.8 million. Without more granular information on the services provided and market rates for similar IT support, a definitive value-for-money assessment is difficult. The absence of small business set-aside flags might indicate a focus on large-scale capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it was a Delivery Order implies it was likely placed against an existing IDIQ contract that itself was competed. The number of bidders is not specified, but full and open competition generally promotes a competitive environment, which can lead to better pricing and innovation. This approach is favored for ensuring the government receives the best possible value.

Taxpayer Impact: Full and open competition maximizes the pool of potential offerors, increasing the likelihood of competitive pricing and thus benefiting taxpayers by potentially lowering overall costs for essential IT services.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Logistics Agency, receiving critical IT support. Services delivered likely encompass a wide range of computer-related functions, potentially including system maintenance, software development, and IT consulting. The geographic impact is centered around the Defense Logistics Agency's operational areas, primarily within Virginia. Workforce implications include the potential for direct employment by Accenture Federal Services and its subcontractors, as well as indirect impacts on DoD personnel relying on these IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The broad NAICS code (541519) could mask a wide variety of services, making detailed cost-benefit analysis challenging.
Limited information on the competitive landscape beyond 'full and open' prevents a deeper understanding of price discovery.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Accenture Federal Services is a well-established contractor with significant experience in government IT services.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically under 'Other Computer Related Services'. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. This contract likely supports the DLA's mission-critical operations, contributing to the overall efficiency and security of defense logistics. Comparable spending benchmarks would typically involve analyzing other large IT support contracts awarded by DoD or other federal agencies for similar scope and duration.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). This suggests the requirement was likely fulfilled by a large prime contractor, Accenture Federal Services. While there's no direct indication of subcontracting plans for small businesses within the provided data, large prime contracts often include subcontracting goals. The absence of a small business set-aside means that opportunities for small businesses to directly compete for the prime contract were limited in this instance.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer (ACO) at the Defense Logistics Agency. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance or closeout.

Related Government Programs

IT Professional Services
Cloud Computing Services
Cybersecurity Services
Software Development
IT Infrastructure Management

Risk Flags

Contract duration is long, increasing risk of scope creep and technological obsolescence.
Broad NAICS code limits understanding of specific services and associated risks.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $114.8 million to ACCENTURE FEDERAL SERVICES LLC. COMPUTER RELATED SERVICES

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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $114.8 million.

What is the period of performance?

Start: 2009-10-30. End: 2013-08-30.

What specific IT services were delivered under this $114.8 million contract?

The provided data indicates the contract falls under NAICS code 541519, 'Other Computer Related Services,' and was awarded to Accenture Federal Services LLC by the Defense Logistics Agency. This broad category can encompass a wide array of IT support, including but not limited to IT system design and integration, custom software development, IT consulting, network management, data processing services, and IT infrastructure support. Without access to the detailed contract statement of work (SOW) or delivery orders issued against this contract, the precise nature and scope of the services rendered remain unspecified. However, given the agency (DLA) and the substantial value, it likely supported critical logistics IT systems and operations.

How does the $114.8 million value compare to similar IT services contracts awarded by the DoD?

The $114.8 million value for this contract, spanning approximately four years (1400 days), translates to an average annual value of roughly $32.8 million. This figure is substantial but falls within the range of large-scale IT services contracts commonly awarded by the Department of Defense. DoD frequently procures complex IT solutions and ongoing support services valued in the tens to hundreds of millions of dollars, particularly for mission-critical functions like logistics, intelligence, and command and control. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes, durations, and specific service requirements awarded by DoD agencies during the same period (2009-2013).

What are the key risks associated with a contract of this size and duration?

Key risks for a contract of this magnitude ($114.8M over ~4 years) include scope creep, where the project's requirements expand beyond the original agreement, potentially leading to cost overruns despite the fixed-price nature. Contractor performance risk is also significant; if Accenture Federal Services fails to deliver the required IT services effectively, it could disrupt DLA operations. Technological obsolescence is another risk, as IT evolves rapidly, and services defined early in the contract might become outdated. Furthermore, reliance on a single large contractor can create vendor lock-in and reduce future flexibility. Finally, cybersecurity risks are inherent in any IT contract, requiring robust security measures to protect sensitive defense data.

What does the 'FULL AND OPEN COMPETITION' designation imply for the Defense Logistics Agency and taxpayers?

The 'FULL AND OPEN COMPETITION' designation signifies that the Defense Logistics Agency (DLA) solicited bids from all responsible sources, maximizing the potential applicant pool. This approach is generally expected to foster a competitive environment, driving down prices and encouraging innovation as contractors vie for the award. For taxpayers, this implies that the DLA likely sought to achieve the best possible value for the government's money by leveraging market forces. It suggests that the contract award was not unduly influenced by pre-existing relationships or restrictions, promoting fairness and potentially leading to more cost-effective IT services compared to sole-source or limited competition scenarios.

How has spending on 'Other Computer Related Services' (NAICS 541519) by the DoD evolved since this contract's award?

Since this contract's award in 2009, federal spending, particularly within the DoD, on 'Other Computer Related Services' (NAICS 541519) has likely seen significant growth and evolution. The period post-2009 marked increasing reliance on cloud computing, big data analytics, cybersecurity solutions, and agile development methodologies. While this specific contract was for $114.8 million over roughly four years, overall DoD IT spending has continued to rise, driven by modernization efforts, digital transformation initiatives, and the need to counter evolving cyber threats. Analyzing trends would show a shift towards more specialized services, increased emphasis on cybersecurity, and potentially a greater number of smaller, agile contracts alongside large IDIQ vehicles.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Inc.

Address: 11951 FREEDOM DR STE 1000, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $114,806,068

Exercised Options: $114,806,068

Current Obligation: $114,806,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470107A0001

IDV Type: IDC

Timeline