USDA Awards $337M Cloud Hosting Contract to Accenture Federal Services

Contract Overview

Contract Amount: $336,762,947 ($336.8M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Agriculture

Start Date: 2017-09-19

End Date: 2027-05-31

Contract Duration: 3,541 days

Daily Burn Rate: $95.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USDA ENTERPRISE-SCALE FEDRAMP CERTIFIED CLOUD HOSTING SERVICES. IGF::OT::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $336.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: USDA ENTERPRISE-SCALE FEDRAMP CERTIFIED CLOUD HOSTING SERVICES. IGF::OT::IGF Key points: 1. Significant investment in enterprise-scale cloud infrastructure for USDA. 2. Accenture Federal Services is the sole awardee for this delivery order. 3. Contract duration extends to May 2027, indicating long-term need. 4. The award falls under Computer Systems Design Services (NAICS 541512).

Value Assessment

Rating: good

The contract value of $337M over its term suggests a substantial investment. Benchmarking against similar large-scale cloud hosting contracts is difficult without more granular data on service levels and scope, but the value appears consistent with enterprise-level solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, as a single delivery order to one vendor, the specific price discovery for this particular award is not detailed.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by leveraging market competition for the best value.

Public Impact

Enhances USDA's IT infrastructure with modern, certified cloud hosting. Supports critical financial operations within the Office of the Chief Financial Officer. Potential for improved data accessibility and operational efficiency across USDA. Ensures compliance with federal cloud computing standards (FedRAMP).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential vendor lock-in for future cloud services.
Limited visibility into cost breakdown per service.

Positive Signals

FedRAMP certification ensures security and compliance.
Full and open competition utilized.
Long-term contract provides stability for USDA's cloud needs.

Sector Analysis

This contract falls within the IT services sector, specifically cloud computing and data center hosting. Spending in this area has grown significantly as federal agencies modernize their infrastructure. Benchmarks for enterprise cloud services vary widely based on scope and provider.

Small Business Impact

The data indicates this contract was awarded to Accenture Federal Services, a large business. There is no explicit mention of small business participation or subcontracting goals within the provided information.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Office of the Chief Financial Officer. Oversight would typically involve regular performance reviews, financial audits, and adherence to contract terms and conditions.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Lack of detailed service scope.
No explicit small business participation noted.
Potential for cost overruns if usage exceeds projections.
Dependence on a single vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $336.8 million to ACCENTURE FEDERAL SERVICES LLC. USDA ENTERPRISE-SCALE FEDRAMP CERTIFIED CLOUD HOSTING SERVICES. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $336.8 million.

What is the period of performance?

Start: 2017-09-19. End: 2027-05-31.

What specific cloud services are included in this $337M contract, and how do they align with USDA's strategic IT goals?

The provided data identifies the contract as 'ENTERPRISE-SCALE FEDRAMP CERTIFIED CLOUD HOSTING SERVICES.' While specific service details are absent, it implies infrastructure-as-a-service (IaaS) or platform-as-a-service (PaaS) offerings. Alignment with USDA's strategic IT goals would likely focus on modernization, scalability, security, and cost-efficiency for its financial and operational systems.

What are the key performance indicators (KPIs) for this contract, and how is Accenture's performance being measured against them?

Key performance indicators for enterprise cloud hosting typically include uptime/availability, latency, security incident response times, and adherence to service level agreements (SLAs). Without access to the full contract details or performance reports, it's impossible to specify the exact KPIs and measure Accenture's performance. Regular reporting and reviews by the USDA contracting officer are standard.

How does the per-unit cost of these cloud hosting services compare to industry benchmarks, considering the FedRAMP certification and enterprise scale?

A direct per-unit cost benchmark is challenging without granular data on specific services (e.g., compute instances, storage, bandwidth) and their associated SLAs. FedRAMP certification adds a cost for compliance. However, enterprise-scale contracts often achieve economies of scale, potentially leading to competitive pricing compared to smaller, less comprehensive solutions. A detailed cost-benefit analysis would be needed for a definitive comparison.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: AG-3144-S-17-0032

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $405,766,098

Exercised Options: $340,917,331

Current Obligation: $336,762,947

Actual Outlays: $292,022,506

Subaward Activity

Number of Subawards: 55

Total Subaward Amount: $79,093,053

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200002W

IDV Type: GWAC

Timeline