Commerce Department's $29.4M background check contract awarded to Accenture Federal Services shows fair value

Contract Overview

Contract Amount: $29,400,457 ($29.4M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Commerce

Start Date: 2018-04-24

End Date: 2021-07-31

Contract Duration: 1,194 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF HR SERVICES

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $29.4 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF HR SERVICES Key points: 1. The contract was awarded using full and open competition, suggesting a competitive pricing environment. 2. Accenture Federal Services, a large established contractor, was selected for these critical services. 3. The contract duration of nearly four years indicates a sustained need for these services. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The services provided are essential for maintaining security and integrity within the Department of Commerce. 6. The contract's value appears reasonable when benchmarked against similar government services.

Value Assessment

Rating: good

The contract's total value of $29.4 million over approximately 1194 days suggests a daily rate of roughly $24,623. This rate appears competitive when compared to similar government contracts for investigation and background check services, which often fall within a similar price range depending on the scope and complexity. The firm fixed-price structure further supports value for money by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which should lead to more favorable pricing and better service offerings for the government. The agency sought proposals from a wide range of qualified vendors.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging innovation among contractors vying for the award.

Public Impact

The Department of Commerce benefits from enhanced security and integrity through thorough background checks. Services delivered include investigation and personal background check services for personnel. The geographic impact is primarily within Maryland, where the contract is managed. The contract supports a workforce of investigators and analysts, though specific numbers are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
No detailed breakdown of costs per service makes granular value assessment difficult.
Potential for vendor lock-in if services are highly specialized and difficult to transition.

Positive Signals

Firm fixed-price contract limits cost escalation risk.
Full and open competition suggests a robust bidding process.
Long-term contract indicates sustained need and potential for stable service delivery.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on business support services like investigation and background checks. The market for these services is substantial within the federal government, as agencies routinely require vetting of personnel and contractors. Comparable spending benchmarks for similar background investigation services across various federal agencies indicate that the awarded amount is within the expected range for a contract of this duration and scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, larger prime contractors like Accenture often engage small businesses for specialized support services, though the extent of this contract's subcontracting to SMBs is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Commerce's Office of the Secretary. The firm fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency is generally maintained through contract award databases, but detailed performance metrics and specific oversight activities are not publicly disclosed.

Related Government Programs

Federal Bureau of Investigation (FBI) background checks
Office of Personnel Management (OPM) background investigations
Department of Homeland Security (DHS) personnel security investigations

Risk Flags

Potential for data breach of sensitive personal information.
Risk of incomplete or inaccurate background investigations.
Dependence on a single large contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $29.4 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF HR 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 Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $29.4 million.

What is the period of performance?

Start: 2018-04-24. End: 2021-07-31.

What is Accenture Federal Services' track record with similar government contracts?

Accenture Federal Services LLC has a significant track record of performing large-scale IT and professional services contracts for various U.S. federal agencies. They are a well-established contractor known for delivering a wide range of services, including human resources, cybersecurity, and management consulting. While specific performance details for this particular background check contract are not publicly detailed, their extensive experience suggests a capacity to manage complex requirements. Government contract databases often show a history of successful past performance for Accenture on similar, high-value awards, though individual contract performance can vary.

How does the value of this contract compare to other background check services procured by the federal government?

The total contract value of $29.4 million over approximately 1194 days, equating to roughly $24,623 per day, appears to be within the typical range for federal background investigation services. Agencies like the Office of Personnel Management (OPM) and the Department of Defense (DoD) also procure similar services, often at comparable or higher price points, depending on the depth of investigation required, security clearances involved, and the volume of individuals screened. The firm fixed-price nature of this award also suggests a degree of cost certainty that is favorable compared to cost-reimbursement contracts.

What are the primary risks associated with this type of contract, and how are they mitigated?

Primary risks include potential inaccuracies in background checks leading to security vulnerabilities, contractor performance issues (delays, quality), and data security breaches. Mitigation strategies employed by the government include the firm fixed-price contract type, which caps costs and incentivizes efficient performance. The full and open competition process aims to select a capable contractor with a proven track record. Furthermore, government oversight, performance standards, and contractual clauses regarding data security and confidentiality are critical in managing these risks. The nature of the services also implies rigorous vetting of the contractor itself.

How effective are background check services in ensuring the integrity of federal employees?

Background check services are a cornerstone of federal personnel security, designed to identify potential risks associated with individuals seeking access to sensitive information or positions. Their effectiveness lies in their ability to uncover past issues such as criminal history, financial irresponsibility, foreign influence, or other behaviors that could compromise national security or public trust. While no system is foolproof, comprehensive background investigations, when conducted thoroughly and consistently, significantly reduce the likelihood of unsuitable individuals being hired or retained. The ongoing nature of some checks also provides a continuous assessment of suitability.

What has been the historical spending trend for investigation and personal background check services at the Department of Commerce?

Historical spending data for investigation and personal background check services at the Department of Commerce would require a detailed analysis of past contract awards. However, it is reasonable to assume that such services are a consistent requirement for federal agencies to maintain personnel security and integrity. Spending in this category typically fluctuates based on hiring needs, security level requirements, and changes in investigative standards or regulations. The $29.4 million awarded over nearly four years suggests a sustained, significant investment in these services, reflecting their ongoing importance to the department's operations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Investigation and Personal Background Check Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Accenture Public Limited Company

Address: 11951 FREEDOM DR, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,400,457

Exercised Options: $29,400,457

Current Obligation: $29,400,457

Actual Outlays: $786,409

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DOCSS130116BU0004

IDV Type: BPA

Timeline