Commerce's $214.6M Business Applications Solution Contract Awarded to Accenture Federal Services
Contract Overview
Contract Amount: $214,581,949 ($214.6M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Commerce
Start Date: 2020-04-24
End Date: 2026-04-23
Contract Duration: 2,190 days
Daily Burn Rate: $98.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BUSINESS APPLICATIONS SOLUTION (BAS)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230
Plain-Language Summary
Department of Commerce obligated $214.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: BUSINESS APPLICATIONS SOLUTION (BAS) Key points: 1. Significant contract value of $214.6 million for IT services. 2. Accenture Federal Services, a major player, secured the award. 3. Potential risk associated with a long contract duration (5+ years). 4. Spending falls within the Computer Systems Design Services sector.
Value Assessment
Rating: good
The contract value of $214.6 million for 5 years appears reasonable for a comprehensive business applications solution. Benchmarking against similar large-scale IT system development and integration contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value and price for the government.
Public Impact
Impacts the Department of Commerce's internal operations and efficiency. Ensures continued support and modernization of critical business applications. Potential for improved data management and service delivery through upgraded systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to vendor lock-in or reduced flexibility.
- Reliance on a single vendor for critical business applications.
- Potential for cost overruns if scope creep occurs.
Positive Signals
- Awarded through full and open competition, indicating competitive pricing.
- Firm Fixed Price contract type helps control costs.
- Experienced contractor with a strong track record.
Sector Analysis
This contract falls under the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, supporting modernization and operational needs. Benchmarks vary widely based on project scope and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large prime contractor. There is no information on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight will be crucial to ensure Accenture Federal Services meets performance requirements and stays within budget. The firm fixed price contract provides some cost control, but diligent monitoring of deliverables and milestones is essential.
Related Government Programs
- Computer Systems Design Services
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Long-term contract duration (5+ years) may limit future flexibility.
- Sole-source potential if follow-on work is not competed.
- Dependency on a single large contractor for critical systems.
- Potential for scope creep impacting cost and timeline.
Tags
computer-systems-design-services, department-of-commerce, dc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $214.6 million to ACCENTURE FEDERAL SERVICES LLC. BUSINESS APPLICATIONS SOLUTION (BAS)
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 $214.6 million.
What is the period of performance?
Start: 2020-04-24. End: 2026-04-23.
What specific business applications are covered under this solution, and how critical are they to the Department of Commerce's mission?
The contract covers the Business Applications Solution (BAS), which likely encompasses a suite of software and systems supporting various departmental functions. Criticality would depend on whether these applications are core to regulatory, data analysis, or operational activities. Without specific details on the BAS components, it's difficult to ascertain their precise mission impact, but such systems are generally vital for efficient government operations.
What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract to ensure effective service delivery?
The provided data does not specify the KPIs or SLAs. However, for a contract of this magnitude and duration, robust KPIs and SLAs are expected to be defined in the contract's statement of work. These would typically cover system uptime, response times, issue resolution, and performance metrics related to the business applications supported.
How does the $214.6 million cost compare to industry benchmarks for similar large-scale business application solutions over a five-year period?
Direct comparison is challenging without knowing the exact scope and complexity of the 'Business Applications Solution.' However, for a comprehensive, multi-year IT system development and support contract of this value, it appears within a plausible range for large federal agencies. A detailed benchmark analysis would require comparing specific functionalities, user bases, and integration requirements against similar government or private sector contracts.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 1331L519R13OS0005
Offers Received: 3
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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $408,792,024
Exercised Options: $223,046,392
Current Obligation: $214,581,949
Actual Outlays: $10,252,811
Subaward Activity
Number of Subawards: 86
Total Subaward Amount: $57,455,677
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-04-24
Current End Date: 2026-04-23
Potential End Date: 2040-04-23 00:00:00
Last Modified: 2026-03-25
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