Commerce Department's $51.5M contract for financial system software maintenance awarded to Accenture Federal Services

Contract Overview

Contract Amount: $51,543,650 ($51.5M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Commerce

Start Date: 2021-06-29

End Date: 2026-03-31

Contract Duration: 1,736 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: COMMERCE BUSINESS SYSTEMS (CBS) PROGRAM AND MAINTENANCE OF CBS/CORE FINANCIAL SYSTEM (CFS) APPLICATION SOFTWARE AND APPLICABLE INTERFACES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $51.5 million to ACCENTURE FEDERAL SERVICES LLC for work described as: COMMERCE BUSINESS SYSTEMS (CBS) PROGRAM AND MAINTENANCE OF CBS/CORE FINANCIAL SYSTEM (CFS) APPLICATION SOFTWARE AND APPLICABLE INTERFACES. Key points: 1. Value for money appears reasonable given the 5-year duration and scope of critical financial system support. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, focusing on reliance on a single vendor for core financial system maintenance. 4. Performance context involves maintaining essential financial applications for the Department of Commerce. 5. Sector positioning places this contract within IT services, specifically computer systems design. 6. The contract's value is significant but within the expected range for enterprise-level financial system support.

Value Assessment

Rating: good

The contract value of approximately $51.5 million over five years for maintaining the Commerce Business Systems (CBS) and Core Financial System (CFS) applications appears reasonable. Benchmarking against similar government IT maintenance contracts for large-scale financial systems suggests this pricing is competitive. The scope includes essential software and interface maintenance, which is critical for the department's operations. Without specific details on the labor hours and rates, a precise value-for-money assessment is challenging, but the overall expenditure aligns with industry standards for such services.

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 offers. The specific number of bidders is not provided, but a full and open process generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach allows the agency to select the most advantageous offer based on a range of factors, including technical capability, past performance, and price.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to drive down costs and improve service quality.

Public Impact

The primary beneficiaries are the various agencies and personnel within the Department of Commerce who rely on the CBS and CFS applications for financial management. The services delivered include the maintenance, support, and potential updates for critical financial software applications. The geographic impact is primarily within the District of Columbia, where the Department of Commerce is headquartered. Workforce implications include the potential need for specialized IT personnel to support and maintain these complex financial systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor for critical financial system maintenance could pose a risk if the vendor's performance degrades or if they exit the market.
Potential for scope creep or unmanaged changes in requirements could lead to cost overruns if not carefully monitored.
Ensuring adequate knowledge transfer and documentation from the vendor is crucial for future system management and potential transitions.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract duration of nearly five years provides stability for critical financial system operations.
The vendor, Accenture Federal Services, is a large and experienced IT services provider with a significant presence in the federal market.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The market for government IT services, particularly for maintaining core financial systems, is substantial and highly competitive. Such contracts are essential for government agencies to ensure the continuity and efficiency of their operations. Comparable spending benchmarks for enterprise financial system maintenance can vary widely based on system complexity, user base, and service level agreements, but this contract's value is consistent with large-scale government IT support.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. However, the prime contractor, Accenture Federal Services, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Commerce's Office of the Secretary. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Financial Management Systems
Core Financial Systems
IT Services Contracts
Software Maintenance and Support
Department of Commerce IT Spending

Risk Flags

Vendor Lock-in Risk
Potential for Cost Overruns
Cybersecurity Vulnerabilities
System Performance Degradation

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $51.5 million to ACCENTURE FEDERAL SERVICES LLC. COMMERCE BUSINESS SYSTEMS (CBS) PROGRAM AND MAINTENANCE OF CBS/CORE FINANCIAL SYSTEM (CFS) APPLICATION SOFTWARE AND APPLICABLE INTERFACES.

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 $51.5 million.

What is the period of performance?

Start: 2021-06-29. End: 2026-03-31.

What is Accenture Federal Services' track record with the Department of Commerce and similar federal financial system contracts?

Accenture Federal Services (AFS) has a substantial track record of providing IT services to various U.S. federal agencies, including the Department of Commerce. Their experience often encompasses large-scale system integration, modernization, and maintenance projects. For financial systems specifically, AFS has supported numerous agencies in managing and upgrading their financial management capabilities. While specific performance metrics for this particular contract are not publicly detailed, AFS's general reputation in the federal IT space is that of a major, capable provider. Their history with the Department of Commerce would likely involve various IT support roles, and their ability to secure this contract through full and open competition suggests a positive past performance assessment by the agency. Further detailed analysis would require access to past performance evaluations and specific contract award histories.

How does the value of this contract compare to similar IT maintenance contracts for financial systems in other federal agencies?

The contract value of approximately $51.5 million over five years for maintaining the Commerce Business Systems (CBS) and Core Financial System (CFS) applications is within the expected range for large-scale enterprise financial system support in the federal government. Comparable contracts for agencies like the Department of Defense, Treasury, or Health and Human Services, which manage similarly complex financial ecosystems, often range from tens to hundreds of millions of dollars over similar or longer durations. Factors influencing value include the number of users, the complexity of the financial modules supported, the criticality of the systems, and the required service level agreements (SLAs). Given that this contract covers essential financial applications for the entire Department of Commerce, the allocated budget appears to be a reasonable investment for ensuring operational continuity and data integrity.

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

The primary risks associated with this contract revolve around vendor dependency, potential cost overruns, and ensuring system security and integrity. Vendor dependency is a key concern; if Accenture Federal Services experiences performance issues, financial instability, or decides to discontinue support, the Department of Commerce could face significant disruption. Mitigation strategies typically involve robust contract management, clearly defined performance metrics, and contingency planning. Cost overruns are a risk in any long-term IT contract, often stemming from scope creep or unforeseen technical challenges. Mitigation includes strict change control processes and regular budget reviews. Ensuring system security and data integrity is paramount, especially for financial systems. Mitigation involves adherence to stringent cybersecurity protocols, regular audits, and compliance with federal data protection regulations. The contract's full and open competition award suggests a thorough vetting process, which should have included an assessment of these risks.

How effective is the Department of Commerce's current financial system in meeting its operational needs, and how does this contract contribute to that effectiveness?

The effectiveness of the Department of Commerce's current financial system (CBS/CFS) is directly tied to the maintenance and support provided under this contract. Assuming the systems are critical for financial operations, effective maintenance ensures system uptime, data accuracy, and the ability to process transactions efficiently. This contract's contribution is therefore foundational: it ensures the underlying infrastructure and software remain functional, secure, and up-to-date. Without this maintenance, the systems could degrade, leading to operational inefficiencies, reporting errors, and potential security vulnerabilities. The contract's success hinges on Accenture Federal Services meeting performance standards related to system availability, bug fixes, and support responsiveness, all of which directly impact the department's overall financial management effectiveness.

What are the historical spending patterns for financial system maintenance within the Department of Commerce, and how does this award fit within those trends?

Historical spending patterns for financial system maintenance within the Department of Commerce would likely show consistent investment in IT infrastructure to support its complex financial operations. Prior contracts for CBS/CFS maintenance, or similar systems, would provide a baseline for comparison. This $51.5 million award over five years represents an average annual expenditure of approximately $10.3 million. This figure needs to be contextualized against previous annual spending, considering inflation, system upgrades, and changes in the scope of services. If previous annual spending was significantly higher or lower, it would warrant further investigation into the reasons, such as system modernization efforts, changes in vendor pricing, or shifts in departmental priorities. The current award suggests a sustained level of investment deemed necessary for maintaining these critical financial applications.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD STE 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: $52,008,301

Exercised Options: $52,008,198

Current Obligation: $51,543,650

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $8,576,989

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F540GA

IDV Type: FSS

Timeline