Interior's $55M IT O&M Contract Awarded to Accenture Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $55,102,660 ($55.1M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of the Interior
Start Date: 2021-04-01
End Date: 2026-09-30
Contract Duration: 2,008 days
Daily Burn Rate: $27.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MINERALS REVENUE MANAGEMENT SUPPORT SYSTEM - OPERATIONS & MAINTENANCE (O&M) AND TRANSITION SERVICES
Place of Performance
Location: DENVER, JEFFERSON County, COLORADO, 80225
State: Colorado Government Spending
Plain-Language Summary
Department of the Interior obligated $55.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: MINERALS REVENUE MANAGEMENT SUPPORT SYSTEM - OPERATIONS & MAINTENANCE (O&M) AND TRANSITION SERVICES Key points: 1. The contract's value of $55.1 million for IT Operations & Maintenance and transition services is substantial. 2. Accenture Federal Services LLC secured the award, raising questions about the effectiveness of the full and open competition. 3. Potential risks include vendor lock-in and ensuring cost-effectiveness over the contract's duration. 4. The IT services sector is highly competitive, making robust price discovery crucial.
Value Assessment
Rating: fair
The contract value of $55.1 million appears significant for IT O&M and transition services. Benchmarking against similar contracts for comparable services is needed to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded under full and open competition, the concentration of such a large contract with a single vendor warrants scrutiny to ensure robust price discovery and prevent potential overpayment.
Taxpayer Impact: Taxpayer funds are being utilized for essential IT infrastructure support. Ensuring competitive pricing and efficient service delivery is paramount to maximizing the value of this investment.
Public Impact
Ensures continued operation of critical Minerals Revenue Management systems. Supports the transition of IT services, potentially impacting system modernization efforts. Accenture's role could influence future IT service delivery within the Department of the Interior.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns in long-term O&M.
- Limited visibility into the transition services scope.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type can provide cost certainty.
- Long contract duration may allow for stable service delivery.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer-related services. Spending benchmarks for IT O&M and transition services vary widely based on system complexity and scope, but $55 million over five years suggests a significant operational requirement.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is Accenture Federal Services LLC, a large business. There is no indication of subcontracting opportunities for small businesses within the provided details.
Oversight & Accountability
Oversight will be critical to ensure Accenture meets performance requirements and that the transition services are managed effectively. The Department of the Interior's contracting officers must monitor costs and service delivery closely.
Related Government Programs
- Other Computer Related Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Potential for cost overruns.
- Vendor lock-in risk.
- Effectiveness of competition needs further validation.
- Scope creep in transition services.
- Dependence on a single large vendor.
Tags
other-computer-related-services, department-of-the-interior, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $55.1 million to ACCENTURE FEDERAL SERVICES LLC. MINERALS REVENUE MANAGEMENT SUPPORT SYSTEM - OPERATIONS & MAINTENANCE (O&M) AND TRANSITION 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 the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $55.1 million.
What is the period of performance?
Start: 2021-04-01. End: 2026-09-30.
What specific metrics define 'success' for the Minerals Revenue Management Support System's operations and maintenance, and how will Accenture's performance against these be measured?
Success metrics would typically include system uptime percentages, response times for critical incidents, data integrity rates, and user satisfaction scores. Performance will be measured through regular reporting by Accenture, validated by government technical monitors, and potentially through independent audits. Key performance indicators (KPIs) should be clearly defined in the contract's performance work statement to ensure accountability and objective evaluation of the vendor's service delivery.
Given the significant contract value, what steps were taken during the full and open competition to ensure robust price discovery and prevent potential overcharging for IT O&M and transition services?
During a full and open competition, robust price discovery typically involves detailed market research, soliciting multiple proposals, and using evaluation criteria that weigh both technical approach and price. Agencies often use techniques like cost realism analyses, comparison to independent government cost estimates, and evaluation of past performance on similar contracts. The agency should have analyzed the proposed costs against industry benchmarks and the vendor's own cost structure to ensure the awarded price is fair and reasonable.
How will the transition services component of this contract be managed to ensure a smooth handover and avoid disruption to critical minerals revenue management functions?
Managing the transition services requires a detailed transition plan developed and approved by the government, outlining specific tasks, timelines, and responsibilities for both the incumbent and the new contractor. Regular progress meetings, clear communication channels, and defined milestones are essential. The government contracting officer and technical team must actively oversee the process, ensuring knowledge transfer, documentation updates, and minimal impact on ongoing operations to guarantee continuity of essential services.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 140D0420R0005
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: $93,071,361
Exercised Options: $55,102,660
Current Obligation: $55,102,660
Actual Outlays: $49,367,553
Subaward Activity
Number of Subawards: 94
Total Subaward Amount: $21,803,343
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 140D0421D0004
IDV Type: IDC
Timeline
Start Date: 2021-04-01
Current End Date: 2026-09-30
Potential End Date: 2031-09-30 00:00:00
Last Modified: 2026-01-13
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