Interior's $24.4M contract for MLRS development and O&M awarded to Accenture Federal Services

Contract Overview

Contract Amount: $24,405,244 ($24.4M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of the Interior

Start Date: 2023-06-03

End Date: 2025-04-02

Contract Duration: 669 days

Daily Burn Rate: $36.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MINERAL AND LAND RECORDS SYSTEM DEVELOPMENT AND O&M SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $24.4 million to ACCENTURE FEDERAL SERVICES LLC for work described as: MINERAL AND LAND RECORDS SYSTEM DEVELOPMENT AND O&M SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of 669 days indicates a significant, ongoing need for these services. 4. The award is a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. 5. The specific NAICS code (541512) points to Computer Systems Design Services, a common area for federal IT spending. 6. The contract is for Development and Operations & Maintenance (O&M), covering the full lifecycle of the system.

Value Assessment

Rating: fair

Benchmarking the value of this $24.4 million contract requires comparison to similar IT development and O&M services for large-scale government systems. The Time and Materials pricing model, while flexible, can lead to higher costs if not carefully monitored for scope creep and labor hour efficiency. Without specific performance metrics or detailed cost breakdowns, it's challenging to definitively assess value for money. However, the competitive award process may have helped to secure a reasonable price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The open competition suggests the government sought the best possible solution and price from the market.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of the Interior's various agencies relying on the Mineral and Land Records System (MLRS). The services delivered include the development and ongoing maintenance of a critical federal IT system. The geographic impact is likely nationwide, supporting land and mineral record management across the U.S. Workforce implications may include IT professionals and subject matter experts involved in system development, maintenance, and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
Lack of specific details on performance metrics makes it difficult to assess efficiency.
The contract is a Delivery Order, suggesting it's part of a potentially larger, less scrutinized IDIQ vehicle.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract covers both development and ongoing operations and maintenance, suggesting a comprehensive approach.
Accenture Federal Services is a large, established contractor with significant experience in government IT.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related maintenance. The federal IT market is substantial, with significant annual spending on software development, system integration, and IT operations. Contracts like this are crucial for agencies to manage vast amounts of data and operational systems. Comparable spending benchmarks would involve looking at other large-scale IT system development and O&M contracts within civilian agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not a small business (ss: false). Therefore, there are no direct small business set-aside implications. However, the prime contractor, Accenture Federal Services, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Interior's contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of the Interior IT Modernization Efforts
Federal Civilian Agency IT Development Contracts
Mineral and Land Records Management Systems
Computer Systems Design Services Contracts
Operations and Maintenance (O&M) IT Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing model.
Risk of scope creep without diligent management.
Dependence on a single contractor for critical system development and maintenance.
Potential for performance issues if contractor resources are not adequately managed.
Challenges in benchmarking value without detailed performance data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $24.4 million to ACCENTURE FEDERAL SERVICES LLC. MINERAL AND LAND RECORDS SYSTEM DEVELOPMENT AND O&M 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 $24.4 million.

What is the period of performance?

Start: 2023-06-03. End: 2025-04-02.

What is the historical spending trend for Mineral and Land Records System Development and O&M Services within the Department of the Interior?

Analyzing historical spending for the Mineral and Land Records System (MLRS) development and O&M services within the Department of the Interior (DOI) is crucial for understanding budget trends and identifying potential cost efficiencies or escalations. Without direct historical data for this specific contract vehicle, we can infer trends from broader DOI IT spending and similar system maintenance contracts. Typically, agencies aim to stabilize O&M costs while investing in modernization or new development. Significant increases in spending might indicate system upgrades, expansion of services, or unforeseen technical challenges. Conversely, a decrease could suggest successful cost-saving measures, system consolidation, or a shift in agency priorities. Examining past contract awards for MLRS or comparable systems would reveal whether spending has been consistent, increasing, or decreasing over time, providing context for the current $24.4 million award.

How does the awarded price compare to similar Computer Systems Design Services contracts within the federal government?

Comparing the $24.4 million award for MLRS development and O&M to similar Computer Systems Design Services (NAICS 541512) contracts requires access to a comprehensive database of federal procurements. Key comparison points include contract duration, scope of work (development vs. O&M vs. both), and the specific technologies involved. Accenture Federal Services, as a large incumbent, may have different pricing structures than smaller, specialized firms. The Time and Materials (T&M) pricing model also complicates direct comparisons, as T&M contracts are inherently more variable than fixed-price contracts. To assess value, one would ideally benchmark the average hourly rates for labor categories against government-wide averages or rates established in other competitive T&M contracts for similar services. The fact that this was a full and open competition suggests that the pricing was deemed competitive at the time of award, but ongoing monitoring of labor hours and task execution is essential for true value assessment.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract like the Mineral and Land Records System (MLRS) development and O&M services are critical for ensuring the system meets its objectives and that taxpayer funds are used effectively. While specific KPIs are not detailed in the provided data, typical metrics for such IT contracts include system uptime and availability (e.g., 99.9% availability), response times for critical functions, data accuracy and integrity rates, security compliance adherence (e.g., FISMA), defect resolution times, and user satisfaction levels. For the development aspect, KPIs might focus on adherence to project timelines, budget management, and successful deployment of new features. For O&M, the focus shifts to system stability, performance, and cost-effectiveness. The Department of the Interior's contracting officers would establish these KPIs in the contract's Performance Work Statement (PWS) and monitor Accenture Federal Services' performance against them throughout the contract period.

What is Accenture Federal Services' track record with the Department of the Interior and similar IT contracts?

Accenture Federal Services (AFS) is a major IT services provider with a substantial history of contracting with U.S. federal agencies, including the Department of the Interior (DOI). Their track record typically involves large-scale system modernization, cloud migration, data analytics, and IT operations support. For the DOI, AFS has likely been involved in various projects supporting different bureaus and their specific mission needs. Evaluating their track record involves reviewing past performance evaluations (if publicly available), the number and size of previous contracts awarded to them by the DOI and other agencies, and any significant issues or successes reported on those contracts. A large contractor like AFS generally possesses the resources and expertise for complex IT projects, but performance can vary. Their experience with similar Mineral and Land Records Systems or large data management platforms would be particularly relevant to assessing their capability for this specific contract.

What are the potential risks associated with a Time and Materials (T&M) contract for system development and O&M?

Time and Materials (T&M) contracts, like the one awarded to Accenture Federal Services for MLRS, present specific risks primarily related to cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials used. This structure can lead to cost overruns if the scope of work expands beyond initial estimates (scope creep) or if labor hours are not efficiently utilized. Without robust oversight and detailed task breakdowns, contractors may have less incentive to control costs. For system development, T&M can be beneficial when requirements are not fully defined upfront, allowing for flexibility. However, for ongoing O&M, it necessitates stringent monitoring of hours worked and justification for resources used to ensure fair pricing and prevent contractor inefficiency from inflating costs. The government must actively manage T&M contracts to mitigate these risks.

How does this contract align with the Department of the Interior's broader IT modernization goals?

This contract for Mineral and Land Records System (MLRS) development and O&M directly supports the Department of the Interior's (DOI) IT modernization goals by ensuring the continued functionality, security, and potential enhancement of a critical data management system. Modernizing legacy systems, improving data accessibility, and ensuring cybersecurity are common objectives across federal agencies. The development component suggests efforts to update or expand the MLRS capabilities to meet evolving needs, potentially incorporating newer technologies or improving user interfaces. The O&M aspect ensures the system remains operational and secure, preventing disruptions to the DOI's land and mineral resource management functions. Aligning with modernization often involves migrating systems to cloud environments, enhancing data analytics, or improving integration with other agency systems, all of which could be part of the MLRS evolution under this contract.

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

Solicitation ID: RFQ 1627590

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $24,405,244

Exercised Options: $24,405,244

Current Obligation: $24,405,244

Actual Outlays: $24,405,244

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $5,018,262

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F540GA

IDV Type: FSS

Timeline