DOJ's $59M debt collection IT contract awarded to Accenture Federal Services for computer systems design

Contract Overview

Contract Amount: $58,893,373 ($58.9M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Justice

Start Date: 2023-04-01

End Date: 2026-09-30

Contract Duration: 1,278 days

Daily Burn Rate: $46.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONSOLIDATED DEBT COLLECTION SYSTEM (CDCS) SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $58.9 million to ACCENTURE FEDERAL SERVICES LLC for work described as: CONSOLIDATED DEBT COLLECTION SYSTEM (CDCS) SUPPORT Key points: 1. The contract value of nearly $59 million over its period of performance suggests a significant investment in IT support for debt collection. 2. Accenture Federal Services, a large established contractor, is the sole awardee, indicating a potentially concentrated market for this specific service. 3. The contract is a Delivery Order under a larger IDIQ, suggesting it's part of a broader IT services framework. 4. The fixed-price contract type aims to control costs, but the duration and scope will be key to assessing overall value. 5. Performance context is crucial for understanding if the IT support effectively enhances the Department of Justice's debt collection capabilities. 6. The absence of small business set-aside flags indicates this was not specifically targeted to smaller enterprises.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of the 'Consolidated Debt Collection System (CDCS) Support'. However, the total contract value of nearly $59 million over approximately 3.5 years represents a substantial investment in IT services. Comparing this to similar IT support contracts for large-scale government systems, particularly those involving data management and collection, would be necessary for a more precise value assessment. The firm-fixed-price nature suggests an attempt to cap costs, but the ultimate value-for-money depends on the system's effectiveness and efficiency gains in debt collection.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'Full and Open Competition' vehicle, implying that all eligible responsible sources were permitted to submit offers. As a Delivery Order under a larger IDIQ contract, the initial competition likely occurred when the parent IDIQ was awarded. The number of bidders for the parent IDIQ and this specific delivery order would provide further insight into the level of competition. A full and open competition generally fosters price discovery and encourages multiple vendors to offer competitive pricing.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices, reducing the potential for overpayment.

Public Impact

The primary beneficiaries are the Department of Justice's debt collection operations, aiming to improve efficiency and effectiveness. The services delivered are IT support for the Consolidated Debt Collection System (CDCS), likely encompassing system maintenance, upgrades, and user support. The geographic impact is national, supporting federal debt collection efforts across the United States. Workforce implications may include IT professionals employed by Accenture Federal Services working on this contract, and potentially impacts on DOJ personnel who utilize the CDCS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'support' is not clearly defined and managed.
Dependence on a single contractor for critical debt collection IT infrastructure could pose a risk if performance falters.
The effectiveness of the IT support in actually improving debt collection rates needs continuous monitoring.

Positive Signals

Award to a large, experienced contractor like Accenture Federal Services suggests a degree of reliability and capability.
The firm-fixed-price contract type provides cost certainty for the government.
The use of a consolidated system aims for efficiency and standardization in debt collection processes.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The market for government IT support is substantial, with agencies continually seeking to modernize and maintain complex systems. Comparable spending benchmarks would involve analyzing IT support contracts for other large federal agencies managing significant data and operational systems, such as financial management or law enforcement databases. The size of this contract suggests it supports a critical function within the Department of Justice.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. Therefore, its direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Justice's relevant program offices and contracting officials. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and potential remedies for non-performance. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning this contract.

Related Government Programs

Federal Debt Collection Programs
Department of Justice IT Modernization Efforts
Government-wide IT Services IDIQs
Financial Management Systems Support

Risk Flags

Potential for vendor lock-in due to reliance on a single provider for critical IT support.
Performance risk associated with the contractor's ability to meet the demands of a large-scale federal system.
Scope creep risk if the definition of 'support' is not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $58.9 million to ACCENTURE FEDERAL SERVICES LLC. CONSOLIDATED DEBT COLLECTION SYSTEM (CDCS) SUPPORT

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $58.9 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-09-30.

What is the specific track record of Accenture Federal Services with the Department of Justice on similar IT support contracts?

Accenture Federal Services has a significant history of contracting with various federal agencies, including the Department of Justice. To assess their track record specifically for IT support related to debt collection systems, a detailed review of past DOJ contracts awarded to Accenture would be necessary. This would involve examining contract performance evaluations (e.g., CPARS), any past performance issues or disputes, and the successful delivery of similar IT services. Without access to specific performance data for Accenture's prior work with DOJ on debt collection IT, it's difficult to provide a definitive assessment, but their status as a large, established federal contractor suggests a baseline level of experience and capability.

How does the estimated cost per year for this contract compare to industry benchmarks for similar IT support services?

The contract has a total value of approximately $58.9 million over a period of 1278 days (roughly 3.5 years), equating to an average annual cost of about $16.8 million. To benchmark this against industry standards for IT support of complex government systems, one would need to compare it with contracts for similar services (e.g., system design, maintenance, integration) provided to agencies with comparable missions and scale. Factors such as the specific technologies used, the level of support required (e.g., 24/7 operations, cybersecurity), and the complexity of the debt collection system itself would influence the benchmark. A preliminary comparison suggests this annual cost is substantial, but potentially within range for a critical, large-scale federal IT system.

What are the primary risks associated with relying on a single contractor for the Consolidated Debt Collection System (CDCS) Support?

The primary risks associated with relying on a single contractor, Accenture Federal Services in this case, for the CDCS support include potential vendor lock-in, reduced negotiating leverage for future contracts, and a heightened impact if the contractor experiences performance issues, financial instability, or strategic shifts. If Accenture's performance falters, the government may face significant disruption to its debt collection operations. Furthermore, a lack of competition for follow-on work could lead to higher prices. Mitigating these risks often involves robust contract management, clear performance metrics, and contingency planning for potential transitions.

What evidence exists to suggest this contract will improve the effectiveness or efficiency of the Department of Justice's debt collection efforts?

The provided data does not contain direct evidence of anticipated improvements in debt collection effectiveness or efficiency. However, the contract's objective, 'Consolidated Debt Collection System (CDCS) Support,' implies that the IT services are intended to enhance the existing system. The effectiveness will be measured by the contractor's performance against contract requirements, such as system uptime, response times for support, and successful implementation of any system upgrades or maintenance. Ultimately, the true measure of success will be whether the CDCS, supported by Accenture, leads to increased debt recovery rates, reduced administrative costs, and improved compliance.

How has the Department of Justice's spending on IT support for debt collection evolved over the past five years?

Analyzing the historical spending patterns of the Department of Justice on IT support for debt collection would require access to historical contract data beyond this single delivery order. This would involve querying databases like FPDS for all contracts related to debt collection IT systems awarded by DOJ over the last five years. Such an analysis could reveal trends in spending, identify key contractors, and show whether spending has increased, decreased, or remained stable, potentially correlating with changes in debt collection policies, system upgrades, or overall agency priorities.

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: 15JPSS22Q00000014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $107,585,787

Exercised Options: $75,927,031

Current Obligation: $58,893,373

Actual Outlays: $47,205,368

Subaward Activity

Number of Subawards: 87

Total Subaward Amount: $9,610,233

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F540GA

IDV Type: FSS

Timeline