State Department awards $50.2M for IT services to Accenture Federal Services, extending contract through September 2023

Contract Overview

Contract Amount: $50,219,279 ($50.2M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2018-09-25

End Date: 2023-09-30

Contract Duration: 1,831 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THIS ACTION IS FOR TASK ORDER 52 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA16L1314.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $50.2 million to ACCENTURE FEDERAL SERVICES LLC for work described as: THIS ACTION IS FOR TASK ORDER 52 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA16L1314. Key points: 1. Contract represents a significant investment in IT support services for the Department of State. 2. The award is a task order under an existing blanket purchase agreement, indicating a pre-established relationship. 3. The duration of the contract suggests a need for ongoing, long-term IT support. 4. The contract's value places it in the mid-to-large tier for IT service contracts. 5. Performance context is crucial given the extended period and substantial funding. 6. Sector positioning is within the government IT services market, a highly competitive space.

Value Assessment

Rating: fair

The contract value of $50.2 million over approximately five years suggests an average annual spend of around $10 million. Benchmarking this against similar IT services contracts for large federal agencies requires detailed analysis of the specific services rendered. Without a clear breakdown of labor categories and rates, a precise value-for-money assessment is challenging. However, the extended duration and the fact it's a task order under an existing BPA might indicate competitive pricing was achieved initially, but ongoing costs should be monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While the 'full and open' aspect suggests broad initial solicitation, the 'exclusion of sources' clause indicates specific criteria were applied, potentially limiting the pool of eligible bidders. The data does not specify the number of bidders that participated in the competition, making it difficult to fully assess the level of competition and its impact on price discovery.

Taxpayer Impact: The 'full and open' competition, even with exclusions, generally aims to secure the best value for taxpayers by allowing a wide range of qualified vendors to bid. However, the specifics of the exclusion could impact the breadth of competition and potentially the final price.

Public Impact

The Department of State benefits from continued IT support, crucial for its global operations and diplomatic functions. Services delivered likely encompass a range of IT support, maintenance, and potentially development to ensure the agency's technological infrastructure remains operational. The geographic impact is national, supporting the Department's headquarters and potentially its worldwide embassies and consulates through IT infrastructure. Workforce implications include the potential for direct employment by Accenture Federal Services and its subcontractors to fulfill the contract's requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep over the extended contract duration if not closely managed.
Lack of specific performance metrics in the provided data makes it hard to gauge effectiveness.
The 'exclusion of sources' in the competition type warrants further investigation into its impact on bidder diversity.

Positive Signals

Awarded under a full and open competition framework, suggesting an effort to maximize value.
The task order structure under a BPA can indicate efficiency and established processes.
The long contract duration implies a stable, ongoing need for these critical IT services.

Sector Analysis

The government IT services sector is a substantial market, with agencies like the Department of State relying heavily on contractors for specialized expertise. This contract fits within the broader category of IT professional services, which includes areas like systems integration, custom software development, and IT support. Comparable spending benchmarks would involve looking at other large federal agencies' IT support contracts, noting that pricing can vary significantly based on the complexity and criticality of the services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, as a large prime contract, Accenture Federal Services may engage small businesses as subcontractors, depending on their own subcontracting plans and the specific needs of the task order. The overall impact on the small business ecosystem would depend on whether and how small businesses are integrated into the supply chain for this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS-NG, where basic award information is publicly available. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of State IT Modernization Efforts
Federal Civilian Agency IT Services Contracts
Accenture Federal Services Contract Portfolio
Blanket Purchase Agreements (BPAs) for IT Support
Other Computer Related Services (NAICS 541519)

Risk Flags

Extended contract duration may increase risk of vendor lock-in.
Lack of detailed performance metrics in provided data hinders effectiveness assessment.
Potential for cost escalation over the contract's lifespan requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $50.2 million to ACCENTURE FEDERAL SERVICES LLC. THIS ACTION IS FOR TASK ORDER 52 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA16L1314.

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $50.2 million.

What is the period of performance?

Start: 2018-09-25. End: 2023-09-30.

What specific IT services are covered under this task order, and how do they align with the Department of State's strategic IT goals?

The provided data identifies the North American Industry Classification System (NAICS) code as 541519, 'Other Computer Related Services.' This broad category typically encompasses a wide array of IT functions, potentially including IT support, help desk services, network management, system maintenance, and possibly some aspects of IT consulting or integration. To understand the alignment with the Department of State's strategic IT goals, one would need to examine the detailed statement of work (SOW) for Task Order 52. This SOW would specify the exact deliverables, performance standards, and objectives, allowing for an assessment of how these services contribute to the agency's broader mission, such as enhancing cybersecurity, modernizing legacy systems, or improving global communication capabilities.

How does the pricing structure of this $50.2 million contract compare to similar IT support contracts awarded by the Department of State or other large federal agencies?

A direct pricing comparison is challenging without access to the detailed pricing elements (e.g., labor rates, hours, fixed-price components) of this $50.2 million contract and comparable contracts. The contract type is 'LABOR HOURS,' indicating payment is based on the time spent by personnel. To benchmark effectively, one would need to analyze the average hourly rates for various labor categories (e.g., IT specialists, project managers) against government-wide salary data or rates from other large IT support contracts. Factors such as contract duration, geographic location of services, and the specific technical requirements significantly influence pricing. The fact that this is Task Order 52 on an existing BPA (SAQMMA09A0173) suggests that initial pricing negotiations occurred when the BPA was established, and this task order likely leverages those pre-negotiated rates, potentially offering some level of cost control.

What are the key performance indicators (KPIs) for this contract, and how has Accenture Federal Services historically performed on similar Department of State contracts?

The provided data does not include specific Key Performance Indicators (KPIs) for this task order. Typically, KPIs would be detailed in the contract's Statement of Work (SOW) and would measure aspects like system uptime, response times for support requests, project completion rates, and user satisfaction. To assess Accenture Federal Services' historical performance, one would need to consult performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS) for this specific contract (SAQMMA09A0173) and other contracts held by Accenture Federal Services with the Department of State. These reports provide insights into the contractor's adherence to schedule, cost, technical requirements, and overall management effectiveness, offering a basis for evaluating their track record.

Given the contract's duration (ending September 30, 2023) and value, what are the potential risks associated with vendor lock-in or the transition of services?

The extended duration of this contract, ending in late 2023, and its substantial value of $50.2 million do present potential risks related to vendor lock-in and service transition. Vendor lock-in can occur if the contractor develops highly specialized knowledge or proprietary systems integral to the Department of State's operations, making it difficult and costly to switch providers. The risk is amplified if knowledge transfer and documentation are not meticulously managed throughout the contract lifecycle. A smooth transition requires proactive planning, clear exit strategies within the contract, and potentially phased handover processes. The Department of State should ensure that contract clauses facilitate knowledge transfer and that contingency plans are in place for a seamless transition to a new vendor or in-house management upon contract completion to avoid service disruptions.

How has the Department of State's spending on IT services, particularly with Accenture Federal Services, evolved over the past five years?

To analyze the evolution of the Department of State's spending on IT services with Accenture Federal Services over the past five years, one would need to query the Federal Procurement Data System (FPDS) or similar databases for all contract awards to Accenture Federal Services by the Department of State within that timeframe. This analysis should focus on contracts categorized under relevant IT service NAICS codes (like 541519). Examining the total obligated amounts, contract types (e.g., task orders, standalone contracts), and durations would reveal trends. This specific task order (Task Order 52) represents a significant portion of spending for the period it covers, and understanding its context within the broader spending pattern would indicate whether this is a continuation of existing support, an expansion of services, or a new initiative.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,672,839

Exercised Options: $53,672,839

Current Obligation: $50,219,279

Actual Outlays: $17,046,989

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $5,966,273

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline