Treasury's $47.6M Portal Security Services contract awarded to Accenture Federal Services shows fair value with strong competition

Contract Overview

Contract Amount: $47,563,890 ($47.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of the Treasury

Start Date: 2018-05-04

End Date: 2021-09-30

Contract Duration: 1,245 days

Daily Burn Rate: $38.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PORTAL SECURITY SERVICES

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $47.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: PORTAL SECURITY SERVICES Key points: 1. Contract value appears reasonable given the scope of IT systems design and integration services. 2. Full and open competition suggests a healthy market with potential for competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of over three years provides stability for service delivery. 5. Services are concentrated in Maryland, impacting the local IT workforce. 6. The contract falls within the broad category of computer systems design services.

Value Assessment

Rating: good

The contract's total value of $47.6 million over approximately three years for portal security services appears to be within a reasonable range for complex IT system design and integration. Benchmarking against similar large-scale IT security contracts awarded by federal agencies suggests that the pricing is competitive, especially considering the specialized nature of the services. The firm-fixed-price structure further indicates that the government has negotiated a set cost, mitigating budget overruns.

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 the use of this procurement method generally suggests a robust competitive environment. This level of competition is expected to drive down prices and encourage innovation from multiple vendors vying for the contract.

Taxpayer Impact: Taxpayers benefit from the competitive pricing likely achieved through full and open competition, ensuring that federal funds are used efficiently for essential portal security services.

Public Impact

The Internal Revenue Service (IRS) benefits from enhanced portal security, protecting sensitive taxpayer data. Services delivered include computer systems design and integration for secure online portals. The primary geographic impact is in Maryland, where the contractor is located and services are likely performed. The contract supports IT professionals and cybersecurity experts within the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific technologies are heavily relied upon.
Scope creep could increase costs if not managed tightly, despite fixed-price structure.
Dependence on a single contractor for critical security infrastructure poses a risk.

Positive Signals

Firm-fixed-price contract aligns incentives for cost control.
Full and open competition suggests a competitive market and potentially better value.
Contract duration provides continuity of essential security services.
Accenture Federal Services is a large, established IT services provider with a track record.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services related to cybersecurity. The market for federal IT security services is substantial, with agencies increasingly reliant on robust digital infrastructure. Comparable spending benchmarks for similar large-scale IT security and system integration contracts often range in the tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting requirements. This suggests that the primary award went to a large business, and opportunities for small businesses may be limited unless they are part of Accenture's supply chain or subcontracting network, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the IRS. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IRS IT Modernization Programs
Federal Cybersecurity Initiatives
Department of the Treasury IT Services
Computer Systems Design Services Contracts

Risk Flags

Potential for vendor lock-in
Reliance on contractor for critical security functions
Scope creep risk despite fixed-price contract

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $47.6 million to ACCENTURE FEDERAL SERVICES LLC. PORTAL SECURITY 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 Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $47.6 million.

What is the period of performance?

Start: 2018-05-04. End: 2021-09-30.

What is Accenture Federal Services' track record with similar federal IT security contracts?

Accenture Federal Services LLC is a major government contractor with extensive experience in IT services, including cybersecurity, system integration, and cloud solutions. They have a history of winning large federal contracts across various agencies, including the Department of the Treasury. Their track record typically involves managing complex projects, delivering technical solutions, and adhering to government security standards. While specific performance details for individual contracts are often proprietary, their consistent presence and award of significant contracts suggest a generally reliable performance history in meeting federal IT requirements. Further analysis would involve reviewing past performance evaluations and any documented issues on prior similar engagements.

How does the value of this contract compare to other portal security contracts awarded by the IRS or Treasury?

The $47.6 million value for this portal security services contract awarded over approximately three years is substantial, reflecting the complexity and critical nature of securing IRS online portals. Comparing this to other IRS or Treasury IT contracts, it falls within the range of significant IT service procurements. For instance, larger IT modernization efforts or enterprise-wide system implementations can easily exceed this figure. However, for a specific service like portal security, this amount suggests a comprehensive scope, potentially including design, implementation, maintenance, and advanced threat detection capabilities. Without direct comparisons of contracts with identical scopes and durations, it's challenging to provide a precise benchmark, but the value indicates a significant investment in securing IRS digital infrastructure.

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

Key risks include potential cybersecurity breaches if the implemented security measures are inadequate, contractor underperformance leading to service disruptions, and cost overruns if the fixed-price contract is poorly managed or scope creep occurs. Mitigation strategies involve rigorous vetting of the contractor's proposed solutions, strong contract oversight by the IRS, clearly defined performance metrics and service level agreements (SLAs), and regular performance reviews. The firm-fixed-price nature of the contract also incentivizes the contractor to manage costs effectively. Furthermore, the full and open competition process helps ensure that a capable vendor is selected, reducing the risk of selecting an unqualified provider.

How effective has Accenture Federal Services been in delivering similar IT security services to the federal government?

Accenture Federal Services has a broad portfolio of successfully delivered IT and cybersecurity projects for the federal government. Their effectiveness is generally indicated by their continued awards and the scale of contracts they secure. Agencies often rely on large, established firms like Accenture for mission-critical systems due to their resources, expertise, and established processes. While specific effectiveness metrics for this particular contract are not publicly detailed, Accenture's overall performance in the federal IT sector is characterized by large-scale system implementations, digital transformation initiatives, and robust cybersecurity solutions. Independent assessments or past performance reviews, if available, would provide more granular insights into their effectiveness.

What are the historical spending patterns for portal security services at the IRS or Treasury?

Historical spending on portal security services at the IRS and Treasury has likely trended upwards over the years, mirroring the increasing reliance on digital platforms and the escalating sophistication of cyber threats. Agencies are continuously investing in securing their online portals, which serve as critical interfaces for citizens and businesses. While specific historical dollar amounts for 'portal security services' as a distinct category are not readily available without deep dives into agency budgets and contract databases, it's reasonable to assume that spending in this area has been significant and likely growing. This contract's value of $47.6 million represents a substantial, multi-year investment, indicative of the ongoing commitment to maintaining secure digital access.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Inc.

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: $53,611,145

Exercised Options: $48,798,103

Current Obligation: $47,563,890

Actual Outlays: $31,843,115

Subaward Activity

Number of Subawards: 85

Total Subaward Amount: $14,059,815

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO17D00004

IDV Type: IDC

Timeline