IRS Portal Security Services contract awarded to Accenture for over $36.6M, utilizing full and open competition

Contract Overview

Contract Amount: $36,621,879 ($36.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-09-29

End Date: 2024-01-31

Contract Duration: 854 days

Daily Burn Rate: $42.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TASK ORDER 0020 - 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 $36.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: TASK ORDER 0020 - PORTAL SECURITY SERVICES Key points: 1. The contract value of $36.6 million over its period of performance suggests a significant investment in securing IRS portals. 2. The use of 'full and open competition' indicates a broad market solicitation, potentially leading to competitive pricing. 3. The contract's duration of 854 days (approximately 2.3 years) allows for sustained service delivery and performance evaluation. 4. The 'FIRM FIXED PRICE' contract type shifts performance risk to the contractor, Accenture Federal Services LLC. 5. The North American Industry Classification System (NAICS) code 541512 for Computer Systems Design Services places this contract within the IT services sector. 6. The award was made by the Department of the Treasury to the Internal Revenue Service (IRS) as the primary agency. 7. The contract was issued as a Delivery Order, suggesting it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle.

Value Assessment

Rating: good

Benchmarking this specific contract's value requires access to comparable portal security service contracts within the federal government. However, the firm fixed-price nature suggests that the government has a clear understanding of the costs involved and has negotiated a price that is expected to be cost-effective, with the contractor bearing the risk of cost overruns. The total value of over $36.6 million for approximately 2.3 years of service indicates a substantial but potentially reasonable investment for critical IT security infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' signifying that all responsible sources were permitted to submit a bid. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the open competition method is a strong indicator of an effort to achieve fair market pricing and identify the most capable vendor.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring that government funds are used efficiently for essential services like portal security.

Public Impact

Taxpayers benefit from enhanced security of sensitive financial data processed through IRS portals. The contract ensures the continued operation and protection of critical digital infrastructure for tax administration. The services delivered are essential for maintaining public trust and confidence in the IRS's digital services. The primary geographic impact is within Maryland, where the contract is noted to be performed. The contract supports IT professionals and cybersecurity specialists employed by Accenture Federal Services LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical security functions could pose a risk if performance degrades.
The fixed-price nature, while beneficial for cost control, could incentivize cost-cutting that might impact service quality if not closely monitored.

Positive Signals

The use of full and open competition suggests a robust selection process, likely identifying a highly qualified vendor.
The firm fixed-price contract type transfers cost overrun risk to the contractor, ensuring budget predictability.
The contract duration allows for stable and consistent delivery of essential security services.
The award to a known entity like Accenture Federal Services LLC suggests a contractor with established capabilities in the federal IT space.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and security services. The federal market for IT services is substantial, with significant spending allocated to cybersecurity solutions due to the increasing threat landscape. This contract represents a portion of the IRS's investment in maintaining secure and reliable digital platforms, aligning with government-wide initiatives to modernize and protect federal IT infrastructure. Comparable spending benchmarks would typically be found within IT security services for large federal agencies.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'ss' (small business set-aside) and 'sb' (small business) flags are both false. This suggests the contract was not specifically set aside for small businesses. However, the prime contractor, Accenture Federal Services LLC, may engage small businesses as subcontractors to fulfill certain aspects of the contract, though this is not detailed in the provided data. The impact on the small business ecosystem would depend on whether subcontracting opportunities are made available.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program managers within the IRS and the Department of the Treasury. As a firm fixed-price contract, performance monitoring is crucial to ensure that the contractor meets all security requirements and service level agreements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

IRS Taxpayer Data Protection Initiative
Federal Cybersecurity Modernization Program
Department of the Treasury IT Security Contracts
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Potential for performance issues impacting taxpayer data security.
Reliance on a single vendor for critical security functions.
Need for continuous monitoring to ensure contractor adherence to security protocols.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $36.6 million to ACCENTURE FEDERAL SERVICES LLC. TASK ORDER 0020 - 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 $36.6 million.

What is the period of performance?

Start: 2021-09-29. End: 2024-01-31.

What is the historical spending pattern for portal security services at the IRS?

Analyzing historical spending patterns for portal security services at the IRS is crucial for understanding the long-term investment in this area and for benchmarking current contract values. Without specific historical data for this contract vehicle or similar services, it's difficult to provide precise figures. However, federal agencies like the IRS typically see increasing cybersecurity budgets over time due to evolving threats and the expansion of digital services. Trends often show a shift towards more sophisticated security solutions, including advanced threat detection, identity and access management, and data encryption. Comparing the $36.6 million award over approximately 2.3 years to previous IRS spending on similar services would reveal whether this represents an increase, decrease, or stable investment in portal security.

How does the per-unit cost of this contract compare to similar federal contracts for portal security?

Determining a precise per-unit cost for this contract is challenging without knowing the specific units of service being provided (e.g., number of users supported, number of portals secured, hours of support). The contract is for 'Computer Systems Design Services' with a focus on 'Portal Security Services.' If we were to approximate a 'per-unit' cost based on the total contract value and its duration, it would be roughly $15.9 million per year ($36.6M / 2.3 years). To compare this to similar federal contracts, one would need to identify other contracts with comparable scope, complexity, and service level agreements within agencies of similar size and mission. Factors like the specific security technologies employed, the level of support required, and the geographic location of performance can significantly influence per-unit costs. A comprehensive benchmark would involve analyzing data from contracts awarded under similar NAICS codes and contract types.

What is Accenture Federal Services LLC's track record with the IRS and similar federal agencies for IT security services?

Accenture Federal Services LLC has a significant track record of providing IT and consulting services to various U.S. federal agencies, including the IRS. Their experience often encompasses large-scale system modernization, cybersecurity, and digital transformation initiatives. For the IRS specifically, Accenture has been involved in various projects related to tax systems and data management. Their performance history with the IRS and other agencies like the Department of Defense or Health and Human Services would be a key factor in the evaluation process for this contract. A review of past performance evaluations, contract awards, and any reported issues or successes would provide insight into their capability to deliver on complex security services. Generally, large federal contractors like Accenture have established processes and a deep understanding of federal procurement and security compliance requirements.

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

Primary risks associated with this contract include potential performance failures in delivering critical security services, which could lead to data breaches or service disruptions for taxpayers. Another risk is the potential for cost overruns if the firm fixed-price contract is not managed effectively by the contractor, although the risk is primarily on Accenture. Mitigation strategies likely include rigorous performance monitoring by the IRS, adherence to strict Service Level Agreements (SLAs), regular security audits, and clear communication channels. The firm fixed-price nature itself is a risk mitigation tool, as it caps the government's financial exposure. Furthermore, the use of 'full and open competition' suggests that a thorough vetting process was employed to select a capable vendor, reducing the risk of selecting an underqualified contractor. The contract's duration also allows for early identification and correction of performance issues.

How does this contract contribute to the IRS's overall cybersecurity posture?

This contract directly contributes to the IRS's overall cybersecurity posture by providing specialized services for the security of its public-facing portals. These portals are critical entry points for taxpayers to file returns, make payments, and access account information. Ensuring their security protects sensitive personal and financial data from unauthorized access, modification, or destruction. The services likely encompass measures such as intrusion detection and prevention, vulnerability management, access control, and incident response. By securing these digital gateways, the contract helps maintain the integrity and confidentiality of taxpayer information, supports compliance with federal cybersecurity mandates (like those from NIST), and upholds public trust in the IRS's ability to safeguard data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: 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: $38,479,370

Exercised Options: $38,479,370

Current Obligation: $36,621,879

Actual Outlays: $36,621,879

Subaward Activity

Number of Subawards: 89

Total Subaward Amount: $13,297,721

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