IRS Awards $192M Cloud Services Contract to Accenture Federal Services
Contract Overview
Contract Amount: $192,284,084 ($192.3M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of the Treasury
Start Date: 2022-09-01
End Date: 2025-09-30
Contract Duration: 1,125 days
Daily Burn Rate: $170.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IRS ENTERPRISE CLOUD MANAGED SERVICE PROVIDER SERVICES
Place of Performance
Location: GLENARDEN, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $192.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IRS ENTERPRISE CLOUD MANAGED SERVICE PROVIDER SERVICES Key points: 1. Significant investment in cloud infrastructure for the IRS. 2. Accenture Federal Services secured a major contract. 3. Potential risks include vendor lock-in and data security. 4. IT sector spending is high for modernization efforts.
Value Assessment
Rating: good
The contract value of $192M over three years appears reasonable for enterprise-wide cloud managed services. Benchmarking against similar large-scale cloud contracts is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: Taxpayer funds are being used for essential IT modernization, aiming for improved efficiency and service delivery.
Public Impact
Modernization of IRS IT systems could lead to improved taxpayer services. Enhanced data processing and storage capabilities are expected. Potential for increased cybersecurity measures to protect sensitive taxpayer information.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation noted.
- Contract duration is substantial, requiring ongoing monitoring.
Positive Signals
- Awarded through full and open competition.
- Focus on critical IT modernization.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending on cloud services by government agencies is a significant trend for modernization and efficiency.
Small Business Impact
The data indicates no small business participation in this contract. Agencies should explore opportunities to include small businesses in future IT procurements where feasible.
Oversight & Accountability
The IRS, as a major agency, likely has internal oversight mechanisms. However, the duration and scope of this contract warrant continuous monitoring by relevant oversight bodies.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- No small business participation.
- Long contract duration.
- Potential for vendor lock-in.
- Concentration of risk with a single provider.
Tags
computer-systems-design-services, department-of-the-treasury, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $192.3 million to ACCENTURE FEDERAL SERVICES LLC. IRS ENTERPRISE CLOUD MANAGED SERVICE PROVIDER 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 $192.3 million.
What is the period of performance?
Start: 2022-09-01. End: 2025-09-30.
What specific performance metrics are in place to ensure the value and effectiveness of these cloud managed services?
The contract details should outline key performance indicators (KPIs) related to uptime, response times, security incident management, and cost efficiency. Regular performance reviews against these metrics are crucial for ensuring the government receives the intended value and that the services are effective in meeting the IRS's operational needs.
What are the primary risks associated with Accenture's role as the sole managed service provider for this critical IRS function?
Key risks include vendor lock-in, making it difficult to switch providers if performance degrades or costs escalate. Data security and privacy are paramount concerns, as is the potential for service disruptions if the provider faces operational issues. Dependence on a single vendor also concentrates risk.
How will this cloud migration impact the IRS's ability to adapt to future technological advancements and changing regulatory requirements?
A well-structured cloud strategy should enhance adaptability by leveraging scalable infrastructure and modern services. However, the specific contract terms and the provider's roadmap will determine the extent to which the IRS can readily adopt new technologies or comply with evolving regulations without incurring significant additional costs or delays.
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: $200,466,595
Exercised Options: $200,438,390
Current Obligation: $192,284,084
Actual Outlays: $192,221,741
Subaward Activity
Number of Subawards: 72
Total Subaward Amount: $25,126,110
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
Start Date: 2022-09-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 15:33:56
Last Modified: 2026-03-11
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