Treasury's IRS awards $29.17M for Portal Services to Accenture Federal Services LLC
Contract Overview
Contract Amount: $29,170,209 ($29.2M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of the Treasury
Start Date: 2024-12-03
End Date: 2025-11-30
Contract Duration: 362 days
Daily Burn Rate: $80.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PORTAL SERVICES
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $29.2 million to ACCENTURE FEDERAL SERVICES LLC for work described as: PORTAL SERVICES Key points: 1. Contract Value: $29.17 million over approximately one year. 2. Competition: Awarded under full and open competition. 3. Risk: Firm Fixed Price contract type mitigates cost overrun risk. 4. Sector: Information Technology (Computer Systems Design Services).
Value Assessment
Rating: good
The contract is a delivery order under a larger contract, making direct price comparison difficult. However, the firm fixed price structure suggests a negotiated price based on defined services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary portal services.
Public Impact
Ensures continued operation and potential enhancement of IRS online portal. Supports taxpayer access to services and information. Potential for improved user experience and efficiency through portal services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively short (approx. 1 year), requiring potential future re-competition.
- Reliance on a single vendor for critical portal services.
Positive Signals
- Firm Fixed Price contract type provides cost certainty.
- Awarded under full and open competition, suggesting competitive pricing.
- Delivery order structure may indicate flexibility for future needs.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across government, supporting digital transformation and citizen services.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. The prime contractor, Accenture Federal Services LLC, is a large business.
Oversight & Accountability
The award is a delivery order, implying it's part of a larger IDIQ or framework contract which may have its own oversight mechanisms. The IRS is responsible for ensuring performance and value.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for vendor lock-in if services become highly specialized.
- Dependence on a single vendor for critical infrastructure.
- Scope creep risk if not managed tightly.
- Cybersecurity vulnerabilities inherent in online portal systems.
Tags
computer-systems-design-services, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $29.2 million to ACCENTURE FEDERAL SERVICES LLC. PORTAL 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 $29.2 million.
What is the period of performance?
Start: 2024-12-03. End: 2025-11-30.
What specific portal services are included in this contract, and how do they align with IRS strategic goals?
The contract specifies 'PORTAL SERVICES' under NAICS code 541512 (Computer Systems Design Services). While the exact services aren't detailed here, they likely encompass the design, development, maintenance, and operation of the IRS's public-facing and internal portals. These services are crucial for taxpayer engagement, online tax filing, information dissemination, and internal operational efficiency, directly supporting the IRS's mission.
What is the benchmark pricing for similar portal service contracts within the federal government?
Benchmarking portal services is complex due to varying scopes and service levels. However, contracts for similar IT services, especially those involving system design and maintenance for large agencies, can range from tens to hundreds of millions of dollars annually. The $29.17M for approximately one year for the IRS appears within a reasonable range for comprehensive portal support, especially given the competitive award.
How will the effectiveness of these portal services be measured and ensured throughout the contract period?
Effectiveness is typically measured through performance metrics and Service Level Agreements (SLAs) defined in the contract. The IRS Contracting Officer's Representative (COR) will monitor performance against these metrics, which could include uptime, response times, security compliance, and user satisfaction. Regular reviews and reporting are standard to ensure the vendor meets obligations and delivers value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - END USER
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: $33,717,522
Exercised Options: $33,535,366
Current Obligation: $29,170,209
Actual Outlays: $28,981,614
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $5,012,126
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: 2024-12-03
Current End Date: 2025-11-30
Potential End Date: 2026-08-13 16:49:14
Last Modified: 2025-10-17
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