Treasury's IRS awards $143M contract for integrated enterprise IT services to Accenture Federal Services

Contract Overview

Contract Amount: $143,265,482 ($143.3M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-08-15

End Date: 2026-08-14

Contract Duration: 364 days

Daily Burn Rate: $393.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTEGRATED ENTERPRISE CONTRACT (IEP) THE IEP PROVIDES FULLY INTEGRATED CORE SERVICES, IT INFRASTRUCTURE, OPERATIONS, SECURITY, APPLICATION INTEGRATION & SUPPORT, PROGRAM MANAGEMENT SERVICES, SUPPORTS MULTIPLE WORKLOADS, REFERRED TO AS PORTALS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $143.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: INTEGRATED ENTERPRISE CONTRACT (IEP) THE IEP PROVIDES FULLY INTEGRATED CORE SERVICES, IT INFRASTRUCTURE, OPERATIONS, SECURITY, APPLICATION INTEGRATION & SUPPORT, PROGRAM MANAGEMENT SERVICES, SUPPORTS MULTIPLE WORKLOADS, REFERRED TO AS PORTALS. Key points: 1. Contract focuses on comprehensive IT infrastructure, operations, security, and application support. 2. Services encompass program management and support for multiple 'portals' or workloads. 3. The contract is a firm-fixed-price delivery order, indicating defined scope and cost. 4. Duration of one year suggests a need for agile IT support or a bridge to future solutions. 5. Accenture Federal Services, a large established IT provider, is the awardee. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract value of $143.3 million for a one-year term appears reasonable for comprehensive IT enterprise services. Benchmarking against similar large-scale IT infrastructure and operations contracts is necessary for a definitive value assessment. However, the firm-fixed-price structure provides cost certainty for the IRS. The award to a single contractor for integrated services suggests potential for efficiency gains if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. The IRS likely conducted a thorough evaluation process to select the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to compete, potentially driving down costs and improving the quality of services delivered to the government.

Public Impact

The Internal Revenue Service (IRS) will benefit from enhanced IT infrastructure and operational support. Services delivered will ensure the continuity and security of critical IRS IT systems and applications. The contract supports multiple 'portals,' indicating a broad impact across various IRS functions. Workforce implications are likely related to IT operations and support personnel managed by Accenture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed with clear exit strategies.
Dependence on a single contractor for critical IT functions could pose risks.
Scope creep could lead to cost overruns if not strictly managed under the fixed-price contract.

Positive Signals

Award to an established contractor with a track record in federal IT services.
Firm-fixed-price contract provides cost predictability for the government.
Full and open competition suggests a competitive award process.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. Spending in this area supports government agencies' digital transformation and operational efficiency. The IRS's reliance on integrated enterprise IT services is common across large federal agencies seeking to modernize and secure their technological backbone. Comparable spending benchmarks would typically involve multi-year, large-scale IT modernization and operations contracts within civilian agencies.

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 requirement. However, the prime contractor, Accenture Federal Services, may engage small businesses as subcontractors, depending on their own subcontracting plans and the specific needs of the contract.

Oversight & Accountability

Oversight will likely be managed by the IRS contracting officers and program managers responsible for the Integrated Enterprise Contract. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award notices and reporting requirements, though detailed performance metrics may not be publicly disclosed.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian Agency IT Infrastructure Support
Enterprise Resource Planning (ERP) Systems Support
Cybersecurity Services for Federal Agencies

Risk Flags

Potential for vendor lock-in
Dependence on single contractor for critical IT services
Scope management challenges under fixed-price contract

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $143.3 million to ACCENTURE FEDERAL SERVICES LLC. INTEGRATED ENTERPRISE CONTRACT (IEP) THE IEP PROVIDES FULLY INTEGRATED CORE SERVICES, IT INFRASTRUCTURE, OPERATIONS, SECURITY, APPLICATION INTEGRATION & SUPPORT, PROGRAM MANAGEMENT SERVICES, SUPPORTS MULTIPLE WORKLOADS, REFERRED TO AS PORTALS.

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 $143.3 million.

What is the period of performance?

Start: 2025-08-15. End: 2026-08-14.

What is Accenture Federal Services' track record with similar large-scale IT enterprise contracts for federal agencies?

Accenture Federal Services has a substantial track record of performing large-scale IT enterprise contracts for various federal agencies, including the Department of the Treasury and the Internal Revenue Service. They are known for providing a wide range of services, from IT infrastructure management and cybersecurity to application development and integration. Their experience often includes managing complex, mission-critical systems. Past performance evaluations and contract awards data from sources like the Federal Procurement Data System (FPDS) would provide more granular details on their success rates, past issues, and overall performance on comparable contracts. This specific contract's value and scope align with their typical large federal IT engagements.

How does the $143.3 million value compare to similar IRS IT contracts or contracts for comparable agencies?

The $143.3 million contract value for a one-year term for integrated enterprise IT services is significant and aligns with the scale of IT operations within a large agency like the IRS. To benchmark effectively, one would compare this to other IRS IT contracts, particularly those focused on core infrastructure, operations, and application support. Additionally, comparing it to similar contracts awarded by agencies of comparable size and complexity, such as the Social Security Administration or the Department of Justice, would provide valuable context. The firm-fixed-price nature suggests a defined scope, and the value should be assessed against the breadth and depth of services required for maintaining and operating the IRS's extensive IT environment.

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

Primary risks include potential vendor lock-in, dependence on a single provider for critical IT functions, and the possibility of scope creep leading to cost inefficiencies, despite the firm-fixed-price structure. Mitigation strategies typically involve robust contract management by the IRS, including clear performance metrics, regular reviews, and defined change control processes. The IRS would also likely maintain contingency plans and conduct market research for alternative solutions to avoid long-term over-reliance. Ensuring strong communication channels and performance monitoring are key to mitigating these risks throughout the contract's duration.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that can drive down prices and encourage innovation. For this $143.3 million integrated enterprise IT services contract, this approach increases the likelihood that the IRS will receive competitive bids reflecting fair market value. The success of this approach also depends on the clarity of the solicitation requirements and the rigor of the evaluation criteria used by the IRS to select the best overall value.

What is the historical spending pattern for similar integrated enterprise IT services at the IRS?

Historical spending patterns for integrated enterprise IT services at the IRS typically show significant and consistent investment in maintaining and modernizing its vast IT infrastructure. Agencies like the IRS require substantial budgets for IT operations, cybersecurity, application support, and data management to handle taxpayer data and processing. Spending in this area often fluctuates based on modernization initiatives, security threats, and evolving technological requirements. Analyzing past contracts for similar services, including their duration, value, and scope, would reveal trends in IT investment and the types of services prioritized by the IRS over time.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD STE 300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $196,438,631

Exercised Options: $196,438,631

Current Obligation: $143,265,482

Actual Outlays: $63,312,116

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $17,127,274

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0036

IDV Type: GWAC

Timeline