VA awards $34.5M task order for IT services to Accenture Federal Services, highlighting a competitive procurement

Contract Overview

Contract Amount: $34,566,551 ($34.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-02-15

End Date: 2021-05-17

Contract Duration: 822 days

Daily Burn Rate: $42.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF_T4NG TASK ORDER AWARD FOR INTEGRATED COLMERY DELIVERY

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF_T4NG TASK ORDER AWARD FOR INTEGRATED COLMERY DELIVERY Key points: 1. The contract value of $34.5 million for Computer Systems Design Services appears reasonable given the duration and scope. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This award falls within the broader IT services sector, a significant area of federal spending. 5. The task order is a component of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, indicating ongoing IT support needs. 6. The contractor, Accenture Federal Services, has a substantial presence in the federal contracting space.

Value Assessment

Rating: good

The contract value of $34.5 million for Computer Systems Design Services over approximately 2.7 years (822 days) suggests a moderate annual spend. Benchmarking against similar IT services contracts requires access to detailed scope of work and specific deliverables. However, the firm fixed-price nature of the award indicates that the contractor assumes the risk for cost overruns, which is generally favorable for the government. The number of bids received (4) in a full and open competition also suggests a competitive environment that likely influenced pricing.

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. Four bids were received, suggesting a competitive landscape for this specific task order. The level of competition is generally positive as it allows for price discovery and encourages contractors to offer competitive pricing to win the award. The agency's decision to use full and open competition implies confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: The use of full and open competition with multiple bidders is beneficial for taxpayers as it typically drives down prices and ensures the government receives the best value for its investment in IT services.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving IT services to support its operations. The contract delivers computer systems design services, crucial for maintaining and improving the VA's technological infrastructure. The geographic impact is primarily within the VA's operational areas, likely supporting its facilities and personnel nationwide. The award supports the IT workforce, potentially through direct employment by Accenture Federal Services or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the nature of IT services.
Dependence on a single contractor for critical IT systems design could pose a risk if performance falters.
Ensuring continued innovation and adaptation to evolving technology within the contract's fixed parameters.

Positive Signals

Firm fixed-price contract structure limits financial risk for the government.
Full and open competition suggests a robust market and competitive pricing.
The contractor, Accenture Federal Services, is a well-established entity with significant federal IT experience.
The task order is part of a larger IDIQ, indicating a structured approach to ongoing IT needs.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies like the VA being major consumers. This contract for computer systems design services falls under the broader category of IT professional services, which includes areas like software development, system integration, and IT management consulting. Spending in this sector is driven by the government's continuous need to modernize its infrastructure, enhance cybersecurity, and improve service delivery through technology. Comparable spending benchmarks would typically involve analyzing the average cost of similar IT design services across different federal agencies and contract vehicles.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a small business set-aside. Therefore, there are no direct subcontracting implications specifically tied to small business goals for this particular award. However, as Accenture Federal Services is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors on this task order, depending on the prime's subcontracting plan and the specific services required.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. As a task order under an IDIQ, the underlying IDIQ contract likely has its own set of oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

IT Professional Services
Computer Systems Design
Department of Veterans Affairs IT Modernization
ACCENTURE FEDERAL SERVICES LLC Contracts
Task Order Awards

Risk Flags

Potential for performance issues
Risk of scope creep
Contractor cost control effectiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34.6 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF_T4NG TASK ORDER AWARD FOR INTEGRATED COLMERY DELIVERY

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $34.6 million.

What is the period of performance?

Start: 2019-02-15. End: 2021-05-17.

What is Accenture Federal Services' track record with the Department of Veterans Affairs?

Accenture Federal Services has a significant history of contracting with the Department of Veterans Affairs across various IT and professional services. Reviewing past awards and performance evaluations (if publicly available) would provide a clearer picture of their performance on previous VA contracts. This includes assessing their ability to meet deadlines, stay within budget on similar fixed-price contracts, and deliver quality services. Their extensive experience with the VA suggests a familiarity with the agency's unique requirements and operational environment, which can be a positive indicator for successful contract execution.

How does the $34.5 million value compare to similar IT services contracts awarded by the VA?

The $34.5 million value for this task order, spanning approximately 2.7 years, represents a moderate investment in computer systems design services. To provide a precise comparison, one would need to analyze the scope of work and specific deliverables against other VA IT contracts of similar duration and complexity. However, given that it was awarded under full and open competition with four bidders, the price is likely competitive. The annual value is roughly $12.7 million, which is within the range of many IT support and development contracts for large federal agencies. Without specific comparable task orders, it's difficult to definitively state if it's high or low, but the competitive nature suggests value.

What are the primary risks associated with this contract for the VA?

The primary risks for the VA on this contract include potential performance issues from the contractor, leading to delays or subpar quality in computer systems design. Given the fixed-price nature, there's a risk that the contractor might cut corners to maintain profitability, impacting the final product. Another risk is the potential for scope creep if the requirements are not clearly defined and managed, which could lead to disputes or the need for contract modifications. Finally, over-reliance on a single vendor for critical IT design services could pose a risk if the contractor's capabilities diminish or if they face significant internal challenges.

How effective is the firm fixed-price contract type in managing costs for this IT services award?

The firm fixed-price (FFP) contract type is generally considered highly effective for managing costs in IT services when the scope of work is well-defined and unlikely to change significantly. Under an FFP contract, the contractor assumes the majority of the cost risk, meaning they are obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to be efficient and control their expenses. For the VA, this means greater cost certainty and protection against unexpected cost increases, making it a favorable contract type for predictable IT service requirements.

What does the receipt of four bids indicate about the market for these specific IT services?

The receipt of four bids for this task order under full and open competition indicates a healthy and competitive market for the specific computer systems design services required by the VA. This suggests that multiple companies possess the necessary capabilities and are interested in performing work for the agency. A competitive environment like this typically benefits the government by driving down prices, encouraging innovation, and increasing the likelihood of selecting a contractor that offers the best overall value in terms of both cost and technical approach. It also reduces the risk of vendor lock-in.

What is the historical spending pattern for Computer Systems Design Services at the VA?

Historical spending patterns for Computer Systems Design Services at the VA are substantial, reflecting the agency's ongoing need to manage and modernize its complex IT infrastructure. The VA consistently ranks among the top federal agencies for IT spending. Analyzing historical data would reveal trends in contract values, types of services procured (e.g., design, implementation, maintenance), and the primary contractors utilized. This specific task order fits within that broader pattern of significant investment in IT capabilities to support veterans' healthcare and benefits administration.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,258,518

Exercised Options: $34,566,551

Current Obligation: $34,566,551

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $6,026,289

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1013

IDV Type: IDC

Timeline