VA's T4NG IT Service Management contract awarded to Accenture for $96M, with 4 delivery orders

Contract Overview

Contract Amount: $95,966,282 ($96.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-01-09

End Date: 2024-06-06

Contract Duration: 1,610 days

Daily Burn Rate: $59.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TRANSFORMATION TWENTY ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) PROGRAM IT SERVICE MANAGEMENT (ITSM) SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $96.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: TRANSFORMATION TWENTY ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) PROGRAM IT SERVICE MANAGEMENT (ITSM) SUPPORT SERVICES Key points: 1. Significant IT service spending for the VA. 2. Accenture Federal Services is the primary contractor. 3. Contract covers computer systems design services. 4. Full and open competition was utilized.

Value Assessment

Rating: good

The contract value of $95.9M over approximately 4 years appears reasonable for comprehensive IT Service Management support, especially given the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive award process likely resulted in a fair price, maximizing taxpayer value for essential IT services.

Public Impact

Ensures continued IT support for Veterans Affairs systems. Supports critical digital infrastructure for VA operations. Potential for modernization and efficiency gains in IT service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Significant contract value indicating important services

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar large-scale IT support contracts vary widely based on scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor is a large business. There is no direct information on small business subcontracting.

Oversight & Accountability

The Department of Veterans Affairs is the contracting agency, responsible for oversight. The use of delivery orders allows for task-specific management and accountability.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Time and Materials pricing structure increases cost overrun risk.
Lack of specific small business subcontracting data.
Potential for scope creep without rigorous oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $96.0 million to ACCENTURE FEDERAL SERVICES LLC. TRANSFORMATION TWENTY ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) PROGRAM IT SERVICE MANAGEMENT (ITSM) SUPPORT 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 Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $96.0 million.

What is the period of performance?

Start: 2020-01-09. End: 2024-06-06.

What specific IT Service Management functions are included in this contract?

The contract likely encompasses a broad range of ITSM functions, including incident management, problem management, change management, service request fulfillment, and potentially IT asset management and configuration management. Specific details would be found in the contract's Statement of Work (SOW).

What is the potential for cost overruns given the Time and Materials pricing structure?

Time and Materials (T&M) contracts carry a higher risk of cost overruns compared to fixed-price contracts. Effective oversight, detailed task orders, and vigilant monitoring of labor hours and material costs are crucial to mitigate this risk and ensure value.

How does this contract contribute to the VA's overall IT modernization goals?

This contract's contribution to modernization depends on the specific tasks awarded under the delivery orders. If focused on upgrading systems, implementing new ITSM tools, or improving service delivery processes, it can significantly advance the VA's IT modernization efforts.

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

Solicitation ID: T4NG-0459

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $102,643,040

Exercised Options: $95,966,282

Current Obligation: $95,966,282

Actual Outlays: $23,010,066

Subaward Activity

Number of Subawards: 191

Total Subaward Amount: $78,590,812

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1013

IDV Type: IDC

Timeline