VA awards Accenture $494M for Digital GI Bill Delivery, a significant investment in IT modernization

Contract Overview

Contract Amount: $494,132,154 ($494.1M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-03-11

End Date: 2025-09-29

Contract Duration: 1,663 days

Daily Burn Rate: $297.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DIGITAL GI BILL DELIVERY SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $494.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: DIGITAL GI BILL DELIVERY SERVICES Key points: 1. The contract represents a substantial investment in modernizing digital services for veterans. 2. Accenture's selection suggests a focus on established IT service providers for complex government projects. 3. The firm-fixed-price structure aims to control costs, but performance monitoring is crucial. 4. This award is situated within the broader context of federal IT modernization efforts. 5. The Computer Systems Design Services category indicates a need for integrated technological solutions.

Value Assessment

Rating: good

The total award of $494 million over its period of performance is substantial, reflecting the complexity and scale of digital service delivery for the GI Bill program. Benchmarking against similar large-scale IT modernization contracts within the federal government, this figure appears within a reasonable range, considering the scope of services. The firm-fixed-price contract type suggests an expectation of predictable costs, but the ultimate value-for-money will depend on the successful delivery of the specified digital services and the realization of intended efficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation generally suggests a competitive process designed to solicit the best value from the market. This approach is intended to foster price discovery and encourage innovation among potential offerors.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it increases the likelihood of securing competitive pricing and high-quality services by allowing a broad range of qualified contractors to participate.

Public Impact

Veterans utilizing the GI Bill educational benefits will experience improved digital access and service delivery. The contract supports the modernization of critical IT infrastructure within the Department of Veterans Affairs. The primary geographic impact is national, serving all eligible veterans across the United States. The contract is expected to support a workforce involved in IT development, system integration, and program management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands beyond initial estimates.
Dependence on a single contractor for a critical IT function could pose a risk.
Ensuring continuous service improvement and adaptation to evolving veteran needs.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Focus on digital delivery aligns with modernizing government services.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies increasingly relying on contractors for system design, development, and maintenance. This contract falls within the Computer Systems Design Services NAICS code (541512), a segment characterized by a mix of large prime contractors and specialized small businesses. The Department of Veterans Affairs, like many federal agencies, is undergoing significant digital transformation, making IT modernization a key spending priority. Comparable spending benchmarks for large-scale IT service contracts can range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was not specifically set aside for small businesses, nor does it indicate any mandatory subcontracting goals for small businesses in the provided data. The award to a large prime contractor like Accenture suggests that the primary focus was on the prime's capabilities. This could mean limited direct opportunities for small businesses on this specific contract, although they might participate as subcontractors if Accenture chooses to engage them. The absence of set-aside provisions means the direct impact on the small business ecosystem for this particular award is likely minimal.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, milestone tracking, and financial audits to ensure compliance with contract terms and conditions. Accountability measures are embedded within the firm-fixed-price structure, incentivizing the contractor to meet performance standards within budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific internal oversight details may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

GI Bill Education Benefits Program
Veterans Affairs IT Modernization Initiatives
Federal Digital Service Delivery Contracts
Computer Systems Design and Integration Services

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Dependency on a single large contractor for critical services.
Ensuring successful integration with existing VA IT infrastructure.
Cybersecurity risks associated with sensitive veteran data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $494.1 million to ACCENTURE FEDERAL SERVICES LLC. DIGITAL GI BILL DELIVERY 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 $494.1 million.

What is the period of performance?

Start: 2021-03-11. End: 2025-09-29.

What is Accenture Federal Services LLC's track record with the Department of Veterans Affairs on similar IT service contracts?

Accenture Federal Services LLC has a significant history of working with the Department of Veterans Affairs (VA) on various IT and modernization projects. While specific details on all past contracts are extensive, their involvement often spans large-scale system implementations, digital transformation initiatives, and data management services. For instance, they have been involved in projects related to electronic health records, claims processing, and other core VA functions. Their track record with the VA is generally characterized by large contract values and complex scope, reflecting their position as a major federal IT contractor. Performance reviews and past performance information, often detailed in federal procurement databases, would provide a more granular assessment of their success and challenges on previous VA engagements.

How does the $494 million award compare to historical VA spending on GI Bill program IT support?

The $494 million award for Digital GI Bill Delivery Services represents a substantial, multi-year investment. To compare it accurately to historical spending, one would need to analyze the VA's IT expenditures specifically allocated to the GI Bill program over previous periods. Historically, IT modernization efforts for large federal programs often involve significant upfront and ongoing costs. If previous support was fragmented, reliant on legacy systems, or managed through numerous smaller contracts, this consolidated, large-scale award could represent a strategic shift towards a more integrated and modern approach. However, without specific historical data on VA's GI Bill IT spending, it's difficult to definitively state whether this award is higher or lower in real terms, but it clearly signals a major commitment to upgrading these digital services.

What are the primary performance risks associated with this Digital GI Bill Delivery Services contract?

The primary performance risks associated with this contract include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns and schedule delays. Another significant risk is the successful integration of new digital systems with existing VA infrastructure, which can be complex and prone to technical challenges. Ensuring user adoption among veterans and VA staff is also critical; if the new digital platforms are not intuitive or user-friendly, their effectiveness will be diminished. Furthermore, cybersecurity threats pose a constant risk to any large government IT system, requiring robust security measures. Finally, the reliance on a single contractor for such a critical function introduces a dependency risk, where any performance issues by Accenture could directly impact service delivery to veterans.

What specific services are included under 'Computer Systems Design Services' for the Digital GI Bill?

Under the 'Computer Systems Design Services' (NAICS 541512) category for the Digital GI Bill, Accenture Federal Services LLC is likely responsible for a comprehensive suite of IT-related activities. This typically includes the design, development, integration, and implementation of new software and hardware systems. For the GI Bill program, this could involve creating or enhancing online portals for veterans to manage their benefits, developing backend systems for processing applications and payments, integrating these systems with other VA databases (like education or personnel records), and ensuring the overall architecture is scalable, secure, and reliable. It may also encompass system analysis, requirements definition, software programming, testing, and potentially ongoing maintenance and support to ensure the digital services function effectively and meet the evolving needs of GI Bill beneficiaries.

How does the firm-fixed-price (FFP) contract type influence the value proposition for the government?

The firm-fixed-price (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and unlikely to change significantly. Under an FFP contract, the contractor, Accenture Federal Services LLC in this case, assumes most of the risk for cost overruns. This means the government pays a set price, providing significant budget certainty and predictability. For the VA's Digital GI Bill Delivery Services, this structure incentivizes Accenture to manage its costs efficiently and deliver the specified services within the agreed-upon price. The value proposition lies in the government's ability to lock in a price, reducing the risk of unexpected cost increases. However, it's crucial that the initial scope is accurately defined, as significant changes could necessitate costly contract modifications.

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 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: $542,265,036

Exercised Options: $494,132,154

Current Obligation: $494,132,154

Actual Outlays: $401,422,871

Subaward Activity

Number of Subawards: 493

Total Subaward Amount: $233,118,020

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