GSA awards $151.9M for CASTLE-NET services to Accenture Federal Services, focusing on IT systems design

Contract Overview

Contract Amount: $151,939,116 ($151.9M)

Contractor: Accenture Federal Services LLC

Awarding Agency: General Services Administration

Start Date: 2026-02-26

End Date: 2027-02-25

Contract Duration: 364 days

Daily Burn Rate: $417.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: CYBER AUTOMATION SYSTEMS TECHNOLOGY AND LIFECYCLE ENTERPRISE NETWORK (CASTLE-NET) SERVICES TASK ORDER AWARD.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $151.9 million to ACCENTURE FEDERAL SERVICES LLC for work described as: CYBER AUTOMATION SYSTEMS TECHNOLOGY AND LIFECYCLE ENTERPRISE NETWORK (CASTLE-NET) SERVICES TASK ORDER AWARD. Key points: 1. The contract value represents a significant investment in IT modernization and lifecycle support. 2. Accenture Federal Services, a large established contractor, secured this award. 3. The contract duration of 364 days suggests a focus on specific project phases or operational support. 4. The 'Computer Systems Design Services' NAICS code indicates a broad scope of IT support. 5. The award was made under full and open competition, implying a robust bidding process. 6. The Cost Plus Award Fee (CPAF) contract type allows for performance-based incentives.

Value Assessment

Rating: good

The contract value of $151.9 million for a 364-day period, while substantial, needs to be benchmarked against similar IT systems design and lifecycle support contracts. The CPAF structure suggests that the final cost will be influenced by performance, making direct price comparisons challenging without knowing the award fee achieved. However, the competitive nature of the award provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 6 bids suggests a healthy level of interest and competition for this type of IT service requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for IT services, potentially leading to cost savings compared to sole-source or limited competition awards.

Public Impact

Federal agencies requiring advanced computer systems design and lifecycle support will benefit from these services. The contract supports the modernization and maintenance of critical IT infrastructure. The primary geographic impact is likely within the operational areas of the General Services Administration and its supported entities. The contract may involve a workforce of IT specialists, engineers, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee structure can lead to cost overruns if not managed tightly, as contractor profit is tied to performance metrics.
The broad scope of 'Computer Systems Design Services' could lead to scope creep if not clearly defined and managed.
Reliance on a single large contractor for critical IT services can pose a risk if performance falters or if the contractor faces financial instability.

Positive Signals

Awarded under full and open competition, indicating a robust and fair bidding process.
The Cost Plus Award Fee structure incentivizes high performance and successful project outcomes.
The contract is with Accenture Federal Services, a well-established entity with significant experience in federal IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The market for federal IT services is vast and highly competitive, with numerous large and small businesses vying for government contracts. This award to Accenture Federal Services for CASTLE-NET services aligns with the government's ongoing efforts to modernize its technological infrastructure and ensure the efficient operation of its IT systems.

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 mandated by a set-aside. However, the prime contractor, Accenture Federal Services, may still engage small businesses as subcontractors to fulfill specific requirements of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. The Cost Plus Award Fee structure necessitates close monitoring of performance metrics to ensure the contractor meets objectives and earns the award fee. Transparency will depend on GSA's reporting practices and any Inspector General involvement for audits or investigations.

Related Government Programs

IT Modernization Programs
Cloud Computing Services
Cybersecurity Services
Enterprise Resource Planning (ERP) Systems
IT Lifecycle Management

Risk Flags

Potential for cost growth under CPAF if performance metrics are not tightly managed.
Scope creep risk due to the broad nature of 'Computer Systems Design Services'.
Over-reliance on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $151.9 million to ACCENTURE FEDERAL SERVICES LLC. CYBER AUTOMATION SYSTEMS TECHNOLOGY AND LIFECYCLE ENTERPRISE NETWORK (CASTLE-NET) SERVICES TASK ORDER AWARD.

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $151.9 million.

What is the period of performance?

Start: 2026-02-26. End: 2027-02-25.

What is Accenture Federal Services' track record with similar IT systems design contracts awarded by GSA?

Accenture Federal Services has a substantial history of performing IT systems design and related services for various federal agencies, including GSA. Their track record typically involves large-scale IT modernization, system integration, and digital transformation projects. While specific performance data for every contract is not publicly detailed, their consistent win rate and the scale of contracts they secure suggest a generally positive performance history. However, a deeper dive into past performance reviews, any past performance issues, or contract disputes would be necessary for a comprehensive assessment. GSA's contract award data and past performance databases would be the primary sources for this information.

How does the $151.9 million value compare to other IT systems design contracts of similar duration?

The $151.9 million award for a 364-day contract period for Computer Systems Design Services is a significant sum, indicating a complex and comprehensive scope of work. Benchmarking this against similar contracts requires access to a detailed database of federal IT procurements. Generally, contracts of this magnitude for a one-year period suggest a high level of service, potentially involving enterprise-wide system design, integration, and significant project management. Smaller, more focused IT design tasks might range from a few million to tens of millions, while large-scale, multi-year enterprise transformations could run into hundreds of millions or billions. This award appears to be on the higher end for a single-year task order, suggesting a critical or extensive IT initiative.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract type for IT services?

The primary risks associated with a CPAF contract for IT services revolve around cost control and defining objective performance metrics. While CPAF incentivizes performance by allowing for award fees based on meeting or exceeding criteria, it can also lead to potential cost growth if the base fee is high or if the award fee criteria are not rigorously defined and monitored. Contractors may focus on achieving award fee targets that might not align perfectly with the most critical long-term project goals. For the government, effective oversight is crucial to ensure that the award fee is truly earned and that the overall cost remains reasonable and justified by the performance achieved. There's also a risk of disputes over the evaluation of performance and the determination of the award fee.

How does the 'Computer Systems Design Services' NAICS code (541512) scope typically translate to federal IT needs?

The NAICS code 541512, 'Computer Systems Design Services,' encompasses a broad range of IT activities. This typically includes designing and developing, or modifying, computer systems. This can involve software and hardware integration, IT infrastructure design, network architecture, and consulting services related to IT systems. For federal agencies, this often translates to needs such as designing new IT systems to meet specific mission requirements, upgrading existing infrastructure, integrating disparate systems, planning and implementing network solutions, and providing expert advice on technology adoption. The 'CASTLE-NET' designation suggests a focus on network-centric systems and potentially secure communication or operational IT environments.

What does the 'Delivery Order' (aw) status imply about the contract's structure and funding?

The 'Delivery Order' status indicates that this is a task order awarded under a larger, pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This means the foundational contract was already established, likely through a competitive process, and this specific order represents a defined scope of work with a specific value and period of performance. Funding is allocated for this particular task order. This structure allows agencies to procure services more efficiently as needed, rather than conducting a full procurement for each individual requirement. The 'aw' likely signifies 'Awarded'.

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: 47QFCA25R0014

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

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: $1,418,622,686

Exercised Options: $248,331,829

Current Obligation: $151,939,116

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0036

IDV Type: GWAC

Timeline