CBP's $226.5M Data Center Support Services contract awarded to Accenture Federal Services LLC

Contract Overview

Contract Amount: $226,514,395 ($226.5M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-01-25

End Date: 2026-04-24

Contract Duration: 1,185 days

Daily Burn Rate: $191.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CBP'S DATA CENTER SUPPORT SERVICES (DCSS).

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $226.5 million to ACCENTURE FEDERAL SERVICES LLC for work described as: CBP'S DATA CENTER SUPPORT SERVICES (DCSS). Key points: 1. This contract represents a significant investment in critical IT infrastructure for U.S. Customs and Border Protection. 2. The duration of the contract, over three years, suggests a need for sustained data center operations and support. 3. The award was made under full and open competition, indicating a potentially competitive bidding process. 4. The nature of the services, Computer Systems Design Services, points to the complexity of managing and maintaining large-scale data systems. 5. The contract's value places it among substantial IT service procurements within the federal government. 6. The use of Labor Hours pricing may require careful monitoring to ensure cost efficiency and prevent scope creep.

Value Assessment

Rating: good

The contract value of approximately $226.5 million over its period of performance suggests a substantial investment in data center support. Benchmarking this against similar large-scale IT service contracts for federal agencies reveals it to be within a typical range for comprehensive data center operations and design services. The use of 'Labor Hours' as the pricing mechanism necessitates diligent oversight to ensure that the hours billed are reasonable and directly contribute to the defined scope of work, thereby maximizing value for money. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive award process provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'Full and Open Competition' procurement strategy. This approach typically involves soliciting bids from all responsible sources, allowing for the widest possible range of potential contractors to participate. The number of bidders is not specified in the provided data, but the full and open nature suggests that multiple companies likely vied for this significant contract. This level of competition is generally expected to drive down prices and encourage innovative solutions as contractors strive to offer the most compelling proposal.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing. It ensures that the government is not limited to a select few providers, increasing the likelihood of securing services at a fair market value.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) personnel who rely on robust data center services for their daily operations. The contract ensures the continued availability and performance of critical IT infrastructure supporting CBP's mission. Services delivered include computer systems design and support, vital for managing vast amounts of data related to border security and trade. The geographic impact is primarily within the operational sphere of CBP, likely supporting facilities and personnel across the nation and potentially at borders. Workforce implications include the potential for direct employment by Accenture Federal Services LLC and its subcontractors, as well as indirect support for CBP's IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not managed effectively.
Dependence on a single contractor for critical data center infrastructure.
Risk of vendor lock-in if transition to a new provider is complex.
Ensuring continued innovation and adaptation to evolving technology.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contract duration indicates a stable, long-term need for these services.
Accenture Federal Services LLC is a large, established federal contractor with significant IT experience.
The contract supports a critical national security mission for CBP.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies increasingly relying on contractors for specialized support in areas like data center operations, cloud migration, and cybersecurity. This contract falls within the Computer Systems Design Services category (NAICS 541512), a segment characterized by complex project management, system integration, and ongoing maintenance. The total federal spending on IT services runs into the hundreds of billions annually, with agencies like Homeland Security being major consumers. This specific contract, valued at over $226 million, represents a significant portion of CBP's IT infrastructure budget, aiming to ensure the reliability and efficiency of its data management capabilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value IT services contract awarded through full and open competition, it is unlikely to have specific small business set-aside requirements. However, large prime contractors like Accenture Federal Services LLC are often required to meet subcontracting goals for small businesses. The extent to which this contract will involve subcontracting to small businesses, and the specific types of services they might provide, would need further investigation to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection (CBP) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Given the nature of the services and the agency, it is likely that the Department of Homeland Security's Office of Inspector General (OIG) may also conduct audits or investigations into the contract's performance and financial management. Transparency is typically managed through contract reporting mechanisms and public contract databases, though detailed operational data may be sensitive.

Related Government Programs

Department of Homeland Security IT Modernization Initiatives
Federal Data Center Consolidation Initiative
CBP Cloud Migration Efforts
IT Infrastructure Support Services
Computer Systems Design Services

Risk Flags

Potential for cost overruns due to Labor Hours pricing.
Need for strong contract oversight to ensure efficiency.
Dependence on contractor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $226.5 million to ACCENTURE FEDERAL SERVICES LLC. CBP'S DATA CENTER SUPPORT SERVICES (DCSS).

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $226.5 million.

What is the period of performance?

Start: 2023-01-25. End: 2026-04-24.

What is Accenture Federal Services LLC's track record with similar large-scale IT infrastructure contracts for federal agencies, particularly within DHS?

Accenture Federal Services LLC has a substantial track record of performing large-scale IT infrastructure and systems integration contracts for various federal agencies, including the Department of Homeland Security (DHS). They are known for their expertise in areas such as cloud computing, data analytics, cybersecurity, and IT modernization. For DHS specifically, Accenture has been involved in numerous projects aimed at enhancing operational capabilities and improving IT systems. Their experience often includes managing complex, multi-year engagements with significant budgets, similar to the CBP Data Center Support Services contract. A review of their past performance on contracts of comparable size and scope would reveal their ability to deliver on complex technical requirements, manage project timelines, and adhere to budgetary constraints. Publicly available contract databases and agency performance reports can offer insights into their historical success rates and any past performance issues.

How does the per-hour labor rate for this contract compare to market rates for similar IT support services?

Determining the precise per-hour labor rate for this contract is challenging without access to the specific CLINs (Contract Line Item Numbers) and the associated rates within the contract. The data indicates 'Labor Hours' (pt: LABOR HOURS) as the pricing type, meaning payment is based on the time spent by personnel. Federal contracts often have detailed rate structures for different labor categories (e.g., senior engineer, junior technician). To benchmark these rates against market standards, one would typically compare them to industry surveys (like those from professional organizations or consulting firms) for similar IT support and systems design services in the Washington D.C. metropolitan area, where many federal IT contracts are executed. Additionally, comparing these rates to those on other government contracts for similar services, especially those awarded under full and open competition, can provide valuable context. If the rates are significantly higher than market averages or comparable government contracts, it could indicate potential value-for-money concerns.

What are the key performance indicators (KPIs) used to measure the success of this Data Center Support Services contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a Data Center Support Services contract, typical KPIs would likely focus on system availability and uptime (e.g., 99.99% uptime for critical systems), response times for service requests and incident resolution, data security compliance (adherence to NIST, FISMA, etc.), disaster recovery and business continuity plan effectiveness, and successful completion of system upgrades or maintenance tasks within defined schedules. Performance would also be assessed based on the contractor's ability to manage resources efficiently, control costs, and provide qualified personnel. CBP's program managers and contracting officers would be responsible for establishing, monitoring, and evaluating these KPIs throughout the contract's performance period, often documented in performance work statements and quality assurance surveillance plans.

What is the historical spending pattern for data center support services by U.S. Customs and Border Protection over the last five years?

To analyze the historical spending pattern for data center support services by U.S. Customs and Border Protection (CBP) over the last five years, one would need to access federal procurement databases such as FPDS-NG or USAspending.gov. This analysis would involve searching for contracts awarded by CBP with relevant NAICS codes (like 541512 for Computer Systems Design Services) or keywords related to data center operations, IT infrastructure, and systems support. The goal would be to aggregate the total spending on these types of services year-over-year. This would reveal trends in CBP's investment in data center capabilities, identify major contracts and their durations, and highlight any significant increases or decreases in spending. Such a pattern could indicate shifts in strategy, such as a move towards cloud services, consolidation of data centers, or increased demand for data processing and storage.

What are the potential risks associated with the 'Labor Hours' pricing model for this contract, and how are they mitigated?

The primary risk associated with a 'Labor Hours' pricing model is the potential for cost overruns if the contractor bills for excessive hours or if the scope of work expands without adequate control. This model can incentivize longer task completion times rather than efficiency. Mitigation strategies employed by the government typically include robust oversight by contracting officers and technical monitors, detailed work breakdown structures, clear task orders with defined objectives, and regular progress reviews. Establishing ceilings on the total hours or costs, requiring detailed timesheets and justifications for hours worked, and implementing performance metrics tied to efficiency can also help mitigate these risks. Furthermore, the government often reserves the right to audit contractor records to ensure accuracy and reasonableness of billed hours.

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 › IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B04C23Q00000001

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $379,896,250

Exercised Options: $226,514,395

Current Obligation: $226,514,395

Actual Outlays: $181,514,316

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $123,129,481

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0036

IDV Type: GWAC

Timeline