DHS awards $45.7M for TSA Secure Flight application development and support to Accenture Federal Services

Contract Overview

Contract Amount: $45,705,504 ($45.7M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-11-29

End Date: 2021-09-25

Contract Duration: 1,396 days

Daily Burn Rate: $32.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THIS IS AWARD OF HYBRID (FIRM-FIXED-PRICE AND TIME AND MATERIALS) TASK ORDER FOR TSA SECURE FLIGHT APPLICATION DEVELOPMENT AND TIER 3 SUPPORT SERVICES.

Place of Performance

Location: ANNAPOLIS JUNCTION, HOWARD County, MARYLAND, 20701

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $45.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: THIS IS AWARD OF HYBRID (FIRM-FIXED-PRICE AND TIME AND MATERIALS) TASK ORDER FOR TSA SECURE FLIGHT APPLICATION DEVELOPMENT AND TIER 3 SUPPORT SERVICES. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Task order includes application development and Tier 3 support, indicating a broad scope of IT services. 3. The contract duration of 1396 days spans over three years, allowing for sustained development and support. 4. Hybrid contract type (firm-fixed-price and time and materials) may introduce cost variability. 5. The award is for Computer Systems Design Services, a common category for IT development contracts. 6. Small business set-aside was not utilized, indicating the primary contractor is likely a large business.

Value Assessment

Rating: fair

The total award amount of $45.7 million over approximately 3.8 years averages to about $12 million annually. Benchmarking this against similar large-scale application development and support contracts within federal agencies is challenging without more specific service details. The use of Time and Materials (T&M) for a portion of the contract introduces potential for cost overruns if not closely managed, which warrants a 'fair' rating. However, the firm-fixed-price component suggests some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates six bidders participated in the competition. A competitive process with multiple bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition with six bidders suggests that taxpayers likely benefited from a competitive pricing environment, potentially leading to cost savings compared to a sole-source or limited competition award.

Public Impact

The Transportation Security Administration (TSA) benefits from enhanced application development and critical Tier 3 support for its Secure Flight program. Improved functionality and reliability of the Secure Flight application are expected, contributing to aviation security. The contract supports IT professionals and developers, potentially impacting the workforce in the Maryland region where the contractor is based. The Secure Flight program aims to identify potential threats by comparing passenger information against watchlists, thus enhancing national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) portion of the hybrid contract introduces a risk of cost escalation if not meticulously monitored and controlled.
The broad scope of application development and support could lead to scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical application development and support may pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition with six bidders, indicating a robust and competitive selection process.
The contract duration of nearly four years allows for sustained development, integration, and support, promoting stability.
The hybrid contract structure (FFP and T&M) allows for flexibility in addressing evolving development needs while maintaining some cost control.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide range of services, including custom software development, IT integration, and technical support. Spending in this area is crucial for agencies to modernize systems, enhance cybersecurity, and improve operational efficiency. The federal government consistently invests billions annually in IT services, with a substantial portion allocated to application development and maintenance.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no explicit mention of subcontracting goals for small businesses in the provided data. This suggests that the primary contract is likely held by a large business, and the direct impact on the small business ecosystem may be limited unless Accenture Federal Services actively engages small businesses as subcontractors for specialized services.

Oversight & Accountability

Oversight for this task order would typically fall under the Department of Homeland Security's contracting and program management offices, with specific oversight by the Transportation Security Administration. The contract's duration and hybrid nature necessitate diligent performance monitoring, financial tracking, and adherence to contract terms. Inspector General reviews may occur periodically to ensure compliance and identify any potential waste, fraud, or abuse.

Related Government Programs

TSA Secure Flight Program
Department of Homeland Security IT Modernization Efforts
Federal Aviation Administration (FAA) IT Contracts
Custom Software Development Services
IT Support Services

Risk Flags

Potential for cost overruns due to Time and Materials component
Scope creep risk in application development
Dependence on a single contractor for critical system support

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $45.7 million to ACCENTURE FEDERAL SERVICES LLC. THIS IS AWARD OF HYBRID (FIRM-FIXED-PRICE AND TIME AND MATERIALS) TASK ORDER FOR TSA SECURE FLIGHT APPLICATION DEVELOPMENT AND TIER 3 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 Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $45.7 million.

What is the period of performance?

Start: 2017-11-29. End: 2021-09-25.

What is the historical spending pattern for TSA Secure Flight application development and support?

Without access to historical contract data specifically for the TSA Secure Flight application development and support prior to this award, it's difficult to establish a precise spending pattern. However, the Secure Flight program itself has been operational for many years, implying ongoing investment in its technology infrastructure. Federal IT spending, in general, has seen a consistent upward trend, driven by modernization needs, cybersecurity imperatives, and the expansion of digital services. Agencies like DHS and its components, such as TSA, typically allocate significant portions of their budgets to maintaining and enhancing critical systems like Secure Flight. This $45.7 million award over nearly four years suggests a substantial, but potentially consistent, level of investment for this specific function within the broader TSA IT portfolio.

How does the per-unit cost of this contract compare to similar federal IT development contracts?

Determining a precise per-unit cost for comparison is challenging without granular data on the specific services delivered (e.g., hours of development, specific support functions performed, number of users supported). The total award of $45.7 million over 1396 days averages to approximately $32,740 per day. When comparing this to other federal IT development and support contracts, it appears to be within a reasonable range for complex, mission-critical systems. However, the 'fair' value assessment is influenced by the hybrid contract type (FFP and T&M), which can lead to variability. A more accurate benchmark would require comparing specific labor categories, overhead rates, and the complexity of the application being developed and supported against similar contracts awarded by agencies like the FBI, Customs and Border Protection, or other components within DHS.

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

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific task order. However, for IT application development and support contracts of this nature, typical KPIs would likely include metrics related to application uptime and availability, system performance (e.g., response times), defect resolution rates, security vulnerability patching timelines, user satisfaction, and adherence to project milestones for development phases. For Tier 3 support, metrics such as average ticket resolution time, first-call resolution rate, and escalation management effectiveness would be crucial. The success of the Secure Flight application in accurately processing passenger data and contributing to security objectives would be the ultimate measure.

What is Accenture Federal Services' track record with similar large-scale federal IT contracts?

Accenture Federal Services (AFS) has a significant track record of performing large-scale IT contracts for various federal agencies. They are a major player in the federal IT services market, often winning contracts for complex system modernization, cloud migration, application development, and enterprise resource planning (ERP) implementations. Their past performance includes work with agencies such as the Department of Defense, IRS, and Health and Human Services. While specific details of past performance on contracts directly comparable to TSA Secure Flight are not provided here, AFS generally possesses the resources, expertise, and experience to handle such demanding engagements. However, as with any large contractor, past performance reviews and specific contract outcomes can vary.

What are the potential risks associated with the Time and Materials (T&M) component of this contract?

The primary risk associated with the Time and Materials (T&M) component of this hybrid contract is the potential for cost overruns. Unlike Firm-Fixed-Price (FFP) contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure can lead to increased costs if the project scope expands, if labor hours are not efficiently utilized, or if material costs escalate unexpectedly. Without robust oversight, detailed tracking of hours, and clear definition of 'materials,' the government may end up paying more than initially anticipated. Effective management requires stringent monitoring of labor hours, regular reviews of invoices, and clear communication to control scope and prevent inefficiencies.

How does this contract align with the Department of Homeland Security's broader IT modernization goals?

This contract directly supports the Department of Homeland Security's (DHS) broader IT modernization goals by ensuring the continued development and robust support of the Secure Flight application. Secure Flight is a critical component of national security, and its effective functioning relies on up-to-date technology and reliable support. Modernizing such systems involves not only enhancing current capabilities but also ensuring they can adapt to evolving threats and technological advancements. By awarding this contract, DHS is investing in the sustainment and potential enhancement of a key security system, which aligns with the overarching objective of maintaining a secure and efficient homeland.

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: 6

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: $65,041,501

Exercised Options: $45,705,504

Current Obligation: $45,705,504

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $22,753,888

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC14DE2005

IDV Type: IDC

Timeline