DHS awards $138M for credentialing system maintenance, with Accenture Federal Services as prime

Contract Overview

Contract Amount: $138,296,680 ($138.3M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-12-07

End Date: 2026-12-06

Contract Duration: 1,825 days

Daily Burn Rate: $75.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THE PURPOSE OF THIS ORDER IS TO PROVIDE ADAPTIVE MAINTENANCE SERVICES LIMITED TIER 2 SUPPORT SERVICES AND TIER 3 SUPPORT SERVICES FOR TECHNOLOGY SOLUTIONS DIVISION'S CREDENTIALING SYSTEMS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $138.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: THE PURPOSE OF THIS ORDER IS TO PROVIDE ADAPTIVE MAINTENANCE SERVICES LIMITED TIER 2 SUPPORT SERVICES AND TIER 3 SUPPORT SERVICES FOR TECHNOLOGY SOLUTIONS DIVISION'S CREDENTIALING SYSTEMS. Key points: 1. Contract focuses on adaptive maintenance and tiered support for critical credentialing systems. 2. The duration of the contract spans five years, indicating a long-term need for these services. 3. The award was made under full and open competition, suggesting a robust bidding process. 4. The primary service falls under Computer Systems Design Services, a key IT support category. 5. The contract is a Delivery Order, suggesting it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) vehicle. 6. The vendor, Accenture Federal Services, is a significant player in the federal IT services market.

Value Assessment

Rating: good

The total contract value of $138.3 million over five years averages to approximately $27.6 million annually. Benchmarking this against similar IT maintenance and support contracts for large-scale government systems requires detailed comparison of scope and complexity. However, the pricing appears within a reasonable range for comprehensive support of critical systems, especially considering the adaptive maintenance component which implies ongoing development and updates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the evaluation process would provide further insight into the quality of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

Benefits Department of Homeland Security (DHS) and its Transportation Security Administration (TSA) by ensuring the operational integrity of credentialing systems. Delivers essential adaptive maintenance and tiered support services for technology solutions. Supports the secure and efficient processing of credentials, impacting national security and traveler experience. Maintains the functionality of systems crucial for identifying and vetting individuals. The services are primarily delivered in Virginia, indicating a concentration of IT support operations in that region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if adaptive maintenance leads to proprietary system knowledge.
Reliance on a single vendor for critical system support could pose risks if performance degrades.
The complexity of adaptive maintenance may lead to scope creep if not managed tightly.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Long-term contract duration (5 years) provides stability for system support and planning.
Accenture Federal Services is an established contractor with a track record in government IT services.

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, system integration, and IT support. Spending in this area is driven by the government's continuous need to modernize and maintain its complex technological infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT support and maintenance contracts awarded by agencies like DHS, DoD, and GSA.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major federal contractor, there may be opportunities for small businesses to participate as subcontractors. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem is unclear. Further analysis of subcontracting reports would be necessary to assess the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Transportation Security Administration. The contract's performance would be monitored against established service level agreements (SLAs) and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

DHS Credentialing Systems Support
Federal IT Maintenance Contracts
Computer Systems Design Services
TSA Technology Support
Adaptive Maintenance Services

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical systems
Complexity of adaptive maintenance scope management

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $138.3 million to ACCENTURE FEDERAL SERVICES LLC. THE PURPOSE OF THIS ORDER IS TO PROVIDE ADAPTIVE MAINTENANCE SERVICES LIMITED TIER 2 SUPPORT SERVICES AND TIER 3 SUPPORT SERVICES FOR TECHNOLOGY SOLUTIONS DIVISION'S CREDENTIALING SYSTEMS.

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 $138.3 million.

What is the period of performance?

Start: 2021-12-07. End: 2026-12-06.

What is the track record of Accenture Federal Services in delivering similar adaptive maintenance and support services to the federal government?

Accenture Federal Services (AFS) has a substantial track record in providing IT services, including system maintenance, modernization, and support, to various federal agencies. They are frequently awarded large contracts for complex IT solutions. For adaptive maintenance, AFS's experience would likely involve managing system updates, bug fixes, performance enhancements, and ensuring compatibility with evolving technological landscapes and security requirements. Their past performance on similar contracts, particularly those involving critical infrastructure or sensitive data systems, would be a key indicator of their capability. Agencies often evaluate a contractor's history of meeting deadlines, staying within budget, and delivering quality technical solutions when assessing their suitability for such long-term, critical support roles. Specific details on past performance metrics for similar contracts would be found in agency performance evaluations and contract award histories.

How does the annual cost of this contract compare to similar IT support contracts for large-scale government systems?

The annual cost for this contract averages approximately $27.6 million ($138.3M / 5 years). To benchmark this effectively, one would need to compare it against contracts for similar services (adaptive maintenance, Tier 2/3 support) for comparable systems (e.g., large-scale credentialing, identity management, or critical IT infrastructure) within DHS or other federal agencies. Factors influencing cost include the complexity of the systems, the number of users, the required uptime, security mandates, and the scope of adaptive maintenance (e.g., frequency and depth of updates). Contracts for less complex systems or those with less stringent uptime requirements might cost significantly less, while contracts for highly specialized or mission-critical systems could be higher. Without specific comparable contract data, it's difficult to definitively state if $27.6M annually is high or low, but it appears within a plausible range for comprehensive support of a significant government IT system.

What are the primary risks associated with relying on a single vendor for adaptive maintenance of critical credentialing systems?

The primary risks of relying on a single vendor, such as Accenture Federal Services in this case, for adaptive maintenance of critical credentialing systems include vendor lock-in, potential for reduced innovation, and increased vulnerability if the vendor's performance declines or they face financial instability. Vendor lock-in can occur if the vendor develops unique expertise or proprietary tools essential for system maintenance, making it difficult and costly to switch providers. This can also stifle innovation if the vendor is not incentivized to explore new solutions. Performance degradation is a risk, as is the potential for the vendor to experience financial difficulties or strategic shifts that impact their ability to deliver services. Furthermore, a single point of failure exists; if the vendor experiences a major outage or security breach, the impact on the credentialing systems could be severe. Robust contract management, clear performance metrics, and contingency planning are crucial to mitigate these risks.

How effective are adaptive maintenance strategies in ensuring the long-term viability and security of government IT systems like credentialing platforms?

Adaptive maintenance strategies are generally considered effective for ensuring the long-term viability and security of government IT systems, especially in dynamic environments. Unlike traditional corrective or perfective maintenance, adaptive maintenance focuses on modifying the system to cope with changes in its external environment, such as new operating systems, hardware, regulations, or security threats. For credentialing systems, this means the platform can continue to function securely and efficiently as technology evolves and new security vulnerabilities emerge. This proactive approach helps prevent system obsolescence and reduces the risk of security breaches stemming from outdated software or configurations. By continuously updating and adjusting the system, adaptive maintenance helps maintain its relevance, performance, and compliance with current standards, thereby enhancing its overall long-term viability and security posture.

What has been the historical spending trend for credentialing system maintenance and support within DHS or TSA?

Analyzing historical spending trends for credentialing system maintenance and support within DHS or TSA would require access to detailed budget and contract databases over several fiscal years. This specific contract, valued at $138.3 million over five years, represents a significant investment. Understanding past spending would involve looking at previous contracts for similar services, identifying whether the scope has expanded or contracted, and assessing if costs have increased or decreased over time. Trends might indicate a growing reliance on these systems, increased complexity, or shifts in technology requiring more adaptive maintenance. A consistent or increasing spending pattern could suggest a growing need or escalating costs, while a decreasing trend might point to system consolidation or improved efficiency. Without specific historical data, it's difficult to establish a trend, but the current award suggests a substantial and ongoing commitment to these systems.

What are the potential implications of this contract on the broader IT services market, particularly for competitors of Accenture Federal Services?

This contract award to Accenture Federal Services (AFS) has several implications for the broader IT services market and AFS's competitors. Firstly, it reinforces AFS's position as a major player in the federal IT services sector, particularly within DHS and for large-scale system support. Competitors vying for similar contracts will face a strong incumbent in future procurements, potentially making it harder to win. Secondly, the full and open competition aspect means that other large IT service providers (e.g., Leidos, Booz Allen Hamilton, SAIC, IBM) had the opportunity to bid, indicating a competitive landscape. The success of AFS may prompt competitors to refine their offerings, pricing strategies, and demonstrate unique value propositions, especially in areas like adaptive maintenance and cybersecurity for critical government systems. It also highlights the ongoing demand for comprehensive IT support services within federal agencies, signaling opportunities for companies specializing in niche areas or offering innovative solutions.

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

Solicitation ID: 70T02019F6KOIA029

Offers Received: 2

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: $184,674,789

Exercised Options: $138,296,680

Current Obligation: $138,296,680

Actual Outlays: $100,169,331

Subaward Activity

Number of Subawards: 273

Total Subaward Amount: $55,257,471

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0036

IDV Type: GWAC

Timeline