DHS awards $48M for IT support, with Accenture Federal Services securing a significant portion

Contract Overview

Contract Amount: $47,985,207 ($48.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-05-11

End Date: 2022-05-11

Contract Duration: 730 days

Daily Burn Rate: $65.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FLEXIBLE AGILE SCALABLE TEAM-ENTERPRISE SUPPORT PORTFOLIO

Place of Performance

Location: ARLINGTON, LOUDOUN County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $48.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: FLEXIBLE AGILE SCALABLE TEAM-ENTERPRISE SUPPORT PORTFOLIO Key points: 1. Contract value represents a substantial investment in IT support services. 2. Accenture Federal Services is a major player in the federal IT contracting space. 3. The contract duration of two years suggests a need for ongoing, stable support. 4. The fixed-price nature of the contract aims to control costs for the government. 5. This award falls within the broad category of computer systems design services.

Value Assessment

Rating: good

The total award of $47.9 million over two years for computer systems design services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for agencies like DHS suggests that pricing is competitive. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value. However, a more granular analysis of the specific services delivered and their associated costs would be needed for a definitive value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The presence of 10 bidders suggests a healthy level of competition for this significant IT support requirement. A competitive bidding process generally leads to better price discovery and encourages contractors to offer their best value propositions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices and ensures the government receives high-quality services at a fair market rate.

Public Impact

The Department of Homeland Security, specifically the Transportation Security Administration, benefits from enhanced IT support. Services delivered likely include system design, integration, and maintenance to support TSA's critical functions. The contract's impact is primarily within Virginia, where the contractor is based. The award supports a workforce skilled in computer systems design and IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competed.
Reliance on a single large contractor for critical IT infrastructure.
Scope creep could lead to cost overruns despite fixed-price structure.

Positive Signals

Awarded through full and open competition, ensuring broad market participation.
Firm-fixed-price contract provides cost predictability.
Accenture Federal Services has a strong track record in government contracting.
The contract duration suggests a stable, long-term need being met.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The federal IT services market is vast, with agencies consistently investing in modernizing and maintaining their technological infrastructure. This award to Accenture Federal Services for TSA aligns with broader government trends of outsourcing complex IT functions to specialized firms to leverage expertise and manage costs effectively. Comparable spending benchmarks for similar IT support contracts across federal agencies often run into tens or hundreds of millions of dollars annually.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Accenture Federal Services, may engage small businesses for subcontracting opportunities. The extent of small business participation will depend on Accenture's subcontracting plan and the specific requirements of the IT support services. A robust subcontracting plan could provide valuable opportunities for small businesses within the federal IT ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Transportation Security Administration. Performance metrics and deliverables outlined in the contract serve as accountability measures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IT Services
Computer Systems Design
Department of Homeland Security Contracts
Transportation Security Administration IT Support
Accenture Federal Services Contracts

Risk Flags

Potential for scope creep
Reliance on incumbent contractor
Cybersecurity vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $48.0 million to ACCENTURE FEDERAL SERVICES LLC. FLEXIBLE AGILE SCALABLE TEAM-ENTERPRISE SUPPORT PORTFOLIO

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 $48.0 million.

What is the period of performance?

Start: 2020-05-11. End: 2022-05-11.

What is Accenture Federal Services' track record with the Department of Homeland Security and TSA?

Accenture Federal Services has a significant history of contracting with the Department of Homeland Security (DHS) and its various components, including the Transportation Security Administration (TSA). Their portfolio includes a wide range of services, from IT modernization and cybersecurity to program management and financial systems support. For TSA specifically, Accenture has been involved in projects related to passenger screening technology, data analytics, and enterprise IT infrastructure. Their extensive experience suggests a deep understanding of TSA's operational needs and the federal procurement landscape. Analyzing past performance reviews and contract modifications would provide further insight into their reliability and effectiveness in delivering on similar requirements.

How does the $47.9 million award compare to historical IT spending by TSA?

The $47.9 million award for computer systems design services represents a notable investment in TSA's IT infrastructure. To contextualize this, historical spending data for TSA's IT programs would need to be examined. TSA, like many large federal agencies, dedicates substantial resources to maintaining and upgrading its complex technological systems, which are critical for national security and transportation facilitation. Annual IT spending can fluctuate based on modernization initiatives, cybersecurity needs, and operational demands. This specific award, covering a two-year period, should be compared against TSA's average annual IT budget and spending on similar service categories over the past five to ten years to determine if it represents an increase, decrease, or consistent level of investment.

What are the primary risks associated with this contract for the government?

Key risks for the government in this contract include potential cost overruns if the scope is not tightly managed, despite the firm-fixed-price structure. There's also a risk of vendor lock-in, where TSA becomes overly reliant on Accenture's specific expertise, potentially hindering future competition or flexibility. Performance risk is another concern; if Accenture fails to deliver the required IT support effectively, it could disrupt TSA's operations. Furthermore, cybersecurity risks are inherent in any IT contract, requiring robust security protocols and monitoring to prevent data breaches or system vulnerabilities. Ensuring adequate knowledge transfer and documentation is crucial to mitigate risks associated with personnel turnover or contract transitions.

What specific IT services are encompassed by 'Computer Systems Design Services' in this context?

In the context of this contract, 'Computer Systems Design Services' (NAICS code 541512) likely encompasses a broad range of activities critical to TSA's IT operations. This typically includes designing and developing custom computer systems, integrating hardware and software products, and providing IT consulting services. Specific tasks could involve requirements analysis, system architecture design, software development and implementation, network design, database management, and IT infrastructure planning. It may also extend to system maintenance, upgrades, and technical support to ensure the smooth functioning of TSA's various IT platforms, from passenger data systems to internal operational tools.

What is the significance of the contract being 'Firm Fixed Price'?

A 'Firm Fixed Price' (FFP) contract type is significant because it places the primary risk of cost overruns on the contractor, Accenture Federal Services. Under an FFP contract, the price is set and not subject to adjustment unless the contract scope is formally changed through a modification. This provides the government, in this case TSA, with maximum cost certainty and predictability. It incentivizes the contractor to manage its costs efficiently and to perform the work within the agreed-upon budget. For taxpayers, this contract type is generally favorable as it protects against unexpected increases in the cost of services, assuming the initial price was set appropriately based on a well-defined scope.

How does the number of bidders (10) impact the value received by the government?

Having 10 bidders for this contract is a strong positive signal regarding competition. A larger number of bidders typically indicates a more competitive marketplace for the services required. This increased competition generally drives down prices as contractors vie for the award, leading to better value for the government. It also increases the likelihood that the government will receive innovative solutions and high-quality service offerings, as contractors are motivated to differentiate themselves. For taxpayers, robust competition means their funds are more likely to be used efficiently, securing necessary services at a fair market price.

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: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company

Address: 800 NORTH GLEBE RD #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: $48,000,000

Exercised Options: $47,985,207

Current Obligation: $47,985,207

Subaward Activity

Number of Subawards: 176

Total Subaward Amount: $16,211,757

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0036

IDV Type: GWAC

Timeline