HHS awards Accenture $13.7M for No Surprises Help Desk services, extending through March 2027

Contract Overview

Contract Amount: $13,733,274 ($13.7M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-02-19

End Date: 2027-03-18

Contract Duration: 757 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY SERVICES, QUALIFIED PERSONNEL, MATERIAL, EQUIPMENT, AND FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT, FOR THE NO SURPRISES HELP DESK. THE FUNCTION OF THE MULTI-TIERED STAFFED HELP DESK IS TO RECE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY SERVICES, QUALIFIED PERSONNEL, MATERIAL, EQUIPMENT, AND FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT, FOR THE NO SURPRISES HELP DESK. THE FUNCTION OF THE MULTI-TIERED STAFFED HELP DESK IS TO RECE Key points: 1. Contract value of $13.7M over approximately 2.5 years suggests a moderate investment in essential support services. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The firm-fixed-price contract type shifts cost risk to the contractor, incentivizing efficient service delivery. 4. Accenture Federal Services LLC, a large established contractor, will provide these services. 5. The services are categorized under Computer Systems Design Services, a common area for federal IT support. 6. The contract duration of 757 days (approx. 2.5 years) provides a stable period for service continuity.

Value Assessment

Rating: good

The contract's value of $13.7M for a 2.5-year help desk service is within a reasonable range for federal IT support contracts. Benchmarking against similar multi-tiered help desk services for large agencies like CMS suggests this pricing is competitive. The firm-fixed-price structure further supports value by ensuring predictable costs for the government, provided the contractor manages their expenses effectively. Without specific per-unit metrics, a precise value-for-money assessment is challenging, but the overall contract size appears aligned with the scope of services described.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 7 bidders (as indicated by 'no': 7) suggests a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The government received multiple proposals, allowing for a thorough evaluation of technical capabilities and pricing.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to offer the best value. This process helps drive down costs and improve the quality of services received by the government.

Public Impact

The primary beneficiaries are the Centers for Medicare and Medicaid Services (CMS) and potentially other entities within the Department of Health and Human Services (HHS) requiring help desk support. The services delivered include the operation of a multi-tiered staffed help desk to address inquiries and provide technical assistance. The geographic impact is primarily within the United States, supporting federal operations, though the specific location of service delivery is not detailed. The contract supports a workforce of qualified personnel necessary for the operation and maintenance of the help desk services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition planning is not robust at contract end.
Reliance on a single large contractor for critical help desk functions could pose a risk if performance degrades.
The complexity of 'No Surprises' related inquiries may require specialized training and ongoing updates for help desk staff.

Positive Signals

Accenture Federal Services is a well-established contractor with significant experience in government IT services.
The firm-fixed-price contract type incentivizes contractor efficiency and cost control.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The contract duration provides stability for service delivery and user support.

Sector Analysis

This contract falls within the broader IT services sector, specifically Computer Systems Design Services. The federal IT services market is substantial, with agencies like HHS being major spenders. This contract supports a critical operational function for CMS, ensuring smooth functioning of internal systems and user support. Comparable spending benchmarks for similar help desk and IT support contracts within large federal agencies often range from several million to tens of millions of dollars annually, depending on scope and complexity.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular award. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, as a large prime contractor, Accenture Federal Services may still engage small businesses as subcontractors to fulfill certain aspects of the contract, though this is not explicitly detailed in the provided data. The absence of a set-aside means the primary competition was open to all, potentially limiting direct opportunities for small businesses to prime this specific contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are reported. While no specific Inspector General jurisdiction is mentioned, the HHS Office of Inspector General (OIG) has broad authority to investigate fraud, waste, and abuse within the department.

Related Government Programs

HHS IT Support Services
CMS Help Desk Operations
Federal Customer Support Contracts
Computer Systems Design Services
Accenture Federal Services Contracts

Risk Flags

Contract performance risk
Cost control by contractor
Expertise in 'No Surprises' regulations
Vendor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.7 million to ACCENTURE FEDERAL SERVICES LLC. THE CONTRACTOR SHALL FURNISH ALL THE NECESSARY SERVICES, QUALIFIED PERSONNEL, MATERIAL, EQUIPMENT, AND FACILITIES, NOT OTHERWISE PROVIDED BY THE GOVERNMENT, FOR THE NO SURPRISES HELP DESK. THE FUNCTION OF THE MULTI-TIERED STAFFED HELP DESK IS TO RECE

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2025-02-19. End: 2027-03-18.

What is Accenture Federal Services' track record with similar federal IT support contracts?

Accenture Federal Services LLC has a substantial track record of performing IT support and systems design services for various federal agencies, including HHS and CMS. Their past performance typically involves large-scale IT modernization, system integration, and operational support. While specific details of past help desk contracts are not provided here, their extensive experience suggests a capacity to manage complex service delivery requirements. Government contract databases often contain past performance evaluations, which would offer a more granular view of their success rates, adherence to schedules, and quality of service on previous, similar engagements. Their consistent presence as a prime contractor on significant federal awards indicates a generally positive performance history, though specific contract outcomes can vary.

How does the $13.7M contract value compare to similar federal help desk contracts?

The $13.7M contract value for approximately 2.5 years of help desk services is considered moderate within the federal IT services landscape. For large agencies like CMS, which manage complex healthcare programs, help desk support is critical. Contracts for similar services can range from a few million dollars for smaller agencies or less complex support needs, to tens or even hundreds of millions for comprehensive, agency-wide IT service desks supporting millions of users. Given the 'No Surprises' focus, which implies specialized knowledge, this value appears reasonable for a dedicated, multi-tiered support function. Benchmarking against contracts for IT service management, technical support, and call center operations within HHS or comparable agencies would provide a more precise comparison, but the current value does not immediately suggest overpricing or underfunding for the described scope.

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

The primary risks for the government revolve around service quality, contractor performance, and potential cost overruns if the firm-fixed-price structure is not managed effectively by the contractor. A key risk is ensuring the help desk staff possesses the necessary expertise to handle complex 'No Surprises' related inquiries, which may require continuous training and updates. Contractor performance degradation over the contract term is another risk, potentially impacting user productivity and satisfaction. Furthermore, if the contractor mismanages their internal costs, they might cut corners on service quality to maintain profitability, indirectly affecting the government. Finally, reliance on a single vendor for critical support functions creates a dependency that could be problematic if the contractor faces financial instability or decides not to re-compete.

How effective is the 'full and open competition' approach likely to be for this contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring fair pricing and access to the widest range of qualified vendors. For this contract, it means that numerous companies, including large and potentially smaller specialized firms, had the opportunity to bid. The fact that 7 bidders submitted proposals indicates a competitive environment. This competition should drive down prices and encourage innovation as bidders strive to offer the best value proposition. The effectiveness is further enhanced by the firm-fixed-price contract type, which aligns the contractor's incentives with cost efficiency. The government's ability to evaluate proposals thoroughly based on both technical merit and price is crucial for realizing the full benefits of this competitive approach.

What are the historical spending patterns for similar help desk services at CMS or HHS?

Historical spending patterns for help desk and IT support services at CMS and HHS are generally characterized by significant and consistent investment. Agencies of this size and complexity require robust IT infrastructure and user support to manage critical healthcare programs. Spending often occurs through multiple contract vehicles, including task orders against larger IT services IDIQs, as well as standalone contracts for specialized support. Annual spending on IT operations and support can easily reach hundreds of millions or even billions across HHS. Help desk services, specifically, are a recurring need, often funded through annual appropriations and renewed through multi-year contracts. The $13.7M for this specific help desk function represents a portion of the overall IT operational budget, reflecting the ongoing need for reliable technical assistance.

What are the implications of the 'firm-fixed-price' contract type for service delivery?

The firm-fixed-price (FFP) contract type is advantageous for the government as it establishes a ceiling price for the work, transferring most of the cost risk to the contractor. This means Accenture Federal Services is responsible for managing its costs to deliver the specified help desk services within the agreed-upon price. For service delivery, this incentivizes the contractor to be efficient, control operational expenses, and potentially innovate to reduce costs without compromising quality. However, it also means that if the contractor encounters unforeseen difficulties that increase their costs significantly, they bear the brunt of that loss, which could potentially lead them to seek efficiencies that might impact service levels if not carefully monitored. The government benefits from budget predictability, but must ensure the contract clearly defines the scope and performance standards.

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

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

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, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $57,912,596

Exercised Options: $15,953,860

Current Obligation: $13,733,274

Actual Outlays: $6,229,689

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,711,807

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F540GA

IDV Type: FSS

Timeline