HHS Awards Accenture $37.7M for Computer Systems Design Services via Full and Open Competition
Contract Overview
Contract Amount: $37,757,771 ($37.8M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2023-03-11
End Date: 2027-03-10
Contract Duration: 1,460 days
Daily Burn Rate: $25.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ACCENTURE SECURITY CONTRACT-FFP LABORPERIOD OF PERFORMANCE: 3/11/2023 - 3/12/2024
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $37.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: ACCENTURE SECURITY CONTRACT-FFP LABORPERIOD OF PERFORMANCE: 3/11/2023 - 3/12/2024 Key points: 1. Contract awarded to Accenture Federal Services LLC for $37.7 million. 2. Services include Computer Systems Design, a common IT procurement category. 3. Full and open competition was used, suggesting a competitive bidding process. 4. The contract duration is approximately 4 years, ending March 2027.
Value Assessment
Rating: good
The contract is a Firm Fixed Price (FFP) type, which provides cost certainty. The awarded amount of $37.7 million for a 4-year period appears reasonable for complex IT systems design services, though a direct benchmark is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for the services rendered, maximizing taxpayer value.
Public Impact
Supports critical IT infrastructure for the National Institutes of Health. Ensures continued operation and potential upgrades of complex computer systems. Impacts researchers and healthcare professionals relying on NIH systems. Potential for innovation in health IT through system design services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (4 years), potentially leading to scope creep or price increases if not managed well.
- Specific deliverables and performance metrics are not detailed, posing a risk to measuring success.
- Reliance on a single vendor for a significant period could limit future technological adoption.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Full and open competition suggests a competitive award process.
- Services are essential for NIH's operational continuity.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across federal agencies, supporting everything from administrative functions to advanced research platforms. Benchmarks vary widely based on complexity and duration.
Small Business Impact
The contract was awarded to Accenture Federal Services LLC, a large business. There is no indication that small businesses were subcontracted or involved in the primary award, which is common for large IT contracts of this nature.
Oversight & Accountability
The contract's oversight would fall under the Department of Health and Human Services, specifically the National Institutes of Health. Standard contract management practices, including performance reviews and financial oversight, would be expected to ensure accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Long contract duration (4 years).
- Lack of specific service details.
- Potential for vendor lock-in.
- No explicit small business participation noted.
Tags
computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $37.8 million to ACCENTURE FEDERAL SERVICES LLC. ACCENTURE SECURITY CONTRACT-FFP LABORPERIOD OF PERFORMANCE: 3/11/2023 - 3/12/2024
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 (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $37.8 million.
What is the period of performance?
Start: 2023-03-11. End: 2027-03-10.
What specific computer systems design services are included, and how do they align with NIH's strategic IT goals?
The contract specifies 'Computer Systems Design Services' (NAICS 541512). While the exact services are not detailed, they likely encompass the design, development, integration, and potentially maintenance of complex IT systems supporting NIH's research and healthcare missions. Alignment with strategic goals would depend on whether these services focus on modernizing infrastructure, enhancing data analytics capabilities, or supporting new research initiatives.
What is the potential risk of vendor lock-in given the 4-year contract duration and the specialized nature of system design?
A 4-year contract duration for specialized system design services does present a moderate risk of vendor lock-in. Accenture's deep involvement could make it difficult and costly for NIH to switch vendors or adopt alternative solutions later. Mitigating this requires clear contract clauses for knowledge transfer, data portability, and performance standards to ensure NIH retains control and flexibility.
How will the effectiveness of the computer systems design services be measured to ensure value for taxpayer money?
Effectiveness will be measured through defined performance metrics and deliverables outlined in the contract's statement of work. Key performance indicators (KPIs) could include system uptime, successful integration of new components, adherence to design specifications, user satisfaction, and timely completion of milestones. Regular performance reviews by NIH contracting officers will assess Accenture's adherence to these metrics and overall contract value.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: C-92279-O
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,990,191
Exercised Options: $37,757,771
Current Obligation: $37,757,771
Actual Outlays: $27,118,688
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $8,353,009
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200002W
IDV Type: GWAC
Timeline
Start Date: 2023-03-11
Current End Date: 2027-03-10
Potential End Date: 2028-03-10 00:00:00
Last Modified: 2026-04-02
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