Department of Energy awards $46M+ for IT support, with Accenture Federal Services as prime contractor
Contract Overview
Contract Amount: $46,063,478 ($46.1M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Energy
Start Date: 2020-10-10
End Date: 2026-04-09
Contract Duration: 2,007 days
Daily Burn Rate: $23.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TECHNICAL, PROFESSIONAL, INFORMATION MANAGEMENT AND TECHNOLOGY SUPPORT AND ASSISTANCE TO THE OFFICE OF SCIENCE
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $46.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: TECHNICAL, PROFESSIONAL, INFORMATION MANAGEMENT AND TECHNOLOGY SUPPORT AND ASSISTANCE TO THE OFFICE OF SCIENCE Key points: 1. Contract provides essential IT and management support to the Office of Science. 2. The award was made under a full and open competition. 3. The contract duration extends over multiple years, indicating a long-term need. 4. The fixed-price contract type aims to control costs for the government. 5. Accenture Federal Services, a large established contractor, holds the prime position. 6. The contract is categorized under Computer Systems Design Services.
Value Assessment
Rating: good
The contract value of over $46 million for a duration of approximately 6 years suggests a substantial investment in IT support. Benchmarking this against similar IT support contracts requires detailed analysis of scope and deliverables. However, the firm fixed-price structure is generally favorable for cost control. The specific value per year is approximately $7.67 million, which appears reasonable for comprehensive IT and management support services for a significant government office.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition suggests that the agency sought the best value from the market.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government receives competitive pricing through a robust bidding process.
Public Impact
The Office of Science within the Department of Energy benefits from enhanced IT and management capabilities. Services delivered include technical, professional, and information management support. The contract is managed in Maryland, suggesting a primary geographic focus for service delivery. The contract supports the scientific research and development mission of the Department of Energy.
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 functions.
Positive Signals
- Accenture Federal Services has a strong track record in government contracting.
- The firm fixed-price contract type provides cost certainty.
- Full and open competition suggests a well-managed procurement process.
Sector Analysis
The IT services sector is a significant area of federal spending, with agencies increasingly relying on external contractors for specialized support. This contract falls within the Computer Systems Design Services NAICS code, a broad category encompassing IT consulting, system integration, and IT management. Federal spending in this area often supports critical infrastructure, research, and operational functions across various departments. Comparable spending benchmarks would depend on the specific nature of the IT support and the size of the agency office being served.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Accenture Federal Services, may engage small businesses as subcontractors, depending on their own subcontracting plans and the specific needs of the contract. The absence of a small business set-aside means the primary competition was open to all qualified large businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Energy IT Modernization Initiatives
- Office of Science Research Support Contracts
- Federal Civilian Agency IT Services
- Information Technology Professional Services
Risk Flags
- Contract duration is long, requiring sustained oversight.
- Reliance on a single large contractor for critical IT functions.
Tags
it-services, department-of-energy, office-of-science, accenture-federal-services, firm-fixed-price, full-and-open-competition, computer-systems-design-services, maryland, information-management, technology-support, professional-services, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $46.1 million to ACCENTURE FEDERAL SERVICES LLC. TECHNICAL, PROFESSIONAL, INFORMATION MANAGEMENT AND TECHNOLOGY SUPPORT AND ASSISTANCE TO THE OFFICE OF SCIENCE
Who is the contractor on this award?
The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $46.1 million.
What is the period of performance?
Start: 2020-10-10. End: 2026-04-09.
What is Accenture Federal Services' track record with the Department of Energy and similar IT support contracts?
Accenture Federal Services has a substantial history of contracting with the U.S. federal government, including the Department of Energy. Their portfolio often includes large-scale IT modernization, system integration, and professional services. For the Department of Energy specifically, they have likely held various contracts supporting different offices and missions. Analyzing their past performance on similar IT support and management contracts would involve reviewing their performance evaluations (e.g., CPARS), contract history for scope alignment, and any reported issues or successes. Their extensive experience suggests a capacity to handle complex IT requirements, but a detailed review of their specific performance on comparable DOE contracts would be necessary for a comprehensive assessment.
How does the $46 million contract value compare to similar IT support contracts awarded by the Department of Energy or other agencies?
The $46 million contract value over approximately six years, averaging around $7.67 million annually, places this contract in the mid-to-large tier for IT support services. To benchmark effectively, one would compare it to contracts for similar scope (e.g., comprehensive IT management, systems design, technical support) awarded to agencies of comparable size and complexity to the DOE's Office of Science. For instance, contracts supporting other large federal research or scientific bodies, or IT services for major operational departments, would serve as relevant comparisons. Factors like the specific services required (e.g., cybersecurity, cloud migration, data analytics), the level of personnel involved, and the duration of the contract are crucial for a meaningful comparison. Without access to a detailed database of comparable contracts with specific service breakdowns, a precise benchmark is difficult, but the value appears consistent with substantial IT support needs.
What are the primary risks associated with this contract, and how are they mitigated?
Primary risks for this contract include potential cost overruns if the firm fixed-price structure is not managed effectively, performance deficiencies by the contractor leading to disruptions in IT services, and over-reliance on a single large vendor. Mitigation strategies are inherent in the contract's structure and oversight. The firm fixed-price nature incentivizes the contractor to manage costs efficiently. The Department of Energy's oversight, through contracting officers and program managers, is crucial for monitoring performance against defined requirements and service level agreements. Regular performance reviews and clear communication channels help identify and address issues early. Furthermore, the initial full and open competition aims to select a capable contractor, reducing the risk of poor performance from the outset.
How effective is the firm fixed-price contract type in ensuring value for money for this IT support requirement?
The firm fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For IT support and management services, where requirements can sometimes evolve, FFP can incentivize the contractor to be highly efficient and innovative in delivering services within the agreed price. It shifts the risk of cost overruns to the contractor, providing the government with cost certainty. The Department of Energy benefits from knowing the total cost upfront, assuming the scope remains stable. Value for money is realized if the contractor delivers the required services at the agreed price point without compromising quality, and if the competition leading to the award resulted in a fair price.
What are the historical spending patterns for IT support services within the Department of Energy's Office of Science?
Analyzing historical spending patterns for IT support within the DOE's Office of Science would involve examining contract data over several fiscal years. This would reveal trends in the total amount spent on IT services, the types of services procured (e.g., hardware, software, professional services, cloud computing), and the primary contractors utilized. Understanding these patterns can help assess whether the current $46 million award represents an increase, decrease, or stable level of investment. It can also highlight shifts in technology focus (e.g., increased spending on cybersecurity or data analytics) and the agency's reliance on contract vehicles like Blanket Purchase Agreements (BPAs) or task orders. Such analysis provides context for the current contract's scale and strategic importance.
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
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: $62,944,810
Exercised Options: $62,719,578
Current Obligation: $46,063,478
Actual Outlays: $43,341,071
Subaward Activity
Number of Subawards: 37
Total Subaward Amount: $11,653,761
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303019AIM000005
IDV Type: BPA
Timeline
Start Date: 2020-10-10
Current End Date: 2026-04-09
Potential End Date: 2026-04-09 00:00:00
Last Modified: 2026-03-09
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