Accenture Federal Services awarded $55.7M for IT services, with a 3-year duration and a Time and Materials contract type
Contract Overview
Contract Amount: $55,721,608 ($55.7M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Energy
Start Date: 2019-05-03
End Date: 2023-05-02
Contract Duration: 1,460 days
Daily Burn Rate: $38.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: BPA ORDER 7 SERVICE DESK ISSUED UNDER MASTER BPA NUMBER 89303019AIM000005, ESTABLISHED UNDER GSA SCHEDULE CONTRACT NUMBER 47QTCA18D006H. SEE ATTACHED TERMS AND CONDITIONS, PWS AND PRICE PROPOSAL.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $55.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: BPA ORDER 7 SERVICE DESK ISSUED UNDER MASTER BPA NUMBER 89303019AIM000005, ESTABLISHED UNDER GSA SCHEDULE CONTRACT NUMBER 47QTCA18D006H. SEE ATTACHED TERMS AND CONDITIONS, PWS AND PRICE PROPOSAL. Key points: 1. The contract was awarded under a GSA Schedule BPA, indicating a pre-competed framework. 2. The Time and Materials pricing structure may present cost escalation risks if not closely managed. 3. The contract's duration of 1460 days (4 years) suggests a need for sustained IT support. 4. The award was made under full and open competition, suggesting a competitive bidding process. 5. The service desk function is critical for IT operations, impacting user productivity. 6. The contract value of $55.7M places it in the mid-to-large tier for IT service contracts.
Value Assessment
Rating: fair
Benchmarking the value of this specific BPA order is challenging without detailed pricing breakdowns and comparison to similar service desk contracts. The Time and Materials (T&M) contract type, while common for IT services, can lead to higher costs if not managed effectively, as it reimburses labor hours and material costs directly. Without specific performance metrics or a fixed price component, assessing the true value-for-money is difficult. However, the use of a GSA Schedule BPA suggests some level of pre-negotiated rates, which can offer a degree of cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a Full and Open Competition, meaning all responsible sources were permitted to submit a bid. While the specific number of bidders for this BPA order is not provided, the 'full and open' designation implies a robust competitive process was intended. This approach generally fosters price discovery and encourages contractors to offer competitive terms to win the award.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it is designed to yield the best possible pricing through market forces and a wide range of potential bidders.
Public Impact
The Department of Energy benefits from essential IT service desk support, ensuring smooth operations. Federal employees and potentially contractors across the Department of Energy will receive technical assistance. The services delivered are crucial for maintaining the functionality and security of the Department's IT infrastructure. The primary geographic impact is within the District of Columbia, where the agency is headquartered. The contract supports IT professionals employed by Accenture Federal Services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Reliance on a single contractor for critical IT service desk functions.
- Scope creep could increase costs without adequate oversight.
- Performance monitoring is crucial to ensure service levels are met.
- Dependency on GSA Schedule rates which may not always be the most competitive.
Positive Signals
- Awarded under a competitive GSA Schedule BPA, indicating pre-vetted and potentially competitive rates.
- The contract duration suggests a stable, long-term need for these services.
- Full and open competition generally leads to better value.
- Service desk functions are essential for operational continuity.
- Accenture Federal Services is a large, established IT services provider.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services industry. The market for IT support and service desk operations is highly competitive, with numerous large and small businesses offering these capabilities. Federal agencies, like the Department of Energy, are major consumers of these services, often leveraging GSA Schedules and BPAs to procure them efficiently. Comparable spending benchmarks for IT service desk support can vary widely based on scope, service levels, and geographic coverage, but contracts in the tens of millions of dollars are common for large federal agencies.
Small Business Impact
This contract was not set aside for small businesses, and the prime contractor, Accenture Federal Services, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Accenture actively pursues small business subcontractors for specialized support or components of the service desk function.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. The contract's performance would be monitored against the PWS (Performance Work Statement) and terms outlined in the BPA order. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction for this particular BPA order isn't detailed, the Department of Energy's Office of Inspector General would have oversight authority over agency spending and contract performance.
Related Government Programs
- GSA Federal Supply Schedule
- IT Service Management
- Help Desk Support Services
- IT Systems Integration
- Computer Systems Design Services
Risk Flags
- Time and Materials Contract Type
- Potential for Cost Overruns
- Reliance on GSA Schedule Rates
Tags
it-services, service-desk, department-of-energy, accenture-federal-services, bpa-order, gsa-schedule, time-and-materials, full-and-open-competition, district-of-columbia, computer-systems-design-services, it-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $55.7 million to ACCENTURE FEDERAL SERVICES LLC. BPA ORDER 7 SERVICE DESK ISSUED UNDER MASTER BPA NUMBER 89303019AIM000005, ESTABLISHED UNDER GSA SCHEDULE CONTRACT NUMBER 47QTCA18D006H. SEE ATTACHED TERMS AND CONDITIONS, PWS AND PRICE PROPOSAL.
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 $55.7 million.
What is the period of performance?
Start: 2019-05-03. End: 2023-05-02.
What is the historical spending pattern for IT service desk support at the Department of Energy?
Analyzing historical spending for IT service desk support at the Department of Energy (DOE) requires access to detailed procurement data beyond this single BPA order. However, it's common for large federal agencies like the DOE to have ongoing, significant investments in IT support services. These expenditures often fluctuate based on agency-wide IT modernization efforts, changes in user base, and the consolidation or decentralization of IT functions. Contracts for service desk operations can span multiple years and range from a few million to tens of millions of dollars annually, depending on the scope and scale of support required. Understanding the historical trend would involve examining prior contracts for similar services, identifying any patterns of sole-sourcing versus competitive awards, and noting any significant increases or decreases in spending that might correlate with specific agency initiatives or budget cycles.
How does the pricing structure (Time and Materials) compare to other contract types for similar IT service desk services?
Time and Materials (T&M) contracts, like the one awarded to Accenture Federal Services, are common for IT services where the scope of work can be variable or difficult to define precisely upfront. In a T&M contract, the government pays the contractor for the actual labor hours expended at pre-negotiated hourly rates and for the cost of materials used. This contrasts with Fixed-Price contracts, where a set price is agreed upon for a defined scope of work, or Cost-Plus contracts, where the contractor is reimbursed for allowable costs plus a fee. For IT service desk functions, T&M offers flexibility, allowing for adjustments in staffing levels or support hours as needed. However, it carries a higher risk of cost overruns for the government if not managed diligently, as the total cost is directly tied to the effort expended. Fixed-Price contracts offer better cost certainty but require a very well-defined scope. Cost-Plus contracts are typically used for research and development where costs are highly uncertain.
What is Accenture Federal Services' track record with similar IT service contracts for the federal government?
Accenture Federal Services (AFS) has a substantial track record of performing IT service contracts for various U.S. federal agencies. They are a major player in the federal IT contracting space, frequently awarded large-scale contracts for systems integration, cloud migration, cybersecurity, and IT modernization. AFS has held numerous contracts involving IT support, help desk operations, and managed services across departments such as Defense, Homeland Security, and Health and Human Services. Their performance history can be reviewed through contract databases like FPDS-NG and SAM.gov, which often contain past performance information, award details, and sometimes contractor performance assessment reports (CPARS). While specific details for every contract vary, AFS generally possesses the resources and experience to handle complex IT service delivery requirements for government clients.
What are the key performance indicators (KPIs) typically used to measure the success of IT service desk contracts?
Key Performance Indicators (KPIs) for IT service desk contracts are crucial for ensuring service quality, efficiency, and user satisfaction. Common KPIs include First Call Resolution (FCR) rate, which measures the percentage of issues resolved during the initial contact; Average Response Time, the time taken to acknowledge a user request; Average Resolution Time, the time taken to fully resolve an issue; Customer Satisfaction (CSAT) scores, gathered through user surveys; Ticket Volume trends, tracking the number of incoming requests; and adherence to Service Level Agreements (SLAs) for response and resolution times across different priority levels. For this specific contract with the Department of Energy, the Performance Work Statement (PWS) would detail the exact KPIs and their target values that Accenture Federal Services is expected to meet. Regular reporting and performance reviews against these KPIs are essential for effective contract oversight.
What is the potential impact of this contract on the overall IT infrastructure modernization efforts at the Department of Energy?
This contract for IT service desk support plays a foundational role in the Department of Energy's (DOE) broader IT infrastructure modernization efforts. A well-functioning service desk is critical for ensuring that end-users can effectively utilize existing and newly implemented IT systems. It acts as the first line of support for troubleshooting issues, managing user accounts, and disseminating information about system changes or upgrades. By providing reliable day-to-day support, this contract enables DOE personnel to focus on their core missions rather than being bogged down by IT problems. Furthermore, insights gained from service desk interactions (e.g., recurring issues, user feedback) can provide valuable data to inform future modernization strategies, highlighting areas that may require system improvements or user training. A stable service desk operation is a prerequisite for successful adoption of new technologies and processes.
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: TIME AND MATERIALS (Y)
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: $93,788,533
Exercised Options: $73,793,605
Current Obligation: $55,721,608
Actual Outlays: $38,852,099
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303019AIM000005
IDV Type: BPA
Timeline
Start Date: 2019-05-03
Current End Date: 2023-05-02
Potential End Date: 2024-05-02 00:00:00
Last Modified: 2025-05-13
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