Department of Energy awards $186M BPA for IT services, with 729 days duration
Contract Overview
Contract Amount: $186,143,003 ($186.1M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Energy
Start Date: 2024-05-01
End Date: 2026-04-30
Contract Duration: 729 days
Daily Burn Rate: $255.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: THE PURPOSE OF THIS ACTION IS TO ESTABLISH A NEW BLANKET PURCHASE AGREEMENT (BPA) ORDER UNDER BPA # 89303019AIM000005 FOR ORDER LEVEL MATERIALS (OLMS)
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $186.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: THE PURPOSE OF THIS ACTION IS TO ESTABLISH A NEW BLANKET PURCHASE AGREEMENT (BPA) ORDER UNDER BPA # 89303019AIM000005 FOR ORDER LEVEL MATERIALS (OLMS) Key points: 1. The contract focuses on Order Level Materials (OLMs) under an existing Blanket Purchase Agreement. 2. Accenture Federal Services LLC is the primary contractor for these IT services. 3. The contract duration is 729 days, indicating a medium-term commitment. 4. The award type is a BPA Call, suggesting a flexible ordering mechanism. 5. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services. 6. This award represents a significant investment in IT infrastructure and support for the Department of Energy. 7. The contract was awarded using full and open competition, suggesting a robust bidding process.
Value Assessment
Rating: good
The total obligated amount is $186,143,003.14 over a period of 729 days. Benchmarking this against similar IT services contracts for large federal agencies, the per-diem cost appears within a reasonable range, though specific service details would be needed for a precise comparison. The 'Time and Materials' pricing structure allows for flexibility but requires diligent oversight to ensure cost-effectiveness and prevent scope creep. The value proposition hinges on the efficient delivery of Order Level Materials (OLMs) to support various Department of Energy initiatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment that should theoretically drive favorable pricing and service quality. This approach is generally preferred for large-value contracts to ensure the government receives the best possible value.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective IT services and materials for the Department of Energy, reducing the risk of overpayment.
Public Impact
The Department of Energy benefits from enhanced IT capabilities and access to necessary materials for its operations. This contract supports the delivery of critical IT services essential for the agency's mission. The primary geographic impact is within the District of Columbia, where the Department of Energy is headquartered. The contract likely impacts the IT workforce through the provision of specialized computer systems design services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the Time and Materials pricing structure if not closely monitored.
- Dependence on a single contractor (Accenture Federal Services LLC) for a significant portion of IT materials.
- Risk of scope creep if the definition of 'Order Level Materials' is not strictly managed.
- The duration of the BPA call could lead to vendor lock-in if not managed proactively.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Accenture Federal Services LLC is a well-established federal contractor with a track record in IT services.
- The contract is under an existing BPA, implying a pre-vetted framework for ordering.
- The contract duration is defined, providing a clear timeframe for service delivery and budget planning.
Sector Analysis
The IT services sector within the federal government is vast, encompassing a wide range of support, development, and maintenance activities. This contract falls under Computer Systems Design Services, a critical component of IT infrastructure. Federal spending in this area is consistently high, driven by the need for modernization, cybersecurity, and operational efficiency across agencies. Comparable spending benchmarks for similar IT support contracts can vary significantly based on scope, duration, and specific services, but a $186 million award over two years for OLMs suggests a substantial requirement.
Small Business Impact
This contract does not appear to have a specific small business set-aside component, as indicated by 'ss': false and 'sb': false. While the primary contractor is Accenture Federal Services LLC, a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the specific requirements outlined within the BPA and the contractor's subcontracting plan, which is not detailed here. Further analysis would be needed to determine the direct impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- IT Services
- Blanket Purchase Agreements
- Computer Systems Design Services
- Department of Energy IT Modernization Efforts
- Order Level Materials
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Scope creep risk if OLMs are not strictly defined and managed.
- Dependence on a single large business contractor.
- Need for robust oversight of material sourcing and labor hours.
Tags
it-services, department-of-energy, blanket-purchase-agreement, order-level-materials, computer-systems-design, time-and-materials, full-and-open-competition, accenture-federal-services, district-of-columbia, large-contract, it-infrastructure, federal-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $186.1 million to ACCENTURE FEDERAL SERVICES LLC. THE PURPOSE OF THIS ACTION IS TO ESTABLISH A NEW BLANKET PURCHASE AGREEMENT (BPA) ORDER UNDER BPA # 89303019AIM000005 FOR ORDER LEVEL MATERIALS (OLMS)
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 $186.1 million.
What is the period of performance?
Start: 2024-05-01. End: 2026-04-30.
What is Accenture Federal Services LLC's track record with the Department of Energy and similar IT contracts?
Accenture Federal Services LLC has a significant history of contracting with the Department of Energy and other federal agencies for IT services. Their track record generally includes large-scale system integrations, IT modernization projects, and various consulting services. For the Department of Energy specifically, they have been involved in projects related to energy infrastructure management, data analytics, and cybersecurity. Their experience with Blanket Purchase Agreements (BPAs) and Order Level Materials (OLMs) is also extensive, suggesting familiarity with the administrative and operational aspects of this type of award. However, a detailed review of past performance evaluations and any past disputes or challenges would provide a more comprehensive understanding of their specific performance on similar contracts.
How does the $186 million value compare to typical federal spending on IT services for agencies of the Department of Energy's size?
The $186 million award for IT services over approximately two years is substantial, aligning with the significant IT needs of a large federal agency like the Department of Energy. Federal spending on IT services varies widely, but for agencies managing complex missions involving research, regulation, and national security, investments in the range of tens to hundreds of millions of dollars annually are common. This particular contract's value is driven by its focus on Order Level Materials (OLMs) under a BPA, which can encompass a broad spectrum of IT hardware, software, and related services needed on demand. Compared to agencies with smaller operational footprints or less technology-intensive missions, the Department of Energy's spending on IT is expected to be higher. Benchmarking against peer agencies like the Department of Defense or NASA for similar IT support functions would provide more precise comparative context.
What are the primary risks associated with this Time and Materials (T&M) contract structure?
The primary risk associated with a Time and Materials (T&M) contract structure, as used in this BPA call, is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and material costs incurred. This can lead to increased costs if the scope of work expands unexpectedly, if labor hours are not efficiently utilized, or if material costs escalate without adequate justification. For the Department of Energy, effective oversight is crucial to ensure that the hours billed are reasonable and necessary, and that material costs are competitive and directly related to the services being provided. Robust monitoring, clear task definitions, and regular performance reviews are essential to mitigate these risks and ensure value for taxpayer money.
How does the 'full and open competition' award mechanism impact the effectiveness and cost of these IT services?
Awarding this contract through 'full and open competition' is intended to maximize effectiveness and control costs by fostering a competitive environment. This process allows any responsible source to submit an offer, theoretically leading to a wider range of innovative solutions and more competitive pricing. For the Department of Energy, this means they are likely to receive proposals from multiple qualified vendors, enabling them to select the offer that provides the best overall value, considering both technical approach and price. The competitive pressure should incentivize the winning contractor, Accenture Federal Services LLC, to perform efficiently and deliver high-quality IT services and materials to maintain their relationship and secure future opportunities. This mechanism is a cornerstone of federal procurement policy aimed at ensuring taxpayer funds are used judiciously.
What are the implications of this contract being an Order Level Materials (OLM) BPA call?
This contract being an Order Level Materials (OLM) BPA call under an existing Blanket Purchase Agreement (BPA) signifies a flexible procurement approach for IT needs. OLMs are typically defined as materials that are not stocked in the Federal Supply Schedule (FSS) but are necessary to fulfill a specific customer order. This means the Department of Energy can procure a wide variety of IT-related items and services as needed, directly under this BPA call, rather than going through separate, lengthy procurement processes for each item. The existing BPA framework suggests that the general terms and conditions have already been established, streamlining the ordering process. However, it also places a greater emphasis on the contractor's ability to source and deliver these materials efficiently and cost-effectively, and on the agency's oversight to ensure the necessity and appropriateness of each order.
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 - IT MANAGEMENT
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: $286,000,000
Exercised Options: $264,000,000
Current Obligation: $186,143,003
Actual Outlays: $177,871,136
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303019AIM000005
IDV Type: BPA
Timeline
Start Date: 2024-05-01
Current End Date: 2026-04-30
Potential End Date: 2027-08-31 00:00:00
Last Modified: 2026-04-14
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