USDA's $291M Financial Management Modernization Initiative contract awarded to Accenture for IT services

Contract Overview

Contract Amount: $290,999,792 ($291.0M)

Contractor: Accenture LLP

Awarding Agency: Department of Agriculture

Start Date: 2007-09-10

End Date: 2017-12-30

Contract Duration: 3,764 days

Daily Burn Rate: $77.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FINANCIAL MANAGEMENT MODERNIZATION INITIATIVE

Plain-Language Summary

Department of Agriculture obligated $291.0 million to ACCENTURE LLP for work described as: FINANCIAL MANAGEMENT MODERNIZATION INITIATIVE Key points: 1. Significant investment in IT modernization for financial systems. 2. Accenture, a major IT services provider, secured the contract. 3. Long contract duration (over 10 years) suggests a complex, ongoing project. 4. Focus on computer systems design services indicates core IT infrastructure development.

Value Assessment

Rating: fair

The contract value of $291 million over nearly 10 years is substantial. Benchmarking against similar large-scale IT modernization projects is difficult without more granular data on scope and deliverables. The fixed-price nature aims to control costs, but the long duration could lead to cost overruns if not managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it aims to secure the best value and price for government services.

Public Impact

Modernization of financial systems aims to improve efficiency and accuracy in government financial operations. The long-term nature of the contract implies a significant impact on the Department of Agriculture's IT infrastructure and operational capabilities. Potential for improved data management and reporting, benefiting public access to financial information.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Long contract duration increases risk of scope creep and cost escalation.
Lack of small business participation noted.

Positive Signals

Awarded through full and open competition.
Firm fixed-price contract type helps control costs.
Focus on modernization can lead to long-term efficiency gains.

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Spending benchmarks for large-scale financial system modernization can vary widely, but $291 million over a decade indicates a significant, multi-faceted undertaking for a federal agency.

Small Business Impact

The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This suggests the contract was awarded to a large prime contractor, potentially limiting opportunities for small business subcontracting.

Oversight & Accountability

The long duration and significant value of this contract warrant robust oversight to ensure performance, cost control, and adherence to the contract's objectives. Regular reviews and performance monitoring by the Office of the Chief Financial Officer are crucial.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Long contract duration (over 10 years).
No indication of small business participation.
High contract value requires diligent oversight.
Potential for technological obsolescence over the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $291.0 million to ACCENTURE LLP. FINANCIAL MANAGEMENT MODERNIZATION INITIATIVE

Who is the contractor on this award?

The obligated recipient is ACCENTURE LLP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $291.0 million.

What is the period of performance?

Start: 2007-09-10. End: 2017-12-30.

What specific financial management capabilities were modernized, and what are the measurable improvements in efficiency or accuracy achieved?

The specific modernized capabilities are not detailed in the provided data. However, typical financial management modernization initiatives aim to improve areas like accounting, budgeting, procurement, and financial reporting. Measurable improvements would ideally include reduced processing times, fewer errors, enhanced data integrity, and better compliance with financial regulations. Quantifying these benefits is key to assessing the contract's true value.

Given the 10-year duration, what mechanisms were in place to manage potential technological obsolescence and evolving requirements?

Long-term IT contracts often include provisions for technical refresh, phased upgrades, and flexibility to adapt to changing requirements. The contract likely incorporated change management processes and potentially periodic reviews to ensure the technology remained current and aligned with the agency's evolving needs. Without specific contract clauses, it's difficult to ascertain the exact mechanisms employed.

How does the per-unit cost or overall value compare to industry benchmarks for similar financial system modernization projects of this scale?

Direct per-unit cost comparison is not feasible without detailed scope and deliverable information. However, the total value of $291 million over nearly a decade for a comprehensive financial system modernization at a large agency like USDA is substantial but not necessarily outside the norm for such complex, long-term projects. Benchmarking would require detailed analysis of the specific services rendered against comparable government or private sector initiatives.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

Address: 11951 FREEDOM DR, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $381,529,422

Current Obligation: $290,999,792

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline