DoD's $37M FENCES LOGICAL FOLLOW-ON contract awarded to Accenture Federal Services for technical services

Contract Overview

Contract Amount: $37,054,134 ($37.1M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2025-07-13

End Date: 2026-07-12

Contract Duration: 364 days

Daily Burn Rate: $101.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FENCES LOGICAL FOLLOW-ON DEVELOPMENT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: FENCES LOGICAL FOLLOW-ON DEVELOPMENT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 364 days indicates a focused, short-term project or service delivery period. 4. The award amount of $37.05M for a single delivery order suggests a significant project scope. 5. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' indicating a broad range of potential activities. 6. The contract is a follow-on, implying a continuation or expansion of previous work, which can offer efficiencies but also risks of complacency.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. However, the $37.05 million award for a one-year period for 'All Other Professional, Scientific, and Technical Services' appears substantial. Comparing it to similar large-scale technical services contracts within the Department of Defense would be necessary for a more precise value assessment. The fixed fee component provides some cost control, but the cost-plus nature requires diligent oversight to ensure efficiency and prevent unnecessary expenditures.

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 bids. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The Air Force's choice of this procurement approach suggests they sought the widest possible range of solutions and the best value achievable through market competition.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best possible value for its investment.

Public Impact

The Department of Defense benefits from advanced technical and professional services to support its operations. The contract likely supports critical Air Force missions through specialized expertise. The geographic impact is primarily within the Department of Defense's operational footprint, potentially worldwide. Workforce implications may include specialized technical personnel, both within the contractor's organization and potentially government personnel overseeing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to achieve a higher fee, requiring robust cost monitoring.
The 'follow-on' nature of the contract could indicate a lack of innovation if the previous approach is simply replicated without improvement.
The broad NAICS code 'All Other Professional, Scientific, and Technical Services' makes it difficult to ascertain the specific deliverables and associated risks without further detail.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The fixed fee component provides a ceiling on the contractor's profit, offering some cost predictability.
The follow-on nature suggests a proven capability and a potentially smoother transition and execution.

Sector Analysis

The professional, scientific, and technical services sector is a significant component of federal spending, encompassing a wide array of support functions for government agencies. This contract falls under NAICS code 541990, which is a broad category for services not elsewhere classified. The Department of Defense is a major consumer of these services, utilizing them for everything from research and development to specialized operational support. Comparable spending benchmarks would involve analyzing other large technical services contracts awarded by DoD or other federal agencies for similar scope and duration.

Small Business Impact

There is no indication from the provided data that this contract includes a small business set-aside. Given the substantial award amount of over $37 million, it is likely that large businesses, such as Accenture Federal Services LLC, are the primary recipients. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's subcontracting plan and the specific nature of the services required. The impact on the small business ecosystem is likely minimal unless significant subcontracting is mandated or voluntarily pursued.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures will be embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to milestones or deliverables. Transparency is facilitated by the contract's public award notice. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

DoD IT Services Contracts
Professional and Technical Services
Air Force Support Services
Follow-on Service Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
Broad NAICS code limits immediate understanding of specific services and risks.
Follow-on nature could lead to complacency or missed opportunities for innovation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.1 million to ACCENTURE FEDERAL SERVICES LLC. FENCES LOGICAL FOLLOW-ON DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $37.1 million.

What is the period of performance?

Start: 2025-07-13. End: 2026-07-12.

What is the specific nature of the 'FENCES LOGICAL FOLLOW-ON DEVELOPMENT' services being procured?

The provided data abbreviates the contract name as 'FENCES LOGICAL FOLLOW-ON DEVELOPMENT' but does not detail the specific services. The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' suggests a broad scope that could encompass areas like systems integration, research support, specialized analysis, or program management. Without access to the contract's Statement of Work (SOW) or Performance Work Statement (PWS), the precise nature of the development and technical services remains unspecified. This lack of specificity makes it difficult to assess the contract's true purpose, risks, and value beyond its financial magnitude.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types used by the Air Force for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is a high degree of uncertainty, allowing for flexibility. However, it carries risks of cost growth, as the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but can be more suitable for research, development, or complex services where requirements may evolve. The Air Force, like other agencies, uses a mix of contract types. For well-defined services, FFP is preferred for cost control. For R&D or uncertain scopes, CPFF or other cost-reimbursement types might be chosen, necessitating stringent oversight to manage costs effectively and ensure the fixed fee remains appropriate for the effort.

What is Accenture Federal Services LLC's track record with the Department of Defense, particularly on follow-on contracts?

Accenture Federal Services LLC is a major government contractor with a significant history of performing work for the Department of Defense and other federal agencies. Their track record typically includes a wide range of IT, consulting, and professional services. For follow-on contracts specifically, their experience suggests an ability to transition existing programs and maintain service continuity. However, a detailed assessment would require reviewing past performance evaluations, any past performance issues or disputes, and the success metrics of previous related contracts. Generally, large contractors like Accenture are awarded follow-on work based on demonstrated capability and successful past performance, but rigorous oversight remains crucial.

What are the potential risks associated with a 'follow-on' contract in the context of 'All Other Professional, Scientific, and Technical Services'?

Follow-on contracts, while often efficient due to established relationships and understanding, carry specific risks. One primary risk is complacency, where the contractor may continue with the previous approach without seeking innovation or efficiency improvements, assuming the prior success guarantees future success. Another risk is 'vendor lock-in,' where the government becomes overly reliant on a single provider, potentially diminishing future competitive leverage. For broad service categories like 'All Other Professional, Scientific, and Technical Services,' a follow-on could also mean that evolving requirements are not adequately addressed if the original scope was narrowly defined or if market advancements are ignored. Ensuring clear performance metrics and encouraging continuous improvement are key to mitigating these risks.

How does the $37.05 million award size compare to typical spending for similar technical services within the Air Force?

The $37.05 million award for a single delivery order over approximately one year is a substantial sum, indicating a significant scope of work. To benchmark this, one would need to analyze historical spending data for the Air Force (and DoD broadly) on contracts falling under NAICS code 541990 or similar professional/technical services categories. Many large federal IT and technical support contracts run into tens or hundreds of millions of dollars annually. This particular award appears to be within the range of significant, but not exceptionally outlier, contract values for specialized technical support within a major military branch. A precise comparison would require access to aggregated spending data and contract databases.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $83,395,768

Exercised Options: $41,785,394

Current Obligation: $37,054,134

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA714619D0760

IDV Type: IDC

Timeline