DoD's $41.7M IT Services Contract Awarded to Accenture Federal Services Shows Strong Competition

Contract Overview

Contract Amount: $41,754,073 ($41.8M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2016-12-23

End Date: 2020-06-22

Contract Duration: 1,277 days

Daily Burn Rate: $32.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF MISSION APPLICATIONS SUPPORT CONTRACT (MASC)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF MISSION APPLICATIONS SUPPORT CONTRACT (MASC) Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Accenture Federal Services, a large established contractor, secured the award. 3. The contract duration of 1277 days suggests a significant, ongoing need for services. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The award falls within the custom computer programming services sector, a critical area for IT modernization. 6. The number of bids received (3) provides a baseline for assessing competition intensity.

Value Assessment

Rating: good

The contract's value of approximately $41.7 million over its term is within a reasonable range for custom computer programming services for a large federal agency like the Department of Defense. While specific benchmarks for this exact service scope are not provided, the fixed-price nature of the contract suggests that the government aimed to secure predictable costs. The competition level also implies that pricing was likely scrutinized by multiple bidders, contributing to a fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Three bids were received, which, while not exceptionally high, indicates a degree of market interest and competition for this requirement. The open competition process allows for price discovery and encourages contractors to offer competitive terms to win the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, driving down potential costs through competitive bidding.

Public Impact

The Department of Defense benefits from enhanced IT capabilities and support for its mission-critical applications. Services delivered likely include custom software development, integration, and maintenance, crucial for operational efficiency. The contract's impact is primarily within the federal government's IT infrastructure, supporting national defense objectives. Workforce implications may include specialized IT professionals employed by Accenture Federal Services, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the services are highly specialized and difficult to transition.
Reliance on a single contractor for critical IT functions could pose a risk if performance issues arise.

Positive Signals

Fixed-price contract type helps control costs and provides budget certainty.
Awarded through full and open competition, suggesting a competitive pricing environment.
Accenture Federal Services is a well-established contractor with a significant presence in the federal IT market.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The federal IT market is vast, with significant spending allocated to software development, system integration, and IT support. Contracts like this are essential for agencies to maintain and modernize their technological infrastructure, ensuring operational effectiveness and security. Benchmarks for similar custom programming contracts can vary widely based on complexity, duration, and specific skill sets required.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Accenture Federal Services, is a large business. There is no explicit information on subcontracting plans for small businesses within this data, but large federal contracts often include subcontracting goals to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. The fixed-price nature of the contract provides a degree of accountability by defining the scope and cost upfront. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Custom Software Development Services
Federal Civilian IT Services
Air Force Mission Support Contracts

Risk Flags

Potential for scope creep in long-term IT service contracts.
Reliance on a single vendor for critical IT functions.
Need for ongoing performance monitoring to ensure quality and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.8 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF MISSION APPLICATIONS SUPPORT CONTRACT (MASC)

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 $41.8 million.

What is the period of performance?

Start: 2016-12-23. End: 2020-06-22.

What is the historical spending trend for similar custom computer programming services within the Department of the Air Force?

Analyzing historical spending trends for custom computer programming services within the Department of the Air Force requires access to detailed federal procurement data beyond this single contract. However, generally, the Air Force, like other branches of the DoD, has consistently invested heavily in IT services to maintain and upgrade its complex systems. Spending in this category can fluctuate based on modernization initiatives, cybersecurity needs, and the lifecycle of existing systems. Factors such as the number of active contracts, average contract values, and the specific NAICS codes used for procurement would provide a clearer picture of the overall trend. Without that broader dataset, it's difficult to place this $41.7M contract within a precise historical context, but it represents a significant, albeit singular, investment in a critical IT capability.

How does the number of bids (3) compare to the average number of bids for similar IT services contracts awarded by the Air Force?

The number of bids received for federal contracts can vary significantly based on the contract's complexity, value, duration, and the specific technical requirements. For custom computer programming services (NAICS 541511) awarded by the Department of the Air Force, three bids might be considered moderate. Highly specialized or large-scale procurements can sometimes attract more bidders, especially if they are broadly defined or address a widespread need. Conversely, very niche requirements or contracts with stringent pre-qualification criteria might see fewer bids. Without a specific benchmark for this particular service category and agency, it's challenging to definitively label three bids as high or low. However, it does indicate sufficient competition to allow for price discovery and selection from multiple qualified sources.

What are the potential risks associated with a fixed-price contract of this duration (1277 days)?

Fixed-price contracts, while beneficial for cost control, can introduce risks, especially for longer durations like 1277 days (approximately 3.5 years). One primary risk is that the contractor may underestimate the effort or encounter unforeseen technical challenges, leading to reduced profitability or potential disputes if scope creep occurs. For the government, the risk lies in the contractor potentially cutting corners on quality or service to maintain profitability if costs escalate beyond initial estimates. Additionally, if the government's requirements evolve significantly over the contract period, modifying a fixed-price contract can be complex and may require renegotiation, potentially negating some of the initial cost certainty. Effective contract management, clear scope definition, and robust change control processes are crucial to mitigate these risks.

What is Accenture Federal Services' track record with similar IT services contracts within the Department of Defense?

Accenture Federal Services has a substantial track record of performing IT services contracts for the Department of Defense and other federal agencies. They are a major player in the federal IT contracting space, known for handling large, complex projects. Their portfolio typically includes custom software development, systems integration, cloud migration, and IT modernization efforts. While specific performance metrics for this particular contract (MASC) are not detailed here, Accenture generally has a history of successful contract execution across various DoD components. However, like any large contractor, they may have also experienced performance challenges or contract disputes on other engagements. A comprehensive review would involve examining past performance evaluations and contract histories available through federal procurement databases.

How does the contract's value compare to the total IT spending of the Department of the Air Force?

The Department of the Air Force's total IT spending is substantial, often running into billions of dollars annually, encompassing a wide array of services, hardware, software, and personnel. A single contract valued at approximately $41.7 million, while significant in absolute terms, represents a relatively small fraction of the Air Force's overall IT budget. This contract likely addresses a specific set of mission-critical IT needs, such as custom application development or support for particular systems. To understand its relative significance, one would need to compare it against the total budget allocated for custom computer programming services or IT support within the Air Force's annual IT expenditure reports. It is one component of a much larger IT ecosystem.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,181,526

Exercised Options: $45,314,704

Current Obligation: $41,754,073

Subaward Activity

Number of Subawards: 135

Total Subaward Amount: $38,491,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA873215D0001

IDV Type: IDC

Timeline