Accenture Federal Services awarded $33M for software publishing services to the Department of the Air Force

Contract Overview

Contract Amount: $33,003,854 ($33.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2021-02-11

End Date: 2024-08-18

Contract Duration: 1,284 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: JASC TEAM 1

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: JASC TEAM 1 Key points: 1. The contract value of $33 million over its period of performance suggests a significant investment in software publishing capabilities. 2. Full and open competition after exclusion of sources indicates a deliberate procurement strategy to ensure broad market access while potentially addressing specific source limitations. 3. The firm-fixed-price contract type provides cost certainty for the government, shifting performance risk to the contractor. 4. The duration of 1284 days (approximately 3.5 years) points to a long-term need for these software publishing services. 5. The contract's classification under NAICS code 511210 (Software Publishers) aligns with the service description, indicating a focus on software-related products or services. 6. The award to Accenture Federal Services, a large established contractor, suggests a need for specialized expertise and capacity.

Value Assessment

Rating: good

Benchmarking the value of this $33 million contract requires comparison to similar software publishing services procured by the Department of Defense or other federal agencies. Without specific details on the scope of services, a direct per-unit cost comparison is challenging. However, the firm-fixed-price nature suggests that the contractor has priced competitively to secure the contract, assuming a well-defined scope of work. The duration and total value indicate a substantial, ongoing requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method suggests that while the competition was intended to be open, specific sources may have been excluded for defined reasons, possibly related to prior performance, specialized capabilities, or specific program requirements. The number of bidders is not provided, but this approach typically aims to balance broad competition with targeted engagement.

Taxpayer Impact: This competition strategy aims to ensure fair pricing by allowing multiple qualified vendors to bid, while potentially streamlining the process by excluding entities that do not meet stringent criteria, thereby optimizing taxpayer value.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving essential software publishing services. The services delivered likely support critical Air Force operations, potentially including software development, maintenance, or distribution. The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications may include the utilization of specialized IT and software development professionals by Accenture Federal Services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited innovation due to 'exclusion of sources' if key innovative vendors were excluded.
Reliance on a single large contractor could create vendor lock-in risks.
Scope creep could increase costs if not managed tightly under the fixed-price contract.

Positive Signals

Firm-fixed-price contract provides budget certainty for the government.
Long-term contract duration suggests a stable and ongoing need, indicating program maturity.
Award to a known entity like Accenture Federal Services implies a level of confidence in their capability to deliver.

Sector Analysis

The software publishing industry is a critical component of the broader IT sector, encompassing companies that develop, publish, and distribute software. This contract falls within a segment of the market focused on government-specific software needs, which can include everything from operational systems to specialized applications. The Department of Defense is a significant consumer of IT services, with substantial annual spending on software development, licensing, and support. Benchmarks for similar contracts would typically be found within the IT services category, often measured by cost per user, cost per function, or total contract value for comparable service scopes.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the primary focus was on securing specialized capabilities from larger, established firms. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem. Future analysis could explore whether subcontracting goals were established post-award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Services Contracts
Air Force Software Development and Maintenance
Federal Software Licensing and Publishing
IT Services for National Security

Risk Flags

Potential for limited competition due to source exclusion.
Contract duration may lead to vendor lock-in if not managed proactively.
Scope definition critical for fixed-price contract success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.0 million to ACCENTURE FEDERAL SERVICES LLC. JASC TEAM 1

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 $33.0 million.

What is the period of performance?

Start: 2021-02-11. End: 2024-08-18.

What is the specific nature of the software publishing services being procured under this contract?

The provided data classifies this contract under NAICS code 511210 (Software Publishers) and indicates the awardee is Accenture Federal Services LLC. While the exact services are not detailed, 'software publishing' typically encompasses activities such as software development, licensing, distribution, maintenance, and support. For the Department of the Air Force, this could range from developing custom applications for specific operational needs, managing licenses for commercial off-the-shelf software, to providing ongoing support and updates for critical systems. The firm-fixed-price nature suggests a well-defined scope of deliverables is expected from the contractor.

How does the $33 million contract value compare to typical spending on similar software publishing services within the Department of Defense?

A direct comparison of the $33 million contract value for software publishing services requires access to detailed spending data for similar procurements within the Department of Defense (DoD). However, $33 million over approximately 3.5 years represents a significant investment, suggesting a substantial and ongoing requirement. The DoD procures a vast array of IT and software services, with contract values ranging from thousands to billions of dollars. This particular award appears to be a mid-to-large-sized contract within the software services domain, likely reflecting a critical need for specialized capabilities that Accenture Federal Services is contracted to provide. Further analysis would involve benchmarking against contracts with similar NAICS codes and service descriptions.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method used for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, while aiming for broad competition, carries specific risks. The 'exclusion of sources' implies that certain potential bidders were deemed ineligible, potentially due to specific technical requirements, past performance issues, or other criteria defined by the agency. A key risk is that this exclusion might inadvertently limit the pool of highly innovative or cost-effective solutions if the excluded sources possessed unique capabilities. It could also raise concerns about fairness or transparency if the exclusion criteria are perceived as overly restrictive or not clearly justified. The government must ensure that the exclusion is well-documented and serves a legitimate procurement purpose to mitigate these risks.

What is Accenture Federal Services LLC's track record with the Department of the Air Force and similar government contracts?

Accenture Federal Services LLC is a well-established contractor with a significant presence in the federal market, including numerous awards from the Department of the Air Force and other Department of Defense agencies. Their track record typically involves large-scale IT services, consulting, and digital transformation projects. While specific performance details for this $33 million software publishing contract are not publicly available, Accenture's history suggests they possess the capacity and expertise to handle complex government requirements. Government contract databases often provide ratings and past performance information, which would offer a more granular view of their historical success and any potential concerns on prior engagements.

How does the firm-fixed-price contract type impact cost control and performance accountability for this software publishing service?

The firm-fixed-price (FFP) contract type is generally favored for services with well-defined scopes and requirements, as it places the primary cost risk on the contractor. For this $33 million software publishing contract, the FFP structure means Accenture Federal Services is obligated to deliver the specified services within the agreed-upon price. This provides the Department of the Air Force with significant budget certainty, as the total cost is fixed. Accountability is high because any cost overruns incurred by the contractor due to inefficiencies or unforeseen challenges are absorbed by Accenture. Conversely, the government benefits from predictable spending, but must ensure the contract's scope is precise to avoid disputes or change orders that could inflate the final cost.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD, 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: $53,587,423

Exercised Options: $48,567,800

Current Obligation: $33,003,854

Subaward Activity

Number of Subawards: 91

Total Subaward Amount: $14,037,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA830716D0021

IDV Type: IDC

Timeline