DoD's $27.2M Joint Applications Support Contract awarded to Accenture Federal Services for software publishing

Contract Overview

Contract Amount: $27,219,259 ($27.2M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2021-02-25

End Date: 2025-07-24

Contract Duration: 1,610 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: JASC DEVSECOPS SYSTEM ADMINISTRATION JOINT APPLICATIONS SUPPORT CONTRACT TEAM 5

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.2 million to ACCENTURE FEDERAL SERVICES LLC for work described as: JASC DEVSECOPS SYSTEM ADMINISTRATION JOINT APPLICATIONS SUPPORT CONTRACT TEAM 5 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration spans over four years, indicating a long-term need for these services. 3. The firm-fixed-price structure aims to control costs and provide predictable spending. 4. The contract is categorized under Software Publishers (NAICS 511210), aligning with IT services. 5. The award was made by the Department of the Air Force, a major component of the DoD. 6. The contract value is substantial, reflecting significant investment in application support. 7. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of $27.2 million over approximately 4 years (February 2021 to July 2025) appears reasonable for comprehensive joint application support services within the Department of Defense. Benchmarking against similar large-scale IT support contracts within federal agencies suggests that this pricing is within expected ranges for specialized software and system administration. The firm-fixed-price (FFP) contract type is generally favorable for the government in managing cost predictability, assuming the scope of work is well-defined and stable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, specific sources may have been excluded based on predefined criteria. The presence of two bidders suggests a moderately competitive environment. A higher number of bidders typically leads to more aggressive pricing and better value for the government. However, the specific nature of the exclusion criteria would be critical to fully assessing the breadth of competition.

Taxpayer Impact: The full and open competition, despite potential source exclusions, aims to ensure that the government receives the best possible value by allowing multiple qualified vendors to bid. This process helps in price discovery and prevents potential overpayment compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the Department of Defense and its various components, particularly the Department of the Air Force, which will receive enhanced support for joint applications. The services delivered include system administration, software publishing, and support for joint applications, crucial for operational efficiency and data management. The geographic impact is likely concentrated within DoD facilities and operations, supporting national defense initiatives. Workforce implications may include the need for specialized IT personnel to manage and support these applications, potentially benefiting the contractor's workforce and indirectly supporting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'joint applications' are not clearly defined, leading to cost overruns.
Reliance on a single contractor for critical application support could pose a risk if performance falters.
The 'exclusion of sources' clause warrants scrutiny to ensure it did not unduly limit competition.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Long-term contract duration allows for stable support and potential for contractor expertise development.
Award to a well-established contractor like Accenture Federal Services suggests a degree of reliability.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on software publishing and application support services. The federal IT market is vast, with significant spending allocated to software development, maintenance, and support. Contracts like this are essential for maintaining the complex technological infrastructure required by agencies like the Department of Defense. Comparable spending benchmarks in this area often involve multi-million dollar awards for specialized IT services, reflecting the high demand and specialized skill sets required.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. This suggests that the primary award was made to a large business prime contractor. While there is no direct set-aside, the prime contractor may engage small businesses for subcontracting opportunities to fulfill specific aspects of the contract. The impact on the small business ecosystem would depend on the extent to which Accenture Federal Services utilizes subcontracting and whether small businesses are included in that process.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract's performance work statement (PWS), with defined deliverables, service level agreements (SLAs), and payment schedules tied to performance. Transparency is facilitated through contract award databases like FPDS. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

DoD IT Modernization Programs
Air Force Software Development Contracts
Joint Command and Control Systems Support
Federal Civilian IT Services
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Contract duration may lead to vendor lock-in if not managed carefully.
Definition of 'joint applications' could be ambiguous, leading to scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.2 million to ACCENTURE FEDERAL SERVICES LLC. JASC DEVSECOPS SYSTEM ADMINISTRATION JOINT APPLICATIONS SUPPORT CONTRACT TEAM 5

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 $27.2 million.

What is the period of performance?

Start: 2021-02-25. End: 2025-07-24.

What is the track record of Accenture Federal Services with similar DoD contracts?

Accenture Federal Services has a significant track record of performing IT services for the Department of Defense and other federal agencies. They are a large, established contractor with extensive experience in areas such as system integration, software development, cloud services, and cybersecurity. For DoD contracts specifically, they have been awarded numerous prime contracts across various branches, including the Air Force, Army, and Navy, often in support of complex mission-critical systems. Their performance history on these contracts generally indicates a capacity to handle large-scale, high-value IT procurements, though like any large contractor, specific contract performance can vary. Reviewing past performance evaluations and contract close-out reports for similar DoD engagements would provide a more granular understanding of their specific strengths and any past challenges.

How does the value of this contract compare to other similar IT support contracts within the DoD?

The $27.2 million value for this four-year contract (approximately $6.8 million per year) for joint application support and software publishing is within the typical range for large-scale IT service contracts awarded by the Department of Defense. The DoD procures a vast array of IT services, and contracts of this magnitude are common for specialized support, system modernization, and sustainment efforts. For instance, contracts for enterprise resource planning (ERP) system support, network infrastructure management, or cybersecurity services often reach tens or hundreds of millions of dollars. This specific contract's value appears commensurate with the scope of providing comprehensive support for joint applications, which can involve complex software suites and integration across different military branches or systems.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep if the definition of 'joint applications' is not precise, leading to cost overruns or schedule delays. Another risk is the reliance on a single contractor for critical support, which could impact operational continuity if performance issues arise. The 'exclusion of sources' aspect of the competition also presents a risk if it unduly limited the pool of qualified bidders, potentially affecting price competitiveness. Mitigation strategies likely include robust contract management by the Air Force, clear definition of work requirements in the Performance Work Statement (PWS), performance monitoring, and established procedures for change management. The firm-fixed-price structure itself acts as a mitigation against cost overruns, provided the scope is well-managed.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money in this context?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and unlikely to change significantly. In this case, for joint application support and software publishing, FFP provides cost certainty to the government, shifting the risk of cost overruns to the contractor. This encourages the contractor to manage resources efficiently and control costs to maximize their profit margin. The effectiveness hinges on the clarity and stability of the requirements outlined in the Performance Work Statement (PWS). If requirements are stable, FFP incentivizes the contractor to perform efficiently. However, if the scope is ambiguous or subject to frequent changes, FFP can lead to disputes or necessitate costly contract modifications, potentially diminishing the value proposition.

What are the historical spending patterns for similar joint application support services within the DoD?

Historical spending patterns for joint application support within the DoD indicate a consistent and significant investment in maintaining and enhancing the complex software systems that underpin military operations. Agencies like the Air Force, Army, and Navy frequently award multi-year, multi-million dollar contracts for sustainment, modernization, and integration of various application suites, including command and control, logistics, intelligence, and personnel management systems. Spending often fluctuates based on modernization priorities, threat landscapes, and technological advancements. Contracts for enterprise-level software support, system administration, and specialized application development are recurring expenditures, reflecting the ongoing need for robust and secure IT infrastructure to support diverse mission requirements across the armed forces.

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: 2

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: $27,311,444

Exercised Options: $27,311,174

Current Obligation: $27,219,259

Actual Outlays: $896,166

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $16,540,966

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