DoD's $80.8M C2IE contract awarded to Accenture Federal Services for computer systems design

Contract Overview

Contract Amount: $10,028,354 ($10.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-14

End Date: 2031-02-13

Contract Duration: 2,190 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMMAND AND CONTROL OF THE INFORMATION ENVIRONMENT (C2IE) FULL AWARD AMOUNT $80,762,662.00

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: COMMAND AND CONTROL OF THE INFORMATION ENVIRONMENT (C2IE) FULL AWARD AMOUNT $80,762,662.00 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for Computer Systems Design Services, a critical area for defense operations. 3. Accenture Federal Services, a large contractor, is the recipient, indicating established capabilities. 4. The award amount of $80.8 million over approximately six years suggests significant investment in information environment capabilities. 5. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 6. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The award amount of $80.8 million for computer systems design services over six years appears reasonable given the scope of Command and Control of the Information Environment (C2IE). Benchmarking against similar large-scale IT services contracts for the Department of Defense suggests this falls within expected ranges for complex system design and integration. The Firm Fixed Price contract type is generally favorable for the government, as it caps potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific delivery order. While two bidders participated, the nature of the competition for the parent IDIQ vehicle would provide a more comprehensive view of market dynamics.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions. The presence of multiple bidders, even if only two for this specific order, helps ensure the government receives fair market value.

Public Impact

The Department of the Air Force will benefit from enhanced Command and Control of the Information Environment capabilities. Services delivered will likely include the design, development, and integration of complex computer systems. The geographic impact is primarily within the Department of Defense's operational theaters, supporting global missions. Workforce implications may include specialized IT professionals, system architects, and cybersecurity experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined within the C2IE framework.
Dependence on a single contractor for critical information environment capabilities could pose a long-term risk.
The complexity of C2IE systems may lead to unforeseen technical challenges and integration issues.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Award to a large, established contractor like Accenture Federal Services suggests a higher likelihood of successful execution.
Full and open competition, even with two bidders, indicates an effort to leverage market capabilities.

Sector Analysis

The Command and Control of the Information Environment (C2IE) falls within the broader Information Technology (IT) and Defense sector. This contract addresses the growing need for sophisticated systems that manage and influence the information space, which is increasingly critical in modern warfare and national security. The market for defense IT services is substantial, with significant government investment in maintaining technological superiority. Comparable spending benchmarks for large-scale IT system design and integration projects within the DoD often run into hundreds of millions of dollars over several years.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the primary contractor, Accenture Federal Services, will likely be responsible for subcontracting opportunities. Analysis of the subcontracting plan, if available, would be necessary to determine the extent to which small businesses will participate in fulfilling the contract requirements. Without specific set-aside provisions, the direct impact on the small business ecosystem is limited to potential subcontracting roles.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which incentivizes the contractor to meet performance standards within the agreed-upon budget. Transparency is typically facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Information Technology Services
Defense Information Systems
Command and Control Systems
Computer Systems Design
Cybersecurity Services

Risk Flags

Potential for limited competition on future task orders if the parent IDIQ vehicle is not widely competed.
Risk of contractor performance issues impacting critical command and control functions.
Complexity of C2IE systems may lead to integration challenges and cost overruns despite FFP structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to ACCENTURE FEDERAL SERVICES LLC. COMMAND AND CONTROL OF THE INFORMATION ENVIRONMENT (C2IE) FULL AWARD AMOUNT $80,762,662.00

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 $10.0 million.

What is the period of performance?

Start: 2025-02-14. End: 2031-02-13.

What is Accenture Federal Services' track record with similar large-scale IT contracts for the Department of Defense?

Accenture Federal Services has a significant track record of performing large-scale IT and professional services contracts for various U.S. federal agencies, including the Department of Defense. They are known for their expertise in areas such as cloud computing, cybersecurity, data analytics, and systems integration. While specific performance details for every contract are not publicly available, their consistent award of major contracts suggests a generally positive performance history and capability to handle complex requirements. For C2IE, their experience in developing and integrating complex systems would be directly relevant. A deeper dive into past performance reviews and any past issues on similar DoD contracts would provide more granular insights into their reliability for this specific award.

How does the $80.8 million award compare to other C2IE-related contracts or similar information environment initiatives?

The $80.8 million award for Command and Control of the Information Environment (C2IE) over approximately six years represents a substantial investment, averaging around $13.5 million per year. This figure is in line with significant IT modernization and system development programs within the Department of Defense. For context, other large DoD IT contracts, particularly those involving complex system design, integration, and sustainment for critical operational capabilities, often range from tens to hundreds of millions of dollars. The specific nature of C2IE, focusing on the information domain, places it within a category of high-priority, technologically advanced programs. Without access to a comprehensive database of all C2IE-related spending or precise benchmarks for 'information environment' capabilities across different services, a direct comparison is challenging. However, the award size suggests a program of significant scope and importance.

What are the primary risks associated with a Firm Fixed Price contract for complex IT systems like C2IE?

While Firm Fixed Price (FFP) contracts are generally favored by the government for cost control, they carry inherent risks, especially for complex IT systems like C2IE. The primary risk is that the contractor, Accenture Federal Services, may face unforeseen technical challenges, scope creep, or integration difficulties that significantly increase their costs beyond the fixed price. If these issues are severe, the contractor might cut corners on quality, performance, or support to maintain profitability, potentially impacting the effectiveness of the C2IE system. Conversely, if the government requires significant changes or additions to the scope, negotiating change orders under an FFP contract can be complex and may lead to disputes. The government also bears the risk if the contractor's initial cost estimation was overly optimistic and they become financially strained, potentially impacting delivery.

What does the level of competition (2 bidders) for this delivery order imply for the overall market for C2IE solutions?

The fact that this specific delivery order had two bidders suggests a moderately competitive market for C2IE solutions, at least within the context of the parent IDIQ contract. While two bidders are better than one, it is not indicative of a highly robust competition. This could imply that the number of companies possessing the specialized expertise and security clearances required for such advanced defense IT work is limited. It might also suggest that the parent IDIQ vehicle itself had a limited number of awardees. A more comprehensive understanding would require knowing how many bids were submitted for the original IDIQ contract and how many companies are capable of competing for these types of advanced information environment systems. Limited competition can sometimes lead to higher prices or less innovation over time.

How might the success or failure of this C2IE contract impact future DoD spending on information environment capabilities?

The success of this C2IE contract awarded to Accenture Federal Services could significantly bolster future DoD spending on similar information environment capabilities. Positive outcomes, such as demonstrable improvements in command and control, enhanced operational effectiveness, and successful integration of new technologies, would likely encourage further investment in this domain. Conversely, significant failures, cost overruns, or unmet performance objectives could lead to increased scrutiny, budget reductions, or a shift in strategy for future information environment programs. The DoD often uses successful programs as justification for continued or expanded funding, while failures can trigger program reviews and potential cancellations. Therefore, the performance on this contract will be a key data point for future resource allocation decisions.

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 › IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

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 STE 300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $75,344,625

Exercised Options: $75,344,625

Current Obligation: $10,028,354

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0036

IDV Type: GWAC

Timeline