DoD's $22.2M IT services contract awarded to Accenture Federal Services shows fair value with a 1094-day duration

Contract Overview

Contract Amount: $22,255,137 ($22.3M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2008-08-06

End Date: 2011-08-05

Contract Duration: 1,094 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DMIT C2SLM PHASE V

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: DMIT C2SLM PHASE V Key points: 1. The contract's value appears reasonable given the scope of IT services and the duration. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The fixed-fee structure provides some cost control for the government. 4. Performance was managed by the Department of the Air Force, indicating a specific military need. 5. The contract falls under 'Other Computer Related Services,' a broad category within IT. 6. The contractor, Accenture Federal Services, is a large, established entity in the federal contracting space.

Value Assessment

Rating: good

The contract's total value of approximately $22.2 million over 1094 days averages to roughly $20,343 per day. This daily rate is within a reasonable range for complex IT services provided by a large federal contractor. Without specific deliverables or performance metrics, a direct comparison is challenging, but the overall value seems aligned with typical IT support contracts of this nature and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process where multiple companies likely vied for the contract. The presence of a competitive field generally drives down prices and encourages innovation as contractors seek to offer the most compelling value proposition.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of service options, ensuring the government receives the best possible value for its investment.

Public Impact

The Department of the Air Force directly benefited from enhanced IT services. The contract supported critical command and control systems (C2SLM). Services were delivered within Virginia, impacting the local federal IT workforce. The contract likely involved skilled IT professionals, contributing to specialized federal employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in cost-plus contracts if not managed tightly.
Reliance on a single large contractor could limit future flexibility or competition.
The 'Other Computer Related Services' category is broad, making specific performance assessment difficult without more detail.

Positive Signals

Awarded under full and open competition, suggesting a fair process.
Fixed-fee element provides some cost predictability.
Contractor is a well-established entity with a track record in federal IT.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically under 'Other Computer Related Services.' The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are crucial for supporting military operations and administrative functions, representing a significant portion of the government's technology spending.

Small Business Impact

This contract was not set aside for small businesses and was awarded to a large prime contractor. There is no explicit indication of small business subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, though large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

The contract was managed by the Department of the Air Force, implying internal oversight mechanisms. As a cost-plus fixed-fee contract, financial oversight would be critical to ensure costs align with the fixed fee and are reasonable. Transparency would depend on the agency's reporting practices and any public contract databases, but specific oversight details are not provided.

Related Government Programs

Defense IT Modernization Programs
Air Force Command and Control Systems
Federal IT Services Procurement
Other Computer Related Services Contracts

Risk Flags

Cost Overrun Potential (CPFF)
Scope Creep Risk
Limited Competition Insight (despite full/open)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to ACCENTURE FEDERAL SERVICES LLC. DMIT C2SLM PHASE V

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 $22.3 million.

What is the period of performance?

Start: 2008-08-06. End: 2011-08-05.

What was the specific nature of the 'DMIT C2SLM PHASE V' services provided under this contract?

The contract identifier 'DMIT C2SLM PHASE V' suggests services related to the Defense Mission Information Technology (DMIT) initiative, specifically focusing on Command and Control (C2) Systems Lifecycle Management (SLM) Phase V. This likely involved the sustainment, modernization, or enhancement of critical command and control IT systems for the Department of the Air Force. The 'Phase V' indicates it was part of a larger, multi-stage effort. Without access to the detailed statement of work, the precise technical services, such as software development, system integration, network management, or cybersecurity support, remain unspecified but were categorized broadly under 'Other Computer Related Services'.

How does the average daily cost of $20,343 compare to similar IT services contracts awarded by the DoD?

The average daily cost of approximately $20,343 for this contract, which totals $22.2 million over 1094 days, appears to be within a reasonable range for complex IT services provided by a large, established contractor like Accenture Federal Services to a major agency like the Department of the Air Force. Benchmarking requires detailed comparison against contracts with similar scope, complexity, and contractor size. However, for IT support, system integration, and potentially software development services at this scale, this daily rate is not unusually high. Factors like security clearances, specialized skills, and the criticality of the systems supported can justify higher rates compared to basic IT helpdesk services.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for IT services?

Cost Plus Fixed Fee (CPFF) contracts carry inherent risks for both the government and the contractor. For the government, the primary risk is that the contractor may have less incentive to control costs rigorously, as the fee is fixed regardless of the final cost incurred. This can lead to cost overruns if not managed diligently. Contractors, on the other hand, risk absorbing unexpected cost increases if their initial cost estimates are too low, as the fee is fixed. Effective oversight, detailed cost accounting, and clear performance metrics are crucial to mitigate these risks and ensure value for money. In this case, the fixed fee provides some predictability, but cost control remains paramount.

What is the significance of Accenture Federal Services being the sole awardee for this contract?

Accenture Federal Services being the sole awardee is a direct result of the 'full and open competition' procurement method. This means that while multiple companies could have bid, Accenture was ultimately selected as the most advantageous offer. The significance lies in their established presence and capabilities in the federal IT sector. As a large, experienced contractor, they likely possess the resources and expertise required for complex projects like the DMIT C2SLM Phase V. However, relying on a single prime contractor for a multi-year, multi-million dollar effort also concentrates risk and potentially limits future competitive opportunities if the incumbent's performance is not exceptional.

How does the 'Other Computer Related Services' (NAICS 541519) classification impact the understanding of this contract's value?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specified under more precise codes. This includes services like IT support, disaster recovery, network management, and even some forms of IT consulting or project management. The broadness of this classification means the $22.2 million contract value could represent various types of services. While it suggests a significant IT support or integration effort, it lacks the specificity to precisely benchmark against niche IT services. Understanding the specific tasks performed within this category would be necessary for a more granular value assessment.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

Address: 11951 FREEDOM DR STE 1000, RESTON, VA, 11

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: $22,263,000

Exercised Options: $22,263,000

Current Obligation: $22,255,137

Contract Characteristics

Cost or Pricing Data: YES

Timeline