DoD's $180M IT services contract to Accenture shows potential for cost savings and competitive pricing

Contract Overview

Contract Amount: $18,026,698 ($18.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2006-02-03

End Date: 2012-04-30

Contract Duration: 2,278 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200606!000102!5700!FA8770!MSG/PK !GS35F4692G !C!N! !Y!FA877006F8001! !20060203!20101116!858485758!858485758!137820580!N!ACCENTURE LLP !11951 FREEDOM DR !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000004056180!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN&INTEGRATION SVCS !S1 !SERVICES !000 !NOT DISCERNABLE !541519!E! !6! ! ! ! ! !99990909!B!E!N! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: 200606!000102!5700!FA8770!MSG/PK !GS35F4692G !C!N! !Y!FA877006F8001! !20060203!20101116!858485758!858485758!137820580!N!ACCENTURE LLP !11951 FREEDOM DR !RESTON !VA!20190!66672!059!51!RESTON !FAIR… Key points: 1. Contract awarded to Accenture Federal Services LLC for IT services, indicating a significant investment in automated information system design and integration. 2. The contract's firm-fixed-price structure suggests a predictable cost for the government, though potential for overruns or underruns exists. 3. Competition level was 'Full and Open,' implying a robust bidding process that should drive competitive pricing. 4. The duration of the contract (over 4 years) suggests a long-term need for these IT services within the Air Force. 5. The contract's value of approximately $180 million warrants scrutiny for value-for-money and comparison against similar IT service contracts. 6. The specific NAICS code (541519) points to a broad category of IT services, requiring further detail to assess the precise nature of the work.

Value Assessment

Rating: good

The contract value of $180.3 million over approximately 4 years averages to about $45 million annually. Benchmarking this against similar large-scale IT services contracts within the Department of Defense is crucial. Without specific details on the services rendered, a precise value-for-money assessment is difficult. However, the firm-fixed-price nature of the contract provides a degree of cost certainty. Further analysis would involve comparing the per-unit cost of specific IT services delivered under this contract to industry standards or other government contracts for comparable services.

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 a bid. This suggests a competitive environment where multiple companies likely vied for the contract. The level of competition, while not explicitly detailed in terms of the number of bidders, is generally expected to lead to more favorable pricing for the government compared to sole-source or limited competition awards. The Air Force's approach here aligns with best practices for maximizing competition.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a market where contractors are incentivized to offer competitive pricing and innovative solutions to win the contract. This reduces the likelihood of inflated costs and ensures the government receives good value for its investment.

Public Impact

The primary beneficiary is the Department of the Air Force, which receives automated information system design and integration services. This contract supports the modernization and operational efficiency of Air Force IT infrastructure. The services delivered likely impact various Air Force units and personnel requiring advanced IT support. Geographic impact is concentrated within the areas served by the Air Force, potentially nationwide or globally depending on the systems supported. Workforce implications include employment for IT professionals within Accenture Federal Services and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'Automated Information System Design & Integration Services' are not clearly defined.
Reliance on a single large contractor, Accenture, could limit future flexibility or introduce vendor lock-in.
The firm-fixed-price contract might incentivize cost-cutting that could impact service quality if not closely monitored.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
Firm-fixed-price contract provides cost certainty for the government.
Accenture Federal Services is a known entity in government contracting, implying a level of established capability.

Sector Analysis

This contract falls within the Information Technology (IT) and professional services sector, specifically focusing on system design and integration. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading complex information systems. Comparable spending benchmarks would involve looking at other large-scale IT integration contracts awarded by the Department of Defense or other federal agencies for similar system development and support services. The NAICS code 541519, 'Other Computer Related Services,' encompasses a wide range of IT activities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major IT services provider, it is unlikely that small businesses would be primary awardees. However, there is potential for subcontracting opportunities for small businesses if Accenture chooses to engage them for specialized services or support. The absence of a small business set-aside means the primary focus was on obtaining the best overall solution and price from the open market.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures would be defined in the contract's performance work statement, including deliverables, service levels, and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Air Force Network Integration Center Contracts
General Services Administration (GSA) IT Schedule Contracts
Department of Defense Enterprise IT Services

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk associated with long-term reliance on a single vendor.
Need for detailed performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 million to ACCENTURE FEDERAL SERVICES LLC. 200606!000102!5700!FA8770!MSG/PK !GS35F4692G !C!N! !Y!FA877006F8001! !20060203!20101116!858485758!858485758!137820580!N!ACCENTURE LLP !11951 FREEDOM DR !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000004056180!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN&INTEGRATION SVCS !S1 !SERVICES !000 !NOT DISCERNABLE !541519!E! !6! ! ! ! ! !99990

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 $18.0 million.

What is the period of performance?

Start: 2006-02-03. End: 2012-04-30.

What specific automated information systems were designed and integrated under this contract, and what was their impact on Air Force operations?

The provided data identifies the contract as being for 'AUTOMATED INFO SYSTEM DESIGN&INTEGRATION SVCS' under NAICS code 541519. However, it does not specify the particular systems involved. These could range from mission-critical command and control systems to logistical support or personnel management platforms. The impact on Air Force operations would depend entirely on the nature of these systems. For instance, if the contract supported a new C2 system, it could enhance battlefield awareness and decision-making. If it involved upgrading a logistics system, it could improve supply chain efficiency. Without more granular details on the system's purpose and scope, a precise impact assessment is not possible. Further investigation into contract line item numbers (CLINs) or associated documentation would be necessary.

How does the average annual cost of approximately $45 million compare to similar IT integration contracts within the DoD for the period 2006-2012?

Benchmarking the average annual cost of $45 million for this Accenture contract requires comparison with similar large-scale IT system design and integration services awarded by the Department of Defense between 2006 and 2012. This period saw significant IT modernization efforts across the military. Contracts for enterprise resource planning (ERP) systems, network infrastructure upgrades, and cybersecurity solutions often ran into tens or hundreds of millions of dollars annually. Factors influencing cost include the complexity of the systems, the level of customization required, the number of users, and the security requirements. A direct comparison would necessitate identifying contracts with similar scope, duration, and service types (e.g., system integration, software development, infrastructure support) and analyzing their total values and annual expenditures. Given the 'Full and Open Competition' and firm-fixed-price nature, this contract likely aimed for competitive rates, but its value proposition is best understood relative to peer contracts.

What was the track record of Accenture Federal Services with the Department of the Air Force prior to and during this contract period?

Accenture Federal Services (AFS) has a substantial history of contracting with the Department of Defense, including the Air Force, prior to and during the 2006-2012 period of this contract. AFS has been a significant player in providing a wide array of IT, management consulting, and professional services to various government agencies. Their track record would encompass numerous other contracts, varying in size and scope. Performance on prior contracts, including adherence to schedules, budget, quality of deliverables, and overall client satisfaction, would have been a key consideration during the evaluation process for this $180 million award. Information on past performance is often a critical component of the source selection process in federal contracting. A review of AFS's broader contract portfolio and performance history with the Air Force would provide context for their capability and reliability in executing large IT integration projects.

Were there any significant performance issues, contract modifications, or disputes associated with this $180 million contract?

The provided data does not contain specific details regarding performance issues, significant contract modifications, or disputes related to this particular contract (FA877006F8001). Contract modifications are common in long-term IT projects to account for evolving requirements, technological advancements, or unforeseen challenges. However, substantial modifications could indicate initial scope definition issues or changing needs. Disputes typically arise from disagreements over contract terms, performance, or payments. Without access to contract modification logs, performance reviews, or official dispute records, it's impossible to definitively assess these aspects. Further research through contract databases or agency reports might reveal such information, which is crucial for a complete understanding of the contract's lifecycle and execution.

What is the breakdown of spending within the $180 million award across different IT service categories (e.g., software development, hardware integration, cybersecurity)?

The provided summary data does not offer a granular breakdown of the $180.3 million award across specific IT service categories. It broadly classifies the contract under NAICS code 541519 ('Other Computer Related Services') and lists the primary service type as 'AUTOMATED INFO SYSTEM DESIGN&INTEGRATION SVCS'. This suggests a focus on the development and implementation of IT systems. However, within this broad description, the actual allocation of funds towards software development, hardware procurement/integration, network engineering, cybersecurity implementation, project management, and ongoing support services is not detailed. Such a breakdown would typically be found in the contract's detailed schedule, CLIN structure, or performance work statement. Understanding this allocation is key to assessing how the funds were utilized and the specific technological capabilities delivered.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 1

Pricing Type: FIRM FIXED PRICE (J)

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,026,698

Exercised Options: $18,026,698

Current Obligation: $18,026,698

Parent Contract

Parent Award PIID: GS35F0371N

IDV Type: FSS

Timeline