DoD's $51.9M Contract for Custom Programming Services Awarded to Accenture Federal Services
Contract Overview
Contract Amount: $51,924,433 ($51.9M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Defense
Start Date: 2025-04-07
End Date: 2026-04-06
Contract Duration: 364 days
Daily Burn Rate: $142.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DEVELOP, CONFIGURE, AND SUSTAIN, MRO/MRO-S.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $51.9 million to ACCENTURE FEDERAL SERVICES LLC for work described as: DEVELOP, CONFIGURE, AND SUSTAIN, MRO/MRO-S. Key points: 1. Significant contract value of $51.9M for custom computer programming. 2. Accenture Federal Services is the sole awardee, raising questions about competition. 3. Risk of overpayment due to cost-plus fixed fee contract type. 4. IT sector spending is substantial, with this contract contributing to it.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar custom programming services is difficult without more detailed scope information, but the award value suggests a significant undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition for a $51.9M contract may result in taxpayers paying more than necessary for these custom programming services.
Public Impact
Taxpayers may be overpaying due to the sole-source nature of the award. The Department of the Air Force is investing heavily in IT services. Potential for reduced innovation due to lack of competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Experienced contractor (Accenture Federal Services)
- Clear contract duration
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services. Government spending in this area is consistently high as agencies modernize systems and develop new software solutions.
Small Business Impact
The awardee, Accenture Federal Services, is a large business. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Robust performance monitoring will be crucial for the Cost Plus Fixed Fee structure.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type carries inherent risk of cost overruns.
- Lack of transparency regarding the justification for sole-source award.
- Potential for reduced innovation due to absence of competitive pressure.
Tags
custom-computer-programming-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.9 million to ACCENTURE FEDERAL SERVICES LLC. DEVELOP, CONFIGURE, AND SUSTAIN, MRO/MRO-S.
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 $51.9 million.
What is the period of performance?
Start: 2025-04-07. End: 2026-04-06.
What specific custom programming services are being procured, and how does their unique nature justify a sole-source award?
The specific services are described as 'DEVELOP, CONFIGURE, AND SUSTAIN, MRO/MRO-S.' Without further details on the uniqueness or proprietary nature of these MRO/MRO-S systems, it is difficult to definitively justify a sole-source award. A thorough justification should detail why only Accenture Federal Services can provide these critical capabilities, perhaps due to existing system integration, specialized knowledge, or intellectual property.
What measures are in place to mitigate the risks associated with a Cost Plus Fixed Fee contract awarded on a sole-source basis?
Mitigation strategies for a sole-source CPFF contract typically involve stringent oversight, detailed performance metrics, and regular audits. The Air Force should implement robust project management, closely monitor all costs incurred, and ensure that the fixed fee is justified by the complexity and risk. Independent cost reviews and benchmarking against similar, albeit potentially different, projects can also help identify potential overruns or inefficiencies.
How will the effectiveness of the developed, configured, and sustained MRO/MRO-S systems be measured to ensure value for taxpayer money?
Effectiveness will be measured through clearly defined Key Performance Indicators (KPIs) tied to the MRO/MRO-S systems' functionality, reliability, and user adoption. This includes metrics such as system uptime, bug resolution rates, user satisfaction surveys, and the achievement of specific operational improvements or cost savings attributed to the systems. Regular performance reviews against these KPIs will be essential to gauge the contractor's success and the overall value delivered.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - PLATFORM
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA877025RB001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $339,965,881
Exercised Options: $51,924,433
Current Obligation: $51,924,433
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-04-07
Current End Date: 2026-04-06
Potential End Date: 2030-10-06 00:00:00
Last Modified: 2025-12-11
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