DoD's $16.6M IT services contract with Accenture awarded via full and open competition

Contract Overview

Contract Amount: $16,571,748 ($16.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-13

End Date: 2010-09-30

Contract Duration: 931 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTEGRATION AND DELIVERY IT SERVICES

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: INTEGRATION AND DELIVERY IT SERVICES Key points: 1. Contract awarded for IT integration and delivery services. 2. Accenture Federal Services LLC is the prime contractor. 3. The contract was awarded by the Department of Defense, specifically the Defense Information Systems Agency. 4. Services were delivered under a Firm Fixed Price contract type. 5. The contract duration was 931 days. 6. The contract was awarded as a Delivery Order. 7. The North American Industry Classification System (NAICS) code is 541519 (Other Computer Related Services).

Value Assessment

Rating: fair

Benchmarking the value of this specific $16.6 million contract is challenging without more granular data on the services provided and their complexity. However, given the duration of 931 days (approximately 2.5 years), the average annual spend was around $6.6 million. This figure needs to be compared against similar IT integration and delivery contracts awarded by the DoD or DISA during the 2008-2010 period to assess if it represented a competitive price point. The firm fixed-price nature suggests a defined scope, which can help in cost control, but the ultimate value depends on the successful delivery of the contracted IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, which is crucial for a complete assessment of the competition dynamics. A robust competition typically leads to better pricing and innovation. Without knowing the number of bids received, it's difficult to definitively state how effectively price discovery occurred, but the mechanism itself is designed to foster it.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by encouraging a wider range of vendors to compete, potentially driving down costs and improving the quality of services received.

Public Impact

The Department of Defense benefits from enhanced IT integration and delivery capabilities. The Defense Information Systems Agency receives critical support for its IT infrastructure. The contract supports the operational readiness and technological advancement of military and intelligence operations. Personnel involved in IT services within the DoD are impacted by the delivery of these contracted services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of the IT services delivered.
The absence of data on the number of bidders limits the ability to fully evaluate the competitive landscape and potential cost savings.
Without details on the specific IT integration and delivery tasks, it's hard to gauge the complexity and true value for money.
The contract's value of $16.6 million over 931 days could be high or low depending on the specific services rendered and market rates at the time.

Positive Signals

Awarded through full and open competition, suggesting a broad market engagement.
Firm Fixed Price contract type provides cost certainty for the government.
The contract was awarded to a known entity, Accenture Federal Services LLC, which likely has a track record in government IT services.
The contract was a Delivery Order, implying it was part of a larger, pre-competed framework, potentially streamlining the acquisition process.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT integration and delivery services. The IT services market for the federal government is substantial, with significant spending allocated to software development, system integration, and IT support. Contracts like this are essential for agencies like the Defense Information Systems Agency (DISA) to maintain and modernize their complex technological infrastructure. Comparable spending benchmarks would involve looking at other large-scale IT services contracts awarded to major federal IT contractors by defense agencies during the late 2000s.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific small business set-aside. However, large prime contractors like Accenture Federal Services LLC may engage small businesses as subcontractors, though this information is not detailed in the provided data. The absence of a small business set-aside means the primary competition was likely among large, established IT service providers.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Department of Defense and the Defense Information Systems Agency. As a firm fixed-price contract, oversight would focus on ensuring the delivery of contracted services met the specified requirements and timelines. Transparency is generally facilitated through contract award databases like FPDS-NG (Federal Procurement Data System - Next Generation), where basic award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or closeout.

Related Government Programs

Defense Information Systems Agency IT Support Services
Department of Defense IT Modernization Programs
Federal Civilian IT Services Contracts
IT Professional Services Contracts

Risk Flags

Lack of bidder count for 'full and open' competition limits assessment of price discovery effectiveness.
Absence of specific performance metrics hinders evaluation of service quality and value.
Limited detail on the scope of 'IT integration and delivery' makes direct value benchmarking difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to ACCENTURE FEDERAL SERVICES LLC. INTEGRATION AND DELIVERY IT SERVICES

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 (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2008-03-13. End: 2010-09-30.

What was Accenture Federal Services LLC's track record with the DoD prior to this award?

Prior to this $16.6 million contract awarded in March 2008, Accenture Federal Services LLC had a significant history of contracting with the Department of Defense. As a major federal IT contractor, Accenture has consistently secured numerous awards across various defense agencies for a wide range of services, including IT modernization, system integration, cloud migration, and cybersecurity. While specific details of prior contracts would require a deeper dive into historical procurement data, Accenture's presence as a prime contractor on this DISA award suggests a demonstrated capability and established relationship with the DoD, likely built on previous successful performance and competitive bidding on earlier contracts.

How does the $16.6 million value compare to similar IT integration and delivery contracts awarded by DISA around 2008-2010?

Comparing the $16.6 million value of this contract to similar IT integration and delivery contracts awarded by DISA between 2008 and 2010 requires access to detailed historical procurement data and an understanding of the specific scope of services. However, for a contract spanning approximately 2.5 years (931 days), an average annual value of roughly $6.6 million is within the range of many large-scale IT support and integration efforts undertaken by major defense agencies. Without knowing the exact deliverables, complexity, and number of personnel involved, a precise benchmark is difficult. Generally, DISA awards numerous contracts in the multi-million dollar range for IT services, and the competitiveness of the 'full and open' award mechanism would have been a key factor in determining its value relative to market rates at the time.

What were the primary risks associated with this IT integration and delivery contract?

The primary risks associated with this IT integration and delivery contract likely included technical risks related to the successful integration of complex IT systems, potential schedule delays due to unforeseen technical challenges or scope creep, and performance risks if the delivered services did not meet DISA's operational requirements. Given the firm fixed-price nature, there was also a financial risk for the contractor if costs exceeded estimates. For the government, a key risk would be the potential for the contractor to underperform or fail to deliver the full scope of services, impacting critical defense IT operations. Cybersecurity risks, inherent in any IT contract, would also be a significant concern.

How effective was the 'full and open competition' in ensuring value for money for this specific contract?

The 'full and open competition' mechanism is designed to maximize value for money by encouraging a wide range of qualified vendors to bid, thereby fostering price competition and innovation. While the data confirms this contract was awarded under such a process, it does not specify the number of bidders. A high number of bidders typically correlates with better price discovery and potentially lower costs for the government. Therefore, while the process itself is a positive indicator for value, its actual effectiveness in this specific instance hinges on the level of competition realized. Without knowing how many bids were submitted and evaluated, it's challenging to definitively assess the value achieved solely based on the competition type.

What is the historical spending pattern for IT integration and delivery services by DISA?

Historical spending patterns for IT integration and delivery services by the Defense Information Systems Agency (DISA) show a consistent and substantial investment in these areas. DISA is a primary agency responsible for providing IT infrastructure and services to the Department of Defense, making IT integration and delivery a core function. Over the years, DISA has awarded numerous contracts, often in the tens or hundreds of millions of dollars, to various prime contractors for services ranging from network modernization and cybersecurity solutions to enterprise resource planning implementation and cloud services. Spending in this category typically fluctuates based on evolving technological needs, strategic defense priorities, and the lifecycle of existing IT systems, but it remains a significant portion of the DoD's overall IT budget.

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: ONLY ONE SOURCE

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, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,730,039

Exercised Options: $16,571,748

Current Obligation: $16,571,748

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0371N

IDV Type: FSS

Timeline