DoD's $24.3M Warehouse Utilization Contract Awarded to Accenture Federal Services for Engineering Support

Contract Overview

Contract Amount: $24,300,637 ($24.3M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2021-09-03

End Date: 2024-03-02

Contract Duration: 911 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHASE 2 AND 3 WAREHOUSE UTILIZATION INITIATIVE SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: PHASE 2 AND 3 WAREHOUSE UTILIZATION INITIATIVE SUPPORT Key points: 1. Contract focuses on engineering services for warehouse utilization, indicating a need for specialized technical expertise. 2. The firm-fixed-price contract type suggests a defined scope and predictable costs for the government. 3. A single award delivery order under a larger contract implies a streamlined procurement process. 4. The duration of 911 days points to a medium-term project requiring sustained effort. 5. The contract is managed by Washington Headquarters Services, a key administrative body within the DoD. 6. The North American Industry Classification System (NAICS) code 541330 categorizes this as Engineering Services.

Value Assessment

Rating: good

The contract value of $24.3 million for engineering services over approximately 2.5 years appears reasonable given the scope. Benchmarking against similar large-scale engineering support contracts within the Department of Defense is necessary for a definitive value-for-money assessment. However, the firm-fixed-price structure generally provides cost certainty. Without specific performance metrics or detailed cost breakdowns, a precise comparison is challenging, but the award to a well-established contractor like Accenture suggests a baseline level of expected quality and efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The fact that it resulted in a single delivery order suggests that Accenture Federal Services was selected as the most advantageous offer. The level of competition, while not explicitly detailed in terms of the number of bidders, is generally positive for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors, driving down costs and improving the quality of services offered.

Public Impact

The Department of Defense benefits from improved warehouse utilization and efficiency, potentially leading to cost savings in storage and logistics. Engineering expertise will be applied to optimize the physical and operational aspects of DoD warehouses. The geographic impact is likely concentrated within DoD facilities where warehouse operations are critical, potentially across various installations. The contract supports a workforce of engineers and technical specialists, contributing to employment in the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Dependence on contractor expertise could create knowledge gaps if not managed effectively.
Ensuring alignment with broader DoD logistics and supply chain modernization efforts.

Positive Signals

Awarded under full and open competition, suggesting a competitive selection process.
Firm-fixed-price contract provides cost certainty for the government.
Contractor has a strong track record in federal IT and professional services.
Project duration allows for thorough implementation and evaluation of solutions.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting government logistics and infrastructure. The market for federal engineering services is substantial, with agencies like the Department of Defense being significant clients. This contract likely addresses a need for specialized technical analysis and solutions to optimize the efficiency and cost-effectiveness of large-scale warehousing operations, a critical component of military readiness and supply chain management.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this particular delivery order (ss: false, sb: false). Therefore, the direct impact on small businesses through subcontracting opportunities is not explicitly mandated by this award. However, the prime contractor, Accenture Federal Services, may engage small businesses as subcontractors based on their own procurement strategies and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within Washington Headquarters Services. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated through contract award databases and reporting requirements, though detailed operational oversight specifics are not provided.

Related Government Programs

Department of Defense Logistics Modernization Programs
Federal Supply Chain Management Initiatives
Government Warehouse and Storage Facility Management
Engineering Consulting Services for Government Agencies

Risk Flags

Potential for scope creep
Contractor performance risk
Knowledge transfer challenges
Alignment with broader DoD strategy

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to ACCENTURE FEDERAL SERVICES LLC. PHASE 2 AND 3 WAREHOUSE UTILIZATION INITIATIVE SUPPORT

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 (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2021-09-03. End: 2024-03-02.

What is Accenture Federal Services' track record with similar large-scale engineering support contracts within the Department of Defense?

Accenture Federal Services has a significant history of supporting the Department of Defense across various domains, including IT modernization, cybersecurity, and professional services. While specific details on their past warehouse utilization projects are not provided in this data, their extensive experience with DoD contracts suggests a strong understanding of military operational requirements and procurement processes. Their past performance on complex, large-value contracts indicates a capacity to manage significant projects and deliver technical solutions. Further analysis would involve reviewing their specific performance evaluations on prior DoD engineering or logistics-related contracts to assess their suitability for this initiative.

How does the $24.3 million contract value compare to similar warehouse utilization engineering support contracts within the DoD?

Benchmarking the $24.3 million contract value requires comparing it to similar engineering support contracts focused on warehouse utilization or logistics optimization within the Department of Defense. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, for a project spanning over two years and involving specialized engineering services for potentially numerous facilities, this value appears within a reasonable range for a large federal agency like the DoD. Factors such as the scope of work, number of facilities involved, and specific technical requirements would influence the overall cost. A detailed analysis would involve identifying contracts with similar objectives and durations awarded to other large engineering service providers.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract could include scope creep, where the project's objectives expand beyond the initial agreement, potentially increasing costs and timelines. Another risk is the potential for contractor underperformance or failure to deliver the expected engineering solutions, impacting warehouse efficiency. Dependence on specialized contractor expertise could also pose a risk if knowledge transfer is not adequately managed. Mitigation strategies likely involve robust contract management by the Washington Headquarters Services, clear definition of deliverables and performance metrics, regular progress reviews, and potentially performance-based incentives. The firm-fixed-price structure also inherently mitigates cost overrun risks for the government, provided the scope remains controlled.

How effective is the firm-fixed-price contract type in ensuring value for money for this warehouse utilization initiative?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and understood. For this warehouse utilization initiative, an FFP contract provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to manage resources efficiently and deliver the agreed-upon engineering services within the set price. However, the effectiveness hinges on the clarity and completeness of the initial requirements. If the scope is ambiguous or subject to significant change, an FFP contract could lead to disputes or require costly change orders, potentially diminishing the value proposition. Robust initial planning and clear statement of work are crucial for maximizing the benefits of an FFP structure.

What is the historical spending trend for engineering services related to logistics and warehouse management within the DoD?

Historical spending on engineering services for logistics and warehouse management within the DoD is likely substantial and fluctuates based on modernization efforts, infrastructure needs, and strategic priorities. Agencies within the DoD consistently invest in optimizing their vast supply chain and storage capabilities. While specific historical data for this exact category is not provided, the DoD's overall budget for logistics, maintenance, and engineering support runs into billions of dollars annually. Trends often show increased spending during periods of military expansion, technological upgrades, or efforts to improve efficiency and reduce operational costs, such as warehouse utilization initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003421R0188

Offers Received: 1

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,300,637

Exercised Options: $24,300,637

Current Obligation: $24,300,637

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $177,448

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU101

IDV Type: IDC

Timeline