DoD's $31M DITMAC System Contract Awarded to Accenture Federal Services Raises Questions on Competition
Contract Overview
Contract Amount: $31,064,987 ($31.1M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Defense
Start Date: 2016-09-25
End Date: 2021-09-25
Contract Duration: 1,826 days
Daily Burn Rate: $17.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: "IGF::OT::IGF" DITMAC SYSTEM OF SYSTEMS DEVELOPMENT AND SUSTAINMENT FOR THE DEFENSE INSIDER THREAT MANAGEMENT AND ANALYSIS CENTER.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $31.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: "IGF::OT::IGF" DITMAC SYSTEM OF SYSTEMS DEVELOPMENT AND SUSTAINMENT FOR THE DEFENSE INSIDER THREAT MANAGEMENT AND ANALYSIS CENTER. Key points: 1. The contract awarded to Accenture Federal Services for the DITMAC System of Systems Development and Sustainment is a significant investment of $31 million. 2. The absence of competition for this contract raises concerns about potential overpricing and lack of innovation. 3. The Computer Systems Design Services sector is competitive, making the sole-source award notable. 4. The contract duration of 1826 days (5 years) suggests a long-term need for these services.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a lack of competition, makes it difficult to assess value for money. Without competitive bids, it's hard to benchmark pricing against similar services.
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 taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition means taxpayers may have paid more than necessary for these services, as competitive forces were absent.
Public Impact
Taxpayers may be overpaying for critical defense intelligence systems due to a lack of competitive bidding. The absence of competition could hinder the adoption of more advanced or cost-effective solutions in the future. Transparency in the procurement process is reduced when contracts are not competed, impacting public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration without re-competition
Positive Signals
- Awarded to a known entity (Accenture Federal Services)
- Addresses a critical defense need (Insider Threat Management)
Sector Analysis
The IT services sector, particularly within defense, is vast and dynamic. Benchmarks for similar system development and sustainment contracts vary widely, but competitive procurements typically yield better value.
Small Business Impact
The data indicates this contract was not awarded to small businesses, nor does it appear to have specific provisions for small business participation. This represents a missed opportunity for small business innovation and growth within the defense sector.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure the contractor is delivering services efficiently and at a reasonable cost. Accountability is reduced without competitive pressure.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Counterintelligence and Security Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns due to CPFF structure
- Limited transparency in pricing
- Risk of vendor lock-in
- Missed opportunity for small business participation
Tags
computer-systems-design-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.1 million to ACCENTURE FEDERAL SERVICES LLC. "IGF::OT::IGF" DITMAC SYSTEM OF SYSTEMS DEVELOPMENT AND SUSTAINMENT FOR THE DEFENSE INSIDER THREAT MANAGEMENT AND ANALYSIS CENTER.
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 Counterintelligence and Security Agency).
What is the total obligated amount?
The obligated amount is $31.1 million.
What is the period of performance?
Start: 2016-09-25. End: 2021-09-25.
What justification was provided for not competing this significant IT development and sustainment contract?
The provided data does not include the justification for the sole-source award. Typically, justifications for non-competitive contracts cite reasons such as urgency, unique capabilities, or lack of available sources. Without this information, it's impossible to assess the validity of the non-competitive decision.
How does the cost-plus-fixed-fee structure impact the government's ability to control costs on this sole-source contract?
Cost-plus-fixed-fee contracts can be challenging to manage for cost control, especially without competition. While the fixed fee provides some predictability, the government bears the risk of cost overruns on the 'cost' portion. The lack of competitive pressure exacerbates this risk, potentially leading to inflated costs.
What are the long-term implications of sustaining a critical system like DITMAC under a sole-source arrangement?
Sustaining a critical system under a sole-source arrangement for an extended period can lead to vendor lock-in, stifle innovation, and potentially result in higher long-term costs. It also reduces the government's leverage to negotiate better terms or adopt newer technologies that may emerge.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HS002116QDITM
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Novetta Solutions, LLC
Address: 7921 JONES BRANCH DR STE 500, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,167,795
Exercised Options: $31,167,795
Current Obligation: $31,064,987
Actual Outlays: $3,810,330
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-09-25
Current End Date: 2021-09-25
Potential End Date: 2021-09-25 00:00:00
Last Modified: 2024-02-09
More Contracts from Accenture Federal Services LLC
- - Tivod Supports the Origination, Disbursement, and Reporting of Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Direct Loans, Pell Grants, and the Teacher Education Assistance for College and Higher Education Grants. the Title IV Solution Shall Also Provide Ongoing Support for the Discontinued Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Academic Competitiveness Grants and National Science and Mathematics Access to Retain Talent Grants — $1.5B (Department of Education)
- This Task Order IS for an Enterprise-Wide Digital and Customer Care Platforms and Services Solution (enterprise-Wide Digital and Customer Care Solution, AKA Ewdccps, AKA DCC) That Will Enable an Fsa-Branded Omni-Channel Engagement Approach LED by a Mobile-First, Mobile-Complete, and Mobile-Continuous Digital Platform Supporting the Complete Lifecycle of Student Financing — $851.5M (Department of Education)
- FFM — $829.6M (Department of Health and Human Services)
- Award for Unified Enterprise Resource Planning Capability Support Services — $823.2M (Department of Defense)
- Federally Facilitated Exchange (FFE) — $787.2M (Department of Health and Human Services)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)