DHS awards $370M+ for IT support, with Accenture Federal Services as prime contractor

Contract Overview

Contract Amount: $370,251,090 ($370.3M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-30

End Date: 2023-06-30

Contract Duration: 2,099 days

Daily Burn Rate: $176.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: DATA CENTER SUPPORT SERVICES FOR THE OFFICE OF INFORMATION&TECHNOLOGY. IGF::OT::IGF

Place of Performance

Location: SPRINGFIELD, ACCOMACK County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $370.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: DATA CENTER SUPPORT SERVICES FOR THE OFFICE OF INFORMATION&TECHNOLOGY. IGF::OT::IGF Key points: 1. Contract value exceeds $370 million over its lifecycle. 2. Accenture Federal Services has been the sole prime contractor. 3. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. Services are categorized under 'Other Computer Related Services'. 5. The contract duration is substantial, spanning nearly six years. 6. Competition was full and open, suggesting a broad initial bidding process.

Value Assessment

Rating: fair

The contract's total value of over $370 million is significant. Benchmarking this against similar IT support contracts is challenging without more granular data on the specific services provided. The Cost Plus Award Fee structure suggests an attempt to incentivize performance, but the overall value and duration warrant scrutiny to ensure cost-effectiveness. Without specific performance metrics or comparisons to industry standards for similar IT support functions, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. While the initial competition was broad, the data indicates Accenture Federal Services LLC was the sole prime contractor throughout its duration. This suggests that while the initial award was competitive, the subsequent performance or contract modifications may have led to a single provider. Further analysis would be needed to understand if there were subsequent sole-source modifications or if Accenture consistently won follow-on efforts.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers. However, the long-term reliance on a single prime contractor warrants monitoring to ensure continued competitive pricing and service quality.

Public Impact

Benefits the Department of Homeland Security, specifically U.S. Customs and Border Protection, by ensuring the continuity of critical IT operations. Delivers essential computer-related services crucial for the functioning of a major federal agency. The geographic impact is primarily within Virginia, where the contract is managed. Supports a workforce involved in IT services, potentially including technical staff, project managers, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term sole prime contractor status for Accenture Federal Services warrants review for potential lack of ongoing price competition.
Cost Plus Award Fee contracts can sometimes lead to higher costs if award criteria are not tightly defined or if costs escalate unexpectedly.
The substantial contract value and duration necessitate robust oversight to ensure continued value for money.

Positive Signals

Awarded under full and open competition, indicating an initial competitive process.
The Cost Plus Award Fee structure incentivizes contractor performance, potentially leading to better service delivery.
The contract supports critical IT infrastructure for a vital federal agency.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services'. The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts of this magnitude are common for large federal departments like Homeland Security, which require extensive IT support to manage complex operations. Benchmarks for similar large-scale IT support contracts often range in the hundreds of millions of dollars over several years, reflecting the complexity and criticality of these services.

Small Business Impact

The data indicates 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 set-aside. However, as a large prime contract, there may be opportunities for small businesses to participate as subcontractors to Accenture Federal Services, depending on the prime's subcontracting plan and the specific services required.

Oversight & Accountability

The contract is managed by the Department of Homeland Security, likely subject to internal oversight mechanisms and potentially the oversight of the DHS Office of Inspector General. The Cost Plus Award Fee structure implies performance metrics that would be monitored. Transparency would depend on the public availability of contract performance reports and spending details, which are not fully detailed in the provided data.

Related Government Programs

Department of Homeland Security IT Modernization Programs
Customs and Border Protection Technology Modernization
Federal Civilian IT Services Contracts
IT Infrastructure Support Services

Risk Flags

Long-term sole prime contractor status
Potential for cost creep in CPAF contracts
Need for detailed performance metric analysis

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $370.3 million to ACCENTURE FEDERAL SERVICES LLC. DATA CENTER SUPPORT SERVICES FOR THE OFFICE OF INFORMATION&TECHNOLOGY. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $370.3 million.

What is the period of performance?

Start: 2017-09-30. End: 2023-06-30.

What specific IT support services were delivered under this contract?

The contract NAICS code 541519, 'Other Computer Related Services,' is broad. While the contract title mentions 'DATA CENTER SUPPORT SERVICES,' the precise scope of services is not detailed. This could encompass a wide range of activities, including hardware and software maintenance, network management, data center operations, cybersecurity support, cloud services integration, and IT help desk functions. Understanding the specific deliverables is crucial for a comprehensive value assessment and for comparing this contract to industry benchmarks for similar IT support functions.

How did Accenture Federal Services' performance compare to expectations under the Cost Plus Award Fee structure?

The Cost Plus Award Fee (CPAF) contract structure implies that the contractor receives a base fee plus an award fee based on performance against defined criteria. To assess value, it would be necessary to review the award fee determinations made by the contracting officer throughout the contract's life. These determinations would indicate whether Accenture met or exceeded performance expectations in areas such as service delivery, timeliness, cost control, and innovation. Without access to these award fee evaluations, it's difficult to gauge the extent to which performance incentives were realized and if they contributed to overall value.

What was the total spending trend over the contract's duration?

The contract duration is from September 30, 2017, to June 30, 2023, spanning nearly six years. The total obligated amount is $370,251,090.23. To understand spending trends, one would need to examine the annual or quarterly spending data. This would reveal if spending was consistent, increased over time, or fluctuated based on agency needs or project phases. Analyzing these patterns can help identify periods of high activity or potential cost overruns and inform future budget planning.

Were there any significant contract modifications or scope changes during its lifecycle?

The provided data does not detail contract modifications. However, for a contract of this duration and value, it is common to have modifications for scope adjustments, funding increases, or extensions. Analyzing modification history is essential to understand if the contract evolved significantly from its original intent and if these changes impacted the overall cost and performance. Significant modifications could alter the initial competitive landscape and necessitate a re-evaluation of the contract's value proposition.

What is the typical cost for similar 'Other Computer Related Services' contracts within the federal government?

Benchmarking 'Other Computer Related Services' is complex due to the wide variety of services encompassed by NAICS code 541519. However, large-scale IT support contracts for agencies like DHS often involve significant investment. Comparable contracts can range from tens to hundreds of millions of dollars over several years, depending on the scope, duration, and criticality of the services. Factors such as the number of users supported, the complexity of the IT environment, and the specific technologies involved heavily influence costs. Without a more precise definition of the services rendered, direct cost comparisons are challenging.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 NORTH GLEBE RD #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: $383,090,914

Exercised Options: $370,251,090

Current Obligation: $370,251,090

Actual Outlays: $64,146,437

Subaward Activity

Number of Subawards: 711

Total Subaward Amount: $204,570,349

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline