DHS awards $31M for IT services, with Accenture Federal Services securing a significant portion

Contract Overview

Contract Amount: $30,987,355 ($31.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-08-02

End Date: 2020-01-15

Contract Duration: 896 days

Daily Burn Rate: $34.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MODERNIZED DEVOPSEC AND ANALYTICS SERVICES IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20529

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: MODERNIZED DEVOPSEC AND ANALYTICS SERVICES IGF::OT::IGF Key points: 1. Contract value of $30.99 million over its period of performance. 2. Services procured fall under Computer Systems Design. 3. Awarded via full and open competition, indicating broad market access. 4. The contract duration was 896 days. 5. Accenture Federal Services LLC is the primary contractor. 6. The contract was a delivery order. 7. The place of performance was Washington D.C.

Value Assessment

Rating: good

The total award of $30.99 million for Computer Systems Design Services appears reasonable given the contract's duration of 896 days. Benchmarking against similar contracts for IT modernization and analytics services would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that cost risks were largely borne by the contractor, which can be beneficial for the government.

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 offers. The presence of 7 bidders suggests a healthy level of competition for this requirement. This broad competition is generally expected to drive competitive pricing and encourage innovative solutions from the participating firms.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers by leveraging market forces to identify the most cost-effective and capable provider.

Public Impact

Citizens and immigrants benefit from modernized IT systems and analytics. Improved efficiency in processing applications and managing immigration services. Services delivered support the core mission of U.S. Citizenship and Immigration Services. Workforce implications include potential for enhanced tools and processes for government employees. Geographic impact is primarily within the District of Columbia, where the performance was located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Reliance on a single contractor for critical IT infrastructure.
Scope creep could increase costs beyond initial estimates if not managed tightly.

Positive Signals

Accenture Federal Services is a well-established IT services provider.
Firm-fixed-price contract can provide cost certainty.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology industry. This sector is characterized by rapid innovation and a high demand for specialized skills in areas like DevOps, cybersecurity, and data analytics. The market size for IT services to the federal government is substantial, with agencies continually seeking to modernize legacy systems and improve operational efficiency through technology.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is Accenture Federal Services LLC, a large business, there is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses were involved in the subcontracting chain.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security, which has established oversight mechanisms for its procurements. As a delivery order under a larger contract vehicle, it likely adheres to the oversight protocols of that vehicle. Transparency is generally maintained through contract award databases, though specific performance monitoring details are not publicly detailed here.

Related Government Programs

IT Modernization
DevOps Services
Data Analytics
Computer Systems Design
Immigration Services IT

Risk Flags

Potential for technical challenges in system integration.
Risk of scope creep in IT modernization projects.
Dependence on contractor performance for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.0 million to ACCENTURE FEDERAL SERVICES LLC. MODERNIZED DEVOPSEC AND ANALYTICS SERVICES 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. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $31.0 million.

What is the period of performance?

Start: 2017-08-02. End: 2020-01-15.

What is the track record of Accenture Federal Services LLC in delivering similar IT modernization and analytics services to federal agencies?

Accenture Federal Services LLC has a significant track record in providing a wide range of IT services to federal agencies, including modernization, cloud migration, data analytics, and cybersecurity solutions. They have been involved in numerous large-scale government IT projects across various departments, often focusing on improving citizen services and operational efficiency. Their experience typically includes managing complex system integrations and implementing agile development methodologies. While this specific contract was for $30.99 million, their portfolio often includes contracts of similar or larger magnitudes, demonstrating their capacity to handle substantial federal IT requirements. Past performance reviews and contract award data from agencies like DHS, DoD, and HHS would offer more granular insights into their specific successes and challenges in delivering these types of services.

How does the awarded amount of $30.99 million compare to similar IT modernization contracts awarded by DHS or other agencies?

The $30.99 million award for Computer Systems Design Services over approximately 2.5 years (896 days) is a moderate-sized contract within the federal IT landscape. For context, major IT modernization efforts by agencies like the IRS or the VA can run into hundreds of millions or even billions of dollars over several years. However, for specific system design and analytics services supporting a particular program like USCIS, this amount is substantial and reflects the complexity and criticality of the systems involved. Benchmarking against contracts for similar services (e.g., cloud migration, application development, data analytics platforms) awarded by agencies of comparable size and mission scope would provide a more precise comparison. The firm-fixed-price nature also suggests a defined scope, which can influence the overall contract value compared to cost-plus contracts for more exploratory work.

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

Key risks for this contract include potential scope creep, where requirements expand beyond the initial agreement, leading to cost overruns or schedule delays. Given the nature of IT modernization, technical challenges and integration issues with legacy systems are also significant risks. Contractor performance and the ability of Accenture Federal Services LLC to deliver on complex requirements are critical. Mitigation strategies likely involve robust contract management by USCIS, including clear definition and control of scope, regular performance reviews, and proactive issue resolution. Strong technical oversight and collaboration between the government and contractor teams are essential to address technical hurdles effectively. Ensuring clear communication channels and performance metrics can help manage expectations and identify deviations early.

How effective is the full and open competition process in ensuring value for money for this type of IT service?

The full and open competition process is generally considered highly effective in ensuring value for money for IT services, especially for well-defined requirements like Computer Systems Design. By allowing all eligible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. The fact that 7 bidders participated suggests a robust competition. This process allows the government to select not only the lowest-priced offer but also the best value, considering technical capabilities, past performance, and price. For complex IT services, this broad competition helps ensure that the government accesses a wide pool of talent and solutions, increasing the likelihood of obtaining high-quality services at a competitive price point. The transparency inherent in this process also adds a layer of accountability.

What are the historical spending patterns for Computer Systems Design Services at U.S. Citizenship and Immigration Services (USCIS)?

Historical spending patterns for Computer Systems Design Services at USCIS reveal a consistent need for IT support to manage and modernize its complex immigration systems. USCIS relies heavily on IT to process applications, manage databases, and facilitate communication. Over the years, the agency has awarded numerous contracts in this category, ranging from small, task-order-level support to large, multi-year programs. Spending often fluctuates based on specific modernization initiatives, security upgrades, or the introduction of new processing technologies. The $30.99 million awarded to Accenture Federal Services LLC for this particular contract is indicative of the agency's ongoing investment in maintaining and enhancing its critical IT infrastructure. Analyzing broader spending trends would show a sustained commitment to IT modernization to meet evolving immigration policies and service demands.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSSCCG-17-R-00016

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

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

Financial Breakdown

Contract Ceiling: $30,987,355

Exercised Options: $30,987,355

Current Obligation: $30,987,355

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $4,153,508

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC14DE2005

IDV Type: IDC

Timeline