DHS awards $38.7M for TSA recruitment services, with a 364-day performance period

Contract Overview

Contract Amount: $38,736,311 ($38.7M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-04-01

End Date: 2018-03-31

Contract Duration: 364 days

Daily Burn Rate: $106.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO FUND THE O&M CLINS FOR RECRUITMENT&HIRING OPERATIONAL SERVICES AT THE TSA FOR OPTION PERIOD 1. THE PERIOD OF PERFORMANCE WILL BE TWO-MONTHS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $38.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO FUND THE O&M CLINS FOR RECRUITMENT&HIRING OPERATIONAL SERVICES AT THE TSA FOR OPTION PERIOD 1. THE PERIOD OF PERFORMANCE WILL BE TWO-MONTHS. Key points: 1. The contract focuses on operational services for recruitment and hiring at the TSA. 2. A short, two-month performance period for Option Period 1 suggests a specific, immediate need. 3. The contract type is Firm Fixed Price, indicating a defined cost for services. 4. Accenture Federal Services LLC is the awarded contractor. 5. The North American Industry Classification System (NAICS) code 541612 points to Human Resources Consulting Services. 6. This is a Delivery Order under a larger contract vehicle. 7. The contract was awarded through Full and Open Competition.

Value Assessment

Rating: fair

The contract value of $38.7 million for a 364-day period, specifically for recruitment and hiring operational services, appears substantial. Without direct benchmarks for similar, narrowly defined operational support contracts at the TSA, it's difficult to definitively assess value for money. The firm-fixed-price structure provides cost certainty, but the per-day cost is approximately $106,418, which warrants further investigation into the scope and deliverables to ensure it aligns with market rates for such specialized HR operational support.

Cost Per Unit: $106,418 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'Full and Open Competition,' indicating that all responsible sources were permitted to submit offers. This suggests a competitive process was utilized, which typically benefits price discovery and potentially leads to more favorable pricing for the government. The number of bidders is not specified, but the method of competition implies a robust market engagement.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The primary beneficiaries are the Transportation Security Administration (TSA) and its human resources department, receiving operational support for recruitment and hiring. The services delivered are focused on the operational aspects of recruitment and hiring, aiming to streamline processes and potentially improve efficiency. The geographic impact is primarily within the TSA's operational areas, likely supporting national recruitment efforts. Workforce implications include potential support for TSA's hiring initiatives, which could impact the availability of personnel for critical security roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short, two-month performance period for Option Period 1 might indicate a reactive or urgent need, potentially leading to less strategic planning and higher costs.
The substantial contract value for a relatively short operational support period raises questions about the efficiency and scope of the services provided.
Lack of detail on specific performance metrics or deliverables makes it challenging to assess the effectiveness and true value of the services.

Positive Signals

The use of 'Full and Open Competition' suggests a commitment to leveraging market forces for the best possible outcome.
The contract is Firm Fixed Price, providing cost certainty and mitigating the risk of cost overruns for the government.
Accenture Federal Services LLC is a large, established federal contractor with a significant presence, suggesting experience in delivering complex services.

Sector Analysis

This contract falls within the Human Resources Consulting Services sector, a segment of the broader professional services market. This sector supports government agencies in managing their workforce, including recruitment, retention, and operational efficiency. The market for HR consulting services is competitive, with numerous firms offering specialized expertise. Benchmarking this contract's value would require comparing it to other HR operational support contracts, particularly those focused on large-scale recruitment for federal agencies.

Small Business Impact

The provided 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 stemming from a small business set-aside. The prime contractor, Accenture Federal Services LLC, is a large business, and while they may engage small businesses as subcontractors on various projects, this specific contract award does not mandate it.

Oversight & Accountability

As a Delivery Order under a larger contract vehicle, oversight mechanisms would likely be governed by the terms of the parent contract. The Department of Homeland Security (DHS) and the Transportation Security Administration (TSA) would have program managers responsible for monitoring performance and ensuring compliance. Transparency is generally facilitated through contract award databases, but specific oversight details and Inspector General jurisdiction would depend on the parent contract's structure and DHS policies.

Related Government Programs

Federal Human Resources Management
Government Recruitment Services
Department of Homeland Security Contracts
Transportation Security Administration Operations
Professional Services Contracts

Risk Flags

Short performance period for Option Period 1
High daily cost without detailed scope
Potential for unaddressed operational inefficiencies

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.7 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO FUND THE O&M CLINS FOR RECRUITMENT&HIRING OPERATIONAL SERVICES AT THE TSA FOR OPTION PERIOD 1. THE PERIOD OF PERFORMANCE WILL BE TWO-MONTHS.

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $38.7 million.

What is the period of performance?

Start: 2017-04-01. End: 2018-03-31.

What specific operational services are included under this contract for TSA recruitment and hiring?

The contract description indicates 'O&M CLINS for Recruitment & Hiring Operational Services.' While not explicitly detailed in the provided data, this typically encompasses a range of activities supporting the hiring process. These could include managing applicant tracking systems, processing applications, scheduling interviews, conducting background checks, onboarding new hires, and providing administrative support to HR personnel. The 'O&M' (Operations and Maintenance) designation suggests a focus on the ongoing, day-to-day functions required to keep recruitment pipelines active and efficient. The short, two-month performance period for Option Period 1 might imply a need for surge support or the resolution of a specific operational bottleneck within the TSA's hiring framework.

How does the $38.7 million value compare to similar HR consulting contracts for federal agencies?

Direct comparison of the $38.7 million value is challenging without knowing the exact scope and duration of services. However, for a 364-day period, this equates to approximately $106,418 per day. Large federal HR consulting contracts can range widely, from tens of millions to hundreds of millions, depending on the agency size, complexity of needs, and services provided (e.g., system implementation vs. ongoing operational support). Given this is for 'operational services' for recruitment and hiring at the TSA, the daily rate suggests a significant level of support is being procured. Benchmarking against other TSA or DHS HR support contracts, or similar large-scale federal recruitment operations, would be necessary for a precise value assessment.

What are the potential risks associated with a two-month performance period for Option Period 1?

A two-month performance period for Option Period 1 could indicate several risks. It might suggest an urgent, short-term need that was not adequately planned for, potentially leading to rushed execution and higher costs. Alternatively, it could be a pilot phase for a new service or a bridge to a more substantial contract, carrying inherent uncertainty. Such short durations can also limit the contractor's ability to fully implement strategic improvements or demonstrate long-term impact. From a government perspective, managing multiple short-term options can increase administrative burden and may not foster the stable, long-term partnerships that can drive efficiency and cost savings.

What is Accenture Federal Services LLC's track record with similar government contracts?

Accenture Federal Services LLC is a major contractor with extensive experience serving U.S. federal agencies across various sectors, including defense, civilian, and intelligence. They have a well-documented history of providing a wide array of services, including IT, management consulting, human capital management, and operational support. Their portfolio often includes large, complex contracts similar in nature to providing operational services for critical government functions like recruitment. While specific details of their performance on this particular task order are not provided, their general track record suggests they possess the capacity and expertise to handle significant government requirements. A deeper dive into past performance evaluations and contract history would offer more granular insights.

How does the 'Full and Open Competition' impact the government's ability to secure competitive pricing?

Awarding a contract through 'Full and Open Competition' is designed to maximize the government's ability to secure competitive pricing. This process allows any responsible source to submit an offer, thereby broadening the pool of potential bidders. A larger number of bidders generally increases competition, which in turn incentivizes offerors to submit more attractive proposals, both in terms of technical approach and price. This method is considered the gold standard for ensuring fair and transparent procurement and is expected to yield the best value for the government and, by extension, taxpayers. The effectiveness of this competition in driving down price depends on the number of qualified bidders and the specific market dynamics for the services being procured.

What are the implications of this contract being a Delivery Order under a larger contract vehicle?

This contract is a Delivery Order (DO) issued under a larger, pre-existing contract vehicle, likely a Multiple Award Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar master agreement. This means the competition for the underlying services and the terms and conditions were established when the parent contract was awarded. The DO itself typically competes the specific task requirements or is awarded to a pre-qualified vendor on the IDIQ. This approach allows agencies to procure services more efficiently and rapidly than starting a new full and open competition for each individual need. However, it also means the oversight and value assessment are tied to both the DO and the parent contract's structure and terms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

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: $39,091,264

Exercised Options: $38,736,311

Current Obligation: $38,736,311

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $24,620,279

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0116DHRM037

IDV Type: IDC

Timeline