DHS awards $23M for Agile Development Services, with a significant portion allocated to a single task order

Contract Overview

Contract Amount: $22,967,949 ($23.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2016-10-01

End Date: 2017-09-16

Contract Duration: 350 days

Daily Burn Rate: $65.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HSTS02-12-D-TTC221, TASK ORDER #06 FOR AGILE DEVELOPMENT SERVICES IGF::OT::IGFE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: HSTS02-12-D-TTC221, TASK ORDER #06 FOR AGILE DEVELOPMENT SERVICES IGF::OT::IGFE Key points: 1. The contract value of $22.97 million represents a substantial investment in IT services for the TSA. 2. Accenture Federal Services LLC secured this contract, indicating a strong incumbent presence or competitive win. 3. The task order was awarded under a firm-fixed-price structure, suggesting defined scope and cost control. 4. The duration of 350 days for this task order implies a focused project with a clear timeline. 5. The absence of small business set-aside flags suggests this was likely a large-scale requirement. 6. The contract falls under Computer Systems Design Services, a critical area for agency modernization.

Value Assessment

Rating: good

The total award of $22.97 million for Agile Development Services appears reasonable given the scope of IT modernization efforts within federal agencies. Benchmarking against similar contracts for complex system development and integration services suggests that this price point is within expected ranges. The firm-fixed-price contract type provides cost certainty for the government, which is a positive indicator of value, assuming the scope was well-defined and managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment was intended.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of qualified contractors to offer their services.

Public Impact

The Department of Homeland Security, specifically the Transportation Security Administration, benefits from enhanced IT capabilities. Services delivered include agile development, crucial for modernizing and maintaining complex IT systems. The contract's impact is primarily within the federal IT sector, supporting agency operational efficiency. Workforce implications may include the need for specialized IT professionals skilled in agile methodologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if agile development is not tightly managed.
Reliance on a single large contractor could limit future flexibility.
Ensuring continuous alignment with evolving TSA requirements is critical.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive pricing environment.
Agile development methodology can lead to faster delivery of functional capabilities.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies increasingly relying on contractors for specialized skills in areas like cloud computing, cybersecurity, and agile development. This contract for Agile Development Services fits within the broader category of IT professional services, which represents a significant portion of federal IT spending. Comparable spending benchmarks for similar IT development contracts within agencies like DHS often range in the tens to hundreds of millions of dollars, depending on the complexity and duration.

Small Business Impact

The contract details indicate that this was not specifically set aside for small businesses, nor is there an explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, Accenture Federal Services LLC, likely handled the majority of the work. While this doesn't preclude small business involvement through prime contracting on other opportunities, this specific award does not appear to directly leverage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. The Transportation Security Administration (TSA) would also have internal oversight mechanisms to ensure performance and adherence to contract terms. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Agile Development Contracts
Department of Homeland Security IT Modernization
Transportation Security Administration Technology Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of vendor lock-in with large IT service providers.
Ensuring alignment with evolving security and operational requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.0 million to ACCENTURE FEDERAL SERVICES LLC. HSTS02-12-D-TTC221, TASK ORDER #06 FOR AGILE DEVELOPMENT SERVICES IGF::OT::IGFE

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 $23.0 million.

What is the period of performance?

Start: 2016-10-01. End: 2017-09-16.

What is Accenture Federal Services LLC's track record with the Department of Homeland Security and TSA for similar IT services?

Accenture Federal Services LLC has a significant history of contracting with the Department of Homeland Security (DHS) and its various components, including the Transportation Security Administration (TSA). Their portfolio often includes large-scale IT modernization, system integration, and professional services. For TSA specifically, Accenture has been involved in projects related to passenger screening technology, data analytics, and IT infrastructure. Their track record generally indicates experience with complex federal IT environments, though specific performance on individual task orders would require deeper analysis of past performance evaluations and any associated contract disputes or awards.

How does the $22.97 million award compare to other Agile Development Services contracts awarded by DHS in the past five years?

The $22.97 million award for Agile Development Services by TSA is a substantial but not unprecedented figure within DHS's IT spending. DHS, like many large federal agencies, frequently awards contracts in the multi-million dollar range for complex IT development and modernization efforts. Comparing this specific task order requires looking at contracts with similar scope (agile development, system design) and duration. While exact comparisons are difficult without granular data on all task orders, this award falls within the typical range for significant IT projects supporting critical agency functions like transportation security. Larger, multi-year prime contracts for IT services within DHS can often exceed hundreds of millions of dollars.

What are the primary risks associated with this firm-fixed-price contract for Agile Development Services?

The primary risks associated with a firm-fixed-price (FFP) contract for Agile Development Services revolve around scope definition and management. While FFP provides cost certainty, it can be challenging to precisely define all requirements upfront in an agile environment, which is inherently iterative. If the scope is not meticulously managed, the contractor may face pressure to deliver within a fixed budget and timeline, potentially leading to compromises in quality or functionality. Conversely, if the government's requirements change significantly, scope adjustments can become complex and contentious, potentially leading to contract modifications or disputes. Ensuring clear communication and a robust change control process is paramount to mitigating these risks.

How effective has the Transportation Security Administration been in leveraging Agile Development Services to improve its IT systems?

The effectiveness of TSA's use of Agile Development Services is multifaceted and depends on the specific systems and projects. Agile methodologies are generally adopted to increase development speed, improve adaptability to changing requirements, and enhance collaboration between developers and stakeholders. For TSA, which operates in a dynamic security environment, agile approaches can be crucial for rapidly deploying updates to passenger screening systems, data analysis platforms, or operational software. Success is often measured by the timely delivery of functional software, user satisfaction, and the ability to adapt to evolving threats and operational needs. While specific metrics for this task order are not public, the continued investment in agile services suggests a perceived benefit in enhancing TSA's technological capabilities.

What are the historical spending patterns for Computer Systems Design Services at the TSA?

Historical spending patterns for Computer Systems Design Services at the TSA show a consistent and significant investment in IT modernization and support. Over the years, TSA has allocated substantial funds towards enhancing its technological infrastructure, including systems for passenger and baggage screening, data management, and operational command and control. Spending in this category typically fluctuates based on major system upgrades, new technology implementations, and ongoing maintenance requirements. The trend generally reflects an increasing reliance on sophisticated IT solutions to manage complex security operations, with contracts for system design, development, and integration forming a core part of their procurement strategy.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Inc.

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,165,061

Exercised Options: $22,967,949

Current Obligation: $22,967,949

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $7,531,470

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0212DTTC221

IDV Type: IDC

Timeline