DHS awards $33.7M for IT services, with Accenture Federal Services LLC securing a firm-fixed-price contract

Contract Overview

Contract Amount: $33,708,220 ($33.7M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-07-30

End Date: 2018-07-30

Contract Duration: 365 days

Daily Burn Rate: $92.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TIM AGILE DEVELOPMENT AND O&M-TASK ORDER 7 IGF::OT::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: TIM AGILE DEVELOPMENT AND O&M-TASK ORDER 7 IGF::OT::IGF Key points: 1. The contract value represents a significant investment in IT modernization and operational support. 2. Accenture Federal Services LLC, a large established IT contractor, was awarded this task order. 3. The firm-fixed-price contract type suggests a defined scope and predictable costs for the government. 4. The task order duration of one year indicates a need for ongoing, but not necessarily long-term, support. 5. The specific services fall under Computer Systems Design, a critical area for agency operations. 6. The contract was awarded under full and open competition, implying a robust bidding process.

Value Assessment

Rating: good

The contract value of $33.7 million for one year of IT services appears reasonable given the scope of Computer Systems Design Services. Benchmarking against similar large-scale IT task orders for agencies like DHS suggests this is within expected ranges. The firm-fixed-price structure helps control costs, but detailed performance metrics would be needed to fully assess value for money. The award to a single contractor, Accenture Federal Services LLC, indicates a focus on established capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a competitive process was utilized. This approach is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider range of vendors to offer their services.

Public Impact

The Department of Homeland Security, specifically the Transportation Security Administration, benefits from enhanced IT systems and operational support. Services delivered include computer systems design, crucial for maintaining and improving the agency's technological infrastructure. The geographic impact is primarily within the operational areas of the TSA, supporting national transportation security. Workforce implications may include the need for specialized IT personnel to manage and maintain these systems, potentially supporting both government and contractor staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the IT services provided.
The reliance on a single large contractor for a significant IT task order could limit future flexibility or innovation.
Without details on the bidding process, it's hard to confirm if the most cost-effective solution was truly secured.

Positive Signals

The contract was awarded under full and open competition, suggesting a fair and transparent bidding process.
The firm-fixed-price contract type provides cost certainty for the government, mitigating budget risks.
Accenture Federal Services LLC is a well-established contractor with a proven track record in federal IT services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the broader Information Technology (IT) industry. The IT services market for federal agencies is substantial, with significant spending allocated to system design, development, and maintenance. This task order represents a portion of the TSA's investment in maintaining and upgrading its complex technological infrastructure to ensure operational efficiency and security. Comparable spending benchmarks for similar IT modernization and O&M contracts within federal agencies often range in the tens of millions of dollars annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a task order awarded under full and open competition, it likely did not include specific small business subcontracting goals unless mandated by the prime contract. This means the primary contractor, Accenture Federal Services LLC, has discretion over subcontracting, and the direct impact on the small business ecosystem for this specific award is likely minimal, though larger prime contracts often have broader subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal contracting and program management offices, with potential review by the Transportation Security Administration's leadership. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is generally facilitated through contract award databases, though detailed performance reporting may be internal.

Related Government Programs

Department of Homeland Security IT Modernization Programs
Transportation Security Administration Operations Support
Federal Civilian IT Services Contracts
Accenture Federal Services LLC Contracts
Computer Systems Design Services

Risk Flags

Potential for scope creep if not managed tightly.
Risk of contractor prioritizing profit over optimal long-term solutions.
Dependence on a single vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.7 million to ACCENTURE FEDERAL SERVICES LLC. TIM AGILE DEVELOPMENT AND O&M-TASK ORDER 7 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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $33.7 million.

What is the period of performance?

Start: 2017-07-30. End: 2018-07-30.

What is the track record of Accenture Federal Services LLC with the Department of Homeland Security and specifically the TSA?

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 includes a wide range of IT services, consulting, and support across numerous federal agencies. For DHS and TSA, they have been involved in projects related to system modernization, data analytics, cybersecurity, and operational support. Reviewing historical contract data reveals multiple awards, indicating a sustained relationship and perceived capability by the agency. While specific performance details for individual task orders are often not public, the continued awarding of contracts suggests a generally satisfactory performance history, though like any large contractor, they may have faced challenges or scrutiny on specific projects. A deeper dive into contract performance reports and any associated corrective actions would provide a more granular understanding of their track record.

How does the $33.7 million value compare to similar IT task orders for TSA or DHS?

The $33.7 million value for a one-year IT task order is substantial and falls within the typical range for significant IT modernization, development, or operational support contracts within large federal agencies like DHS and its component, TSA. Many IT contracts for these entities can range from several million to tens or even hundreds of millions of dollars, depending on the scope, duration, and complexity. For instance, TSA's need for robust systems to manage passenger screening, cargo security, and internal operations requires continuous investment. A $33.7 million award for computer systems design and O&M is consistent with the scale of technology required to support such critical national security functions. Benchmarking against other firm-fixed-price task orders for similar services within DHS or comparable agencies would confirm this is a standard investment level for maintaining and enhancing essential IT infrastructure.

What are the primary risks associated with this type of firm-fixed-price IT contract?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty, they carry specific risks. For the government, a primary risk is that the contractor may cut corners on quality or scope to maximize profit if the initial price was set too low or if unforeseen technical challenges arise. This could lead to suboptimal system performance or increased long-term maintenance costs. Conversely, if the scope is not precisely defined, the contractor might face significant cost overruns, potentially leading to requests for contract modifications or disputes. Another risk is that the contractor may lack the incentive to innovate or suggest cost-saving efficiencies beyond the defined scope, as their profit is locked in. Effective government oversight and clear performance metrics are crucial to mitigate these risks and ensure the delivered services meet the required standards.

What is the expected impact of this contract on TSA's operational effectiveness?

This contract is expected to have a positive impact on TSA's operational effectiveness by ensuring the continued design, development, and maintenance of critical computer systems. These systems are fundamental to TSA's mission of securing transportation systems and the nation. Improved IT infrastructure can lead to more efficient screening processes, better data analysis for threat detection, enhanced communication systems, and more reliable internal administrative functions. By investing in computer systems design and operations and maintenance (O&M), TSA aims to keep its technological capabilities current, address vulnerabilities, and support the evolving demands of national security. The effectiveness will ultimately depend on the quality of services delivered by Accenture Federal Services LLC and how well these IT enhancements translate into tangible improvements in TSA's day-to-day operations and security posture.

How has federal spending on IT services like computer systems design evolved over the past five years?

Federal spending on IT services, including computer systems design, has generally seen a consistent upward trend over the past five years, driven by the increasing digitization of government operations and the need for modernization. Agencies across the government are prioritizing investments in areas such as cloud computing, cybersecurity, data analytics, artificial intelligence, and legacy system modernization. While specific figures fluctuate annually based on budget appropriations and agency priorities, the overall demand for IT services remains high. Factors contributing to this growth include the need to replace aging infrastructure, enhance cybersecurity defenses against evolving threats, improve citizen services through digital platforms, and leverage data for better decision-making. Contracts like this one for TSA reflect this broader federal commitment to maintaining and advancing its technological capabilities.

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: $36,217,924

Exercised Options: $33,708,220

Current Obligation: $33,708,220

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $12,240,047

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