DoD's $396M IT support contract for CENTCOM AOR O&M awarded to Accenture Federal Services

Contract Overview

Contract Amount: $39,645,286 ($39.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2013-09-30

End Date: 2018-12-23

Contract Duration: 1,910 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUPPORTING SERVICES CENTCOM AOR O&M

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: SUPPORTING SERVICES CENTCOM AOR O&M Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1910 days indicates a long-term need for these services. 3. The fixed-price contract type aims to control costs by establishing a set price. 4. The contract was awarded by the Defense Health Agency, highlighting its role in supporting military health IT infrastructure. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract's value of approximately $396 million over its term warrants scrutiny for value for money.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. However, the total award of nearly $400 million over approximately five years suggests a significant investment in IT support. The fixed-price nature of the contract is a positive indicator for cost control, but the actual value delivered depends heavily on the efficiency and effectiveness of the services provided by Accenture Federal Services. Further analysis would require comparing the per-unit costs of specific services against industry benchmarks and similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was intended to be broad, certain sources may have been excluded prior to the final award. The presence of 3 bidders indicates some level of competition. The specific reasons for excluding other sources would need further investigation to fully understand the implications for price discovery and potential cost savings.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing. However, the exclusion of sources could potentially limit the competitive pressure and lead to higher costs than a truly unrestricted full and open competition.

Public Impact

Provides essential IT operational and maintenance support for the U.S. Central Command Area of Responsibility (CENTCOM AOR). Supports military personnel and operations within a critical geographic region. Ensures the functionality and reliability of computer systems vital for mission success. Likely impacts IT support staff and potentially other contractors working within the CENTCOM AOR. Contributes to the overall readiness and effectiveness of deployed military forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the fixed-price contract.
Dependence on a single contractor for critical IT infrastructure in a sensitive region.
The 'exclusion of sources' clause warrants investigation into potential limitations on competition.

Positive Signals

Awarded through a competitive process, indicating multiple vendors vied for the contract.
Fixed-price contract type helps in budget predictability and cost control.
Long contract duration suggests a stable and ongoing need for these services, potentially leading to efficiencies.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The IT services market for the Department of Defense is substantial, driven by the need for advanced technological capabilities to support global operations. Contracts of this magnitude are common for providing comprehensive IT support, including maintenance, upgrades, and operational management, especially in complex and geographically dispersed environments like the CENTCOM AOR. Benchmarks for similar IT support contracts often range in the hundreds of millions of dollars, depending on the scope, duration, and specific services required.

Small Business Impact

The provided data indicates that small business participation (ss and sb flags are false) was not a primary set-aside consideration for this contract. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary awardee, Accenture Federal Services, likely performed the majority of the work, or if subcontracting occurred, it was not mandated as a small business set-aside. The impact on the small business ecosystem would be minimal unless significant subcontracting opportunities were later identified.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Health Agency and potentially the U.S. Central Command. Accountability measures are inherent in the fixed-price contract structure, requiring Accenture Federal Services to deliver specified services within the agreed-upon budget. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD IT Modernization Programs
CENTCOM Operations Support Contracts
Defense Health Agency IT Services
Global IT Infrastructure Support Contracts
Computer Systems Design Services Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of cost inefficiency over the contract's long duration.
Dependence on a single vendor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.6 million to ACCENTURE FEDERAL SERVICES LLC. SUPPORTING SERVICES CENTCOM AOR O&M

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $39.6 million.

What is the period of performance?

Start: 2013-09-30. End: 2018-12-23.

What was the specific nature of the 'exclusion of sources' in this full and open competition?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, certain potential offerors were excluded from the bidding process. The specific reasons for these exclusions are not detailed in the provided data but could stem from various factors such as prior performance issues, inability to meet specific technical requirements, or proprietary technology limitations. Understanding these exclusions is crucial for assessing the true level of competition and whether it may have impacted the final price and the range of solutions available to the Department of Defense. Without further documentation, it's difficult to ascertain if these exclusions were justified and served the government's best interest.

How does the cost of this contract compare to similar IT support contracts for military operations in other regions?

Direct cost comparison is difficult without detailed service breakdowns and performance metrics for comparable contracts. However, the $396 million award over approximately five years for IT support in the CENTCOM AOR suggests a significant investment. Factors influencing cost include the geographic scope, the complexity of the IT environment, the level of security required, and the specific services (e.g., network management, cybersecurity, help desk support). Contracts supporting operations in high-threat or remote areas often incur higher costs due to logistical challenges and specialized requirements. A comprehensive benchmark would require analyzing contracts with similar durations, service scopes, and operational contexts, ideally with data on per-user or per-system support costs.

What are the key performance indicators (KPIs) used to measure the success of Accenture Federal Services under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to measure the success of Accenture Federal Services. Typically, for IT support contracts of this nature, KPIs would include metrics such as system uptime, response times for issue resolution, cybersecurity incident rates, user satisfaction, and adherence to service level agreements (SLAs). The effectiveness of the contract is directly tied to how well these KPIs are defined, monitored, and met. Without access to the contract's performance work statement (PWS) or associated documentation, a detailed assessment of performance cannot be made. The fixed-price nature implies that meeting defined service levels is paramount.

What is the historical spending pattern for IT support services within the CENTCOM AOR by the Department of Defense?

The provided data focuses on a single contract award. To understand historical spending patterns for IT support services within the CENTCOM AOR, one would need to analyze multiple contracts awarded over several fiscal years. This would involve examining spending trends, identifying key contractors, understanding the evolution of IT requirements, and observing any shifts in contract types or competition levels. Such an analysis could reveal whether spending has increased or decreased, if specific technologies have driven costs, and how the Department of Defense has adapted its IT support strategies in the region over time. This single contract represents a significant portion of spending for a defined period but does not provide a comprehensive historical view.

What are the potential risks associated with a long-term, fixed-price IT support contract in a dynamic operational environment?

Long-term, fixed-price contracts in dynamic environments like the CENTCOM AOR present several risks. For the government, the primary risk is that the fixed price may become uncompetitive over time if market rates decrease or if the contractor's efficiency increases significantly, leading to potential overpayment. Conversely, if unforeseen technical challenges or scope changes arise that are not adequately addressed by contract modifications, the contractor might face financial losses, potentially impacting service delivery. For the contractor, the risk lies in accurately estimating costs for a long duration in an environment prone to rapid changes, potentially leading to underestimation and reduced profitability. Scope creep, if not managed through formal change orders, can also strain resources. Ensuring robust contract management and clear definition of services are critical to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001113R0032

Offers Received: 3

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

Financial Breakdown

Contract Ceiling: $44,601,794

Exercised Options: $42,878,141

Current Obligation: $39,645,286

Actual Outlays: $87,663

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $13,234,326

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200113W

IDV Type: GWAC

Timeline