DoD's $56.6M MEDCOP software contract awarded to Accenture Federal Services without competition

Contract Overview

Contract Amount: $56,615,294 ($56.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2023-04-18

End Date: 2026-04-17

Contract Duration: 1,095 days

Daily Burn Rate: $51.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FURTHER SOFTWARE DEVELOPMENT, CAPABILITY RELEASE, DEPLOYMENT, AND TRAINING SUPPORT FOR THE MEDICAL COMMON OPERATING PICTURE (MEDCOP).

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $56.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: FURTHER SOFTWARE DEVELOPMENT, CAPABILITY RELEASE, DEPLOYMENT, AND TRAINING SUPPORT FOR THE MEDICAL COMMON OPERATING PICTURE (MEDCOP). Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract's duration of three years suggests a need for ongoing support and development. 3. Focus on software development, capability release, deployment, and training indicates a comprehensive approach to system enhancement. 4. The 'Computer Systems Design Services' NAICS code points to a significant IT services component. 5. The firm-fixed-price contract type aims to control costs, but the lack of competition may offset this benefit. 6. Awarded by the Defense Health Agency, highlighting the critical role of IT in military healthcare operations.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids. The $56.6 million award for three years of software development and support for the MEDCOP system appears substantial. Without comparable sole-source awards or a competitive bidding process, it's difficult to definitively assess if the pricing is optimal or if Accenture Federal Services is providing excellent value for money. Further analysis would require understanding the specific scope of work and comparing it to industry standards for similar complex IT development projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one vendor can provide the required services or when urgency dictates a rapid award. The absence of multiple bidders means that the government did not benefit from a competitive process to drive down prices or encourage innovative solutions. This raises questions about whether the best possible price and terms were secured for the taxpayer.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government lacks the leverage of a competitive bidding environment. This contract's value could be inflated without the pressure of competing offers.

Public Impact

Military healthcare personnel will benefit from enhanced medical information systems through improved MEDCOP capabilities. The services delivered include software development, capability releases, deployment, and training, aiming to modernize medical operational picture systems. The geographic impact is likely global, supporting deployed military forces and healthcare facilities worldwide. Workforce implications include the need for trained personnel to utilize and maintain the upgraded MEDCOP system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about price reasonableness and market fairness.
Potential for vendor lock-in due to specialized development and support.

Positive Signals

Firm-fixed-price contract type helps to establish cost certainty.
Award to a known entity, Accenture Federal Services, may leverage existing expertise.
Focus on critical medical systems supports military readiness and healthcare.

Sector Analysis

The IT services sector, particularly within defense, is characterized by complex system development and integration. The Medical Common Operating Picture (MEDCOP) falls under this umbrella, aiming to provide a unified view of medical data for military operations. The market for such specialized defense IT solutions is significant, with major contractors like Accenture Federal Services playing a key role. Benchmarking this contract's value is difficult without competitive data, but it represents a substantial investment in modernizing critical defense healthcare IT infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting plans for small businesses. The award to a large prime contractor like Accenture Federal Services suggests that the primary focus is on the prime's capabilities. Further investigation would be needed to determine if any small business participation is mandated or occurs organically through subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Health Agency's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified services. Transparency is limited by the sole-source nature of the award. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Information Systems
Defense Health IT Modernization
Common Operating Picture Systems
Military Healthcare Technology

Risk Flags

Sole-source award lacks competitive justification.
Potential for cost overruns due to lack of competition.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.6 million to ACCENTURE FEDERAL SERVICES LLC. FURTHER SOFTWARE DEVELOPMENT, CAPABILITY RELEASE, DEPLOYMENT, AND TRAINING SUPPORT FOR THE MEDICAL COMMON OPERATING PICTURE (MEDCOP).

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 $56.6 million.

What is the period of performance?

Start: 2023-04-18. End: 2026-04-17.

What is Accenture Federal Services' track record with similar sole-source IT development contracts for the Department of Defense?

Accenture Federal Services has a significant history of contracting with the Department of Defense across various IT services, including software development, system integration, and modernization. While specific details on their sole-source awards for 'Medical Common Operating Picture' type systems are not immediately available in this data, their extensive experience suggests a capacity to handle complex projects. However, the lack of competition in this specific award means that direct comparisons of their performance on similar sole-source contracts are difficult without further data. Generally, their track record involves large-scale IT initiatives, and their ability to secure sole-source awards often stems from specialized expertise or existing system knowledge.

How does the $56.6 million cost compare to similar sole-source IT development contracts for medical systems within the DoD?

Directly comparing the $56.6 million cost to similar sole-source IT development contracts for medical systems within the DoD is challenging without access to a broader dataset of comparable sole-source awards. Sole-source contracts inherently lack the price discovery mechanism of competitive bidding, making value assessment difficult. The cost is influenced by factors such as the complexity of the MEDCOP system, the specific capabilities to be developed, the duration of the contract (three years), and the vendor's pricing structure. To provide a meaningful comparison, one would need to identify other sole-source contracts for comparable medical IT systems, analyze their scope, duration, and final cost, and then adjust for inflation and specific project requirements. Without such data, the $56.6 million figure stands as a significant investment, but its relative value remains unverified.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with awarding a $56.6 million contract on a sole-source basis are significant. Firstly, there is a heightened risk of paying an inflated price due to the absence of competitive pressure, which could lead to poor value for taxpayer money. Secondly, the lack of competition may reduce the incentive for the contractor to innovate or provide the highest level of service, as there are no alternative providers vying for the business. Thirdly, it can create vendor lock-in, making it difficult and costly to switch providers in the future if performance issues arise or if better solutions become available. Finally, sole-source awards can raise perceptions of unfairness or a lack of due diligence in procurement processes.

What are the expected program effectiveness outcomes for the MEDCOP system enhancements funded by this contract?

The expected program effectiveness outcomes for the MEDCOP system enhancements funded by this contract are centered on improving the Department of Defense's medical operational picture. This includes providing more accurate, timely, and comprehensive medical information to commanders and medical personnel, thereby enhancing situational awareness during operations and emergencies. Improved capability releases and deployment are expected to streamline medical logistics, patient tracking, and resource management. Furthermore, the training support component aims to ensure that military healthcare professionals can effectively utilize the enhanced system, leading to better decision-making, improved patient care, and increased operational readiness. Ultimately, the goal is a more integrated and responsive military medical information infrastructure.

How has the Defense Health Agency's spending on IT services, particularly software development, trended over the past five years?

Analyzing the Defense Health Agency's (DHA) spending trends on IT services, especially software development, over the past five years would require access to historical procurement data beyond this single contract. However, it is generally understood that military healthcare systems are undergoing continuous modernization efforts, driven by the need for interoperability, enhanced cybersecurity, and improved data analytics. This suggests a sustained or potentially increasing investment in IT services, including software development, by the DHA. Factors such as evolving medical technologies, changing operational requirements, and the push towards digital health records likely contribute to this trend. The $56.6 million MEDCOP contract aligns with this broader context of significant DHA investment in its IT infrastructure.

What is the significance of the 'Computer Systems Design Services' NAICS code (541512) in the context of this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' is highly significant for this contract as it defines the primary nature of the work being procured. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. For the MEDCOP contract, this means the work likely involves not just writing code, but also analyzing user needs, designing the overall system architecture, developing custom software solutions, and ensuring the seamless integration of these components into the existing military healthcare IT infrastructure. It signifies a comprehensive approach to IT solutions rather than simple software coding.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT003823R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $97,246,391

Exercised Options: $56,948,867

Current Obligation: $56,615,294

Actual Outlays: $3,307,758

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $150,787

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline