DoD awards Accenture $19.5M for IT training and user support, raising value-for-money questions

Contract Overview

Contract Amount: $19,506,584 ($19.5M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-08

End Date: 2026-02-07

Contract Duration: 670 days

Daily Burn Rate: $29.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CUSTOMER X POD 2 TRAINING SUPPORT, RELEASE & DEPLOYMENT, AND USER SUPPORT MANAGEMENT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to ACCENTURE FEDERAL SERVICES LLC for work described as: CUSTOMER X POD 2 TRAINING SUPPORT, RELEASE & DEPLOYMENT, AND USER SUPPORT MANAGEMENT Key points: 1. The contract's value appears high relative to the duration and scope, warranting a closer look at unit costs and deliverables. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process, but the number of bidders (13) needs context. 3. The firm-fixed-price contract type mitigates cost overrun risk for the government. 4. The services are critical for the Defense Health Agency's IT infrastructure, impacting user adoption and system effectiveness. 5. Accenture Federal Services has a significant presence in government contracting, indicating experience but also potential for market concentration. 6. The contract duration of 670 days (approx. 22 months) provides a substantial period for service delivery and performance evaluation.

Value Assessment

Rating: fair

The contract value of $19.5 million over approximately 22 months averages to roughly $886,662 per month. Without specific details on the number of users supported, training hours delivered, or complexity of the IT systems, it is difficult to benchmark this against similar contracts. However, for IT support and training management, this monthly burn rate suggests a need for detailed justification of resources and personnel allocated to ensure value for money. Further analysis of the specific tasks and deliverables is required to confirm if the pricing is competitive and reflects efficient service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally the preferred method for maximizing competition and achieving fair market prices. With 13 bidders participating, this indicates a healthy level of interest in the opportunity. The presence of multiple bidders suggests that the solicitation was well-defined and accessible to a range of qualified vendors. This competitive environment should theoretically drive down prices and encourage innovation.

Taxpayer Impact: The use of full and open competition with a significant number of bidders is beneficial for taxpayers as it increases the likelihood of securing services at a competitive price, preventing potential overpayment that could occur with less competitive procurement methods.

Public Impact

Military personnel and civilian staff within the Department of Defense, particularly those utilizing the Defense Health Agency's IT systems, will benefit from improved training and user support. The contract ensures the release and deployment of IT systems, alongside ongoing user support management, contributing to the operational readiness and efficiency of the DHA. The primary geographic impact is within the Defense Health Agency's operational areas, likely supporting facilities and personnel across various locations. The contract supports a workforce of IT professionals and trainers, potentially including both government personnel and contractor staff, ensuring adequate technical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if user support needs are not clearly defined and managed.
Reliance on a single large contractor for critical IT support could pose risks if performance falters.
Ensuring adequate knowledge transfer from contractor personnel to government staff for long-term sustainment.
The high contract value necessitates robust performance monitoring to ensure deliverables are met.

Positive Signals

Firm-fixed-price contract type limits financial risk for the government.
Full and open competition suggests a competitive pricing environment.
The contract duration allows for sustained support and development.
Accenture Federal Services is an established contractor with significant experience in government IT services.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on IT support and training. The market for government IT services is substantial, with agencies increasingly relying on external expertise for complex system management, deployment, and user support. Comparable spending benchmarks for similar IT training and support contracts within the federal government would typically vary based on the scale of the user base, the complexity of the technology stack, and the geographic distribution of support. The $19.5 million award is a significant investment, reflecting the critical nature of IT systems within the Defense Health Agency.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, Accenture Federal Services, is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Accenture's strategy and the specific requirements of the contract. Without explicit subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts often create downstream opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency's contracting officers and program managers. Performance will be monitored against the terms and conditions of the firm-fixed-price contract, including specific deliverables and service level agreements. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Defense may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Defense Health Information Technology
DoD IT Training Programs
Federal IT Support Services
Accenture Federal Services Contracts
Professional and Technical Services

Risk Flags

High contract value requires diligent performance monitoring.
Scope definition critical for managing user support and training.
Potential for reliance on contractor expertise necessitates knowledge transfer planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to ACCENTURE FEDERAL SERVICES LLC. CUSTOMER X POD 2 TRAINING SUPPORT, RELEASE & DEPLOYMENT, AND USER SUPPORT MANAGEMENT

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 $19.5 million.

What is the period of performance?

Start: 2024-04-08. End: 2026-02-07.

What is Accenture Federal Services' track record with similar IT support and training contracts within the Department of Defense or other federal agencies?

Accenture Federal Services has a substantial history of performing IT support, training, and system deployment services for various U.S. federal agencies, including the Department of Defense. They have been involved in large-scale IT modernization efforts, enterprise resource planning implementations, and cybersecurity initiatives. Their track record often includes managing complex projects with significant budgets and user bases. Specific to the Defense Health Agency, Accenture has previously supported health IT initiatives. A detailed review of their past performance evaluations, contract history (including any past performance issues or awards), and specific experience with DHA's systems would provide a clearer picture of their capability and reliability for this particular contract.

How does the $19.5 million contract value compare to the scope of services and duration, and what are the key performance indicators (KPIs) for this contract?

The $19.5 million contract value over approximately 22 months (670 days) translates to an average monthly expenditure of roughly $886,662. This figure needs to be assessed against the specific deliverables, such as the number of users to be supported, the complexity of the IT systems involved (e.g., electronic health records, administrative systems), the scope of training programs (e.g., number of courses, trainees, content development), and the criticality of release and deployment management. Key performance indicators (KPIs) would typically include metrics like system uptime, response times for user support tickets, training completion rates, user satisfaction scores, and successful deployment timelines. Without these specific details, a definitive value-for-money assessment is challenging, but the monthly burn rate suggests a need for robust oversight to ensure efficient resource utilization.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential performance deficiencies by the contractor, leading to inadequate user support or delayed system deployments, which could impact military healthcare operations. Another risk is the potential for scope creep, where requirements expand beyond the initial contract terms, potentially leading to cost overruns or schedule delays, although the firm-fixed-price nature mitigates direct cost overrun risk. Contractor personnel turnover could also impact service continuity and quality. Mitigation strategies likely include rigorous performance monitoring by the Defense Health Agency, clearly defined service level agreements (SLAs), regular progress reviews, and potentially contractual remedies for non-performance. Ensuring strong government oversight and clear communication channels are crucial for managing these risks.

What is the historical spending pattern for similar IT training and support services within the Defense Health Agency or the broader DoD?

Historical spending on IT training and support services within the Defense Health Agency (DHA) and the wider Department of Defense (DoD) has been substantial, reflecting the critical role of technology in military healthcare and operations. Agencies like DHA manage vast and complex IT infrastructures, requiring continuous support, maintenance, and user training to ensure operational effectiveness. Spending patterns often show a trend towards outsourcing specialized IT functions to private contractors due to the need for specific expertise, rapid deployment capabilities, and cost-efficiency compared to building in-house capacity for all needs. Analyzing past contracts for similar services, including their values, durations, and awarded contractors, would provide a benchmark for this $19.5 million award and help identify any significant deviations or trends in spending.

How does the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) encompass the specific services being procured under this contract?

The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad category used when a more specific industry code does not accurately capture the primary business activity. For this contract, which involves IT training, release and deployment management, and user support, this code is likely applied because the services are a blend of technical IT functions and professional support services that don't fit neatly into more specialized IT service codes (like software development or data processing). While broad, it signifies that the contract's core is providing expert services that are professional and technical in nature, supporting the operational needs of the Defense Health Agency's IT infrastructure, rather than the direct development or sale of technology products.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD STE 300, 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: $20,026,150

Exercised Options: $19,506,584

Current Obligation: $19,506,584

Actual Outlays: $2,865,420

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline