State Department's $26M IT services contract with Accenture Federal Services shows fair value despite limited competition

Contract Overview

Contract Amount: $26,026,829 ($26.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2013-09-26

End Date: 2016-09-26

Contract Duration: 1,096 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THIS BPA CALL IS FOR COMPUTER RELATED SERVICES TO SUPPORT ILMS DEPLOYMENTS, SUSTAINMENT TRAINING/CHANGE MANAGEMENT AND COMMUNICATION.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $26.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF THIS BPA CALL IS FOR COMPUTER RELATED SERVICES TO SUPPORT ILMS DEPLOYMENTS, SUSTAINMENT TRAINING/CHANGE MANAGEMENT AND COMMUNICATION. Key points: 1. The contract's value appears reasonable when benchmarked against similar IT services procurements. 2. Limited competition may have influenced pricing, but the fixed-price structure mitigates some risk. 3. Performance risk is moderate, given the established nature of IT support services. 4. This contract supports critical IT infrastructure for the State Department's global operations. 5. The IT services sector is highly competitive, but this specific procurement had unique constraints. 6. The contract duration of three years is standard for this type of service.

Value Assessment

Rating: fair

The total award of $26,026,828.55 over three years suggests a per-year cost of approximately $8.67 million. Benchmarking against similar IT support contracts for federal agencies indicates this pricing is within a reasonable range, though not exceptionally low. The firm-fixed-price contract type helps control costs, but the limited competition could have led to a higher price than a fully open competition might have achieved. Overall, the value appears fair given the scope of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. The specific reasons for exclusion are not detailed in the provided data, but this approach typically results in fewer bidders than a truly open competition. The limited number of bidders can reduce price discovery and potentially lead to higher costs for the government compared to a scenario with multiple competitive offers.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible prices achievable through a broader bidding process. This could translate to a less efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of State personnel who rely on stable and functional IT systems for their daily operations. The contract delivers essential computer-related services, including deployment, sustainment, training, change management, and communication support for ILMS. The geographic impact is global, supporting the State Department's worldwide presence and diplomatic missions. Workforce implications include the potential for Accenture's employees to support State Department IT functions, indirectly impacting federal IT workforce needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully open process.
The exclusion of sources, without clear justification, raises questions about maximizing competitive opportunities.
Reliance on a single contractor for critical IT support could pose a risk if performance issues arise.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Accenture Federal Services is an established contractor with experience in government IT services.
The contract duration is clearly defined, allowing for predictable service delivery.

Sector Analysis

The Information Technology (IT) services sector for the federal government is a vast and dynamic market. This contract falls under the 'Other Computer Related Services' category, which encompasses a wide range of IT support functions. The federal IT services market is characterized by intense competition among large system integrators and specialized service providers. Spending in this area is consistently high as agencies modernize systems and maintain existing infrastructure. This contract represents a portion of the State Department's overall IT spending, contributing to its operational capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, Accenture Federal Services, is a large business. While large prime contractors often utilize small businesses for subcontracting, the specific subcontracting plan for this BPA call is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated through contract databases like FPDS. Inspector General oversight may be involved if specific concerns or allegations of fraud, waste, or abuse arise during the contract's performance or closeout.

Related Government Programs

State Department IT Modernization Programs
Department of State Information Management Systems
Federal Civilian IT Services Contracts
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Limited Competition
Potential for Price Inflation
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $26.0 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF THIS BPA CALL IS FOR COMPUTER RELATED SERVICES TO SUPPORT ILMS DEPLOYMENTS, SUSTAINMENT TRAINING/CHANGE MANAGEMENT AND COMMUNICATION.

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2013-09-26. End: 2016-09-26.

What is Accenture Federal Services' track record with the Department of State and other federal agencies for similar IT services?

Accenture Federal Services has a significant track record of performing IT services for the Department of State and various other federal agencies. Their experience spans a wide range of IT support, including system integration, software development, cybersecurity, and infrastructure management. Publicly available contract data often shows numerous awards to Accenture across different departments, indicating a sustained presence and capability in the federal IT landscape. While specific performance metrics for this particular BPA call are not detailed, their history suggests a capacity to handle complex IT requirements. However, a deeper dive into past performance reviews and any documented issues on prior contracts would provide a more comprehensive assessment of their reliability and effectiveness.

How does the pricing of this contract compare to similar IT support contracts awarded by the Department of State or other agencies of comparable size?

Benchmarking the pricing of this $26 million contract requires comparing it to similar IT support services procured by agencies of similar size and scope. Given the firm-fixed-price nature, the total award amount is the primary figure. If this contract covers three years of comprehensive IT support, including deployment, sustainment, training, and communication, the annual cost of approximately $8.67 million appears to be within a reasonable range for a large federal agency. However, without detailed breakdowns of the services included and the specific labor categories or service levels, a precise comparison is challenging. Contracts with a higher degree of competition or those focused on more commoditized services might show lower per-unit costs. Conversely, contracts requiring specialized expertise or involving extensive global support could justify higher overall expenditures.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential performance issues from the contractor (Accenture Federal Services), the possibility of cost overruns if the firm-fixed-price structure is not adequately managed, and risks related to the limited competition which might have inflated the price. Mitigation strategies include the firm-fixed-price contract type, which shifts cost risk to the contractor. The Department of State's oversight through contract administration and performance monitoring is crucial. For limited competition, the agency would need to ensure the justification for excluding sources was sound and that the selected contractor's price was fair and reasonable. Additionally, maintaining strong communication channels and clear performance expectations with Accenture helps manage performance risks.

How effective has the ILMS (Integrated Logistics Management System) been in supporting the State Department's operations, and how critical is this IT support contract to its success?

The effectiveness of the ILMS is central to the success of this IT support contract. ILMS is designed to streamline and manage the State Department's logistics, which are critical for its global operations, including personnel, equipment, and resources. If ILMS is functioning effectively, it enhances efficiency, reduces operational costs, and improves decision-making. This contract's role is to ensure the continuous availability, reliability, and optimal performance of the ILMS through deployment, sustainment, training, and communication support. Therefore, the contract is highly critical; any disruption or underperformance in the IT services provided could directly impede the State Department's ability to manage its complex logistical needs worldwide, potentially impacting diplomatic missions and operational readiness.

What has been the historical spending trend for computer-related services at the Department of State over the past five years?

Historical spending trends for computer-related services at the Department of State over the past five years would likely show a consistent and significant investment in IT infrastructure and support. Agencies like the State Department rely heavily on robust IT systems to manage global operations, communications, and data. Spending in this category typically fluctuates based on major system upgrades, modernization initiatives, cybersecurity enhancements, and ongoing operational support needs. It's common to see multi-year contracts and task orders contributing to a substantial annual expenditure. Factors such as evolving technological requirements, budget allocations, and strategic IT priorities influence these trends. A detailed analysis would require accessing historical procurement data to identify specific contract values, types, and service categories over the period.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company

Address: 800 N GLEBE RD STE 300, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $26,026,829

Exercised Options: $26,026,829

Current Obligation: $26,026,829

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $249,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline