State Department's $29M IT services contract awarded to Accenture Federal Services shows fair value with strong competition

Contract Overview

Contract Amount: $29,017,912 ($29.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2015-09-25

End Date: 2018-12-31

Contract Duration: 1,193 days

Daily Burn Rate: $24.3K/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 $29.0 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 provided essential IT services for ILMS deployments, training, and communications. 2. Accenture Federal Services, a large IT contractor, was awarded this contract. 3. The contract was competed under full and open competition, indicating a competitive marketplace. 4. The firm-fixed-price structure likely incentivized cost control by the contractor. 5. The duration of the contract (nearly 4 years) suggests a need for sustained IT support. 6. The contract's value of approximately $29 million over its term represents a moderate investment in IT infrastructure.

Value Assessment

Rating: good

The contract's value of $29 million over nearly four years for IT support services appears reasonable when benchmarked against similar large-scale IT service contracts. The firm-fixed-price (FFP) award type suggests that the contractor bore the risk of cost overruns, which typically leads to more competitive pricing. Without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging, but the competitive nature of the award implies a fair market price was likely achieved.

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,' indicating that the solicitation was broadly advertised and multiple responsible sources were permitted to submit offers. The fact that it was competed suggests a healthy market for these types of IT services. The specific number of bidders is not provided, but the open competition mechanism is a positive sign for price discovery and ensuring a competitive landscape.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that typically drives down costs and ensures the government receives services at a fair market price.

Public Impact

The Department of State's personnel and operations benefited from improved IT infrastructure and support. Services included deployment, sustainment, training, and communication for the Integrated Logistics Management System (ILMS). The contract supported the agency's mission-critical IT functions, ensuring operational continuity. The primary beneficiaries were the end-users within the Department of State relying on these IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits the assessment of competitive intensity.
Details on performance metrics and quality of service are not readily available.
The specific nature of 'Other Computer Related Services' could encompass a wide range of activities, making direct cost comparison difficult.

Positive Signals

Awarded under full and open competition, indicating a robust bidding environment.
Firm-fixed-price contract type aligns incentives for contractor efficiency.
The contract supported essential IT functions for a major federal agency.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically 'Other Computer Related Services.' This sector is characterized by a wide range of providers, from large system integrators to specialized niche firms. The Department of State's spending on IT services is typical for a large federal agency managing complex global operations. Benchmarking this contract's value against the overall IT services market requires detailed service scope comparison, but the $29 million over nearly four years is a significant, yet not extraordinary, investment for such support.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This suggests that the primary award went to a large prime contractor, and the direct impact on the small business ecosystem through this specific contract is likely minimal unless Accenture Federal Services actively engaged small businesses as subcontractors.

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 provides some inherent oversight by requiring delivery of specific services within the agreed price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Services Contracts
Integrated Logistics Management System (ILMS) Support
Accenture Federal Services Contracts

Risk Flags

Contract duration is substantial, requiring ongoing monitoring.
Scope of 'Other Computer Related Services' is broad, necessitating clear deliverable definitions.
Firm-fixed-price contracts can pose risks if unforeseen technical issues arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $29.0 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 $29.0 million.

What is the period of performance?

Start: 2015-09-25. End: 2018-12-31.

What was the specific scope of 'Other Computer Related Services' provided under this contract?

The contract description indicates that the services were for 'COMPUTER RELATED SERVICES TO SUPPORT ILMS DEPLOYMENTS, SUSTAINMENT TRAINING/CHANGE MANAGEMENT AND COMMUNICATION.' This suggests a broad range of IT support activities focused on the Integrated Logistics Management System (ILMS). These services likely included system implementation, ongoing maintenance and support, user training, change management processes related to system updates or new features, and communication infrastructure support for the ILMS. The 'Other Computer Related Services' NAICS code (541519) is a catch-all for services not classified under more specific IT categories, implying a diverse set of tasks.

How does the per-year cost of this contract compare to similar IT support contracts for federal agencies?

The contract had a total value of $29,017,911.59 over a period of 1193 days (approximately 3.27 years). This equates to an average annual cost of roughly $8.87 million per year. Comparing this to similar IT support contracts requires detailed analysis of scope, complexity, and agency size. However, for a large federal agency like the Department of State requiring comprehensive IT support for a critical system like ILMS, an annual expenditure in the high single-digit millions is within a plausible range. Without specific benchmarks for comparable ILMS support or similar agency-wide IT service contracts, a definitive comparison is difficult, but it does not appear excessively high given the context.

What is Accenture Federal Services' track record with the Department of State and similar agencies?

Accenture Federal Services (AFS) is a major contractor for the U.S. federal government, including numerous civilian agencies like the Department of State. AFS has a history of performing large-scale IT services, system integration, and consulting projects. For the Department of State specifically, AFS has been involved in various IT modernization and support initiatives. Their track record generally indicates experience with complex government IT environments. However, a deeper dive into past performance reviews, any past disputes, or specific project successes and failures related to State Department contracts would provide a more nuanced understanding of their specific performance history on this type of work.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not specify the key performance indicators (KPIs) or success metrics established for this contract. Typically, for IT support and deployment contracts, KPIs would focus on aspects such as system uptime and availability, response times for issue resolution, successful deployment of updates or new features, user satisfaction rates, and completion of training objectives. The firm-fixed-price nature suggests that meeting defined deliverables and service levels would be paramount. Without access to the contract's statement of work or performance work statement, these specific metrics remain unknown.

Were there any identified risks or challenges associated with this contract during its performance period?

The available data does not explicitly detail risks or challenges encountered during the performance of this contract. However, common risks in IT deployment and sustainment contracts include scope creep, integration issues with existing systems, cybersecurity threats, personnel turnover (both government and contractor), and delays in user adoption or training. Given the contract's focus on ILMS, challenges might have related to the complexity of the logistics system, ensuring data integrity, or managing change across a large user base. The firm-fixed-price structure could also pose a risk to the contractor if unforeseen technical difficulties arose.

How has the Department of State's spending on IT services evolved since this contract was awarded?

This contract, awarded in September 2015 and ending in December 2018, represents a portion of the Department of State's IT spending during that period. To assess the evolution of their IT spending, one would need to examine the Department's overall IT budget and contract awards in subsequent years. Federal IT spending generally trends towards modernization, cloud adoption, and cybersecurity enhancements. It is likely that the Department of State has continued to invest significantly in IT, potentially shifting towards newer technologies and service models post-2018, possibly with different contract vehicles and providers.

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: Novetta Solutions, LLC

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: $29,017,912

Exercised Options: $29,017,912

Current Obligation: $29,017,912

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $2,858,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline