State Department's $28.7M IT services contract awarded to Accenture Federal Services shows fair value with limited competition

Contract Overview

Contract Amount: $28,692,934 ($28.7M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2015-09-25

End Date: 2017-12-31

Contract Duration: 828 days

Daily Burn Rate: $34.7K/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 $28.7 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 given the scope of IT services provided. 2. Competition was limited, potentially impacting price discovery and taxpayer value. 3. Performance risks seem manageable, with a firm-fixed-price structure incentivizing contractor efficiency. 4. The contract supports critical IT infrastructure for the State Department's global operations. 5. This falls within the broader category of IT services supporting government functions.

Value Assessment

Rating: fair

The contract's total value of $28.7 million over approximately two years suggests a moderate annual spend. Benchmarking against similar IT services contracts for large federal agencies indicates that this pricing is within a reasonable range, especially considering the specialized nature of supporting global IT deployments and change management. The firm-fixed-price contract type helps control costs by shifting some risk to the contractor. However, without more granular data on specific services rendered and their unit costs, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were excluded, leading to a limited pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes reduce the number of qualified offerors. A limited competition environment may result in less aggressive pricing compared to full and open competition with numerous bidders.

Taxpayer Impact: Limited competition can mean that taxpayers may not have benefited from the most competitive pricing achievable if a wider range of vendors had been allowed to bid.

Public Impact

Federal employees and diplomats worldwide benefit from reliable IT infrastructure and support. Services include deployment, sustainment, training, and communication for IT systems. The geographic impact is global, supporting the State Department's international missions. Workforce implications include support for IT professionals managing and maintaining these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced innovation due to limited vendor pool.
Risk of higher costs due to less competitive pressure.

Positive Signals

Firm-fixed-price structure aligns contractor incentives with cost control.
Long-term support for critical IT infrastructure ensures operational continuity.
Experienced contractor likely possesses domain expertise.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT services and support. The market for government IT services is substantial, with agencies increasingly relying on external vendors for specialized expertise in areas like system deployment, sustainment, and change management. Comparable spending benchmarks in this area are high, reflecting the critical role IT plays in government operations. This contract represents a portion of the State Department's overall IT modernization and operational support budget.

Small Business Impact

The contract details indicate that small business participation was not a primary focus, as the award was made to a large prime contractor and there is no indication of small business set-asides or significant subcontracting plans. This suggests that the primary objective was to secure specialized IT services from a capable vendor, rather than to promote small business engagement. The impact on the small business ecosystem is likely minimal for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of cost control. Transparency is facilitated through contract award databases, though detailed performance metrics and internal oversight reports are not publicly available. The Inspector General's office for the Department of State would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

State Department IT Modernization Programs
Global Information Technology Support Contracts
Federal Civilian Agency IT Services
Department of State Bureau of Information Resource Management

Risk Flags

Limited competition may have resulted in suboptimal pricing.
Scope of 'exclusion of sources' is not detailed, raising transparency questions.
Performance metrics and specific outcomes are not publicly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $28.7 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 $28.7 million.

What is the period of performance?

Start: 2015-09-25. End: 2017-12-31.

What specific IT systems or applications were supported under this contract?

The contract focused on supporting ILMS (Integrated Logistics Management System) deployments, sustainment, training/change management, and communication. ILMS is a critical system for the Department of State, managing various logistical and administrative functions essential for its global operations. The contract covered the lifecycle support for these systems, ensuring their availability, functionality, and user adoption through training and communication initiatives. This included addressing technical issues, implementing updates, and facilitating user understanding and proficiency with the ILMS platform.

How does the $28.7 million contract value compare to similar IT support contracts at the Department of State?

The $28.7 million contract value over approximately two years represents a significant but not exceptionally large investment for IT support at a global agency like the Department of State. Annual spending for IT services at large federal departments can range from tens of millions to billions of dollars, depending on the scope and complexity of services. This particular contract's value appears moderate when considered against the backdrop of extensive global IT infrastructure and modernization efforts typical for diplomatic missions. Without direct comparisons of identical service scopes, it's difficult to pinpoint exact value deviations, but it falls within a plausible range for specialized IT sustainment and deployment support.

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

Primary risks likely included technical challenges in deploying and sustaining complex IT systems globally, potential cost overruns if not managed tightly, and user adoption issues with new or updated systems. The mitigation strategy primarily involved the firm-fixed-price contract type, which incentivizes the contractor, Accenture Federal Services, to manage costs effectively. Additionally, the contract's focus on training and change management aimed to mitigate user adoption risks. The State Department's own program management and oversight would also serve as a key risk mitigation factor, ensuring adherence to technical requirements and performance standards.

What is the track record of Accenture Federal Services in delivering similar IT services to government agencies?

Accenture Federal Services has a substantial track record of delivering a wide range of IT services to various U.S. government agencies, including the Department of State. They are a major player in the federal IT contracting space, known for their capabilities in system integration, cloud migration, cybersecurity, and digital transformation. Their experience typically encompasses large-scale, complex projects similar to the ILMS support required here. Past performance reviews and contract databases often reflect their ability to manage significant budgets and deliver on technical requirements, though specific performance on individual contracts can vary.

How did the 'Full and Open Competition After Exclusion of Sources' procurement method impact the final contract price?

The 'Full and Open Competition After Exclusion of Sources' method suggests that while the initial solicitation was open, certain potential bidders were excluded based on specific criteria. This exclusion narrows the competitive field, potentially leading to fewer proposals and less aggressive pricing than if all qualified sources were permitted to compete without restriction. While it aims to ensure a baseline level of competition among a pre-selected group, it can limit the downward pressure on price that a broader, more inclusive competition might generate. Therefore, the final contract price might be higher than it would have been under a truly unrestricted full and open competition.

What are the long-term implications of this contract for the State Department's IT infrastructure?

This contract played a role in ensuring the continued operational effectiveness and modernization of the State Department's critical IT infrastructure, specifically the ILMS. By providing sustainment, deployment, and change management support, it helped maintain the reliability and functionality of systems essential for diplomatic and logistical operations worldwide. The contract's duration and scope suggest it contributed to the ongoing stability and adaptability of the Department's IT environment, enabling it to support evolving mission requirements and technological advancements during its term.

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: $28,692,940

Exercised Options: $28,692,940

Current Obligation: $28,692,934

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $5,838,640

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline