State Dept. awards $29.3M for IT services to Accenture Federal Services, raising value and competition questions

Contract Overview

Contract Amount: $29,321,207 ($29.3M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2016-09-27

End Date: 2018-10-31

Contract Duration: 764 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CL::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $29.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::CL::IGF Key points: 1. Contract value of $29.3M for IT services. 2. Accenture Federal Services LLC is the sole awardee. 3. Full and open competition after exclusion of sources raises concerns. 4. IT services sector is highly competitive.

Value Assessment

Rating: questionable

The contract value of $29.3M for 'Other Computer Related Services' needs further benchmarking against similar IT service contracts. Without clear per-unit cost data, assessing value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a competitive process but with specific limitations. The impact on price discovery is unclear without knowing the reasons for source exclusion.

Taxpayer Impact: Taxpayer funds are being utilized for IT services. The effectiveness of the competition method in securing the best price for taxpayers is uncertain.

Public Impact

Citizens rely on the Department of State for effective service delivery, which is supported by IT infrastructure. Transparency in government contracting ensures public trust and accountability for taxpayer money. The specific IT services procured impact national security and diplomatic operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Competition method raises questions about price discovery.
  • Lack of clear per-unit cost data hinders value assessment.
  • Small business participation not indicated.

Positive Signals

  • Contract awarded to a known entity.
  • Clear start and end dates provided.

Sector Analysis

The IT services sector is dynamic and competitive, with numerous providers capable of delivering a wide range of solutions. Government spending in this area is substantial, making efficient procurement crucial.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was not specifically set aside for small businesses, potentially limiting opportunities for them.

Oversight & Accountability

Oversight is crucial to ensure the Department of State receives the intended IT services at a fair price. The contracting method warrants scrutiny to confirm it yielded optimal value and adhered to procurement regulations.

Related Government Programs

  • Other Computer Related Services
  • Department of State Contracting
  • Department of State Programs

Risk Flags

  • Lack of detailed service description.
  • Ambiguity in 'exclusion of sources' justification.
  • Absence of small business participation.
  • Potential for uncompetitive pricing due to limited source pool.

Tags

other-computer-related-services, department-of-state, va, bpa-call, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $29.3 million to ACCENTURE FEDERAL SERVICES LLC. IGF::CL::IGF

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 $29.3 million.

What is the period of performance?

Start: 2016-09-27. End: 2018-10-31.

What specific IT services were procured under NAICS code 541519, and how do they align with the Department of State's mission objectives?

NAICS code 541519 covers 'Other Computer Related Services,' which can encompass a broad range of IT support, consulting, and implementation. For the Department of State, these services likely relate to maintaining and upgrading their global communication networks, cybersecurity infrastructure, and internal IT systems essential for diplomatic operations and data management.

What were the specific reasons for excluding other sources in this 'full and open competition,' and did this exclusion impact the final price?

The exclusion of other sources, even within a full and open competition framework, typically occurs due to specific technical requirements, existing infrastructure compatibility, or unique service needs that only a limited number of vendors can meet. Understanding these reasons is vital to assess if the exclusion was justified and if it potentially limited competitive pressure, thereby affecting the final negotiated price.

How does the awarded amount of $29.3M compare to industry benchmarks for similar 'Other Computer Related Services' over the contract duration of approximately two years?

Benchmarking this $29.3M award requires detailed analysis of the specific services rendered, the complexity of the IT environment, and prevailing market rates for similar contracts. Without granular data on service hours, deliverables, and vendor overhead, a precise comparison is challenging. However, for a two-year duration, this represents a significant investment, necessitating a thorough review against comparable government and commercial IT service contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $29,321,207

Exercised Options: $29,321,207

Current Obligation: $29,321,207

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $52,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline

Start Date: 2016-09-27

Current End Date: 2018-10-31

Potential End Date: 2018-10-31 00:00:00

Last Modified: 2022-09-23

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