Accenture Federal Services LLC contract for IT services valued at over $27 million by the Department of State

Contract Overview

Contract Amount: $27,131,245 ($27.1M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2016-09-27

End Date: 2019-03-31

Contract Duration: 915 days

Daily Burn Rate: $29.7K/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 $27.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::CL::IGF Key points: 1. The contract's value of over $27 million indicates a significant investment in IT services by the Department of State. 2. Competition dynamics for this contract were 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a broad but potentially filtered bidding process. 3. The 'Other Computer Related Services' NAICS code points to a focus on specialized IT support rather than general software development. 4. The contract duration of 915 days (approximately 2.5 years) suggests a medium-term project requiring sustained service delivery. 5. The Time and Materials pricing structure can introduce cost variability, necessitating close monitoring of labor hours and rates. 6. The contract was awarded as a BPA Call, indicating it was likely part of a larger pre-negotiated agreement, potentially offering some efficiencies.

Value Assessment

Rating: fair

Benchmarking the value of this $27 million contract is challenging without specific service details and comparable contract data. However, the duration of 915 days suggests a substantial, ongoing need for services. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not managed diligently, especially compared to fixed-price contracts. Without more granular data on the specific services rendered and the labor rates applied, a definitive value-for-money assessment is difficult, but the scale of the award warrants scrutiny of cost controls.

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'. This indicates that while the competition was intended to be broad, certain sources may have been excluded prior to the full and open solicitation. The exact reasons for exclusion are not detailed here, but this could potentially limit the pool of bidders. The number of bidders is not specified, which makes it difficult to fully assess the intensity of the competition and its impact on price discovery.

Taxpayer Impact: A full and open competition, even with exclusions, generally aims to achieve competitive pricing for taxpayers. However, the 'exclusion of sources' aspect warrants further investigation to ensure no potentially lower-cost providers were unfairly barred.

Public Impact

The primary beneficiary is the Department of State, which receives IT services to support its operations. The services delivered likely include IT support, maintenance, or specialized computer-related assistance crucial for diplomatic and administrative functions. The geographic impact is primarily within the Department of State's operational areas, likely concentrated in Washington D.C. and potentially overseas diplomatic missions. Workforce implications could involve the utilization of both contractor personnel and potentially impact internal IT staff roles within the Department.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
The 'exclusion of sources' in the competition type raises questions about the breadth of competition achieved.
Lack of specific service details makes it hard to assess the true value and necessity of the expenditure.

Positive Signals

Awarded under a full and open competition, suggesting an effort to solicit from a wide range of vendors.
The contract was a BPA Call, potentially indicating streamlined procurement and pre-negotiated terms.
The contract duration suggests a stable, ongoing need for the services provided.

Sector Analysis

This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services'. The IT services market is vast and highly competitive, with government spending on IT consistently representing a significant portion of federal budgets. Contracts like this are common as agencies rely heavily on external vendors for specialized expertise and support. Comparable spending benchmarks would depend on the specific nature of the 'Other Computer Related Services' and the scale of the Department of State's IT infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Accenture Federal Services LLC, is a large business, and any subcontracting would likely be at the discretion of the prime.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS-NG, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Services Contracts
IT Services for Diplomatic and International Operations
General Services Administration (GSA) Schedules (if awarded via GSA Schedule)

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Ambiguity in 'exclusion of sources' could limit competition.
Lack of specific service details hinders performance and value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $27.1 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 $27.1 million.

What is the period of performance?

Start: 2016-09-27. End: 2019-03-31.

What specific 'Other Computer Related Services' were provided under this contract?

The provided data identifies the NAICS code as 541519, 'Other Computer Related Services'. This broad category can encompass a wide range of IT services beyond standard software development or hardware maintenance. Examples could include IT consulting, data processing services, computer disaster recovery services, IT security consulting, or specialized IT support for unique government systems. Without further details from the contract award documentation or the Department of State, the precise nature of the services rendered remains unspecified. Understanding the exact services is crucial for evaluating the necessity, cost-effectiveness, and performance of the contract.

How does the Time and Materials (T&M) pricing structure compare to fixed-price contracts for similar IT services?

Time and Materials (T&M) contracts offer flexibility, allowing the government to pay for the actual labor hours and materials used. This can be advantageous for projects with undefined scopes or evolving requirements. However, T&M contracts carry a higher risk of cost overruns because the final price is not fixed upfront. Fixed-price contracts, conversely, provide cost certainty but are less adaptable to changing project needs and may require more detailed initial scope definition. For IT services, T&M is often used for sustainment, support, or projects where the exact effort is difficult to predict. Agencies typically implement strict oversight, labor hour tracking, and rate ceilings to control costs under T&M agreements, aiming to achieve value comparable to fixed-price arrangements where feasible.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT services contracts, KPIs and SLAs are critical components that define the expected performance standards and quality of service. These might include metrics related to system uptime, response times for technical support, resolution times for issues, data security compliance, or project milestone completion. The absence of this information in the summary data makes it difficult to objectively assess the contractor's performance and the overall effectiveness of the services delivered. Robust KPIs and SLAs are essential for ensuring accountability and achieving desired outcomes.

What is the historical spending pattern for 'Other Computer Related Services' at the Department of State?

Analyzing historical spending patterns for 'Other Computer Related Services' (NAICS 541519) at the Department of State would require access to historical federal procurement data over multiple fiscal years. This contract, valued at over $27 million and spanning from 2016 to 2019, represents a significant expenditure within this category during that period. To understand the pattern, one would need to aggregate all contracts awarded under NAICS 541519 by the Department of State across various years, noting the total dollar amounts, contract types, and durations. This analysis could reveal trends in IT service needs, identify major vendors, and indicate whether spending in this category has been consistent, increasing, or decreasing over time.

Were there any specific justifications or reasons provided for the 'exclusion of sources' in the competition type?

The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This specific procurement term suggests that while the competition was generally open, certain potential sources were excluded from the solicitation process. The reasons for such exclusions are typically documented in the contract file and might include factors like specific technical capabilities required, prior performance issues with certain vendors, or unique security requirements that only a subset of vendors could meet. Without access to the detailed contract award justification or solicitation documents, the precise reasons for excluding specific sources remain unknown. This exclusion could potentially limit competition and impact price discovery, making it an area for further inquiry.

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: TIME AND MATERIALS (Y)

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: $27,497,952

Exercised Options: $27,497,952

Current Obligation: $27,131,245

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $3,237,273

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline