SEC Awards $31M for Security Monitoring Services to Accenture Federal Services

Contract Overview

Contract Amount: $31,029,148 ($31.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2015-02-11

End Date: 2022-02-25

Contract Duration: 2,571 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SECURITY SYSTEMS MONITORING, MANAGEMENT, AND INCIDENT REPORTING SERVICES IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $31.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: SECURITY SYSTEMS MONITORING, MANAGEMENT, AND INCIDENT REPORTING SERVICES IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Accenture Federal Services secured a significant contract for comprehensive security monitoring and incident reporting. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (2571 days) indicates a long-term need for these critical services. 4. The total award value of $31,029,147.79 reflects the scale and importance of the security infrastructure.

Value Assessment

Rating: good

The contract's value of $31M over approximately 7 years suggests a reasonable annual spend for comprehensive security monitoring services. Benchmarking against similar large-scale government IT security contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive nature of the award likely resulted in a fair market price, maximizing the value of taxpayer dollars spent on essential security services.

Public Impact

Ensures the security and integrity of sensitive data managed by the Securities and Exchange Commission. Supports continuous monitoring and rapid incident response to protect against cyber threats. Provides essential IT infrastructure support for a key regulatory agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long contract duration.
Reliance on a single vendor for critical security functions.

Positive Signals

Awarded through full and open competition.
Long-term contract provides stability for security operations.
Firm Fixed Price contract limits cost overruns.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer-related services. Government spending on cybersecurity and IT infrastructure is substantial, with benchmarks varying widely based on scope and complexity.

Small Business Impact

The contract was awarded to Accenture Federal Services LLC, a large business. There is no indication in the provided data that small businesses were involved as subcontractors, which could be an area for future analysis.

Oversight & Accountability

The Securities and Exchange Commission is the contracting agency, implying internal oversight. The long duration and significant value warrant regular performance reviews and audits to ensure accountability and effective service delivery.

Related Government Programs

Other Computer Related Services
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Long contract duration may limit flexibility.
Potential for vendor lock-in.
No explicit mention of small business participation.
Reliance on a single provider for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $31.0 million to ACCENTURE FEDERAL SERVICES LLC. SECURITY SYSTEMS MONITORING, MANAGEMENT, AND INCIDENT REPORTING SERVICES IGF::OT::IGF FOR OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $31.0 million.

What is the period of performance?

Start: 2015-02-11. End: 2022-02-25.

What specific security threats does this contract aim to mitigate, and how effective are the services in addressing them?

This contract likely addresses a broad spectrum of cybersecurity threats, including unauthorized access, data breaches, malware infections, and denial-of-service attacks. Effectiveness is measured through metrics like incident detection time, response time, and successful mitigation rates, which are typically detailed in performance reports and service level agreements. Continuous monitoring and incident reporting are key to maintaining a strong security posture against evolving threats.

Are there any identified risks associated with Accenture Federal Services' performance or the long-term reliance on this single contract?

Risks include potential over-reliance on a single vendor, leading to reduced flexibility or increased switching costs if performance degrades. There's also the inherent risk of vendor lock-in and the possibility of unforeseen security vulnerabilities emerging that the current service scope may not cover. Regular performance reviews, clear exit strategies, and contingency planning are crucial to mitigate these risks effectively.

How does the pricing structure compare to industry standards for similar comprehensive security monitoring services?

The contract utilizes a Firm Fixed Price (FFP) structure, which is common for services with well-defined scopes, offering cost predictability. While the total award of $31M over 7 years averages around $4.4M annually, a precise comparison requires detailed analysis of the specific services included (e.g., 24/7 monitoring, threat intelligence, incident response capabilities). Benchmarking against similar government or large enterprise contracts would be necessary for a definitive assessment of value.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Inc.

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $33,555,242

Exercised Options: $31,029,148

Current Obligation: $31,029,148

Actual Outlays: $16,447,452

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $197,262

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F580AA

IDV Type: FSS

Timeline