DoD's $24.8M Enterprise Platform Program Management Contract Awarded to Accenture Federal Services
Contract Overview
Contract Amount: $24,785,834 ($24.8M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-30
End Date: 2025-09-29
Contract Duration: 730 days
Daily Burn Rate: $34.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 117
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE PLATFORM PROGRAM MANAGEMENT AND TECHNICAL SUPPORT SERVICES COST PLUS INCENTIVE FEE CLIN
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: ENTERPRISE PLATFORM PROGRAM MANAGEMENT AND TECHNICAL SUPPORT SERVICES COST PLUS INCENTIVE FEE CLIN Key points: 1. Contract value of $24.8 million for program management and technical support. 2. Awarded to Accenture Federal Services LLC under full and open competition. 3. Potential for cost overruns exists due to the Cost Plus Incentive Fee structure. 4. The 'Other Computer Related Services' NAICS code suggests a broad scope of IT support.
Value Assessment
Rating: fair
The contract is a Cost Plus Incentive Fee (CPIF) type, which can lead to higher final costs than fixed-price contracts if not managed carefully. The award amount of $24.8M needs to be benchmarked against similar program management support contracts to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and can lead to better pricing, but the CPIF structure introduces variability.
Taxpayer Impact: The competitive award process aims to secure fair pricing, but the CPIF structure means taxpayer funds could increase if performance targets are exceeded or if costs escalate beyond initial projections.
Public Impact
Ensures continued support for critical enterprise platform program management. Supports the Defense Logistics Agency's operational capabilities. Potential for cost efficiencies through incentive fee structure if managed well. Impacts IT service providers and the broader defense contracting ecosystem.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee structure carries inherent cost escalation risk.
- Lack of specific small business participation noted.
- Broad NAICS code may obscure specific service cost benchmarks.
Positive Signals
- Awarded through full and open competition, suggesting market validation.
- Long-term contract duration (730 days) provides stability for program execution.
- Incentive fee structure can drive performance improvements.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on program management and technical support for enterprise platforms. Spending in this area is substantial across government agencies, with benchmarks varying based on the complexity and criticality of the platforms supported.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that large businesses were the primary bidders and recipients, potentially limiting opportunities for small business participation in this specific award.
Oversight & Accountability
The contract's CPIF structure necessitates robust oversight from the Defense Logistics Agency to ensure cost control and performance targets are met. Regular reviews of contractor expenditures and performance metrics will be crucial for accountability.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) risk
- Lack of small business participation
- Potential for scope creep given broad service description
- Dependence on a single contractor for critical support
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to ACCENTURE FEDERAL SERVICES LLC. ENTERPRISE PLATFORM PROGRAM MANAGEMENT AND TECHNICAL SUPPORT SERVICES COST PLUS INCENTIVE FEE CLIN
Who is the contractor on this award?
The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $24.8 million.
What is the period of performance?
Start: 2023-09-30. End: 2025-09-29.
What specific enterprise platforms does this contract support, and how critical are they to DLA's mission?
The contract supports enterprise platform program management and technical services. Without further details on the specific platforms, it's difficult to assess their criticality. However, given the award by the Defense Logistics Agency, these platforms likely play a significant role in supply chain management, logistics operations, or other core DLA functions essential for military readiness.
How will the incentive fee structure be monitored to prevent cost overruns and ensure value for taxpayers?
The Cost Plus Incentive Fee (CPIF) structure requires diligent oversight. The Defense Logistics Agency must establish clear performance metrics and cost targets. Regular audits and performance reviews will be essential to track spending, verify cost reasonableness, and ensure the contractor is incentivized to achieve optimal outcomes efficiently, thereby safeguarding taxpayer funds.
What are the key performance indicators (KPIs) for this contract, and how do they align with DLA's strategic objectives?
Key performance indicators are not explicitly detailed in the provided data. However, for a program management and technical support contract, KPIs would typically include system uptime, response times for technical issues, successful project milestone completion, adherence to budget, and user satisfaction. These KPIs should directly align with DLA's strategic objectives related to operational efficiency, modernization, and mission support.
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 › IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: SP470923Q1025
Offers Received: 117
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Novetta Solutions, LLC
Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $60,434,127
Exercised Options: $24,785,834
Current Obligation: $24,785,834
Actual Outlays: $1,078,909
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $2,815,338
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP470917D0023
IDV Type: IDC
Timeline
Start Date: 2023-09-30
Current End Date: 2025-09-29
Potential End Date: 2025-09-29 00:00:00
Last Modified: 2025-04-30
More Contracts from Accenture Federal Services LLC
- - Tivod Supports the Origination, Disbursement, and Reporting of Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Direct Loans, Pell Grants, and the Teacher Education Assistance for College and Higher Education Grants. the Title IV Solution Shall Also Provide Ongoing Support for the Discontinued Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Academic Competitiveness Grants and National Science and Mathematics Access to Retain Talent Grants — $1.5B (Department of Education)
- This Task Order IS for an Enterprise-Wide Digital and Customer Care Platforms and Services Solution (enterprise-Wide Digital and Customer Care Solution, AKA Ewdccps, AKA DCC) That Will Enable an Fsa-Branded Omni-Channel Engagement Approach LED by a Mobile-First, Mobile-Complete, and Mobile-Continuous Digital Platform Supporting the Complete Lifecycle of Student Financing — $851.5M (Department of Education)
- FFM — $829.6M (Department of Health and Human Services)
- Award for Unified Enterprise Resource Planning Capability Support Services — $823.2M (Department of Defense)
- Federally Facilitated Exchange (FFE) — $787.2M (Department of Health and Human Services)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)