DoD's $7.3M IT Architecture Support Contract Awarded to Accenture Federal Services

Contract Overview

Contract Amount: $7,348,034 ($7.3M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-16

End Date: 2026-01-31

Contract Duration: 746 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE IT ARCHITECTURE SUPPORT SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $7.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: ENTERPRISE IT ARCHITECTURE SUPPORT SERVICES Key points: 1. Contract provides essential enterprise IT architecture support services. 2. Accenture Federal Services, a large established firm, secured the award. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The contract duration of approximately two years allows for sustained support. 6. The specific NAICS code (541519) indicates a broad range of computer-related services.

Value Assessment

Rating: good

The contract value of $7.3 million over approximately two years appears reasonable for enterprise IT architecture support services, especially given the contractor's established presence. Benchmarking against similar large-scale IT support contracts within the Department of Defense suggests this award falls within expected spending ranges for specialized technical expertise. The firm-fixed-price structure further supports value by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 117 offers suggests a robust and highly competitive bidding environment. This level of competition is generally favorable for price discovery and ensures the government receives proposals from a wide array of qualified vendors, potentially leading to better pricing and service offerings.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down the final price and encouraged innovative solutions, maximizing the value received for public funds.

Public Impact

The Department of Defense benefits from enhanced enterprise IT architecture, crucial for modernizing its complex technological infrastructure. This contract supports the Defense Logistics Agency in maintaining and improving its IT systems. The services delivered will contribute to the overall efficiency and security of DoD's digital operations. The contract's impact is primarily within the federal IT sector, supporting a critical government function.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if architecture becomes overly reliant on Accenture's specific methodologies.
Risk of scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical IT architecture decisions could pose a risk if performance falters.

Positive Signals

Award to a well-established contractor with a proven track record in federal IT services.
Firm-fixed-price contract type provides cost predictability.
Full and open competition suggests a strong market response and potential for competitive pricing.

Sector Analysis

The IT services sector within the federal government is a significant market, with agencies constantly seeking support for complex enterprise architectures. This contract fits within the broader category of IT consulting and systems integration services, a segment characterized by intense competition among large system integrators and specialized IT firms. Spending in this area is driven by the need for modernization, cybersecurity, and efficient data management across government operations.

Small Business Impact

This contract was not set aside for small businesses, and the contractor, Accenture Federal Services LLC, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the scope or nature of the services was deemed best suited for large prime contractors, or that the competitive landscape favored large business participation.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm-fixed-price contract, financial oversight will focus on adherence to the agreed-upon price and deliverables. Transparency is generally maintained through contract award databases and reporting requirements. The Defense Logistics Agency's internal oversight and potentially the Department of Defense Inspector General would have jurisdiction over this contract for performance and compliance issues.

Related Government Programs

DoD Enterprise Architecture
Defense IT Modernization Programs
IT Consulting Services
Systems Integration Contracts
Defense Logistics Agency IT Support

Risk Flags

Potential for vendor lock-in
Scope creep risk
Performance dependency on contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.3 million to ACCENTURE FEDERAL SERVICES LLC. ENTERPRISE IT ARCHITECTURE SUPPORT SERVICES

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 $7.3 million.

What is the period of performance?

Start: 2024-01-16. End: 2026-01-31.

What is Accenture Federal Services LLC's track record with the Department of Defense and similar IT architecture contracts?

Accenture Federal Services LLC is a major federal contractor with a substantial history of performing IT services for various government agencies, including the Department of Defense. They have a broad portfolio encompassing IT strategy, systems integration, cloud migration, cybersecurity, and enterprise architecture. While specific details on past performance for this exact type of architecture support are not provided in the summary data, their extensive experience with large-scale federal IT projects suggests a strong capability. Benchmarking their past performance on similar contracts would involve reviewing contract databases for awards related to enterprise architecture, IT modernization, and strategic IT planning within DoD and other civilian agencies to assess their success rates, client satisfaction, and adherence to schedule and budget on prior engagements.

How does the $7.3 million contract value compare to similar enterprise IT architecture support contracts awarded by the DoD?

The $7.3 million contract value for enterprise IT architecture support services over approximately two years appears to be within a reasonable range for specialized IT support within a large federal agency like the Department of Defense. Without specific details on the scope of work, the complexity of the architecture, or the specific deliverables, a precise comparison is challenging. However, based on general market knowledge and publicly available data for similar IT consulting and architecture services contracts awarded to large system integrators, values can range from a few million to tens or even hundreds of millions of dollars depending on the duration, scope, and criticality of the services. This award seems to represent a mid-tier investment for focused architectural support rather than a comprehensive, agency-wide IT overhaul.

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

Primary risks associated with this contract include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns or delays. Another risk is vendor lock-in, where the agency becomes overly dependent on the contractor's specific methodologies or solutions, making future transitions difficult. Performance risk, where the contractor may not deliver the expected quality or timeliness of services, is also a concern. Mitigation strategies likely include robust contract management by the Defense Logistics Agency, clear definition and control of the Statement of Work (SOW), regular performance reviews, and potentially incorporating performance metrics and incentives into the contract. The firm-fixed-price nature also mitigates financial risk for the government by capping the total cost.

How effective is the 'full and open competition' approach in ensuring value for money for this specific IT architecture support contract?

The 'full and open competition' approach is generally considered highly effective in ensuring value for money, especially for complex IT services like enterprise architecture support. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages innovation. The fact that 117 offers were received indicates a strong market interest and a wide pool of potential solutions. This high level of competition allows the government to select the offer that provides the best combination of technical merit and price. While the ultimate value depends on the execution of the contract, the competitive process itself is a strong indicator that the government is likely to receive a fair price and high-quality services compared to less competitive procurement methods.

What are the historical spending patterns for enterprise IT architecture support services within the Department of Defense?

Historical spending patterns for enterprise IT architecture support services within the Department of Defense are substantial and have generally trended upwards over the past decade, driven by the increasing complexity of military operations and the need for technological modernization. DoD consistently invests billions annually in IT services, including architecture, infrastructure, software development, and cybersecurity. Specific spending on 'enterprise IT architecture support' as a distinct category can be difficult to isolate from broader IT consulting and systems integration budgets. However, agencies like the Defense Logistics Agency, and major components like the Army, Navy, and Air Force, regularly award contracts for architectural guidance, strategic planning, and the development of IT roadmaps to ensure interoperability, security, and efficiency across their vast networks. These contracts often involve large, established IT service providers.

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

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: $24,658,304

Exercised Options: $10,958,124

Current Obligation: $7,348,034

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $4,092,042

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