DoD Awards $11M Functional Support Contract to Accenture Federal Services for IT Services
Contract Overview
Contract Amount: $11,041,658 ($11.0M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Defense
Start Date: 2024-06-01
End Date: 2026-05-31
Contract Duration: 729 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FUNCTIONAL SUPPORT CONTRACT
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: FUNCTIONAL SUPPORT CONTRACT Key points: 1. Contract value of $11.04 million over two years. 2. Accenture Federal Services, a large business, is the awardee. 3. Full and open competition was utilized. 4. Services fall under 'Other Computer Related Services' (NAICS 541519).
Value Assessment
Rating: good
The contract is a firm-fixed-price delivery order, indicating clear pricing expectations. Benchmarking against similar IT support contracts would be necessary for a definitive value assessment, but the pricing appears reasonable for the scope and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, promoting efficiency and potentially lower costs through market forces.
Public Impact
Supports critical Department of Defense logistics operations. Ensures continued IT functionality for defense agencies. Potential impact on Accenture's market share in federal IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term IT support contracts.
- Reliance on a single large vendor for critical functions.
Positive Signals
- Awarded through full and open competition.
- Firm-fixed-price contract structure.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Federal IT spending is substantial, and contracts like this are common for maintaining and supporting complex government systems.
Small Business Impact
The awardee is a large business (Accenture Federal Services LLC), and there is no indication of small business participation in this specific award. Future solicitations could explore opportunities for small business subcontracting.
Oversight & Accountability
The contract is a delivery order under a larger contract vehicle, implying existing oversight mechanisms. The Defense Logistics Agency's oversight will be crucial to ensure performance and adherence to contract terms.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for vendor lock-in.
- Dependence on a single large contractor.
- Risk of cost overruns if scope is not well-defined.
- Cybersecurity risks associated with IT 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 $11.0 million to ACCENTURE FEDERAL SERVICES LLC. FUNCTIONAL SUPPORT CONTRACT
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 $11.0 million.
What is the period of performance?
Start: 2024-06-01. End: 2026-05-31.
What specific functional support services are included in this contract, and how do they align with DLA's strategic IT goals?
The contract covers 'Other Computer Related Services' (NAICS 541519), which broadly includes IT support, system maintenance, and potentially software development or integration. A detailed review of the Statement of Work (SOW) is needed to understand the precise services and their alignment with DLA's strategic IT objectives, ensuring the investment directly contributes to mission effectiveness and modernization efforts.
What are the key performance indicators (KPIs) for this contract, and how will Accenture's performance be measured to mitigate risks?
Key performance indicators are essential for monitoring contract success. While not detailed here, typical KPIs for IT support contracts include system uptime, response times for issue resolution, and successful implementation of updates. The Defense Logistics Agency should establish clear, measurable KPIs and a robust performance management plan to hold Accenture accountable and ensure the services meet or exceed required standards.
How does the pricing of this $11 million contract compare to similar functional support contracts awarded by other federal agencies for comparable services?
A direct comparison requires access to detailed pricing structures and service level agreements of similar contracts. However, given the full and open competition and firm-fixed-price nature, the $11.04 million over two years suggests a competitive rate. Further analysis of the per-hour or per-service cost against market benchmarks would provide a more definitive assessment of value for money.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: SP470924Q2002
Offers Received: 2
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: $14,540,043
Exercised Options: $11,116,370
Current Obligation: $11,041,658
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $3,972,218
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: 2024-06-01
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2025-12-16
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