DoD Awards $50.6M for Jet System Sustainment to Accenture Federal Services

Contract Overview

Contract Amount: $50,634,639 ($50.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-01

End Date: 2026-01-31

Contract Duration: 548 days

Daily Burn Rate: $92.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8510785908!TASK 5 - JETS SYSTEM SUST/MA

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $50.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: 8510785908!TASK 5 - JETS SYSTEM SUST/MA Key points: 1. Significant contract value for IT services supporting defense logistics. 2. Accenture Federal Services, a major IT contractor, secured this award. 3. Potential risks include vendor lock-in and long-term sustainment costs. 4. The 'Other Computer Related Services' sector is critical for modern defense operations.

Value Assessment

Rating: good

The award value of $50.6M over 548 days suggests a reasonable pricing strategy for complex IT sustainment. Benchmarking against similar large-scale IT support contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense IT services.

Public Impact

Ensures continued operational readiness for critical jet systems. Supports advanced IT infrastructure within the Department of Defense. Impacts personnel relying on these systems for mission success.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long-term sustainment costs
  • Potential for scope creep
  • Dependence on a single vendor for critical systems

Positive Signals

  • Full and open competition
  • Firm Fixed Price contract type
  • Experienced IT service provider

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services,' crucial for maintaining complex defense systems. Spending benchmarks in this area are highly variable based on system criticality and scope.

Small Business Impact

The data indicates this contract was not awarded to small businesses, suggesting large prime contractors are handling this specialized IT sustainment requirement.

Oversight & Accountability

The award is managed by the Defense Logistics Agency, a key component of DoD oversight for logistics and sustainment. Further oversight will focus on performance metrics and adherence to the firm fixed price.

Related Government Programs

  • Other Computer Related Services
  • Department of Defense Contracting
  • Defense Logistics Agency Programs

Risk Flags

  • Long-term sustainment dependency
  • Potential for cost overruns if scope expands
  • Reliance on a single vendor for critical IT functions
  • Need for robust performance monitoring

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 $50.6 million to ACCENTURE FEDERAL SERVICES LLC. 8510785908!TASK 5 - JETS SYSTEM SUST/MA

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 $50.6 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-01-31.

What is the projected total cost of ownership for this system sustainment over its lifecycle?

The current award covers a period of 548 days with a value of $50.6M. To determine the total cost of ownership, one would need to project sustainment needs beyond this initial period, factoring in potential contract renewals, technology refreshes, and evolving operational requirements. This requires a comprehensive lifecycle cost analysis.

What are the key performance indicators (KPIs) for this contract and how will they be monitored?

Key performance indicators likely focus on system uptime, response times for technical support, successful implementation of updates, and adherence to security protocols. The Defense Logistics Agency will monitor these KPIs through regular reporting, performance reviews, and potentially independent audits to ensure Accenture Federal Services meets contractual obligations and maintains system readiness.

How does this contract align with the DoD's broader IT modernization and cybersecurity strategies?

This contract supports the sustainment of existing critical systems, which is a foundational element of modernization. However, its alignment with broader IT modernization depends on whether the sustainment activities incorporate modern technologies or simply maintain legacy systems. Cybersecurity is paramount, and the contract must adhere to stringent DoD cybersecurity standards to protect sensitive defense data.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470924Q1027

Offers Received: 1

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: $52,973,623

Exercised Options: $50,634,639

Current Obligation: $50,634,639

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $32,303,844

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: 2024-08-01

Current End Date: 2026-01-31

Potential End Date: 2026-01-31 00:00:00

Last Modified: 2025-12-18

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