Treasury's $18.8M IEP contract with Accenture for critical IT functions awarded via full and open competition

Contract Overview

Contract Amount: $18,788,887 ($18.8M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of the Treasury

Start Date: 2012-08-21

End Date: 2016-05-13

Contract Duration: 1,361 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE AWARD FEE

Sector: IT

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS - IEP, RUP TRANSITION (IEP-ITE)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $18.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::CT::IGF CRITICAL FUNCTIONS - IEP, RUP TRANSITION (IEP-ITE) Key points: 1. Contract value of $18.8M over 4 years. 2. Accenture Federal Services LLC is the sole awardee. 3. Awarded under full and open competition. 4. Focuses on critical IT functions for IEP and RUP transition.

Value Assessment

Rating: good

The contract value of $18.8M over approximately 4 years suggests a reasonable annual spend for complex IT services. Benchmarking against similar large-scale IT system design and integration contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust process for discovering the best value and price. This method generally leads to more competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.

Public Impact

Ensures continuity of critical IRS IT functions. Supports the transition of important systems (IEP, RUP). Potential impact on taxpayer services if IT systems fail. Leverages private sector expertise for government IT needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully.
Reliance on a single vendor for critical functions.

Positive Signals

Awarded through full and open competition.
Focus on critical government functions.
Fixed Price Award Fee structure incentivizes performance.

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. The value is moderate for a federal IT contract of this duration, but the criticality of the functions supported is high.

Small Business Impact

The data indicates the awardee is Accenture Federal Services LLC, a large business. There is no explicit indication of small business participation in this specific award, which could be an area for review.

Oversight & Accountability

The contract was awarded by the Department of the Treasury's Internal Revenue Service. Oversight would typically involve contract performance monitoring and financial reviews to ensure adherence to terms and budget.

Related Government Programs

Computer Systems Design Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Potential for cost overruns if award fee criteria are not well-defined.
Risk associated with transitioning critical systems.
Dependence on a single large contractor.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $18.8 million to ACCENTURE FEDERAL SERVICES LLC. IGF::CT::IGF CRITICAL FUNCTIONS - IEP, RUP TRANSITION (IEP-ITE)

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2012-08-21. End: 2016-05-13.

What specific IT systems are encompassed by 'IEP, RUP TRANSITION' and what is their criticality to IRS operations?

IEP likely refers to the Integrated Enterprise Platform, and RUP to Rational Unified Process, a software development framework. These systems are critical for IRS operations, managing tax processing, taxpayer data, and internal workflows. Their successful transition and continued functioning are essential for tax administration and revenue collection.

What were the key performance metrics and award fee criteria used in this contract?

The contract type is 'FIXED PRICE AWARD FEE' (FP-AF), suggesting that a base fee was fixed, and an additional award fee was determined based on performance against specific criteria. These criteria likely related to system uptime, successful transition milestones, security compliance, and user satisfaction, aiming to incentivize high performance.

How does the annual cost of this contract compare to industry benchmarks for similar IT modernization projects?

With a total value of $18.8M over approximately 1361 days (around 3.7 years), the annual cost is roughly $5.1M. Benchmarking this against industry data for large-scale IT system design, integration, and maintenance for government agencies is crucial. Factors like complexity, security requirements, and specific technologies used would influence the comparison.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

Address: 11951 FREEDOM DR STE 1000, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $38,265,343

Exercised Options: $38,265,343

Current Obligation: $18,788,887

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,189,693

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00041

IDV Type: IDC

Timeline