Treasury's $57.5M IRS Contract with Accenture for Computer Systems Design Services Awarded via Full and Open Competition

Contract Overview

Contract Amount: $57,517,739 ($57.5M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of the Treasury

Start Date: 2012-12-04

End Date: 2017-03-09

Contract Duration: 1,556 days

Daily Burn Rate: $37.0K/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

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $57.5 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::CT::IGF Key points: 1. Significant contract value of $57.5 million over its period of performance. 2. Accenture Federal Services LLC secured this award, indicating strong competition in the IT services sector. 3. The contract's fixed-price award fee structure aims to balance cost control with performance incentives. 4. This award falls under the Computer Systems Design Services NAICS code, a common area for federal IT spending.

Value Assessment

Rating: good

The contract's fixed-price award fee structure suggests a focus on achieving defined performance objectives within a set budget. Benchmarking against similar large-scale IT service contracts would provide further insight into its pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a robust bidding process that likely drove competitive pricing. The use of a delivery order mechanism implies it was part of a larger indefinite-delivery contract.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

Impacts IRS operations through enhanced computer systems design and support. Supports federal IT infrastructure modernization efforts. Demonstrates government's reliance on private sector expertise for complex IT solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically computer systems design services. Federal IT spending is a substantial portion of the overall budget, with significant investments in maintaining and upgrading systems.

Small Business Impact

The data indicates this contract was awarded to Accenture Federal Services LLC and does not specify any small business participation. Further analysis would be needed to determine if small businesses were subcontracted.

Oversight & Accountability

The contract's duration and value necessitate ongoing oversight to ensure performance objectives are met and taxpayer funds are used efficiently. Regular reviews of award fee determinations and service delivery are crucial.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-the-treasury, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $57.5 million to ACCENTURE FEDERAL SERVICES LLC. IGF::CT::IGF

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 $57.5 million.

What is the period of performance?

Start: 2012-12-04. End: 2017-03-09.

What specific computer systems design services were rendered under this contract, and how did they contribute to the IRS's mission?

The contract, NAICS 541512, likely encompassed a range of services including system analysis, design, development, integration, and potentially ongoing support for IRS IT infrastructure. These services are critical for maintaining taxpayer databases, processing returns, and ensuring secure digital operations, directly supporting the IRS's core mission of tax administration and enforcement.

Given the fixed-price award fee structure, what mechanisms were in place to prevent scope creep and ensure cost control?

A fixed-price award fee contract typically includes detailed performance work statements and objective criteria for earning award fees. Robust contract management by the IRS, including regular performance reviews, change control processes, and clear communication channels, would be essential to prevent scope creep and ensure costs remain aligned with the contract's objectives and budget.

How effectively did the full and open competition process ensure the best value was obtained for the government and taxpayers?

Full and open competition is designed to maximize the pool of potential bidders, thereby increasing the likelihood of receiving competitive offers. The effectiveness in ensuring best value depends on the clarity of the solicitation, the evaluation criteria used, and the rigor of the negotiation process. A well-executed competitive process generally yields better pricing and higher quality services for the government.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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: $57,517,739

Exercised Options: $57,517,739

Current Obligation: $57,517,739

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $4,876,132

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

Start Date: 2012-12-04

Current End Date: 2017-03-09

Potential End Date: 2017-03-09 00:00:00

Last Modified: 2017-03-09

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