Accenture Federal Services LLC awarded $25.6M for computer systems design, with a 4-year duration

Contract Overview

Contract Amount: $25,567,387 ($25.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of the Treasury

Start Date: 2014-10-01

End Date: 2018-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

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 $25.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::CT::IGF Key points: 1. Contract value appears reasonable given the 4-year performance period. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type may limit cost overrun risks for the government. 4. Performance period of 4 years allows for sustained service delivery. 5. Contract awarded to a single vendor, indicating a specific need or established relationship. 6. The contract falls under IT services, a common area for federal spending.

Value Assessment

Rating: good

The contract value of $25.6 million over four years averages to $6.4 million annually. This figure is within a reasonable range for complex computer systems design services provided to a large agency like the IRS. Benchmarking against similar contracts for IT systems design and integration services for federal agencies of comparable size and scope would provide a more precise value-for-money assessment. However, without specific comparable contract data, the pricing appears to be in line with industry standards for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple vendors likely participated. The level of competition is generally positive for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the "full and open" designation implies a market-driven approach.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality, maximizing the value of federal investments.

Public Impact

The primary beneficiary is the Internal Revenue Service (IRS), which receives essential computer systems design services. These services likely support the modernization, maintenance, or development of critical IRS IT infrastructure. The geographic impact is primarily within the United States, supporting federal operations. Workforce implications include the employment of skilled IT professionals by Accenture Federal Services LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Dependence on a single contractor for critical IT systems.
Risk of scope creep if requirements are not clearly defined and managed.

Positive Signals

Fixed-price contract can provide cost certainty.
Full and open competition suggests a competitive market was leveraged.
Longer contract duration allows for continuity of essential services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract likely supports the IRS's complex operational needs, which often involve large-scale data processing and system integration. Comparable spending benchmarks in this area would typically involve multi-million dollar contracts for system development, integration, and maintenance.

Small Business Impact

The provided data indicates that small business set-aside (sb) was false, and the contract was not awarded to a small business (ss is false). This suggests that the contract was not specifically targeted towards small businesses. There is no information on subcontracting plans, but given the nature of the services and the prime contractor's size, there may be opportunities for small businesses to participate as subcontractors. However, the primary award was not a direct set-aside.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Treasury and the IRS. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specific services at an agreed-upon price. Transparency is facilitated by contract award databases, though detailed performance metrics and oversight reports may not always be publicly available. The Inspector General for the Treasury Department would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services
Computer Systems Design and Related Services
Department of the Treasury IT Contracts

Risk Flags

Potential for scope creep given the nature of IT system design.
Risk of technology becoming outdated over the 4-year performance period.
Dependence on a single vendor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $25.6 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 $25.6 million.

What is the period of performance?

Start: 2014-10-01. End: 2018-09-30.

What specific computer systems design services were provided under this contract?

The contract, NAICS code 541512, specifies 'Computer Systems Design Services.' This broad category typically encompasses a range of activities including analyzing user needs, designing and developing custom software, integrating hardware and software, and providing IT consulting. For the IRS, these services could have involved the design and implementation of new tax processing systems, enhancements to existing taxpayer databases, development of secure online portals for tax filing, or the integration of various IT components to improve operational efficiency and data security. The exact scope would be detailed in the contract's statement of work, which is not publicly available in this data snippet.

How does the $25.6 million award compare to typical IT services spending at the IRS?

The $25.6 million award over four years represents an average annual expenditure of $6.4 million for computer systems design services. The IRS is a massive organization with extensive IT needs, and its overall IT budget runs into billions of dollars annually. Therefore, this specific contract, while substantial, is likely one of many IT investments the agency makes. To assess its relative size, one would need to compare it against the IRS's historical spending on similar IT design and integration projects, as well as the total IT budget allocated for systems development and maintenance in those fiscal years. Without that broader context, it's difficult to definitively state if this award was large or small relative to the agency's overall IT portfolio.

What are the potential risks associated with a firm-fixed-price contract for complex IT systems design?

Firm-fixed-price (FFP) contracts aim to provide cost certainty by establishing a set price for the work. However, for complex IT systems design, FFP contracts can introduce risks. If the project requirements are not perfectly defined upfront or if unforeseen technical challenges arise, the contractor may face pressure to cut corners to maintain profitability, potentially impacting quality. Conversely, if the government's requirements change significantly, scope adjustments can lead to complex change order negotiations. The primary risk for the government is that the contractor might deliver a system that doesn't fully meet evolving needs due to the rigidity of the fixed price, or that the initial price was inflated to account for the contractor's risk.

What was the contractor's track record prior to this award?

Accenture Federal Services LLC is a well-established government contractor with a significant presence in providing IT and management consulting services to federal agencies. Prior to this specific award, Accenture would have had a history of performance on numerous other government contracts. Assessing their track record would involve reviewing past performance evaluations, any documented issues or disputes on previous contracts, and their overall success in delivering similar IT solutions. Agencies typically consider past performance as a key factor in the source selection process, especially for large, complex contracts like this one.

How does the duration of this contract (4 years) impact its value and risk?

A four-year duration for a computer systems design contract offers several implications for value and risk. On the positive side, it allows for continuity of service and the potential for the contractor to gain deep institutional knowledge, leading to more efficient and effective system development and maintenance. It also reduces the administrative burden and cost associated with frequent re-competition. However, a longer duration also increases the risk of technology obsolescence or shifts in agency requirements that may not be fully accommodated by the initial contract scope. For the government, it represents a significant, long-term commitment, necessitating careful oversight to ensure the services remain relevant and valuable throughout the period.

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

Pricing Type: FIRM FIXED PRICE (J)

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: $25,567,387

Exercised Options: $25,567,387

Current Obligation: $25,567,387

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $9,165,208

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