Accenture Federal Services LLC contract for IRS portal operations and maintenance valued at over $109 million

Contract Overview

Contract Amount: $109,036,153 ($109.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of the Treasury

Start Date: 2015-04-01

End Date: 2017-06-23

Contract Duration: 814 days

Daily Burn Rate: $134.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF INTEGRATED ENTREPRISE PORTALS, ONGOING OPERATIONS AND MAINTENANCE, PUP AND RUP

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $109.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::CT::IGF INTEGRATED ENTREPRISE PORTALS, ONGOING OPERATIONS AND MAINTENANCE, PUP AND RUP Key points: 1. The contract focuses on ongoing operations and maintenance for integrated enterprise portals, indicating a need for continuous system support. 2. Awarded under full and open competition, suggesting a broad market search for qualified vendors. 3. The contract duration of 814 days (approximately 2.2 years) points to a medium-term commitment for essential IT services. 4. The firm-fixed-price contract type aims to control costs by establishing a set price for services rendered. 5. This award falls under Computer Systems Design Services, a common category for IT support contracts. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a pre-existing contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires comparison to similar IT operations and maintenance contracts within the federal government. The total value of over $109 million over approximately 2.2 years suggests a significant investment in maintaining critical IRS systems. Without specific details on the scope of services and performance metrics, it is difficult to definitively assess value for money. However, the firm-fixed-price structure provides some cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the government sought proposals from all responsible sources. This approach typically fosters a competitive environment, potentially leading to better pricing and service offerings. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of vendors to compete, which can drive down costs and improve the quality of services provided.

Public Impact

Taxpayers benefit from the reliable operation and maintenance of the IRS's integrated enterprise portals, ensuring access to essential tax services and information. The contract delivers critical IT support services, including ongoing operations and maintenance, for the IRS's digital infrastructure. The geographic impact is primarily national, supporting the IRS's operations across the United States. Workforce implications may include the direct employment of IT professionals by Accenture Federal Services LLC and potential indirect impacts on IRS IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the services are highly specialized and difficult to transition.
Risk of cost overruns if the scope of work expands beyond the initial fixed-price agreement without proper change order management.
Dependence on a single contractor for critical IT infrastructure could pose a risk if the contractor experiences performance issues or financial instability.

Positive Signals

The firm-fixed-price contract type provides cost predictability for the government.
Awarded under full and open competition, suggesting a robust selection process.
The contract supports essential IT operations, contributing to the continuity of government services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The market for IT operations and maintenance is substantial within the federal government, with agencies continually investing in maintaining and upgrading their digital infrastructure. Comparable spending benchmarks would involve looking at other large-scale IT support contracts awarded to system integrators for similar government functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Accenture Federal Services LLC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the IRS or the Department of the Treasury. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

IRS IT Modernization Efforts
Federal Civilian IT Services
Enterprise Resource Planning (ERP) Systems Support
Cloud Computing Services (if applicable to portal infrastructure)
Cybersecurity Services for Government Portals

Risk Flags

Potential for vendor lock-in
Dependence on contractor performance for critical services
Scope creep risk in fixed-price contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $109.0 million to ACCENTURE FEDERAL SERVICES LLC. IGF::CT::IGF INTEGRATED ENTREPRISE PORTALS, ONGOING OPERATIONS AND MAINTENANCE, PUP AND RUP

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 $109.0 million.

What is the period of performance?

Start: 2015-04-01. End: 2017-06-23.

What specific IT systems and applications are covered under the 'Integrated Enterprise Portals, Ongoing Operations and Maintenance' scope?

The provided data does not specify the exact IT systems or applications covered. 'Integrated Enterprise Portals' suggests a suite of interconnected platforms used for various functions, likely including taxpayer services, internal IRS operations, and data management. To understand the full scope, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents detail the specific software, hardware, network infrastructure, and databases that Accenture Federal Services LLC is responsible for maintaining, operating, and supporting. This could range from web-based portals for tax filing and account management to internal administrative systems.

How does the $109 million contract value compare to historical spending on similar IRS portal maintenance contracts?

The provided data does not include historical spending figures for comparison. To assess this, one would need to research prior contracts awarded for the maintenance and operation of IRS enterprise portals. Analyzing the duration, scope, and value of previous contracts would reveal whether the $109 million represents an increase, decrease, or stable level of investment. Factors such as system upgrades, increased user demand, or changes in technology could justify variations in spending over time. A trend analysis of historical data is crucial for understanding the long-term financial commitment to these critical IT systems.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT operations and maintenance contracts, KPIs and SLAs would define measurable standards for system availability, response times for issue resolution, uptime percentages, security compliance, and user support efficiency. These metrics are crucial for evaluating the contractor's performance and ensuring the IRS receives the expected level of service. The contract documents, such as the SOW or PWS, would contain these critical performance requirements.

What is Accenture Federal Services LLC's track record with the IRS and similar large-scale federal IT contracts?

Accenture Federal Services LLC has a significant track record of performing IT services for various federal agencies, including the IRS. While specific details of their performance on this particular portal maintenance contract are not in the provided data, Accenture is a major government IT contractor known for handling complex enterprise-level projects. Their broader experience includes system integration, modernization, and ongoing support for large organizations. A comprehensive assessment would involve reviewing past performance evaluations (e.g., CPARS reports) and other contracts they have held with the IRS and similar agencies to gauge their reliability and expertise in managing critical government IT infrastructure.

What are the potential risks associated with relying on a single contractor for the ongoing operations and maintenance of IRS enterprise portals?

Relying on a single contractor, such as Accenture Federal Services LLC in this case, for critical IT infrastructure like IRS enterprise portals presents several potential risks. These include vendor lock-in, where transitioning to a new provider becomes technically complex and costly. There's also the risk of performance degradation if the contractor faces internal challenges, resource constraints, or a decline in service quality. Furthermore, a sole reliance can reduce the government's leverage in negotiating future contracts or scope changes. Dependence on one entity for essential functions also raises concerns about business continuity in the event of unforeseen contractor issues, such as financial instability or major operational disruptions.

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: $327,574,436

Exercised Options: $218,152,815

Current Obligation: $109,036,153

Subaward Activity

Number of Subawards: 61

Total Subaward Amount: $38,474,658

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