Navy's $35M R&D Contract for Organizational Transformation Support Awarded to Accenture Federal Services
Contract Overview
Contract Amount: $34,981,331 ($35.0M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Defense
Start Date: 2020-06-25
End Date: 2025-06-24
Contract Duration: 1,825 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: AWARD OF RS3-19-00. THIS TASK ORDER PROVIDES SERVICES FOR THE DEPARTMENT OF THE NAVY (DON) ORGANIZATIONAL TRANSFORMATION SUPPORT (DOTS)TO THE US NAVY.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $35.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: AWARD OF RS3-19-00. THIS TASK ORDER PROVIDES SERVICES FOR THE DEPARTMENT OF THE NAVY (DON) ORGANIZATIONAL TRANSFORMATION SUPPORT (DOTS)TO THE US NAVY. Key points: 1. Contract focuses on research and development for organizational transformation within the Navy. 2. Accenture Federal Services, a known entity in federal contracting, secured this award. 3. The contract duration is five years, indicating a long-term need for these services. 4. This award falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 5. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 6. The award was made under full and open competition, suggesting a robust bidding process.
Value Assessment
Rating: fair
Benchmarking the value of this specific organizational transformation support contract is challenging without detailed service breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) structure means costs can fluctuate, making direct price comparisons difficult. However, the total award amount of approximately $35 million over five years suggests a significant investment in strategic support. Further analysis would require comparing Accenture's proposed fixed fee and estimated costs against industry standards for similar large-scale transformation projects within the Department of Defense.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of 8 bidders suggests a competitive environment, which typically benefits the government by driving down prices and encouraging innovation. The specific details of the competition, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the procurement process in securing the best value.
Taxpayer Impact: Full and open competition generally leads to better price discovery and value for taxpayers, as it encourages a wider range of contractors to bid, potentially lowering overall costs and improving service quality.
Public Impact
The primary beneficiary is the Department of the Navy, which will receive support for its organizational transformation initiatives. Services delivered are expected to enhance the Navy's operational efficiency, strategic planning, and overall effectiveness. The geographic impact is primarily within the Navy's operational and administrative centers, likely across the United States. Workforce implications may include the engagement of specialized consultants and analysts, potentially impacting existing Navy personnel through process changes and new directives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs if the fixed fee is substantial, potentially leading to less cost-consciousness.
- Organizational transformation projects are inherently complex and carry a risk of not achieving desired outcomes or facing significant delays.
- The broad nature of 'organizational transformation support' could lead to scope creep if not tightly managed.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that should yield good value.
- Accenture Federal Services is a large, established contractor with a significant track record in government services, implying experience and capability.
- The five-year duration indicates a strategic commitment by the Navy, suggesting the importance and potential long-term benefits of the transformation effort.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541715, which covers R&D in physical, engineering, and life sciences. This is a broad category that can encompass a wide range of scientific and technical services. The market for R&D services within the federal government is substantial, with significant spending allocated to innovation and technological advancement across various agencies. Comparable spending benchmarks would depend on the specific sub-disciplines of R&D involved in organizational transformation.
Small Business Impact
This contract does not indicate any specific small business set-aside or subcontracting requirements. The award to Accenture Federal Services, a large prime contractor, suggests that small businesses are unlikely to be directly involved as prime recipients. However, there may be opportunities for small businesses to participate as subcontractors, depending on Accenture's subcontracting plan and the specific needs of the organizational transformation support.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant program managers within the Department of the Navy. The Cost Plus Fixed Fee structure necessitates careful monitoring of costs to ensure they align with the fixed fee and the overall objectives. Transparency will depend on the Navy's reporting practices and any public disclosures related to the transformation initiative. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of the Navy Organizational Transformation Support (DOTS)
- Department of Defense Research and Development Programs
- Federal Management Consulting Services
- Strategic Planning and Analysis Contracts
Risk Flags
- Potential for cost overruns due to CPFF structure
- Risk of transformation goals not being fully realized
- Ambiguity in NAICS code alignment with service description
Tags
department-of-defense, department-of-the-navy, research-and-development, organizational-transformation, accenture-federal-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, virginia, professional-services, strategic-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.0 million to ACCENTURE FEDERAL SERVICES LLC. AWARD OF RS3-19-00. THIS TASK ORDER PROVIDES SERVICES FOR THE DEPARTMENT OF THE NAVY (DON) ORGANIZATIONAL TRANSFORMATION SUPPORT (DOTS)TO THE US NAVY.
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $35.0 million.
What is the period of performance?
Start: 2020-06-25. End: 2025-06-24.
What is Accenture Federal Services' track record with similar organizational transformation contracts for the Department of the Navy or other federal agencies?
Accenture Federal Services has a substantial history of performing large-scale contracts for various federal agencies, including the Department of Defense and the Department of the Navy. Their portfolio often includes services related to digital transformation, IT modernization, process improvement, and strategic planning. While specific details on past organizational transformation support contracts would require deeper data mining, Accenture's general experience suggests they possess the capabilities to handle complex projects. Benchmarking their past performance on similar contracts, including cost performance and successful delivery of objectives, would be crucial for a comprehensive assessment. Their extensive experience indicates a strong understanding of federal procurement processes and agency needs.
How does the $35 million award compare to other organizational transformation support contracts within the federal government?
The $35 million award over five years for organizational transformation support is a significant but not unprecedented figure for large federal contracts. The Department of Defense, in particular, frequently awards multi-million dollar contracts for strategic initiatives, including organizational change management and process optimization. To provide a precise comparison, one would need to identify contracts with similar scope, duration, and service offerings (e.g., strategic consulting, change management, process re-engineering) across different agencies. However, this award level is consistent with the scale of transformation efforts typically undertaken by major federal departments aiming for significant operational improvements or strategic realignments.
What are the key performance indicators (KPIs) or metrics used to measure the success of this organizational transformation support contract?
Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for organizational transformation support, typical KPIs often revolve around improvements in efficiency, cost savings, enhanced service delivery, successful implementation of new processes or technologies, and increased employee adoption of changes. The success of this contract will likely be measured by the extent to which the Navy achieves its defined transformation goals, which could include metrics related to operational readiness, strategic alignment, or modernization of capabilities. The contracting officer and program managers will be responsible for establishing and monitoring these metrics throughout the contract's lifecycle.
What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this project?
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks for the government. While it allows for flexibility in project scope and encourages contractor engagement, it can incentivize the contractor to incur higher costs, as their profit (the fixed fee) is predetermined and not directly tied to cost savings. This means the government bears the risk of cost overruns. Effective oversight is crucial to manage this risk, requiring diligent monitoring of expenditures to ensure they are reasonable, allocable, and necessary for the project's completion. Without robust cost tracking and justification, CPFF contracts can become more expensive than fixed-price alternatives.
How does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541715) align with organizational transformation support?
The alignment of NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) with organizational transformation support is not immediately direct. Typically, organizational transformation might fall under management consulting (NAICS 541611) or professional, scientific, and technical services. However, if the transformation effort involves significant research into new methodologies, technologies, or scientific approaches to improve organizational functions, or if it's tied to R&D within the Navy's scientific domains, then 541715 could be applicable. It suggests that the 'support' aspect might involve developing novel frameworks or solutions rather than just implementing existing best practices.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 8
Pricing Type: COST PLUS FIXED FEE (U)
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, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $53,819,144
Exercised Options: $40,740,518
Current Obligation: $34,981,331
Actual Outlays: $1,418,455
Subaward Activity
Number of Subawards: 46
Total Subaward Amount: $1,893,442
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T19D0150
IDV Type: IDC
Timeline
Start Date: 2020-06-25
Current End Date: 2025-06-24
Potential End Date: 2025-06-24 12:06:00
Last Modified: 2025-04-24
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