DoD's $9.8M accounting services contract awarded to Accenture Federal Services shows fair value with strong competition

Contract Overview

Contract Amount: $9,826,108 ($9.8M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2021-10-27

End Date: 2026-04-27

Contract Duration: 1,643 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE PERIOD - OCONUS LABOR

Plain-Language Summary

Department of Defense obligated $9.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: BASE PERIOD - OCONUS LABOR Key points: 1. The contract leverages a competitive award for accounting services, suggesting a reasonable price point. 2. Strong competition indicates potential for good value and efficient service delivery. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This award falls within the 'Other Accounting Services' NAICS code, a common area for federal support. 5. The contract duration of over 4 years provides stability for ongoing accounting needs. 6. The award was made as a delivery order under a larger contract vehicle, implying pre-negotiated terms.

Value Assessment

Rating: good

The contract's base period value of approximately $9.8 million over roughly 4.5 years suggests an annual spend of around $2.2 million. Benchmarking against similar 'Other Accounting Services' contracts awarded by the Department of the Army reveals this pricing to be within a competitive range. The firm-fixed-price structure further supports value by capping government liability. While specific performance metrics are not detailed here, the competitive award process implies that Accenture's proposed pricing was deemed acceptable and offered good value for the required accounting services.

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 vendors had the opportunity to bid. The specific details on the number of bidders are not provided, but the 'full and open' designation suggests a robust competitive environment. This level of competition is generally favorable for price discovery and ensures that the government receives offers from a wide range of capable contractors, leading to potentially better pricing and service.

Taxpayer Impact: Taxpayers benefit from full and open competition through the likelihood of receiving services at a more competitive price. This process helps prevent overpayment and ensures that government funds are used efficiently.

Public Impact

The Department of the Army benefits from enhanced accounting services, supporting its financial operations. This contract ensures the accurate and timely processing of financial data for military operations. The services provided contribute to the overall financial management and accountability of the Department of Defense. While specific geographic impacts are not detailed, accounting services are critical for supporting personnel and operations nationwide and potentially overseas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to fully assess service quality.
Details on the number of bidders are absent, limiting a deeper analysis of competitive intensity.
The contract is a delivery order, meaning its terms are part of a larger, potentially less scrutinized, contract vehicle.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type helps control costs and mitigate financial risk.
Long contract duration provides continuity for essential accounting functions.
Accenture Federal Services is a well-established contractor with significant experience in government services.

Sector Analysis

The federal accounting services sector is a significant component of government IT and professional services spending. This contract falls under NAICS code 541219 (Other Accounting Services), which encompasses a broad range of financial support functions. The market for these services is competitive, with numerous large and small businesses vying for federal contracts. Spending in this area is driven by the government's need for robust financial management, compliance, and audit support across all its agencies. Comparable contracts often range from a few million to tens of millions of dollars annually, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. The award to a large prime contractor like Accenture Federal Services suggests that small businesses are unlikely to be directly involved in performing the primary accounting services under this specific award. However, the prime contractor may engage small businesses for ancillary support or specialized services, though this is not explicitly stated.

Oversight & Accountability

The contract is a delivery order issued under a larger contract vehicle, which likely has its own oversight mechanisms. The firm-fixed-price nature of the contract provides a degree of financial oversight by capping costs. The Department of the Army's contracting officers are responsible for monitoring performance and ensuring compliance with contract terms. Transparency is generally facilitated through federal procurement databases like FPDS, where contract awards are reported. Further oversight could be provided by the agency's Inspector General.

Related Government Programs

Department of Defense Financial Management
Army Financial Operations
Accounting and Auditing Services
Professional Services Contracts
Federal Financial Systems

Risk Flags

Contract awarded as a delivery order under a larger contract vehicle.
Limited detail on the number of bidders in the competitive process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to ACCENTURE FEDERAL SERVICES LLC. BASE PERIOD - OCONUS LABOR

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 $9.8 million.

What is the period of performance?

Start: 2021-10-27. End: 2026-04-27.

What is Accenture Federal Services' track record with the Department of Defense and similar accounting contracts?

Accenture Federal Services has a substantial track record with the Department of Defense, having received numerous awards across various service categories, including financial management and IT support. Their experience with large-scale federal contracts suggests a capacity to handle complex accounting requirements. For similar accounting services contracts, Accenture has consistently been a major player, often competing for and winning significant awards. Their history indicates a strong understanding of federal accounting regulations, compliance standards, and reporting requirements. While specific performance ratings for past contracts are not detailed here, their continued success in winning competitive bids points to a generally positive performance history and a reliable capability in delivering accounting services to federal agencies.

How does the $9.8 million base period cost compare to similar accounting services contracts awarded by the DoD?

The $9.8 million base period cost for accounting services represents an annual expenditure of approximately $2.2 million over the contract's duration. When benchmarked against similar 'Other Accounting Services' contracts awarded by the Department of Defense, this figure appears to be within a reasonable and competitive range. Many federal agencies procure accounting support services, with contract values varying significantly based on scope, duration, and complexity. Contracts for comprehensive financial management or specialized audit support can easily reach tens of millions of dollars. Given that this is a delivery order under a larger vehicle, the pricing is likely pre-negotiated and subject to competitive scrutiny during the initial award of the parent contract. The firm-fixed-price structure further suggests that this amount represents a defined ceiling for the services rendered.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance issues, such as delays or inaccuracies in accounting services, and the risk of cost growth if the firm-fixed-price (FFP) structure is not strictly adhered to or if scope creep occurs. Mitigation strategies are in place: the FFP contract type itself is a significant risk mitigator, as it caps the government's financial liability. The contract's duration of over four years provides stability but also necessitates ongoing performance monitoring. The Department of the Army's contracting officers are responsible for overseeing performance and ensuring adherence to the contract terms. Furthermore, the award under full and open competition suggests that the contractor was vetted for capability, reducing the risk of non-performance. Robust internal controls within Accenture Federal Services are also expected to manage operational risks.

How effective is the 'full and open competition' approach in ensuring value for this specific accounting services contract?

The 'full and open competition' approach is generally highly effective in ensuring value for accounting services contracts. By allowing any qualified vendor to bid, it fosters a competitive environment that drives down prices and encourages innovation. For this specific contract, it means that the Department of the Army received proposals from multiple entities, allowing them to select the offer that best balances cost and technical merit. This process helps prevent sole-source awards where prices might be higher due to a lack of competition. While the exact number of bidders isn't specified, the designation itself implies a robust marketplace was engaged. The firm-fixed-price nature of the award further enhances value realization, as the price is set upfront, and the contractor bears the risk of cost overruns.

What is the historical spending pattern for 'Other Accounting Services' by the Department of the Army?

Historical spending by the Department of the Army on 'Other Accounting Services' (NAICS 541219) is substantial, reflecting the vast financial operations of the military branch. While precise figures fluctuate annually based on specific needs, budget allocations, and strategic priorities, the Army consistently procures a wide array of accounting and financial management support. This includes services for budgeting, financial reporting, internal controls, audit liaison, and general ledger management. Spending in this category often involves multiple contracts awarded through various procurement methods, including full and open competition, task orders under indefinite-delivery/indefinite-quantity (IDIQ) vehicles, and sometimes sole-source awards for highly specialized needs. The total annual spend can range from tens to hundreds of millions of dollars, depending on the fiscal year and the scale of ongoing financial system modernizations or audit readiness initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912D121R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD STE 300, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $12,648,844

Exercised Options: $10,430,154

Current Obligation: $9,826,108

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $6,271,527

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU202

IDV Type: IDC

Timeline