DoD's $85.6M Computer Services Contract with Accenture: A 6-Year Deal with Firm Fixed Price
Contract Overview
Contract Amount: $85,635,609 ($85.6M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Defense
Start Date: 2007-04-01
End Date: 2013-10-07
Contract Duration: 2,381 days
Daily Burn Rate: $36.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: COMPUTER RELATED SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $85.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: COMPUTER RELATED SERVICES Key points: 1. Significant contract value of $85.6 million over six years. 2. Accenture Federal Services LLC secured the award. 3. The contract falls under 'Other Computer Related Services' (NAICS 541519). 4. Awarded via Full and Open Competition, indicating a competitive process. 5. The contract type is Firm Fixed Price, providing cost certainty.
Value Assessment
Rating: good
The $85.6 million contract value over six years suggests a substantial investment in computer-related services. The firm fixed-price structure implies that the government aimed for predictable costs, which is generally a positive sign for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through Full and Open Competition, suggesting a robust process where multiple vendors could bid. This method typically fosters competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, as it likely drove down costs compared to a sole-source or limited competition scenario.
Public Impact
Defense Logistics Agency relies on these services for critical IT functions. The long duration (6 years) indicates a sustained need for these computer services. Accenture's role highlights the significant involvement of large IT contractors in government operations. The firm fixed-price nature protects taxpayers from cost overruns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to long contract duration.
- Reliance on a single vendor for critical services.
- NAICS code 541519 is broad, potentially masking specific service costs.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract type.
- Significant contract value suggests important services are being provided.
- Long-term engagement can lead to specialized expertise.
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Government spending in this area is substantial, supporting a wide range of digital infrastructure and operational needs. Benchmarks for similar large-scale IT service contracts vary widely based on scope and duration.
Small Business Impact
The data indicates this contract was awarded to Accenture Federal Services LLC, a large business. There is no explicit indication of small business subcontracting in the provided data, which could be a missed opportunity for small business participation.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a component of the Department of Defense, suggesting established oversight mechanisms. The firm fixed-price structure and competitive award process contribute to accountability.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for vendor lock-in due to long contract duration.
- Broad NAICS code may obscure specific service costs and performance.
- Lack of explicit small business participation noted.
- Risk of service relevance diminishing over the six-year term.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.6 million to ACCENTURE FEDERAL SERVICES LLC. COMPUTER RELATED SERVICES
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 (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $85.6 million.
What is the period of performance?
Start: 2007-04-01. End: 2013-10-07.
What specific computer-related services were provided under this contract, and how did their scope align with the broad NAICS code 541519?
The provided data uses the broad NAICS code 541519 ('Other Computer Related Services'), which encompasses a wide array of IT services. Without further details on the contract's statement of work, it's difficult to ascertain the precise services rendered. Understanding the specific deliverables would allow for a more accurate assessment of value and comparison against industry standards.
Given the six-year duration and firm fixed-price nature, were there mechanisms in place to ensure the services remained relevant and cost-effective throughout the contract term?
A six-year firm fixed-price contract, while offering cost certainty, carries the risk of becoming outdated or less cost-effective if market conditions or technological needs shift significantly. The Defense Logistics Agency likely had contract modification clauses or performance review processes to address such changes, but the rigidity of FFP can sometimes limit adaptability.
How did the competitive bidding process for this $85.6 million contract ensure the best possible value was achieved for the taxpayer?
The 'Full and Open Competition' designation is a strong indicator that multiple qualified vendors were invited to bid, fostering a competitive environment. This process typically drives down prices and encourages vendors to offer their best solutions. The firm fixed-price structure further enhances taxpayer protection by capping the government's financial exposure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Accenture Public Limited Company
Address: 11951 FREEDOM DR STE 1000, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $85,635,609
Exercised Options: $85,635,609
Current Obligation: $85,635,609
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP470107A0001
IDV Type: IDC
Timeline
Start Date: 2007-04-01
Current End Date: 2013-10-07
Potential End Date: 2013-10-07 00:00:00
Last Modified: 2023-04-20
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