DoD's $68M IT services contract to Accenture awarded via full and open competition

Contract Overview

Contract Amount: $68,151,793 ($68.2M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-17

End Date: 2014-05-14

Contract Duration: 2,065 days

Daily Burn Rate: $33.0K/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: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $68.2 million to ACCENTURE FEDERAL SERVICES LLC for work described as: COMPUTER RELATED SERVICES Key points: 1. Contract awarded for IT services, indicating a need for specialized technical support within the Defense Logistics Agency. 2. The contract was competed openly, suggesting a competitive environment for IT services. 3. A firm-fixed-price contract type implies that the contractor bears the risk of cost overruns. 4. The contract duration of over 2000 days highlights a long-term need for these services. 5. Accenture Federal Services LLC, a large established contractor, secured this award. 6. The North American Industry Classification System (NAICS) code 541519 covers 'Other Computer Related Services', suggesting a broad scope of IT support.

Value Assessment

Rating: good

Benchmarking the value of this $68 million contract over its 2065-day duration requires detailed cost analysis against similar IT service contracts. Given the firm-fixed-price structure, the government secured predictable costs, shifting performance risk to Accenture Federal Services LLC. The contract's value appears reasonable for comprehensive IT support over a multi-year period, assuming the scope of services aligns with market rates for specialized IT functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed openly suggests a healthy market for the IT services required by the Defense Logistics Agency. The number of bids received would further clarify the level of competition, but the open nature generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, which benefits taxpayers by ensuring the government is not overpaying for necessary IT services.

Public Impact

The Department of Defense benefits from enhanced IT infrastructure and support, crucial for its logistical operations. Services delivered likely include a range of IT support, potentially encompassing network management, software development, and system maintenance. The geographic impact is primarily within the Defense Logistics Agency's operational areas, supporting military readiness. Workforce implications include the employment of IT professionals by Accenture Federal Services LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'Other Computer Related Services' are not clearly defined.
Dependence on a single large contractor for critical IT functions could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract structure shifts cost overrun risk to the contractor.
Long-term contract duration suggests a stable and ongoing need, allowing for efficient service delivery.
Award to a well-established contractor like Accenture Federal Services LLC implies a degree of confidence in their capabilities.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, a significant area of federal spending. The IT services market is highly competitive, with numerous large and small businesses vying for government contracts. This specific contract, under NAICS code 541519, covers a wide array of IT support functions, indicating a substantial demand for specialized technical expertise within the defense sector. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded by the DoD and other federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Accenture Federal Services LLC, is a large business. There is no explicit information on subcontracting plans for small businesses within the provided data. The absence of a set-aside suggests that the primary focus was on securing the best overall offer through full and open competition, rather than specifically targeting small business participation at the prime contract level.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency IT Support Services
Department of Defense Information Technology Procurement
Federal IT Services Contracts
Accenture Federal Services Contracts

Risk Flags

Long contract duration may increase risk of technology obsolescence.
Broad NAICS code could indicate undefined scope, leading to potential disputes.
Dependence on a single large vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.2 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 $68.2 million.

What is the period of performance?

Start: 2008-09-17. End: 2014-05-14.

What specific IT services were included under the 'Other Computer Related Services' NAICS code for this contract?

The provided data uses the broad NAICS code 541519, 'Other Computer Related Services.' This category can encompass a wide range of IT functions beyond standard IT support, potentially including IT consulting, custom software development, IT project management, and IT systems integration. Without the detailed contract statement of work (SOW), the precise services rendered are not specified. However, given the awarding agency (Defense Logistics Agency) and the contract value, it likely involved complex IT solutions supporting logistical operations, potentially including system modernization, data management, or cybersecurity enhancements.

How does the $68 million contract value compare to similar IT services contracts awarded by the Defense Logistics Agency or DoD?

Comparing the $68 million value requires context regarding the contract's duration and scope. Over its 2065-day period (approximately 5.6 years), the average annual value is roughly $12 million. This figure is substantial but not extraordinary within the context of large-scale IT service contracts for major federal agencies like the Department of Defense. Many DoD IT contracts, especially those involving enterprise-wide solutions, cybersecurity, or major system upgrades, can range from tens to hundreds of millions of dollars. To provide a precise benchmark, one would need to compare it against contracts with similar service descriptions (e.g., IT modernization, managed services) and durations awarded by the DLA or other DoD components during the contract's performance period.

What is Accenture Federal Services LLC's track record with the Department of Defense, particularly for IT services?

Accenture Federal Services LLC has a significant and established track record of performing IT services for the Department of Defense and other federal agencies. As a major government contractor, they have been awarded numerous contracts across various defense components for a wide array of IT solutions, including system modernization, cloud migration, cybersecurity, and data analytics. Their extensive experience suggests a deep understanding of DoD requirements and operational environments. While specific performance metrics for this particular contract are not detailed here, their continued success in securing large federal contracts indicates a generally positive performance history and capability in delivering complex IT solutions to the defense sector.

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

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a firm-fixed-price contract of this nature, typical KPIs would likely focus on system availability, response times for IT support tickets, project milestones completion, adherence to security protocols, and overall user satisfaction. SLAs would define the acceptable performance thresholds for these metrics, with potential penalties or incentives tied to meeting or exceeding them. The Defense Logistics Agency would have established these to ensure the effective delivery of 'Other Computer Related Services' and maintain the operational readiness of their IT systems.

How has spending on 'Other Computer Related Services' (NAICS 541519) by the Defense Logistics Agency evolved over time?

Analyzing the historical spending trends for NAICS 541519 by the Defense Logistics Agency (DLA) would reveal the agency's evolving reliance on external IT service providers for specialized support. This specific contract, awarded in 2008 and ending in 2014, represents a snapshot of DLA's IT procurement during that period. To understand the evolution, one would need to examine DLA's spending data for this NAICS code across multiple fiscal years, looking for increases or decreases that might correlate with technological shifts, modernization initiatives, or changes in internal IT capabilities. Such an analysis could indicate a growing or shrinking market for these types of services within the DLA.

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 Inc.

Address: 11951 FREEDOM DR STE 1000, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $68,151,793

Exercised Options: $68,151,793

Current Obligation: $68,151,793

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470107A0001

IDV Type: IDC

Timeline