DoD's $119M computer services contract with Accenture awarded via full and open competition

Contract Overview

Contract Amount: $119,225,777 ($119.2M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-30

End Date: 2012-09-30

Contract Duration: 731 days

Daily Burn Rate: $163.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

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 $119.2 million to ACCENTURE FEDERAL SERVICES LLC for work described as: COMPUTER RELATED SERVICES Key points: 1. Contract value represents a significant investment in IT support for the Defense Logistics Agency. 2. The award to Accenture Federal Services suggests a competitive bidding process for IT services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for evolving needs. 4. The duration of the contract (731 days) indicates a medium-term engagement for IT services. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract was awarded as a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

Benchmarking the value of this $119 million contract requires understanding the specific services rendered under NAICS 541519. Given the duration of 731 days, the annual value is approximately $61 million. Without specific service details or comparable contract data, a precise value-for-money assessment is challenging. However, the award to a large, established contractor like Accenture Federal Services suggests a competitive process likely yielded a fair market price. The firm fixed-price nature of the contract provides cost predictability for the agency.

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 presence of multiple bidders, though not explicitly stated, is implied by the nature of full and open competition. This level of competition generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition through the likelihood of receiving services at a more competitive price, as contractors are incentivized to offer their best terms to win the contract.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Logistics Agency, which receives essential computer-related services. Services delivered likely include IT support, system maintenance, software development, or other technical assistance crucial for DLA operations. The geographic impact is centered around the Defense Logistics Agency's operational areas, primarily in Virginia. Workforce implications may include direct employment by Accenture Federal Services and potential indirect impacts on the IT sector supporting federal contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the initial requirements were not precisely defined for a fixed-price contract.
Dependence on a single large contractor could create vendor lock-in if not managed carefully.
The firm fixed-price nature might disincentivize contractors from suggesting cost-saving innovations if it reduces their profit margin.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The firm fixed-price contract type offers budget certainty for the Defense Logistics Agency.
Accenture Federal Services is a well-established contractor with a significant presence in the federal IT services market.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies like the Department of Defense being major consumers. Contracts for computer-related services (NAICS 541519) encompass a wide array of offerings, from basic IT support to complex system integration and cybersecurity. Spending in this sector is driven by the need to modernize legacy systems, enhance cybersecurity, and leverage new technologies. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded by DoD or other federal agencies for similar scope and duration.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. The prime contractor, Accenture Federal Services, is a large business. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether Accenture utilizes small business subcontractors, which is not detailed here. Without specific subcontracting goals or reporting, the direct benefit to small businesses from this particular award is unknown.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Defense Logistics Agency. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS-NG, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IT Professional Services
Information Technology Support Services
Defense Logistics Agency IT Modernization Programs
Accenture Federal Services Contracts
Department of Defense IT Services

Risk Flags

Contract Duration
Scope Definition
Vendor Lock-in Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $119.2 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 $119.2 million.

What is the period of performance?

Start: 2010-09-30. End: 2012-09-30.

What specific computer-related services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of services including IT consulting, systems integration, custom software development, IT support and maintenance, data processing, and cloud services. Without access to the specific contract statement of work (SOW) or delivery orders issued against this contract, the precise nature of the services rendered by Accenture Federal Services remains unspecified. However, given the awarding agency (Defense Logistics Agency), these services were likely critical for supporting DLA's operational and logistical IT infrastructure.

How does the $119 million value compare to similar IT service contracts awarded by the DoD?

The $119 million total value over approximately two years (731 days) translates to an average annual spend of roughly $61 million. This figure is substantial but falls within the typical range for large-scale IT service contracts awarded by major federal agencies like the Department of Defense. DoD frequently awards multi-year, multi-million dollar contracts for IT support, modernization, and cybersecurity. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes, contract types (firm fixed-price), and durations awarded to large system integrators within the defense sector during the same period (2010-2012).

What are the key risks associated with a firm fixed-price contract of this magnitude and duration?

A primary risk with firm fixed-price (FFP) contracts, especially large ones like this $119 million award, is the potential for the contractor to underperform if the price is set too low, or for the government to overpay if the price is set too high and the scope is not tightly managed. For the government, the risk is that the contractor may cut corners on quality or service to maintain profitability if the FFP was overly aggressive. Conversely, if the scope is not well-defined, the contractor bears the risk of cost overruns, which could lead to disputes or a desire to limit scope. The 731-day duration also means that technological changes could outpace the contract's relevance, requiring careful change management.

What was Accenture Federal Services' track record with the DoD prior to this award?

Accenture Federal Services (AFS) has a long-standing history of contracting with the Department of Defense and other federal agencies. Prior to this specific $119 million award in late 2010, AFS had secured numerous contracts for a variety of IT and management consulting services across different DoD components. Their track record generally includes large-scale system implementations, IT infrastructure support, and business process re-engineering. A comprehensive review would involve examining their performance ratings on previous contracts, any past performance issues or disputes, and their overall experience with the specific types of computer-related services relevant to the Defense Logistics Agency.

How did the Defense Logistics Agency ensure fair pricing for this contract?

The data indicates this contract was awarded under 'FULL AND OPEN COMPETITION,' which is the primary mechanism the DLA used to ensure fair pricing. This process requires that all interested and responsible contractors are allowed to submit proposals. The solicitation would have included detailed requirements, and proposals would be evaluated based on a combination of technical merit and price. The agency likely used cost realism analyses, comparison to independent government cost estimates, and evaluation of proposed labor rates and other direct costs to determine the fairness and reasonableness of the offered price. The competitive nature itself drives prices down as bidders vie for the award.

What is the significance of the NAICS code 541519 in understanding this contract's scope?

NAICS code 541519, 'Other Computer Related Services,' is a broad classification that signifies the contract likely covered a diverse range of IT functions beyond specialized areas like software publishing or data processing. This could include IT consulting, systems integration, project management, network design, cybersecurity assessments, and general IT support. The breadth of this code means the contract could have been used to procure a wide variety of services tailored to the DLA's needs. Understanding this code highlights the need to look at the specific Statement of Work (SOW) or task orders to grasp the exact services rendered, as 'Other Computer Related Services' is not self-explanatory.

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: 1

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: $119,225,777

Exercised Options: $119,225,777

Current Obligation: $119,225,777

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $6,218,232

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470107A0001

IDV Type: IDC

Timeline