USDA's $45.8M FMMI/FIET contract awarded to Accenture for IT modernization

Contract Overview

Contract Amount: $45,788,774 ($45.8M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-09-05

End Date: 2025-06-10

Contract Duration: 644 days

Daily Burn Rate: $71.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FINANCIAL MANAGEMENT MODERNIZATION INITIATIVE (FMMI) INTELLIGENT ENTERPRISE TRANSFORMATION (FIET)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $45.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: FINANCIAL MANAGEMENT MODERNIZATION INITIATIVE (FMMI) INTELLIGENT ENTERPRISE TRANSFORMATION (FIET) Key points: 1. Significant investment in financial management modernization. 2. Accenture Federal Services is the sole awardee. 3. Potential risks include vendor lock-in and integration challenges. 4. IT sector spending on enterprise transformation is substantial.

Value Assessment

Rating: good

The contract value of $45.8M for a 644-day duration appears reasonable for a large-scale IT modernization project. Benchmarking against similar enterprise transformation contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: Taxpayer funds are being used for a critical modernization effort aimed at improving financial management efficiency.

Public Impact

Modernizing financial systems can lead to improved government efficiency and transparency. Successful implementation could streamline financial operations across the Department of Agriculture. Potential for enhanced data analytics and reporting capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Integration complexity
Vendor lock-in potential
Scope creep risk

Positive Signals

Modernization of critical financial systems
Potential for improved efficiency
Use of competitive procurement

Sector Analysis

This contract falls within the IT sector, specifically focusing on enterprise resource planning (ERP) and financial management system modernization. Government spending in this area is driven by the need to replace legacy systems and improve data integration.

Small Business Impact

The awardee is Accenture Federal Services, a large business. There is no explicit indication of small business participation in this specific award, which warrants further review.

Oversight & Accountability

The Office of the Chief Financial Officer is responsible for overseeing this initiative. Robust oversight will be crucial to ensure successful delivery and adherence to budget and schedule.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Potential for vendor lock-in
Complexity of integrating with legacy systems
Risk of schedule delays
Ensuring adequate small business subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $45.8 million to ACCENTURE FEDERAL SERVICES LLC. FINANCIAL MANAGEMENT MODERNIZATION INITIATIVE (FMMI) INTELLIGENT ENTERPRISE TRANSFORMATION (FIET)

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $45.8 million.

What is the period of performance?

Start: 2023-09-05. End: 2025-06-10.

What is the expected return on investment for this financial management modernization?

The expected ROI hinges on the successful implementation of the FMMI/FIET initiative, aiming to reduce operational costs, improve data accuracy, and enhance decision-making capabilities. Quantifiable benefits may include reduced manual processing, faster financial reporting cycles, and better compliance, ultimately leading to more efficient use of taxpayer funds.

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

Key risks include potential integration challenges with existing USDA systems, the possibility of vendor lock-in with Accenture, and scope creep impacting cost and schedule. Mitigation strategies likely involve detailed project management, clear performance metrics, phased implementation, and strong contract oversight to ensure deliverables are met as specified.

How will the success of this modernization initiative be measured and evaluated?

Success will be measured through key performance indicators (KPIs) tied to system uptime, data accuracy, transaction processing times, user adoption rates, and the achievement of specific modernization goals outlined in the contract. Regular performance reviews and independent assessments will likely be employed to evaluate progress and effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314423Q0022

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,912,945

Exercised Options: $46,683,129

Current Obligation: $45,788,774

Actual Outlays: $45,788,774

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $23,306,648

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200002W

IDV Type: GWAC

Timeline