Department of Agriculture awards $36.6M IT support contract to Accenture Federal Services, highlighting a 5-year commitment

Contract Overview

Contract Amount: $36,614,814 ($36.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Agriculture

Start Date: 2021-07-29

End Date: 2026-07-31

Contract Duration: 1,828 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEPARTMENT OF AGRICULTURE INFORMATION TECHNOLOGY SUPPORT SERVICES (DAITSS)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $36.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: DEPARTMENT OF AGRICULTURE INFORMATION TECHNOLOGY SUPPORT SERVICES (DAITSS) Key points: 1. The contract value represents a significant investment in IT infrastructure and support for the Forest Service. 2. Accenture Federal Services, a large established contractor, secured this award through full and open competition. 3. The firm-fixed-price contract type suggests predictable costs for the government, mitigating cost overrun risks. 4. The contract duration of over 5 years indicates a long-term need for these IT services. 5. The absence of small business set-aside flags suggests a focus on specialized IT capabilities. 6. The award was made via a BPA Call, indicating a pre-competed framework was leveraged.

Value Assessment

Rating: good

The contract value of $36.6 million over approximately five years for IT support services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this falls within expected spending ranges. The firm-fixed-price structure helps control costs, and the award to a well-established contractor like Accenture Federal Services indicates a level of confidence in their ability to deliver. However, a more granular comparison of specific service rates against market benchmarks would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The fact that it was a BPA Call suggests that the underlying Blanket Purchase Agreement was also competitively awarded. While the specific number of bidders for this particular call is not provided, full and open competition generally fosters a competitive environment, driving better pricing and service offerings. This approach allows the government to select the best value solution from a wide pool of potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and encourages a wider range of innovative solutions, ultimately maximizing the value of federal spending.

Public Impact

The Forest Service will benefit from enhanced IT support, ensuring the continuity and efficiency of its operations. This contract supports critical IT infrastructure, including computer systems design and related services. The services delivered are essential for the day-to-day functioning of the agency's IT environment. The primary geographic impact is within the Department of Agriculture's operational areas, likely nationwide. The contract supports a workforce of IT professionals, both within the contractor and potentially within the agency through knowledge transfer.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration and specialized nature of IT support.
Reliance on a single large contractor could limit flexibility in adapting to rapidly changing IT needs.
The specific performance metrics and service level agreements (SLAs) are not detailed, making it hard to assess performance risks.
The initial award was made in 2021; the relevance of pricing and service offerings to current market conditions needs verification.

Positive Signals

Award to a reputable contractor with a proven track record in federal IT services.
The use of a firm-fixed-price contract provides cost certainty for the government.
Leveraging a BPA Call suggests efficient procurement through an existing, pre-competed agreement.
The contract duration indicates a stable and predictable IT support environment for the Forest Service.
Full and open competition generally leads to better quality and value.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology industry. The federal IT market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract for IT support services for the Forest Service is a typical example of how government agencies procure essential IT functions. Comparable spending benchmarks for IT support services can vary widely based on the scope, complexity, and duration, but contracts in the tens of millions of dollars for multi-year support are common for large federal organizations.

Small Business Impact

This contract was not awarded as a small business set-aside, as indicated by `ss: false` and `sb: false`. This suggests that the requirement was either too large in scope or required specialized capabilities that were not specifically targeted for small business participation. Consequently, there are no direct subcontracting implications mandated by a small business set-aside for this specific award. The impact on the small business ecosystem is indirect; while small businesses may not be prime contractors on this particular award, they often participate as subcontractors to larger firms or compete for other, smaller set-aside contracts within the broader IT services market.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's contracting officers and the Forest Service's program managers. They are responsible for monitoring contractor performance against the terms and conditions of the contract, including service level agreements and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Accountability is enforced through contractual remedies, performance reviews, and the potential for contract termination if performance is unsatisfactory. While no specific Inspector General jurisdiction is mentioned for this particular award, the USDA Office of Inspector General generally has oversight over agency spending and program management.

Related Government Programs

Department of Agriculture Information Technology Support Services (DAITSS)
Forest Service IT Modernization Efforts
Federal Civilian Agency IT Services Contracts
Computer Systems Design Services (NAICS 541512)
Blanket Purchase Agreements (BPAs)

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for vendor lock-in.
Performance metrics not detailed in summary data.
Reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $36.6 million to ACCENTURE FEDERAL SERVICES LLC. DEPARTMENT OF AGRICULTURE INFORMATION TECHNOLOGY SUPPORT SERVICES (DAITSS)

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 (Forest Service).

What is the total obligated amount?

The obligated amount is $36.6 million.

What is the period of performance?

Start: 2021-07-29. End: 2026-07-31.

What is Accenture Federal Services' track record with the Department of Agriculture and similar IT support contracts?

Accenture Federal Services has a significant history of performing IT services for various federal agencies, including the Department of Agriculture. Their track record generally indicates experience in large-scale IT support, systems integration, and digital transformation initiatives. For the Department of Agriculture specifically, they have likely held previous contracts for IT support, though the specifics of those would require deeper data mining. Benchmarking their performance on similar IT support contracts across agencies would involve analyzing past performance evaluations, contract modifications, and any reported disputes or challenges. A review of their past performance on contracts of similar size and duration would provide insight into their reliability and capability in delivering complex IT solutions within the federal space.

How does the per-unit cost or pricing structure of this contract compare to market rates for similar IT support services?

Determining the precise per-unit cost comparison is challenging without access to the detailed pricing structure within the contract (e.g., hourly rates for different labor categories, software licensing costs, hardware markups). However, the contract is firm-fixed-price, which implies that Accenture Federal Services assumed the risk of cost overruns. This structure often results in a higher initial price compared to cost-reimbursable contracts, but provides budget certainty. To benchmark effectively, one would need to compare the blended hourly rates or service package costs against industry surveys for IT support services provided to large organizations, considering factors like labor location, skill sets required, and the specific services included. Given Accenture's status as a major federal contractor, their rates are likely competitive within that segment but may be higher than smaller, specialized providers.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how are they monitored?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT support services, SLAs would cover aspects such as system uptime, response times for help desk tickets, resolution times for critical issues, patch management adherence, and security compliance. Monitoring these KPIs and SLAs is usually the responsibility of the Forest Service's Contracting Officer's Representative (COR) or program manager. They would review regular performance reports submitted by Accenture Federal Services, conduct periodic reviews, and potentially utilize automated monitoring tools. Failure to meet agreed-upon SLAs could result in contractual remedies, such as service credits or financial penalties, depending on the contract's specific clauses.

What is the historical spending trend for IT support services within the Forest Service or the Department of Agriculture?

Historical spending on IT support services within the Forest Service and the broader Department of Agriculture has generally shown a consistent need for these functions, often increasing over time due to evolving technological demands and cybersecurity requirements. While the specific $36.6 million award is for a defined period, agencies like the Forest Service typically allocate significant portions of their budget to IT operations and maintenance. Analyzing past contract awards for similar IT support services over the last 5-10 years would reveal trends in spending levels, contractor choices, and the types of services procured. This historical context helps in assessing whether the current award represents an increase, decrease, or stable level of investment in IT support relative to previous years.

Are there any identified risks associated with Accenture Federal Services' performance on this specific contract or similar federal contracts?

Without access to detailed past performance reviews or contract dispute records, identifying specific risks for Accenture Federal Services on this particular contract is difficult. However, general risks associated with large IT support contracts include potential cost overruns (mitigated here by FFP), schedule delays, cybersecurity vulnerabilities, and challenges in adapting to rapidly changing technology. For large incumbent contractors like Accenture, risks can also involve complacency or difficulty in innovating at the pace required by federal agencies. A thorough risk assessment would involve reviewing CPARS (Contractor Performance Assessment Reporting System) data, any past performance issues, and the contractor's financial stability. The long duration of the contract also introduces risk related to potential obsolescence of technology or changes in agency requirements.

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: 12760421Q0116

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

Financial Breakdown

Contract Ceiling: $61,571,411

Exercised Options: $36,621,799

Current Obligation: $36,614,814

Actual Outlays: $33,377,029

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $417,381

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12760420A0003

IDV Type: BPA

Timeline