USDA Forest Service awards $30.7M contract for IT services to Accenture Federal Services

Contract Overview

Contract Amount: $30,705,028 ($30.7M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-10-01

End Date: 2025-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $28.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: USDA FOREST SERVICE OPERATION AND SERVICE DELIVERY (OSD)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $30.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: USDA FOREST SERVICE OPERATION AND SERVICE DELIVERY (OSD) Key points: 1. Contract awarded through a Best Acquisition (BPA) Call, indicating a pre-competed framework. 2. The contract is for Computer Systems Design Services, a common IT support category. 3. Accenture Federal Services, a large established contractor, is the awardee. 4. The contract duration is three years, aligning with typical IT service agreements. 5. The award was made under full and open competition, suggesting a broad search for qualified bidders.

Value Assessment

Rating: good

The contract value of $30.7 million over three years for IT services appears reasonable given the scope of computer systems design. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this falls within expected spending ranges. The use of a BPA Call implies that pricing was likely negotiated at a master agreement level, potentially offering some cost efficiencies. Further analysis would require detailed task order breakdowns to assess specific 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 data indicates two bids were received. While two bidders is a relatively low number for a full and open competition, it still suggests a competitive process was undertaken. The specific details of the bidding process and the evaluation criteria would provide a clearer picture of the competitive dynamics.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides taxpayers with a better opportunity for competitive pricing compared to sole-source or limited competitions.

Public Impact

The primary beneficiary is the USDA Forest Service, which will receive essential IT support services. Services delivered include computer systems design, crucial for the agency's operational efficiency. The geographic impact is likely nationwide, supporting the Forest Service's dispersed operations. Workforce implications may include the utilization of skilled IT professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition could indicate potential barriers to entry or a niche market.
Contract type is 'LABOR HOURS', which can sometimes lead to cost overruns if not managed tightly.

Positive Signals

Awardee is a well-established federal contractor with a proven track record.
Contract is a BPA Call, suggesting a pre-vetted and potentially more efficient procurement vehicle.

Sector Analysis

The IT services sector for the federal government is a significant market. Contracts for computer systems design are fundamental to maintaining and upgrading agency IT infrastructure. The USDA Forest Service's spending on such services is consistent with the needs of a large, geographically dispersed agency. Comparable spending benchmarks for IT services across federal agencies often range from millions to tens of millions of dollars annually, depending on the agency's size and mission.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, Accenture Federal Services LLC, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that the primary focus of this award was on the capabilities of the large prime contractor, and the impact on the small business ecosystem would depend on any voluntary subcontracting efforts by Accenture.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the USDA Forest Service. Accountability measures are embedded in the contract terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USDA IT Modernization Efforts
Forest Service IT Infrastructure Support
Federal Civilian Agency IT Services
Computer Systems Design Services Contracts

Risk Flags

Potential for cost overruns due to 'LABOR HOURS' contract type.
Limited number of bidders in a full and open competition may warrant further investigation.
Cybersecurity risks inherent in IT system design and implementation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $30.7 million to ACCENTURE FEDERAL SERVICES LLC. USDA FOREST SERVICE OPERATION AND SERVICE DELIVERY (OSD)

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 $30.7 million.

What is the period of performance?

Start: 2022-10-01. End: 2025-09-30.

What is Accenture Federal Services LLC's track record with the USDA Forest Service and similar agencies?

Accenture Federal Services LLC has a substantial track record of performing IT and consulting services for various federal agencies, including the Department of Agriculture. Their past performance with the Forest Service and other civilian agencies typically involves large-scale system integration, modernization, and IT support. Reviewing their specific performance history on similar contracts, including any past performance evaluations or awards, would provide a clearer picture of their capabilities and reliability in delivering complex IT solutions. Data from contract databases often shows a pattern of successful contract completions, though specific details on challenges or issues would require deeper investigation into contract close-out reports or agency performance reviews.

How does the awarded price compare to market rates for similar IT system design services?

Benchmarking the $30.7 million contract value against market rates for similar IT system design services requires a detailed breakdown of the labor categories, hours, and specific tasks involved. As a 'LABOR HOURS' contract awarded via a BPA Call, the pricing is likely based on pre-negotiated rates. Generally, large system integrators like Accenture Federal Services operate in a market where their rates are competitive for complex, high-end services. However, without specific task order details and comparison to GSA schedules or other agency IT contracts for comparable services, a precise value-for-money assessment is difficult. The 'good' rating suggests it is within expected parameters, but a deeper dive into specific labor rates versus government-wide IT contract vehicles would be needed for a definitive comparison.

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

Primary risks for this contract include potential scope creep, contractor performance issues, and cybersecurity vulnerabilities, given the nature of IT system design services. Scope creep can occur if requirements are not clearly defined or if the agency's needs evolve significantly during the contract period. Contractor performance risks are managed through performance standards outlined in the contract and regular monitoring by the Forest Service. Cybersecurity risks are mitigated through adherence to federal security mandates (e.g., NIST standards) and contractor security protocols. The 'fair' risk indicator suggests these are being actively managed, but vigilance is required. Mitigation strategies typically involve robust contract management, clear communication channels, and defined escalation procedures.

How effective has the Forest Service been in managing its IT service contracts historically?

The effectiveness of the Forest Service in managing its IT service contracts historically can be assessed through various indicators, including contract performance metrics, audit findings from the Inspector General, and the overall success rate of IT modernization projects. Like many large federal agencies, the Forest Service has faced challenges in IT modernization and contract management, sometimes leading to cost overruns or delays. However, they also have a history of successfully executing complex IT projects. The 'good' rating for value suggests a generally positive trend in recent contract management, but continuous improvement and adherence to best practices in procurement and oversight are crucial for sustained effectiveness.

What is the historical spending pattern for Computer Systems Design Services by the USDA Forest Service?

Historical spending on Computer Systems Design Services by the USDA Forest Service has likely been substantial and consistent, reflecting the agency's reliance on IT infrastructure to manage vast natural resources and operations. Annual spending can fluctuate based on specific modernization initiatives, system upgrades, or new technology implementations. Examining past contract awards for similar services over the last 5-10 years would reveal trends in spending levels, the types of services procured, and the primary contractors utilized. This $30.7 million award over three years represents an average of approximately $10.2 million per year, which should be compared against prior annual expenditures to understand if this represents an increase, decrease, or stable level of investment in this area.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12760422Q0052

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

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: $45,043,602

Exercised Options: $33,698,060

Current Obligation: $30,705,028

Actual Outlays: $24,461,805

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $733,415

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12760420A0003

IDV Type: BPA

Timeline