Commerce awards $28.5M for enterprise search, with Accenture leading IT services

Contract Overview

Contract Amount: $28,528,488 ($28.5M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Commerce

Start Date: 2021-07-15

End Date: 2025-03-17

Contract Duration: 1,341 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: IT

Official Description: BUCKET H ENTERPRISE SEARCH

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $28.5 million to ACCENTURE FEDERAL SERVICES LLC for work described as: BUCKET H ENTERPRISE SEARCH Key points: 1. Contract value represents a significant investment in enterprise search capabilities. 2. Accenture Federal Services, a major IT contractor, secured this award. 3. The contract duration extends over three years, indicating a long-term need. 4. This award falls under IT services, a critical sector for government operations. 5. The use of labor hours suggests a focus on skilled personnel for service delivery.

Value Assessment

Rating: good

The contract value of $28.5 million for enterprise search services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT service contracts for enterprise solutions suggests this falls within expected ranges. The use of labor hours allows for flexibility in resource allocation, which can be cost-effective if managed efficiently. However, without detailed task breakdowns and specific labor rates, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 6 bidders, the competition level suggests a healthy market response for this type of IT service. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Federal employees across the Department of Commerce will benefit from improved search capabilities. The services delivered will enhance access to information and streamline internal processes. The primary geographic impact is within the Department of Commerce's operations. The contract supports skilled IT professionals, potentially impacting the federal workforce in IT roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not closely managed.
Dependence on a single large contractor for critical enterprise search functionality.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long-term contract duration allows for sustained service delivery and potential for economies of scale.
Focus on enterprise search aligns with government-wide initiatives for data accessibility.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The market for enterprise search solutions is competitive, with numerous commercial and government-focused vendors. The total federal spending on IT services is in the hundreds of billions annually, making this contract a relatively small portion of the overall IT expenditure but significant for the specific function it addresses.

Small Business Impact

The contract was awarded to Accenture Federal Services LLC, a large business. There is no indication of a small business set-aside for this specific award. Subcontracting opportunities for small businesses may exist, but this would depend on Accenture's subcontracting plan and the specific needs of the project. The impact on the small business ecosystem is likely indirect, through potential subcontracting rather than direct prime awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Patent and Trademark Office contracting officers and program managers within the Department of Commerce. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Enterprise Resource Planning (ERP) Systems
IT Infrastructure Modernization
Cloud Computing Services
Data Management Solutions
Digital Transformation Initiatives

Risk Flags

Potential for vendor lock-in
Labor hour cost management
Performance metric definition and tracking

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $28.5 million to ACCENTURE FEDERAL SERVICES LLC. BUCKET H ENTERPRISE SEARCH

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $28.5 million.

What is the period of performance?

Start: 2021-07-15. End: 2025-03-17.

What is the historical spending pattern for enterprise search solutions within the Department of Commerce?

Analyzing historical spending on enterprise search within the Department of Commerce requires access to detailed procurement data over several fiscal years. Typically, agencies invest in enterprise search as part of broader IT modernization efforts or specific system upgrades. Spending can fluctuate based on the lifecycle of existing systems, the introduction of new technologies, and strategic priorities. Without specific historical data for this contract's predecessors or similar initiatives within Commerce, it's difficult to establish a precise pattern. However, federal agencies generally show consistent, albeit variable, spending in this area due to the ongoing need for efficient information retrieval and knowledge management.

How does the awarded amount compare to similar enterprise search contracts awarded to other large IT service providers?

Comparing the $28.5 million award for enterprise search services requires benchmarking against contracts of similar scope, duration, and complexity. Large IT service providers like Accenture, Booz Allen Hamilton, and Leidos often compete for these types of contracts. The value is influenced by factors such as the number of users, the scope of data to be indexed, the required features (e.g., AI-powered search, natural language processing), and the level of customization. A preliminary assessment suggests that $28.5 million over approximately three years is within a reasonable range for a comprehensive enterprise search solution for a large federal agency, assuming it includes significant development, integration, and ongoing support.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key performance indicators (KPIs) for an enterprise search contract typically focus on the effectiveness and efficiency of the search system. Common KPIs include search result relevance (measured by user satisfaction or click-through rates on top results), search speed (time to return results), system uptime and availability, user adoption rates, and the reduction in time spent searching for information. For this specific contract, the U.S. Patent and Trademark Office would likely define specific, measurable, achievable, relevant, and time-bound (SMART) KPIs in the contract's Performance Work Statement (PWS). These would be crucial for evaluating Accenture's performance and ensuring the government receives the intended value.

What is Accenture Federal Services LLC's track record with similar large-scale IT service contracts for the federal government?

Accenture Federal Services LLC has a substantial track record of performing large-scale IT service contracts for various federal agencies. They are a well-established prime contractor known for delivering a wide range of services, including systems integration, cloud migration, cybersecurity, and digital transformation. Their experience often encompasses complex enterprise-wide solutions. Past performance evaluations, available through federal procurement databases, would provide specific insights into their success rates, adherence to schedule and budget, and overall client satisfaction on similar projects. Generally, their extensive experience suggests a capability to handle contracts of this magnitude and complexity.

What are the potential risks associated with relying on a single vendor for enterprise search capabilities?

Relying on a single vendor for critical enterprise search capabilities presents several potential risks. Vendor lock-in is a primary concern, making it difficult and costly to switch providers if performance issues arise or market alternatives become more advantageous. There's also a risk of reduced innovation if the vendor does not proactively update their solution to incorporate the latest technologies. Dependence on a single vendor can also impact negotiating leverage during contract renewals. Furthermore, if the vendor experiences financial instability or strategic shifts, it could disrupt service delivery. Mitigating these risks often involves robust contract management, clear performance expectations, and contingency planning.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD STE 300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $32,514,518

Exercised Options: $28,528,488

Current Obligation: $28,528,488

Subaward Activity

Number of Subawards: 57

Total Subaward Amount: $11,262,439

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0036

IDV Type: GWAC

Timeline