Commerce Department's $10.3M IT contract for enterprise search services awarded to Accenture Federal Services

Contract Overview

Contract Amount: $10,279,001 ($10.3M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Commerce

Start Date: 2025-03-18

End Date: 2026-10-17

Contract Duration: 578 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT SERVICES IN SUPPORT OF DEVELOPMENT, MODERNIZATION, ENHANCEMENT AND OPERATIONS AND MAINTENANCE FOR ENTERPRISE SEARCH PRODUCT COMPONENTS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $10.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IT SERVICES IN SUPPORT OF DEVELOPMENT, MODERNIZATION, ENHANCEMENT AND OPERATIONS AND MAINTENANCE FOR ENTERPRISE SEARCH PRODUCT COMPONENTS. Key points: 1. Contract focuses on IT services for enterprise search product components, including development, modernization, and operations. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately 1.5 years indicates a need for ongoing support. 4. The contract type is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The services are categorized under Computer Systems Design Services, a common area for IT support. 6. The contract is managed by the U.S. Patent and Trademark Office within the Department of Commerce. 7. The contract is for labor hours, implying payment based on time and materials. 8. The contract is not set aside for small businesses.

Value Assessment

Rating: good

The contract value of $10.3 million for a period of roughly 1.5 years for IT support services appears reasonable within the context of federal IT spending. Benchmarking against similar contracts for enterprise search solutions and IT modernization efforts would provide a more precise value-for-money assessment. The labor hours pricing model can sometimes lead to cost overruns if not managed tightly, but it also offers flexibility. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the award to a known contractor through open competition suggests a potentially fair price was negotiated.

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 3 bidders suggests a moderate level of competition for this specific delivery order. While more bidders could potentially drive prices lower, full and open competition generally promotes a healthy marketplace and allows the government to select the best value offer. The specific number of bidders is a positive indicator of market interest and the government's ability to solicit proposals broadly.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

The U.S. Patent and Trademark Office (USPTO) will benefit from enhanced enterprise search capabilities, improving internal operations and data accessibility. Services delivered include development, modernization, enhancement, and operations and maintenance for critical search product components. The geographic impact is primarily within the USPTO's operational locations, likely supporting federal employees and contractors. Workforce implications may include the need for specialized IT personnel to perform the contracted services, potentially benefiting the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to labor hour pricing if not closely monitored.
Dependence on a single contractor for critical IT infrastructure components.
Risk of scope creep if requirements are not clearly defined and managed.
Potential for knowledge transfer challenges if personnel turnover is high.
Ensuring continued innovation and adaptation to evolving search technologies.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contractor (Accenture Federal Services) has a track record in federal IT services.
Clear definition of services related to enterprise search product components.
Defined contract period with specific start and end dates.
Delivery order structure suggests it aligns with a broader strategic IT framework.

Sector Analysis

This contract falls within the IT Services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in modernization, cloud migration, cybersecurity, and data management. Enterprise search solutions are crucial for organizations managing vast amounts of information, enabling efficient retrieval and analysis. Comparable spending benchmarks would involve looking at other contracts for similar search technologies, data analytics platforms, and IT operations support across various federal agencies. The market for these services is competitive, with a mix of large system integrators and specialized IT firms.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. This means that opportunities for small businesses to participate in this specific contract are limited unless they are prime contractors themselves or are subcontracted by the prime. The absence of a small business set-aside suggests that the primary focus was on obtaining the best value through open competition, potentially favoring larger, established firms with the capacity to handle such requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist at the U.S. Patent and Trademark Office. Performance monitoring, adherence to labor hour reporting, and quality assurance are key oversight mechanisms. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or identified.

Related Government Programs

Federal IT Modernization Programs
Enterprise Resource Planning (ERP) Systems
Data Analytics and Business Intelligence Services
Cloud Computing Services
Information Technology Support Services

Risk Flags

Potential for cost overruns
Scope creep risk
Vendor lock-in
Reliance on labor hour pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $10.3 million to ACCENTURE FEDERAL SERVICES LLC. IT SERVICES IN SUPPORT OF DEVELOPMENT, MODERNIZATION, ENHANCEMENT AND OPERATIONS AND MAINTENANCE FOR ENTERPRISE SEARCH PRODUCT COMPONENTS.

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 $10.3 million.

What is the period of performance?

Start: 2025-03-18. End: 2026-10-17.

What is Accenture Federal Services' track record with the Department of Commerce and USPTO for similar IT services?

Accenture Federal Services has a significant history of performing IT services for various federal agencies, including the Department of Commerce and its sub-agencies like the USPTO. Their experience often spans large-scale system modernization, IT operations, and specialized software development. While specific details for this exact enterprise search component contract require deeper analysis of past performance reviews and contract history, Accenture is generally recognized as a major player in the federal IT landscape. Their past performance on similar contracts would likely be a key factor in the USPTO's decision-making process, influencing the assessment of their capability to deliver on this new award. Reviewing their performance on prior contracts, including any past performance evaluations or awards/debarments, would provide a clearer picture of their reliability and effectiveness in delivering complex IT solutions.

How does the $10.3 million value compare to similar enterprise search IT contracts awarded by federal agencies?

The $10.3 million contract value for approximately 1.5 years of IT services for enterprise search components is within a typical range for federal IT support contracts of this nature. However, a precise comparison requires benchmarking against contracts with similar scope, complexity, and duration. Factors such as the specific technologies involved (e.g., proprietary search engines vs. open-source solutions), the level of customization required, the number of users supported, and the specific services included (development, O&M, modernization) significantly influence pricing. Contracts for enterprise-wide search solutions supporting large agencies can range from a few million to tens of millions of dollars over several years. This particular contract's value suggests a focused effort on specific components rather than a complete overhaul of an entire agency's search infrastructure, making it a moderate-sized investment.

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

Primary risks include potential cost overruns due to the labor hours pricing model, scope creep if requirements are not meticulously managed, and the risk of vendor lock-in or over-reliance on Accenture Federal Services for critical search functionalities. Mitigation strategies likely involve robust contract management by the USPTO, including detailed work breakdown structures, regular progress reviews, and strict change control processes. Performance metrics and service level agreements (SLAs) would be crucial for ensuring quality and timely delivery. The labor hour model necessitates vigilant oversight of timesheets and task completion to prevent unnecessary expenditure. Furthermore, the full and open competition award process itself mitigates some risk by selecting a vendor based on demonstrated capability and potentially competitive pricing, assuming effective post-award management.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this specific IT service contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting, as it maximizes the pool of potential bidders and encourages competitive pricing. For this IT services contract, it means that multiple companies, including Accenture Federal Services, had the opportunity to propose solutions and pricing. The fact that three bids were received indicates a level of competition. The effectiveness in ensuring value for money will ultimately depend on the clarity of the solicitation requirements, the evaluation criteria used by the USPTO, and the rigor of the negotiation and post-award contract management. If the evaluation properly weighed technical approach, past performance, and price, then full and open competition likely yielded a fair market price and a capable vendor.

What are the historical spending patterns for enterprise search solutions or similar IT services at the USPTO or Department of Commerce?

Historical spending patterns for enterprise search solutions and related IT services at the USPTO and the broader Department of Commerce are typically characterized by ongoing investments in maintaining and upgrading critical information management systems. Agencies like the USPTO manage vast intellectual property databases and require sophisticated search capabilities. Spending often reflects a mix of contract types, including firm-fixed-price for defined projects and labor-hour/time-and-materials for ongoing support and modernization. Trends may show an increasing focus on AI-driven search, natural language processing, and cloud-based solutions to enhance performance and scalability. Analyzing past contract awards for similar services would reveal the typical contract values, durations, and incumbent contractors, providing context for the current $10.3 million award.

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: 1333BJ25Q00280002

Offers Received: 3

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: $19,866,819

Exercised Options: $10,279,001

Current Obligation: $10,279,001

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $2,089,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0036

IDV Type: GWAC

Timeline