Interior Department's $27.6M IT Services Contract Awarded to Accenture LLP

Contract Overview

Contract Amount: $27,574,306 ($27.6M)

Contractor: Accenture LLP

Awarding Agency: Department of the Interior

Start Date: 2019-10-01

End Date: 2021-09-30

Contract Duration: 730 days

Daily Burn Rate: $37.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MRMSS O&S BRIDGE YEAR

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80235

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $27.6 million to ACCENTURE LLP for work described as: MRMSS O&S BRIDGE YEAR Key points: 1. Contract awarded for IT services, indicating a need for specialized technical support. 2. The contract's duration of two years suggests a focus on ongoing operational needs. 3. Awarded to a single vendor, raising questions about competitive pricing and market exploration. 4. The service category 'Other Computer Related Services' is broad, requiring further definition of specific deliverables. 5. The contract value is moderate within the context of federal IT spending. 6. Performance period spans fiscal years 2019-2021, aligning with typical government budget cycles.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific task orders and detailed service descriptions. However, the total award of $27.6 million over two years for IT services suggests a significant investment. Comparing it to similar large-scale IT support contracts within the Department of the Interior or other agencies would provide better context. The lack of competition, as noted below, may have impacted the overall value achieved for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Accenture LLP, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for specific reasons such as unique capabilities or urgent needs, they typically result in less price discovery and potentially higher costs compared to fully competed contracts. The absence of multiple bidders limits the government's ability to negotiate the best possible terms and pricing.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the most cost-effective solution, as competitive pressures that drive down prices are absent.

Public Impact

Federal employees within the Department of the Interior benefit from the IT services provided, ensuring operational continuity. The contract supports 'Other Computer Related Services,' likely encompassing a range of IT functions essential for departmental operations. The geographic impact is primarily within the Department of the Interior's operational areas, potentially nationwide. Workforce implications include the direct employment of Accenture personnel and potential indirect impacts on internal IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award raises concerns about the thoroughness of market research.
Broad service category could obscure specific performance metrics and value.
Potential for vendor lock-in due to the sole-source nature.

Positive Signals

Award to an established contractor like Accenture suggests a degree of confidence in their capabilities.
The contract addresses essential IT operational needs for a federal agency.
Fixed-price contract type can provide cost predictability if well-defined.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies procuring a wide array of services from software development to cloud computing and cybersecurity. This contract falls under 'Other Computer Related Services,' a broad category that can include IT consulting, system integration, and technical support. The Department of the Interior, like many large federal agencies, relies heavily on IT infrastructure and services to manage its diverse operations, from land management to resource conservation. Spending in this sector is consistently high across the government.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' flag is also false, suggesting it was not a small business prime award. This means that opportunities for small businesses to directly participate as prime contractors were likely limited. While Accenture, as the prime contractor, may engage small businesses for subcontracting, the absence of a set-aside or small business prime award suggests a minimal direct impact on the small business IT ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. The contract type (firm fixed price) implies that the contractor is responsible for delivering specific services at a set price, with oversight focused on performance and adherence to terms. Transparency is generally facilitated through contract databases like FPDS.gov, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of the Interior IT Support Services
Federal Civilian Agency IT Contracts
Other Computer Related Services Contracts
Accenture Federal Services Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Broad service category may obscure specific performance metrics.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $27.6 million to ACCENTURE LLP. MRMSS O&S BRIDGE YEAR

Who is the contractor on this award?

The obligated recipient is ACCENTURE LLP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $27.6 million.

What is the period of performance?

Start: 2019-10-01. End: 2021-09-30.

What specific IT services were procured under this contract, and how were they defined?

The contract falls under the NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide range of IT support, including but not limited to IT consulting, system integration, network management, and technical support. Without access to the specific task orders or contract line item numbers (CLINs), the precise nature of the services delivered remains undefined in the provided data. This lack of specificity makes it difficult to assess the value for money or the contractor's performance against clearly defined objectives. Further analysis would require reviewing the contract's statement of work (SOW) or task order details.

How does the $27.6 million award compare to historical spending on similar IT services by the Department of the Interior?

The provided data indicates a single award of $27,574,305.64 for the period of October 1, 2019, to September 30, 2021. To compare this to historical spending, one would need to analyze prior contracts for similar IT services awarded by the Department of the Interior. For instance, examining contracts under NAICS code 541519 or related IT service codes for the preceding years (e.g., FY2017-2019) would reveal spending trends. Given the two-year duration and the nature of IT services, this award appears to be for ongoing operational support rather than a one-time project. A comprehensive comparison would involve aggregating spending on similar services over multiple fiscal years to identify patterns and potential increases or decreases in investment.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to suboptimal pricing and reduced innovation. Without competing bids, the government may pay more than necessary for the services rendered. There's also a risk that the chosen contractor may not be the most capable or cost-effective provider available in the market. Furthermore, sole-source awards can create a perception of favoritism and may limit opportunities for other qualified vendors, potentially hindering the growth of a diverse IT services market. Agencies must have strong justification for sole-source awards to mitigate these risks, often related to unique capabilities, urgent needs, or specific security requirements.

What is Accenture LLP's track record with federal IT service contracts, particularly with the Department of the Interior?

Accenture LLP is a major global professional services company that holds numerous federal contracts across various agencies, including significant work in IT services. Their track record generally indicates experience in large-scale IT modernization, system integration, and consulting. For the Department of the Interior specifically, this contract represents a substantial award for IT services. A deeper dive into Accenture's past performance ratings, any past performance issues or disputes on similar contracts, and their overall success rate with federal agencies would provide a more complete picture of their reliability and effectiveness in delivering IT solutions.

How does the 'Other Computer Related Services' category align with the Department of the Interior's overall IT strategy and needs?

The 'Other Computer Related Services' category (NAICS 541519) is intentionally broad to accommodate a wide range of IT support functions that don't fit into more specific categories like software development or data processing. For the Department of the Interior, which manages vast amounts of data and complex operational systems related to natural resources, land management, and law enforcement, such services are critical. These could include IT strategy consulting, enterprise architecture development, cybersecurity assessments, or specialized technical support for legacy systems. The alignment depends on how well the specific services procured under this contract directly support the Department's strategic IT goals, such as digital transformation, cloud migration, or enhancing data analytics capabilities.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140D7019R0004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company

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

Business Categories: Category Business, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $27,574,306

Exercised Options: $27,574,306

Current Obligation: $27,574,306

Actual Outlays: $27,574,306

Subaward Activity

Number of Subawards: 91

Total Subaward Amount: $13,676,203

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 140D7019D0006

IDV Type: IDC

Timeline