Interior's $53.8M IT contract to Accenture Federal Services for MLRS development shows fair value with moderate risk

Contract Overview

Contract Amount: $53,775,449 ($53.8M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of the Interior

Start Date: 2019-07-17

End Date: 2023-06-02

Contract Duration: 1,416 days

Daily Burn Rate: $38.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: MLRS, DEVELOPMENT

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $53.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: MLRS, DEVELOPMENT Key points: 1. The contract's value appears reasonable given the scope of IT development services. 2. Full and open competition suggests a competitive pricing environment. 3. The contract duration and labor hour pricing introduce some performance risk. 4. This contract aligns with broader federal IT modernization efforts. 5. Accenture Federal Services is a large, established IT contractor with a significant federal presence. 6. The use of a BPA call indicates a streamlined procurement process for existing agreements.

Value Assessment

Rating: good

The contract's total value of $53.8 million over its period of performance appears to be within a reasonable range for complex IT development services. Benchmarking against similar large-scale IT development contracts within the federal government suggests that the pricing, while substantial, is not outliers. The use of labor hours allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. The contract's value is consistent with the scale and complexity of systems development and integration projects.

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 offers. The specific details of the number of bidders are not provided, but the nature of full and open competition generally fosters a robust bidding environment. This level of competition is expected to drive more competitive pricing and encourage contractors to offer their best value solutions to secure the award. The agency likely benefited from a range of technical approaches and pricing structures.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of innovative solutions being considered. This process helps ensure that federal funds are used efficiently by selecting the most cost-effective and technically superior offer.

Public Impact

The primary beneficiaries are the Bureau of Land Management and other Interior Department agencies utilizing the MLRS system. The contract delivers critical IT systems design and development services, likely enhancing operational efficiency and data management. The geographic impact is national, supporting Interior's operations across various regions. Workforce implications include the employment of IT professionals by Accenture Federal Services, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour pricing can lead to cost uncertainty if not managed closely.
The extended performance period (over 4 years) increases the risk of scope creep or evolving requirements.
Reliance on a single large contractor for a critical system development may pose long-term dependency risks.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Accenture Federal Services is a well-established contractor with a proven track record in federal IT.
The contract supports a critical function for the Department of the Interior, indicating strategic importance.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The federal IT market is substantial, with significant spending allocated annually to software development, system integration, and IT support. Contracts like this are crucial for agencies to modernize legacy systems, develop new capabilities, and maintain operational effectiveness. Benchmarks for similar IT development contracts often range from tens to hundreds of millions of dollars, depending on complexity and duration.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contract was awarded to a large business, and any small business involvement would likely be through subcontracting opportunities initiated by Accenture Federal Services, the extent of which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Interior's Bureau of Land Management. Mechanisms likely include regular progress reviews, performance monitoring against defined metrics, and potentially independent government cost-estimate reviews. Transparency is facilitated through contract award databases, but detailed performance data and specific oversight activities are often internal. The Inspector General's office for the Department of the Interior may conduct audits or investigations if specific concerns arise.

Related Government Programs

Department of the Interior IT Modernization Initiatives
Bureau of Land Management Information Systems
Federal Enterprise Architecture
IT Services and Support Contracts
Large-Scale Software Development Projects

Risk Flags

Potential for cost overruns due to labor hour pricing
Risk of schedule delays over the extended performance period
Complexity of developing and integrating new IT systems
Need for robust oversight to ensure efficient resource utilization

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $53.8 million to ACCENTURE FEDERAL SERVICES LLC. MLRS, DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $53.8 million.

What is the period of performance?

Start: 2019-07-17. End: 2023-06-02.

What is the specific nature and scope of the MLRS system being developed under this contract?

The provided data indicates the contract is for 'MLRS, DEVELOPMENT' and falls under the 'Computer Systems Design Services' (NAICS 541512) category. While the exact acronym 'MLRS' isn't fully defined in the data, in the context of the Bureau of Land Management (BLM), it likely refers to a system related to land management, resource planning, or a similar operational function. This could encompass software development, system integration, database management, and potentially hardware configuration to support the BLM's mission. The 'DEVELOPMENT' designation clearly points to the creation or significant enhancement of an IT system rather than just maintenance or support.

How does the total contract value of $53.8 million compare to similar IT development contracts awarded by the Department of the Interior or other agencies?

A total contract value of $53.8 million for IT development over a period of approximately four years (July 2019 to June 2023) is substantial but falls within the typical range for large-scale federal IT projects. Many agencies undertake complex system development efforts that can easily reach or exceed this figure. For instance, other federal agencies often award contracts in the tens to hundreds of millions for enterprise resource planning (ERP) systems, cloud migrations, or major application modernizations. The value appears commensurate with the scope of developing a significant system, especially considering the complexities inherent in government IT projects. Without specific details on the system's complexity and deliverables, a precise benchmark is difficult, but it does not appear to be an outlier.

What are the key performance indicators (KPIs) or metrics used to assess the performance of Accenture Federal Services on this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics used to assess Accenture Federal Services' performance. However, for a contract involving computer systems design and development under a labor hour (LH) pricing structure, typical KPIs would likely include adherence to project schedules, delivery of milestones on time, quality of deliverables (e.g., code quality, bug rates), system performance post-deployment, user satisfaction, and effective management of labor hours to stay within budget. Contract officers would monitor these through regular reporting, technical reviews, and potentially user feedback mechanisms to ensure the contractor is meeting the requirements and delivering value.

What is the track record of Accenture Federal Services with the Department of the Interior and similar IT development contracts?

Accenture Federal Services is a major government contractor with a significant history of performing IT services for various federal agencies, including the Department of the Interior. They possess extensive experience in large-scale system development, modernization, and integration projects across civilian and defense sectors. Their track record generally includes the successful execution of complex IT initiatives, though like any large contractor, they may have faced challenges or criticisms on specific projects. For the Department of the Interior, Accenture has likely been involved in numerous contracts supporting different bureaus and functions, leveraging their expertise in areas such as cloud computing, data analytics, and custom software development. Their established presence suggests a familiarity with federal procurement processes and agency needs.

Are there any identified risks associated with this contract, such as cost overruns, schedule delays, or technical challenges?

Yes, there are inherent risks associated with a contract of this nature. The use of 'LABOR HOURS' (LH) as the contract type introduces a risk of cost overruns if the effort required exceeds initial estimates or if labor rates are not managed effectively. The extended duration (1416 days, approximately 4 years) increases the potential for schedule delays due to evolving requirements, unforeseen technical hurdles, or resource allocation issues. Furthermore, developing complex IT systems always carries technical risks, including integration challenges with existing infrastructure, cybersecurity vulnerabilities, and ensuring the system meets the end-users' functional and performance needs. The 'st': 'CO' (Colorado) might indicate a specific operational context or location that could introduce localized risks, though this is speculative without more information.

How does this contract fit into the broader landscape of federal IT spending and modernization efforts?

This contract aligns with the federal government's ongoing and significant investment in IT modernization. Agencies across the government are under pressure to update legacy systems, improve cybersecurity, enhance data analytics capabilities, and adopt more agile development practices. Contracts like this one, for developing or significantly enhancing core operational systems (like the presumed MLRS for BLM), are central to these modernization efforts. Federal IT spending is a multi-billion dollar sector, and projects focused on improving land management, resource allocation, or regulatory compliance are critical for agencies like the Department of the Interior. This contract represents a piece of that larger puzzle, contributing to the government's overall goal of achieving a more efficient, secure, and modern IT infrastructure.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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

Financial Breakdown

Contract Ceiling: $58,137,725

Exercised Options: $53,775,449

Current Obligation: $53,775,449

Actual Outlays: $53,775,449

Subaward Activity

Number of Subawards: 80

Total Subaward Amount: $232,372,761

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140L0119A0026

IDV Type: BPA

Timeline