DOJ's $25.7M EBMA Contract with Accenture Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $25,759,433 ($25.8M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Justice

Start Date: 2019-02-26

End Date: 2024-08-23

Contract Duration: 2,005 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USTP ENTERPRISE BANKRUPTCY MANAGEMENT APPLICATION (EBMA)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $25.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: USTP ENTERPRISE BANKRUPTCY MANAGEMENT APPLICATION (EBMA) Key points: 1. The contract's value of $25.7M for Computer Systems Design Services raises questions about cost-effectiveness. 2. Accenture Federal Services LLC secured the contract under full and open competition, but the award type (Delivery Order) warrants further review. 3. Potential risks include the long duration (2005 days) and the lack of explicit small business participation. 4. The IT sector, specifically custom software development, often sees significant price variations.

Value Assessment

Rating: fair

The contract's total value of $25.7M over approximately 5.5 years suggests a significant investment. Benchmarking against similar custom software development contracts for federal agencies is needed to assess if the pricing is competitive, especially given the fixed-price nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad solicitation. However, as a delivery order, the specific pricing and terms were likely negotiated within a pre-existing framework, potentially limiting direct price discovery for this specific task order.

Taxpayer Impact: The use of full and open competition is generally positive for taxpayers, aiming to secure the best value. However, the final price paid depends on the effectiveness of the bidding process and negotiation for this specific delivery order.

Public Impact

Citizens rely on the Department of Justice for efficient and effective management of legal and administrative processes. The EBMA application likely supports critical functions within the DOJ, impacting case management and operational efficiency. Transparency in government IT spending ensures public trust and accountability for taxpayer funds. The long-term nature of the contract raises questions about adaptability to evolving technological needs and potential for vendor lock-in.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration
No explicit small business set-aside
Potential for cost overruns in fixed-price contracts if scope creeps

Positive Signals

Awarded under full and open competition
Fixed-price contract type can control costs if scope is well-defined

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, with significant variation based on project complexity, duration, and vendor. Benchmarks for similar custom application development projects are crucial for evaluating cost-effectiveness.

Small Business Impact

The data indicates that small businesses were not explicitly involved in this contract, as 'sb' is false. This suggests a missed opportunity to support small business growth and potentially leverage specialized capabilities they might offer.

Oversight & Accountability

The contract's duration and value necessitate robust oversight to ensure deliverables meet requirements and costs remain justified. Regular performance reviews and audits are essential for accountability.

Related Government Programs

Computer Systems Design Services
Department of Justice Contracting
Offices, Boards and Divisions Programs

Risk Flags

Lack of clarity on specific performance metrics and outcomes.
Potential for scope creep given the long duration and fixed-price nature.
Absence of explicit small business participation.
Limited insight into the competitive bidding process for this specific delivery order.
Risk of vendor lock-in due to the long-term engagement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $25.8 million to ACCENTURE FEDERAL SERVICES LLC. USTP ENTERPRISE BANKRUPTCY MANAGEMENT APPLICATION (EBMA)

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $25.8 million.

What is the period of performance?

Start: 2019-02-26. End: 2024-08-23.

What specific functionalities does the EBMA application provide, and how do these align with the DOJ's core mission and operational needs?

The EBMA application is designed to manage enterprise bankruptcy processes within the Department of Justice. Its functionalities likely include case tracking, document management, workflow automation, and reporting related to bankruptcy proceedings. Understanding these specific features is crucial to assess if the $25.7M investment directly supports critical DOJ functions and contributes to efficient legal operations.

Given the full and open competition, what was the competitive landscape, and how did the DOJ ensure the best possible price was achieved for this delivery order?

While awarded under full and open competition, the nature of a delivery order means pricing was likely negotiated within a pre-existing contract vehicle. Further analysis is needed to understand the number of bids received, the evaluation criteria used, and the negotiation process to confirm that the final price reflects optimal value for the taxpayer, rather than just a standard rate.

What mechanisms are in place to ensure the EBMA application remains effective and adaptable over its extended contract period, preventing obsolescence?

The contract's duration of over five years requires proactive management to ensure the EBMA application stays current. Mechanisms should include regular reviews of technological advancements, clear provisions for software updates and upgrades, and performance metrics tied to user satisfaction and system efficiency. Without such measures, the system risks becoming outdated and less effective.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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 and U.S.-Incorporated Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $26,633,510

Exercised Options: $26,633,510

Current Obligation: $25,759,433

Actual Outlays: $26,966,433

Subaward Activity

Number of Subawards: 87

Total Subaward Amount: $12,027,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0005

IDV Type: GWAC

Timeline