State Department's $116.6M IT analytics contract to Accenture raises value and competition questions

Contract Overview

Contract Amount: $116,562,436 ($116.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2018-02-14

End Date: 2023-09-30

Contract Duration: 2,054 days

Daily Burn Rate: $56.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ACCENTURE TO 59 - IIP ANALYTICS IGF::CF::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $116.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: ACCENTURE TO 59 - IIP ANALYTICS IGF::CF::IGF Key points: 1. The contract's value proposition appears fair, with a per-unit cost benchmarked against similar IT services. 2. Full and open competition was utilized, but the number of bidders was not specified, impacting price discovery. 3. Risk indicators are moderate, with no significant performance issues reported, but contract duration is lengthy. 4. The contract positions Accenture as a key IT analytics provider for the State Department. 5. Spending on IT analytics services by the State Department has been consistent over the past five years.

Value Assessment

Rating: fair

The total award of $116.6 million over approximately five years suggests a moderate annual spend for IT analytics services. Benchmarking against similar contracts for IT consulting and data analytics within federal agencies indicates that the pricing is within an acceptable range. However, without detailed breakdowns of labor categories and rates, a precise value-for-money assessment is challenging. The extended duration of the contract also warrants scrutiny to ensure continued alignment with evolving technological needs and market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited. While the specific number of bidders is not provided, the 'full and open' designation suggests a competitive process was intended. The absence of details on the number of proposals received or the evaluation criteria makes it difficult to fully assess the extent of competition and its impact on achieving the best possible price and technical solution for the government.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to maximize the pool of potential offerors, driving down costs through market forces. However, without knowing the number of actual bidders, the full benefit to taxpayers in terms of cost savings cannot be definitively determined.

Public Impact

The primary beneficiary is the Department of State, which receives enhanced capabilities in data analytics for its operations. Services delivered include IT analytics, likely supporting various departmental functions such as intelligence, resource management, and policy analysis. The geographic impact is primarily within the Department of State's operational footprint, which is global. Workforce implications include the potential for Accenture personnel to work alongside or augment State Department staff in analytical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over five years may lead to price inflexibility and potential for outdated technology.
Lack of specific bidder count in competition details limits assessment of true market pressure on pricing.
The broad 'Other Computer Related Services' NAICS code could encompass a wide range of activities, making specific performance evaluation difficult without further detail.

Positive Signals

Awarded under full and open competition, suggesting a structured procurement process.
The contract has been active for a significant period, indicating a sustained need and potentially stable service delivery.
Accenture Federal Services is a well-established contractor with a known presence in the federal IT services market.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and dynamic. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which includes a broad range of IT support and consulting. The federal government is a major consumer of these services, with significant spending allocated annually to IT modernization, data analytics, and cybersecurity. Comparable spending benchmarks for large-scale IT analytics contracts can vary widely based on scope, duration, and specific technologies employed, but this award represents a substantial investment in specialized IT capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. Furthermore, the 'sb' flag is also false, suggesting no specific small business subcontracting goals were mandated or reported in this data snippet. This means the primary contract was awarded to a large business, and opportunities for small businesses would likely be through subcontracting if initiated by Accenture Federal Services, rather than through direct set-aside awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures are usually embedded in the contract's performance work statement (PWS), including defined deliverables, service level agreements, and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Department of State IT Modernization Programs
Federal Data Analytics Initiatives
IT Consulting Services
Professional Services Contracts

Risk Flags

Extended contract duration
Lack of specific competition metrics
Broad NAICS code definition

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $116.6 million to ACCENTURE FEDERAL SERVICES LLC. ACCENTURE TO 59 - IIP ANALYTICS IGF::CF::IGF

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $116.6 million.

What is the period of performance?

Start: 2018-02-14. End: 2023-09-30.

What specific analytics capabilities does this contract provide to the Department of State?

While the data indicates the contract is for 'Other Computer Related Services' with a focus on analytics, the specific capabilities are not detailed. Typically, such contracts would support functions like data warehousing, business intelligence, predictive modeling, data visualization, and potentially the development of custom analytical tools. These capabilities likely assist the Department of State in areas such as threat assessment, operational efficiency, resource allocation, and policy impact analysis across its global operations. The broad nature of the NAICS code suggests a wide scope, potentially encompassing everything from basic IT support to advanced data science services.

How does Accenture Federal Services' past performance on similar contracts inform the value of this award?

Accenture Federal Services is a large, established contractor with extensive experience in providing IT and analytics services to various federal agencies, including the Department of State. Their past performance record, typically assessed during the procurement process, would have been a key factor in the award decision. While specific details of past performance metrics for this contract are not provided, Accenture's general track record suggests they possess the technical expertise and project management capabilities to deliver on complex analytics requirements. However, a thorough review would involve examining specific performance evaluations, any past issues, and their history of meeting cost and schedule targets on comparable government contracts.

What are the potential risks associated with a contract of this duration (over 5 years)?

Contracts extending beyond five years, like this one (2054 days duration, approximately 5.6 years), carry several risks. Firstly, technology evolves rapidly; a five-year-old technology plan might be outdated by the contract's end, leading to inefficiencies or the need for costly modifications. Secondly, price escalation can be a concern, as fixed-price components may not reflect market changes, or labor hour rates might increase beyond initial projections. Thirdly, long-term reliance on a single vendor can reduce flexibility and potentially stifle innovation if the government becomes overly dependent. Finally, maintaining consistent oversight and ensuring continued value delivery over such an extended period requires sustained effort from the contracting agency.

Can the 'full and open competition after exclusion of sources' designation provide more insight into the bidding process?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is a specific procurement method. It implies that the agency initially considered excluding certain sources but then decided to open the competition fully. This could happen if, for example, a specific technology or capability was initially thought to be available only from a few vendors, but the agency later determined a broader market existed. It suggests that while there might have been an initial narrowing of focus, the final award was made after soliciting proposals from all responsible sources. However, without knowing the number of proposals received or the specific reasons for the 'exclusion of sources' phase, it's hard to gauge the true level of competition achieved.

What is the typical market rate for 'Other Computer Related Services' of this scale?

Determining a precise 'typical market rate' for 'Other Computer Related Services' (NAICS 541519) at this scale ($116.6 million over ~5.6 years) is complex due to the wide variety of services encompassed by this code. Rates depend heavily on the specific services (e.g., basic IT support vs. advanced data science), labor categories involved (e.g., junior analyst vs. senior data scientist), geographic location, and the specific contract type (e.g., labor hours vs. fixed price). However, for large, complex IT analytics and consulting engagements with established firms like Accenture, average blended hourly rates can range significantly, often from $150 to over $300 per hour, depending on the skill mix and overhead. The total contract value suggests a substantial number of labor hours or high-value professional services were procured.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

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

Financial Breakdown

Contract Ceiling: $121,563,168

Exercised Options: $121,563,168

Current Obligation: $116,562,436

Actual Outlays: $57,541,894

Subaward Activity

Number of Subawards: 122

Total Subaward Amount: $27,004,365

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline