State Department's Accenture contract for IT services exceeds $168M, with Task Order 51 being the latest modification

Contract Overview

Contract Amount: $168,744,890 ($168.7M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2018-09-25

End Date: 2023-09-30

Contract Duration: 1,831 days

Daily Burn Rate: $92.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THIS ACTION IS FOR TASK ORDER 51 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA15L2220

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $168.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: THIS ACTION IS FOR TASK ORDER 51 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA15L2220 Key points: 1. This contract represents a significant investment in IT services for the Department of State. 2. The duration of the contract, spanning from 2018 to 2023, indicates a long-term need for these services. 3. The contract type, 'Full and Open Competition After Exclusion of Sources,' suggests a competitive process but with specific parameters. 4. The value of this specific action, Task Order 51, adds to the cumulative spending under the parent contract. 5. Accenture Federal Services LLC is the incumbent contractor, suggesting a focus on established relationships and performance history. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of 'Other Computer Related Services'.

Value Assessment

Rating: fair

The total value of this action is over $168 million, which is substantial for IT services. Without specific benchmarks for 'Other Computer Related Services' under Task Orders, a direct value-for-money assessment is challenging. However, the extended duration and the nature of task orders suggest ongoing needs that the agency deems necessary to fulfill through this contract. Further analysis would require comparing the specific services rendered under Task Order 51 against market rates for similar IT support and consulting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial competition was broad, specific sources may have been excluded for subsequent task orders or modifications. The exact number of bidders for the original contract or for Task Order 51 is not detailed here, but the 'exclusion of sources' suggests a potentially narrowed competitive field at some stage. This could impact price discovery if fewer vendors were able to participate.

Taxpayer Impact: The limited competition, due to the exclusion of certain sources, may have resulted in less downward pressure on pricing compared to a truly full and open competition. Taxpayers may have paid a premium if the excluded sources could have offered more competitive bids.

Public Impact

The Department of State benefits from continuous IT support and services necessary for its global operations. This contract likely supports a wide array of IT functions, including but not limited to, system maintenance, software development, and technical consulting. The geographic impact is likely global, given the nature of the Department of State's mission. The workforce implications could include direct employment by Accenture Federal Services LLC and potential indirect impacts on government IT personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type warrants further investigation to understand the rationale and potential impact on cost.
The substantial value of the contract raises questions about the efficiency and cost-effectiveness of the services provided over its multi-year duration.
Lack of detailed service descriptions for Task Order 51 makes it difficult to benchmark performance and value.

Positive Signals

The contract has been in place since 2018, suggesting a sustained need and likely satisfactory performance to warrant continued funding.
Accenture Federal Services LLC is a well-established contractor in the federal IT space, implying a level of expertise and reliability.
The Department of State's reliance on this contract indicates its critical role in supporting agency operations.

Sector Analysis

The IT services sector for government contracts is highly competitive and diverse. This contract falls under 'Other Computer Related Services,' a broad category encompassing a wide range of IT support, consulting, and development. The total value of this action, exceeding $168 million, places it as a significant contract within the federal IT landscape. Comparable spending benchmarks would typically involve analyzing IT service contracts awarded by other large federal agencies for similar scope and duration, which often run into hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, Accenture Federal Services LLC, is a large business. While large businesses are encouraged to subcontract with small businesses, the extent to which this occurs under this specific contract is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Transparency is generally facilitated through contract award databases like FPDS-NG (Federal Procurement Data System - Next Generation), where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Services Contracts
Accenture Federal Services Contracts
Large-Scale IT Support Services
Task Order Contracts

Risk Flags

Potential for vendor lock-in due to long-term single-contractor reliance.
Risk of reduced price competition over the contract's lifecycle.
Dependency on contractor's performance for critical IT functions.
Lack of detailed service scope for Task Order 51 hinders full assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $168.7 million to ACCENTURE FEDERAL SERVICES LLC. THIS ACTION IS FOR TASK ORDER 51 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA15L2220

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 $168.7 million.

What is the period of performance?

Start: 2018-09-25. End: 2023-09-30.

What specific IT services are covered under Task Order 51, and how do they align with the Department of State's strategic IT goals?

Task Order 51 is a modification to an existing contract (SAQMMA09A0173) for Accenture Federal Services LLC, valued at over $168 million. The provided data categorizes the services under NAICS code 541519, 'Other Computer Related Services.' This broad classification suggests a range of IT support, consulting, and potentially development activities. Without specific details on Task Order 51, it's difficult to pinpoint its exact alignment with strategic goals. However, given the Department of State's global mission, these services likely support critical infrastructure, cybersecurity, data management, and application development necessary for diplomatic and operational functions. A deeper dive into the Statement of Work for Task Order 51 would be required to ascertain precise alignment with strategic IT objectives.

How does the pricing structure of this contract compare to industry benchmarks for similar IT services?

The provided data does not include specific pricing details (e.g., labor rates, fixed-price components) for Task Order 51, making a direct comparison to industry benchmarks challenging. The contract type is 'LABOR HOURS,' indicating payment based on time and materials. To assess pricing, one would need to compare the hourly rates for various labor categories (e.g., project managers, software engineers, IT specialists) against government-wide IT services schedules (like GSA MAS) or commercial IT service provider rates for comparable skill sets and experience levels. The total value of $168 million suggests significant resource allocation, and a thorough benchmark would involve analyzing the efficiency and cost-effectiveness of these labor hours relative to the services delivered and market expectations.

What are the key performance indicators (KPIs) used to evaluate Accenture Federal Services LLC's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or performance metrics established for this contract. Typically, large IT service contracts include detailed performance standards related to service availability, response times, issue resolution rates, project milestones, and customer satisfaction. These KPIs are crucial for ensuring the contractor meets the Department of State's requirements and for justifying continued funding. Without access to the contract's Performance Work Statement (PWS) or Service Level Agreements (SLAs), a detailed assessment of performance evaluation is not possible. However, the contract's duration (2018-2023) suggests that performance has likely met or exceeded minimum requirements to warrant its continuation.

What is the historical spending trend for this contract and related IT services at the Department of State?

The provided data indicates that this specific action (Task Order 51) is part of a larger contract (SAQMMA09A0173) initiated on 2018-09-25 with an end date of 2023-09-30, spanning 1831 days. The total value of this action is $168,744,890.16. While this data point represents a significant portion of the contract's value, it doesn't provide the full historical spending trend for the entire contract duration or for related IT services at the Department of State. To understand the trend, one would need to examine the cumulative obligations against the contract over its lifespan and compare it to previous or concurrent IT service contracts awarded by the Department of State. This would reveal patterns of investment in IT modernization, support, and modernization efforts.

What are the potential risks associated with relying on a single contractor, Accenture Federal Services LLC, for such a substantial IT services contract?

Relying on a single contractor, Accenture Federal Services LLC, for a substantial IT services contract like this presents several potential risks. Firstly, there's a risk of vendor lock-in, where the agency becomes heavily dependent on the contractor's proprietary systems or processes, making it difficult and costly to switch providers. Secondly, reduced competition can lead to complacency and potentially higher costs over time, as the contractor may face less pressure to innovate or offer the most competitive pricing. Thirdly, if the contractor experiences financial instability, staffing shortages, or significant performance issues, it could severely disrupt the Department of State's IT operations. The 'exclusion of sources' noted in the contract type further emphasizes a potentially narrowed competitive landscape, exacerbating these risks.

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: $168,814,193

Exercised Options: $168,814,193

Current Obligation: $168,744,890

Actual Outlays: $69,633,032

Subaward Activity

Number of Subawards: 159

Total Subaward Amount: $48,402,976

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline