State Department awards $94.6M task order to Accenture for IT services, extending contract to 2023

Contract Overview

Contract Amount: $94,660,150 ($94.7M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2018-09-27

End Date: 2023-09-30

Contract Duration: 1,829 days

Daily Burn Rate: $51.8K/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 47 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA16L1315.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $94.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: THIS ACTION IS FOR TASK ORDER 47 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA16L1315. Key points: 1. Contract represents a significant investment in IT support services. 2. Accenture Federal Services LLC has been a long-term provider. 3. The contract has a long duration, indicating ongoing needs. 4. Task order is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The specific services are categorized under 'Other Computer Related Services'. 6. This award follows a previous task order, suggesting continuity. 7. The contract was competed, but with exclusions, warranting further review.

Value Assessment

Rating: fair

The total award amount of $94.6 million over a period of approximately five years (September 2018 to September 2023) suggests a substantial investment in IT services. Benchmarking this against similar large-scale IT support contracts for federal agencies is challenging without more specific service details. However, the duration and value indicate a significant commitment. The pricing structure, likely based on labor hours, needs careful monitoring to ensure cost-effectiveness over the contract's life. The fact that this is a task order under a larger BPA Call suggests that some level of pre-negotiated pricing may exist, but the specific rates for this task order are not detailed here.

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 contract vehicle may have been competed broadly, this specific task order involved excluding certain potential sources. The exact reasons for exclusion are not provided, but this approach can sometimes limit the breadth of competition and potentially impact price discovery. The number of bidders for this specific task order is not specified, but the 'exclusion of sources' suggests fewer than a full and open competition.

Taxpayer Impact: The exclusion of sources means taxpayers may not have benefited from the widest possible range of competitive bids, potentially leading to higher costs than if all qualified vendors had been allowed to compete.

Public Impact

The primary beneficiary is the Department of State, receiving essential IT support services. Services delivered likely include a range of computer-related support, maintenance, and potentially development. The geographic impact is primarily within the Department of State's operational footprint, likely concentrated in Washington D.C. and other key locations. Workforce implications include the direct employment of IT professionals by Accenture Federal Services LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources may impact cost-effectiveness.
Long contract duration requires ongoing vigilance to ensure continued value.
Lack of specific service details makes granular performance assessment difficult.
Reliance on a single contractor for a significant IT function could pose risks if performance degrades.

Positive Signals

Accenture Federal Services LLC is an established contractor with a known track record.
The task order is part of a larger, potentially pre-vetted contract vehicle.
The award signifies the Department of State's continued trust in the contractor's capabilities.
The long duration suggests a stable IT support environment is being maintained.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services'. The federal IT services market is vast, with agencies consistently investing heavily in maintaining and upgrading their technological infrastructure. Comparable spending benchmarks for large federal IT support contracts can range from tens to hundreds of millions of dollars annually, depending on the scope and complexity. This contract's value of approximately $94.6 million over five years places it as a significant, but not exceptionally large, IT services award within the federal landscape.

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. However, as a large prime contract, there is potential for Accenture Federal Services LLC to engage small businesses as subcontractors, depending on their subcontracting plan and the specific needs of the task order. Without further details on subcontracting goals, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would typically fall under the Department of State's Office of Inspector General, which investigates fraud, waste, and abuse in federal programs.

Related Government Programs

Department of State IT Modernization Efforts
Federal Civilian Agency IT Services Contracts
Accenture Federal Services LLC Contract Portfolio
IDIQ Contract Vehicles for IT Support
Task Orders under BPA Calls

Risk Flags

Limited competition due to source exclusion.
Long contract duration requires ongoing performance monitoring.
Potential for cost overruns if labor rates are not managed effectively.
Dependence on a single contractor for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $94.7 million to ACCENTURE FEDERAL SERVICES LLC. THIS ACTION IS FOR TASK ORDER 47 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA16L1315.

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 $94.7 million.

What is the period of performance?

Start: 2018-09-27. End: 2023-09-30.

What is the specific nature of the 'Other Computer Related Services' provided under this task order?

The provided data categorizes the service under NAICS code 541519, 'Other Computer Related Services'. This broad category can encompass a wide range of IT support functions beyond standard software development or hardware maintenance. Examples might include IT consulting, disaster recovery services, data processing services, IT security consulting, or specialized IT project management. Without more specific details from the contract statement of work, it is difficult to pinpoint the exact services rendered. However, given the substantial value and duration, it likely involves comprehensive IT support critical to the Department of State's operations, potentially including system integration, network management, or specialized application support.

How does the $94.6 million award compare to typical IT spending by the Department of State?

The Department of State, like other large federal agencies, has a substantial IT budget to support its global operations. An award of $94.6 million over five years, averaging roughly $18.9 million per year, represents a significant but not extraordinary portion of the department's overall IT expenditure. Federal agencies often manage multiple large contracts for various IT functions, including infrastructure, cybersecurity, application development, and end-user support. To provide a precise comparison, one would need to analyze the State Department's total IT spending over the same period and identify other major IT contracts to understand how this specific task order fits within the broader portfolio and strategic IT investments.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

This type of competition, while intended to be open, introduces specific risks. The 'exclusion of sources' means that not all potentially capable vendors were allowed to bid on this specific task order. This could be due to pre-qualification requirements, specific technical needs, or other factors defined by the agency. The primary risk is that by limiting the pool of bidders, the government may not achieve the most competitive pricing possible. It could also limit innovation if excluded vendors had unique solutions. Furthermore, if the exclusion criteria are not well-justified or transparent, it could raise concerns about fairness and potentially lead to protests. Agencies must carefully document the rationale for excluding sources to mitigate these risks.

What is Accenture Federal Services LLC's track record with the Department of State and similar agencies?

Accenture Federal Services LLC is a major government contractor with a significant presence across various federal agencies, including the Department of State. They have a history of performing large-scale IT services, consulting, and digital transformation projects. Their track record with the Department of State likely includes previous task orders under this or similar contract vehicles, indicating a sustained relationship. While specific performance metrics for this task order are not detailed here, Accenture's overall reputation in the federal IT space is generally that of a capable, albeit sometimes costly, provider. Agencies typically conduct performance reviews and utilize past performance information during source selection, suggesting that Accenture's history was deemed acceptable for this award.

How does the contract duration of 1829 days (approx. 5 years) impact the value proposition?

A contract duration of approximately five years offers both potential benefits and risks regarding value. On the positive side, a longer duration can provide stability and predictability for both the agency and the contractor, allowing for better planning and potentially fostering a deeper understanding of the agency's needs. This can lead to more efficient service delivery and reduced transition costs. However, a long duration also carries risks. Technology evolves rapidly, and a five-year contract might lock the agency into solutions that become outdated. It also requires robust oversight to ensure that pricing remains competitive and performance does not degrade over time. The agency must have mechanisms to re-evaluate needs and potentially renegotiate terms or seek new solutions towards the end of the period to ensure continued value.

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: $108,553,808

Exercised Options: $108,553,808

Current Obligation: $94,660,150

Actual Outlays: $46,665,830

Subaward Activity

Number of Subawards: 111

Total Subaward Amount: $24,641,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline