State Department's $65.7M Accenture contract for IT services shows long-term engagement and potential for cost efficiencies

Contract Overview

Contract Amount: $65,681,463 ($65.7M)

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: $35.9K/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 60 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA15L2244.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $65.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: THIS ACTION IS FOR TASK ORDER 60 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA15L2244. Key points: 1. The contract represents a significant, long-term investment in IT services, indicating a sustained need for Accenture's capabilities. 2. Task Order 60 signifies ongoing project evolution and adaptation within the existing contract framework. 3. The 'Other Computer Related Services' NAICS code suggests a broad scope of IT support, potentially encompassing software, hardware, and consulting. 4. A duration of 1829 days points to a substantial project lifecycle, requiring careful performance monitoring. 5. The contract's value, while large, needs to be assessed against the specific deliverables and outcomes achieved. 6. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, though with specific source exclusions. 7. The BPA CALL award type suggests this task order was placed against an existing Blanket Purchase Agreement, potentially streamlining procurement.

Value Assessment

Rating: fair

The total award amount of $65.7 million over approximately five years suggests a substantial investment in IT services. Benchmarking this against similar large-scale IT support contracts for federal agencies is crucial. Without specific performance metrics or detailed breakdowns of services rendered, it's difficult to definitively assess value for money. However, the long duration and multiple task orders imply a consistent need and potentially a negotiated rate that could offer some cost advantage over time, provided performance is satisfactory.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was broadly open, certain sources were excluded from consideration. The specific reasons for these exclusions would be critical to understanding the true level of competition. A full and open competition generally aims to maximize bidder participation and drive competitive pricing, but exclusions can limit this effect.

Taxpayer Impact: The competitive nature, even with exclusions, suggests an effort to secure fair market pricing for taxpayers. However, the impact on taxpayer value depends heavily on the scope and necessity of the source exclusions.

Public Impact

The Department of State benefits from sustained IT support, crucial for its global operations and data management. This contract likely supports a wide range of IT functions, including system maintenance, software development, and technical consulting. The geographic impact is likely global, given the State Department's international presence, affecting personnel and operations worldwide. Workforce implications may include direct employment by Accenture Federal Services and potential indirect impacts on government IT personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature and specific task orders.
The exclusion of certain sources in the competition process warrants further investigation into fairness and market impact.
Performance metrics and service level agreements need rigorous oversight to ensure value for money.
The broad 'Other Computer Related Services' category could mask inefficiencies if not clearly defined and managed.

Positive Signals

The long-term engagement suggests a stable and reliable IT support provider for critical government functions.
The award against an existing BPA CALL may indicate efficient procurement processes.
The substantial investment implies a commitment to modernizing and maintaining the State Department's IT infrastructure.

Sector Analysis

The IT services sector for the federal government is highly competitive and diverse, encompassing a wide range of capabilities from software development to cybersecurity and cloud computing. The Department of State, like many large federal agencies, relies heavily on IT contractors to maintain and upgrade its complex systems. Spending in this sector often reflects the government's increasing digitization efforts and the need for specialized expertise. Comparable spending benchmarks would typically look at the total IT spending of agencies of similar size and mission.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct small business set-aside implications. However, the prime contractor, Accenture Federal Services LLC, may engage small businesses as subcontractors. The extent of subcontracting to small businesses would be a key factor in assessing the contract's broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. The task order structure allows for specific oversight of individual project components. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Services Contracts
Accenture Federal Services Contract Portfolio
Blanket Purchase Agreements (BPAs) for IT Services
Other Computer Related Services (NAICS 541519) Spending

Risk Flags

Potential for scope creep given the broad service category and long duration.
Need for ongoing performance monitoring to ensure value for money.
Exclusion of sources in competition warrants scrutiny.
Dependence on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $65.7 million to ACCENTURE FEDERAL SERVICES LLC. THIS ACTION IS FOR TASK ORDER 60 ON THE ACCENTURE CONTRACT SAQMMA09A0173 REPLACING - SAQMMA15L2244.

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 $65.7 million.

What is the period of performance?

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

What specific IT services are covered under Task Order 60, and how do they align with the Department of State's strategic IT goals?

Task Order 60, valued at approximately $65.7 million, is a continuation or modification of services under the larger Accenture contract SAQMMA09A0173. The NAICS code 541519, 'Other Computer Related Services,' suggests a broad scope that could include IT consulting, systems integration, custom software development, IT support, and potentially cloud services. To understand its alignment with strategic goals, one would need to examine the specific Statement of Work (SOW) for Task Order 60. This SOW would detail the precise services required, deliverables, and performance metrics. Federal agencies typically issue such task orders to address evolving IT needs, modernize legacy systems, implement new technologies, or provide ongoing operational support. Without the SOW, it's presumed that these services are critical for the Department of State's mission-essential functions, such as managing diplomatic communications, securing sensitive data, or supporting global operations.

How does the total contract value of $65.7 million compare to similar IT service contracts awarded by the Department of State or other large federal agencies?

The $65.7 million award over a period of roughly five years (from September 2018 to September 2023) places this contract in the mid-to-large tier for federal IT service procurements. For context, large federal agencies like the Department of Defense, Health and Human Services, and Homeland Security often award IT contracts ranging from tens of millions to billions of dollars annually. Contracts for broad IT support, systems integration, and modernization can easily reach these figures. To provide a precise comparison, one would need to benchmark against contracts with similar NAICS codes (e.g., 541512, 541513, 541519) and similar scope (e.g., comprehensive IT support, software development, cloud migration) awarded within the same timeframe. Factors like contract duration, specific services, and competition level significantly influence pricing, making direct comparisons challenging without detailed service breakdowns.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how has Accenture performed against them?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for Task Order 60 are not publicly detailed in the provided award data. Typically, for IT service contracts of this magnitude, KPIs and SLAs would focus on areas such as system uptime, response times for technical support, project completion rates, software defect resolution times, and data security compliance. Performance against these metrics is usually tracked through regular reporting by the contractor and oversight by the government's Contracting Officer's Representative (COR). The Department of State would have mechanisms in place to monitor Accenture's performance, potentially including periodic reviews, performance evaluations, and audits. Consistent positive performance would be a prerequisite for continued task orders and contract renewals. A lack of transparency regarding specific KPIs and performance outcomes makes a definitive assessment of Accenture's track record on this specific task order difficult.

Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type, what does this imply about the competitive landscape and potential impact on pricing?

The award type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the solicitation was initially intended for broad competition, but specific sources were subsequently excluded from participating. This suggests a complex procurement process where perhaps only certain vendors met highly specific technical requirements, or there were other justifications for exclusion. While 'full and open' competition generally aims to maximize bidder numbers and drive down prices through market forces, the exclusion of sources can limit this effect. The impact on pricing depends heavily on the number and type of excluded sources; if key competitors were excluded, the remaining competition might be less robust, potentially leading to higher prices than a truly unrestricted full and open competition. Conversely, if exclusions were based on legitimate, well-documented reasons (e.g., security clearances, unique capabilities), the remaining competition might still yield fair market value.

What is Accenture Federal Services' track record with the Department of State and other federal agencies for similar IT service contracts?

Accenture Federal Services (AFS) is a major contractor across the federal government, holding numerous prime contracts with various agencies, including the Department of State. AFS has a significant history of providing a wide array of IT services, encompassing IT modernization, cloud migration, cybersecurity, data analytics, and business process re-engineering. Their track record with the Department of State likely includes support for critical systems and infrastructure. Generally, AFS is considered a large, experienced IT service provider capable of handling complex, large-scale federal IT projects. Performance reviews and contract histories available through sources like the Federal Procurement Data System (FPDS) would offer more granular insights into their past performance, including any past performance issues or commendations on specific contracts. Their continued success in winning large federal contracts suggests a generally positive performance history, though specific contract outcomes can vary.

What are the potential risks associated with a long-term IT services contract like this, and what mitigation strategies are typically employed?

Long-term IT services contracts, such as this five-year engagement, carry several potential risks. These include scope creep, where project requirements expand beyond the original agreement, leading to cost overruns; vendor lock-in, making it difficult and costly to switch providers; technological obsolescence, where the contracted services or technologies become outdated; and performance degradation over time if oversight weakens. Mitigation strategies typically involve robust contract management, including clearly defined SOWs, rigorous change control processes, regular performance reviews against KPIs/SLAs, and maintaining open communication channels between the government and the contractor. Agencies also often build in options for contract termination for convenience or default, and may conduct market research periodically to ensure continued competitive pricing and access to evolving technologies. Strong government oversight and active program management are key to mitigating 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: $65,868,253

Exercised Options: $65,733,253

Current Obligation: $65,681,463

Actual Outlays: $28,827,980

Subaward Activity

Number of Subawards: 61

Total Subaward Amount: $15,905,416

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline