Accenture Federal Services awarded $117M contract for IT and facts support services by the Department of State

Contract Overview

Contract Amount: $117,184,168 ($117.2M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2019-02-13

End Date: 2023-09-30

Contract Duration: 1,690 days

Daily Burn Rate: $69.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: IT

Official Description: S/GAC AND FACTS SUPPORT SERVICES IGF::CF::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $117.2 million to ACCENTURE FEDERAL SERVICES LLC for work described as: S/GAC AND FACTS SUPPORT SERVICES IGF::CF::IGF Key points: 1. Contract awarded through a Best Practices Acquisition (BPA) Call, indicating a pre-competed framework. 2. The contract spans over 1690 days, suggesting a long-term need for these services. 3. The North American Industry Classification System (NAICS) code 541519 points to a broad range of IT and computer-related services. 4. The contract type is 'Labor Hours', which can offer flexibility but requires careful monitoring of hours and rates. 5. The award was made under 'Full and Open Competition After Exclusion of Sources', suggesting a specific justification for limiting initial bidders. 6. The contractor, Accenture Federal Services, is a large, established entity in the federal contracting space. 7. The contract was awarded to the 'Virginia' region, potentially indicating a concentration of work or personnel there.

Value Assessment

Rating: fair

The contract value of $117 million over approximately 4.6 years suggests a significant investment by the Department of State. Benchmarking this against similar IT and support services contracts is challenging without more specific service details. However, the 'Labor Hours' contract type can sometimes lead to higher costs if not managed diligently, as it directly ties cost to time spent rather than fixed deliverables. The absence of a specific task order value or breakdown makes a precise value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This specific procurement method implies that while the competition was intended to be open, certain sources were excluded, possibly due to pre-qualification or specific requirements of the BPA. The number of bidders is not specified, but the exclusion of sources suggests a potentially narrower competitive field than a truly 'full and open' competition. This could impact price discovery and potentially lead to less aggressive bidding.

Taxpayer Impact: The limited competition, even if justified, may mean taxpayers did not benefit from the lowest possible price achievable through the widest possible bidding pool.

Public Impact

The Department of State benefits from IT and facts support services essential for its operations. The contract likely supports various departmental functions, including data management, analysis, and technological infrastructure. The geographic impact is primarily within the Department of State's operational areas, potentially concentrated in Virginia. The workforce implications include employment opportunities for IT professionals and support staff, both within the contractor and potentially within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Labor Hours' contract type requires robust oversight to prevent cost overruns and ensure efficient service delivery.
The 'Full and Open Competition After Exclusion of Sources' method warrants scrutiny to ensure fair opportunity and prevent undue restrictions on competition.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the quality and effectiveness of services rendered.
The long duration of the contract (1690 days) could lead to vendor lock-in if not managed with regular performance reviews and potential re-competition.

Positive Signals

The award to a large, experienced contractor like Accenture Federal Services suggests a level of confidence in their capability to deliver complex services.
Utilizing a Best Practices Acquisition (BPA) Call indicates that the underlying framework was likely pre-competed, potentially streamlining the award process.
The Department of State is procuring essential IT and support services, indicating a commitment to maintaining operational effectiveness.
The contract's duration suggests a stable, ongoing requirement, which can foster a strong working relationship and specialized expertise.

Sector Analysis

This contract falls within the broader Information Technology and Professional Services sector, a significant area of federal spending. The NAICS code 541519 covers a wide array of IT services, from custom software development to IT consulting and support. The federal IT market is highly competitive, with numerous large and small businesses vying for contracts. This specific contract's value places it in the mid-to-large tier for IT services within the federal government. Comparable spending benchmarks would typically look at the average cost per hour for similar IT support roles across various agencies and contract types.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Accenture Federal Services is a large business. There is no information provided regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, unless subcontracting opportunities were mandated and fulfilled by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a 'Labor Hours' contract, diligent monitoring of hours, rates, and deliverables against the Statement of Work is crucial. Transparency is dependent on the agency's reporting practices and public availability of contract performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian IT Services Contracts
IT Support Services
Professional Services Contracts
Best Practices Acquisition (BPA) Call Contracts

Risk Flags

Potential for cost overruns due to 'Labor Hours' pricing.
Risk of reduced price competition from 'Exclusion of Sources'.
Need for strong oversight due to long contract duration.
Potential for service obsolescence over the contract's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $117.2 million to ACCENTURE FEDERAL SERVICES LLC. S/GAC AND FACTS SUPPORT SERVICES 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 $117.2 million.

What is the period of performance?

Start: 2019-02-13. End: 2023-09-30.

What specific IT and facts support services are being provided under this contract?

The provided data indicates the contract is for 'S/GAC AND FACTS SUPPORT SERVICES' under NAICS code 541519 (Other Computer Related Services). However, the specific nature of these services is not detailed. Typically, 'Facts Support Services' could encompass data analysis, research, information gathering, and reporting. The 'IT' component suggests services related to maintaining, developing, or supporting the Department of State's information technology infrastructure, systems, or applications. Without access to the contract's Statement of Work (SOW) or task orders, it is impossible to ascertain the precise deliverables, such as network management, cybersecurity support, software development, database administration, or specialized analytical support for intelligence or diplomatic functions.

How does the $117 million contract value compare to similar IT support contracts at the Department of State?

Comparing the $117 million value requires context regarding the duration and scope of services. This contract spans approximately 4.6 years (1690 days). To benchmark effectively, one would need to analyze the average annual spending on IT and facts support services by the Department of State over recent fiscal years. Additionally, examining the average value of individual task orders issued under similar BPA calls or indefinite-delivery/indefinite-quantity (IDIQ) vehicles would be informative. Given the 'Labor Hours' pricing structure, the total cost is highly dependent on the number of hours worked and the negotiated hourly rates. A preliminary assessment suggests this is a substantial contract, reflecting a significant commitment to these services, but its relative value can only be determined by comparing it to the agency's overall IT budget and spending patterns on comparable services.

What are the potential risks associated with a 'Labor Hours' contract of this magnitude and duration?

A primary risk with 'Labor Hours' contracts is the potential for cost overruns, as the final price is not fixed and depends on the actual hours expended. This necessitates rigorous oversight and monitoring by the government to ensure efficient use of labor and prevent scope creep. The long duration (1690 days) increases the risk of the contracted services becoming outdated or misaligned with evolving technological needs or agency priorities. There's also a risk of vendor lock-in, where the contractor develops deep institutional knowledge, making it difficult for the agency to transition to a new provider. Furthermore, ensuring fair and reasonable labor rates requires continuous benchmarking against market data and other government contracts. Without strong performance management and clear deliverables tied to labor effort, the value for money can be compromised.

What does 'Full and Open Competition After Exclusion of Sources' imply for the bidding process and taxpayer value?

This procurement method suggests that while the competition was intended to be open, specific criteria or circumstances led to the exclusion of certain potential bidders. This could be due to requirements related to a pre-existing Best Practices Acquisition (BPA) framework, specific security clearances, or unique technical capabilities. While it aims to ensure qualified vendors participate, excluding sources inherently narrows the competitive pool compared to a truly unrestricted 'full and open' competition. This reduction in competition could potentially lead to higher prices for taxpayers, as fewer vendors are vying for the contract. The justification for excluding sources needs to be robust to ensure that the government is still achieving the best possible value and that the exclusion does not unduly restrict market access for capable small businesses or other qualified large businesses.

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

Accenture Federal Services is a major federal contractor with a significant presence across numerous government agencies, including the Department of State. Their track record generally involves providing a wide range of IT, consulting, and professional services. For the Department of State specifically, Accenture has held various contracts related to IT modernization, system integration, and business process support. While this specific $117 million contract is a notable award, it aligns with Accenture's established capabilities and past performance in supporting large federal agencies. A deeper dive into contract databases like FPDS-NG would reveal the specific types, values, and performance ratings of their previous engagements with the Department of State to provide a more granular assessment of their suitability and past success.

How does the use of a BPA Call impact the overall cost-effectiveness of this contract?

Best Practices Acquisition (BPA) Calls are typically used to streamline the procurement process for commonly purchased goods or services. The underlying BPA contract itself is usually awarded after a competitive process, establishing pre-negotiated terms, conditions, and potentially pricing structures. When a BPA Call is issued, it allows agencies to quickly solicit quotes or place orders against the established BPA. This can lead to cost savings through reduced administrative burden and faster acquisition cycles. However, the cost-effectiveness of the specific BPA Call depends on the competitiveness of the original BPA competition and whether the rates negotiated within the BPA remain competitive in the current market. For this $117 million contract, the BPA Call mechanism likely facilitated a more efficient award, but the ultimate cost-effectiveness hinges on the negotiated labor rates and the efficient execution of the services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $160,569,072

Exercised Options: $135,809,878

Current Obligation: $117,184,168

Actual Outlays: $63,382,248

Subaward Activity

Number of Subawards: 97

Total Subaward Amount: $90,855,139

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline