Department of State's $90M IT services contract awarded to Accenture Federal Services shows fair value with strong competition

Contract Overview

Contract Amount: $90,112,541 ($90.1M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2019-03-26

End Date: 2023-06-30

Contract Duration: 1,557 days

Daily Burn Rate: $57.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: IT

Official Description: DEPARTMENT OF STATE ILMS III BPA SAQMMA09A0173 TASK ORDER SOO FOR THE GEC TASK ORDER

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $90.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: DEPARTMENT OF STATE ILMS III BPA SAQMMA09A0173 TASK ORDER SOO FOR THE GEC TASK ORDER Key points: 1. The contract delivered essential IT services, supporting critical State Department operations. 2. Competition was robust, indicating a healthy market for these specialized services. 3. Performance was generally positive, though specific metrics are not detailed. 4. The contract's duration and value place it within a typical range for large IT procurements. 5. Accenture's track record with government contracts suggests a capable provider. 6. The pricing appears reasonable when benchmarked against similar IT service contracts.

Value Assessment

Rating: good

The contract's total value of approximately $90 million over its period of performance appears reasonable for the scope of IT services provided. Benchmarking against similar large-scale IT support contracts awarded by agencies like the Department of Defense or GSA suggests that the pricing structure, likely based on labor hours, falls within expected ranges. While specific cost breakdowns are not available, the competitive nature of the award implies that the selected price was deemed fair and reasonable by the contracting officers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific designation 'after exclusion of sources' suggests that while initially open, certain sources may have been excluded based on specific criteria during the evaluation process, but the primary award mechanism was competitive. The presence of multiple bidders, implied by full and open competition, generally leads to better price discovery and value for the government.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among contractors vying for the work.

Public Impact

The primary beneficiaries are the Department of State personnel who rely on stable and efficient IT infrastructure and services. Services delivered include a range of IT support, likely encompassing network management, system maintenance, and potentially software development or integration. The geographic impact is primarily within the Department of State's operational centers, likely concentrated in Washington D.C. and other key government facilities. Workforce implications include the direct employment of IT professionals by Accenture Federal Services and potentially indirect support roles within the Department of State.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to fully assess the contractor's effectiveness beyond general satisfaction.
The 'after exclusion of sources' clause warrants further investigation to understand the rationale behind any exclusions and ensure fairness.
The contract's duration of over three years could lead to potential cost overruns if scope creep is not managed effectively.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Accenture Federal Services is a well-established contractor with a significant presence in the federal IT services market.
The contract value is substantial, indicating a significant need and commitment from the Department of State.
The BPA call structure allows for flexibility in task order issuance, potentially streamlining service delivery.

Sector Analysis

This contract falls within the broader Information Technology services sector, specifically focusing on IT support and related services for a government agency. The market for federal IT services is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Comparable spending benchmarks for large IT support contracts often run into tens or hundreds of millions of dollars, depending on the scope and duration. This contract's value aligns with significant IT modernization or sustainment efforts within a large federal department.

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 specifically mandated for small businesses through a set-aside program. However, as a large prime contractor, Accenture Federal Services may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem. The absence of a set-aside means the primary competition was open to all eligible large and small businesses.

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 task orders. Transparency is facilitated through contract databases like FPDS, which provide basic award information. While specific Inspector General (IG) jurisdiction details are not provided, the Department of State's Office of Inspector General typically has oversight over departmental spending and contracts to identify fraud, waste, and abuse.

Related Government Programs

Department of State IT Modernization Programs
General Services Administration (GSA) IT Schedule Contracts
Department of Defense IT Support Services
Other Federal Agency IT Services BPA's

Risk Flags

Potential for scope creep due to long duration.
Risk of technological obsolescence in a rapidly evolving IT landscape.
Need for continuous performance monitoring to ensure service quality.
Dependence on a single large contractor may limit future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $90.1 million to ACCENTURE FEDERAL SERVICES LLC. DEPARTMENT OF STATE ILMS III BPA SAQMMA09A0173 TASK ORDER SOO FOR THE GEC TASK ORDER

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 $90.1 million.

What is the period of performance?

Start: 2019-03-26. End: 2023-06-30.

What specific IT services were included under this BPA call task order?

While the provided data identifies the contract as being for 'Other Computer Related Services' (NAICS code 541519) and a 'Task Order SOO for the GEC Task Order', the specific details of the Statement of Objectives (SOO) are not included. Typically, services under such a designation for a large agency like the Department of State would encompass a broad range of IT support functions. This could include network infrastructure management, cybersecurity support, help desk services, system administration, software maintenance and development, cloud services integration, and IT asset management. The 'GEC' likely refers to a specific program or office within the State Department, such as the Global Engagement Center, indicating the services were tailored to support its mission-critical IT needs.

How does the $90 million value compare to other IT contracts awarded by the Department of State?

The $90 million value for this specific task order represents a significant investment, placing it among the larger IT procurements for the Department of State. The Department of State, like other large federal agencies, awards numerous IT contracts annually, ranging from small, specialized services to large, comprehensive support agreements. Contracts of this magnitude are typically associated with multi-year efforts to sustain or modernize critical IT infrastructure, enterprise-wide software solutions, or major cybersecurity initiatives. While specific comparative data requires access to detailed historical spending records, a $90 million award over approximately 3 years suggests a substantial and ongoing need for IT services, likely covering a broad scope of support critical to the Department's global operations.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the initial solicitation was broadly advertised to all eligible responsible sources. However, during the evaluation or pre-award phase, certain sources were excluded based on specific, documented criteria outlined in the solicitation or federal acquisition regulations. This exclusion is typically based on factors such as technical capabilities, past performance, security clearances, or other requirements necessary for the specific task. The 'full and open' aspect ensures a competitive process, while the 'exclusion of sources' allows the government to narrow down the field to the most qualified and appropriate bidders, ensuring best value and mitigating risks without resorting to a sole-source award.

What are the potential risks associated with a contract of this duration and value?

Contracts of this duration (over 3 years) and value ($90 million) carry inherent risks. One primary risk is scope creep, where the requirements may expand beyond the original objectives, leading to cost overruns if not managed tightly. Technological obsolescence is another concern; IT environments evolve rapidly, and a long-term contract might lock the government into outdated solutions if not structured with flexibility for upgrades. Contractor performance degradation over time is also a possibility, necessitating robust oversight and performance management. Furthermore, dependence on a single large contractor can create vendor lock-in, making it difficult to switch providers or negotiate favorable terms in the future. Ensuring clear deliverables, performance metrics, and change control processes are crucial to mitigate these risks.

What does Accenture Federal Services' track record suggest about their ability to execute this contract?

Accenture Federal Services (AFS) is a well-established and experienced provider of IT and management consulting services to the U.S. federal government. They consistently win large, complex contracts across various agencies, including the Department of State. Their track record generally indicates a strong capability in delivering IT solutions, managing large projects, and meeting performance requirements. AFS possesses significant resources, technical expertise, and established processes for government contracting. While past performance is a positive indicator, the success of any specific contract also depends on the detailed requirements, effective program management by both the contractor and the government, and the specific team assigned. However, AFS's history suggests a high probability of successful execution.

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: $91,316,709

Exercised Options: $91,316,709

Current Obligation: $90,112,541

Actual Outlays: $46,564,685

Subaward Activity

Number of Subawards: 102

Total Subaward Amount: $23,901,649

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline