Department of State's $106.5M ILMS III BPA SAQMMA09A0173 Task Order for IT Services Awarded to Accenture Federal Services

Contract Overview

Contract Amount: $106,548,513 ($106.5M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2019-06-17

End Date: 2023-09-30

Contract Duration: 1,566 days

Daily Burn Rate: $68.0K/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 OBO TASK ORDER

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $106.5 million to ACCENTURE FEDERAL SERVICES LLC for work described as: DEPARTMENT OF STATE ILMS III BPA SAQMMA09A0173 TASK ORDER SOO FOR THE OBO TASK ORDER Key points: 1. The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process. 2. The task order has a duration of 1566 days, spanning from June 2019 to September 2023. 3. The primary service category is 'Other Computer Related Services', suggesting a focus on IT support and solutions. 4. The contract type is 'Labor Hours', which can offer flexibility but requires careful monitoring of hours worked. 5. The awardee, Accenture Federal Services LLC, is a large, established IT services provider. 6. The contract value of over $106 million represents a significant investment by the Department of State in IT infrastructure or services. 7. The 'VA' status code might indicate a specific type of service or classification within the agency's procurement system.

Value Assessment

Rating: fair

Benchmarking the value of this $106.5 million contract is challenging without specific deliverables or performance metrics. However, the duration of nearly 4.5 years suggests a substantial, ongoing need for services. The 'Labor Hours' contract type can sometimes lead to higher costs if not managed tightly, as it directly compensates for time spent rather than fixed outcomes. Comparing this to similar large-scale IT service contracts within the federal government would provide better context on its cost-effectiveness.

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 implies that while the competition was open, certain sources may have been excluded based on specific criteria before the final bidding process. The number of bidders is not specified, but the 'full and open' nature suggests a robust competitive environment was intended, which typically aids in price discovery and achieving fair market value.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down prices and encouraging innovation from multiple vendors, leading to better value for the government's investment.

Public Impact

The Department of State benefits from potentially enhanced IT services, supporting its global operations and diplomatic missions. The contract likely delivers a range of IT-related services, such as system maintenance, development, integration, or support. The geographic impact is likely global, given the nature of the Department of State's work, affecting its various embassies and offices. The workforce implications could include employment opportunities within Accenture Federal Services and potentially its subcontractors, as well as impact on the Department of State's internal IT personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the 'Labor Hours' contract type if not rigorously managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the true value and effectiveness of the services rendered.
The 'exclusion of sources' clause in the competition type warrants further investigation to understand the rationale and potential impact on competition.
The significant contract value could indicate a critical reliance on the contractor, posing a risk if performance falters.

Positive Signals

Awarded through a full and open competition, suggesting a structured and fair procurement process.
Accenture Federal Services is a well-established contractor with a significant presence in the federal IT market.
The long contract duration indicates a sustained need and potentially a successful, ongoing relationship with the contractor.
The contract supports a critical government function (Department of State operations).

Sector Analysis

This contract falls within the Information Technology and Professional Services sector, specifically 'Other Computer Related Services'. The federal IT services market is vast and highly competitive, with agencies like the Department of State being major consumers. Spending in this category often includes support for legacy systems, modernization efforts, cybersecurity, and general IT operations. Comparable spending benchmarks would typically look at the average cost of similar IT support contracts across various agencies, considering factors like contract type, duration, and complexity.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as 'ss' (small business set-aside) is false and 'sb' (small business) is false. This suggests the contract was not set aside for small businesses, and the prime contractor is not a small business. Implications for subcontracting are not detailed here, but for large contracts like this, there is often an expectation or requirement for the prime contractor to engage small businesses for a portion of the work, though it wasn't explicitly mandated as a set-aside.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. The 'Labor Hours' nature necessitates close monitoring of hours billed against tasks performed. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to 'Labor Hours' contract type.
Lack of detailed performance metrics.
Rationale for 'Exclusion of Sources' requires further review.
Significant contract value implies high dependency on contractor performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $106.5 million to ACCENTURE FEDERAL SERVICES LLC. DEPARTMENT OF STATE ILMS III BPA SAQMMA09A0173 TASK ORDER SOO FOR THE OBO 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 $106.5 million.

What is the period of performance?

Start: 2019-06-17. End: 2023-09-30.

What specific IT services were delivered under this $106.5 million task order?

The provided data indicates the contract falls under NAICS code 541519, 'Other Computer Related Services,' and was awarded as a BPA Call under the ILMS III BPA. While the specific services are not detailed, this category typically encompasses a broad range of IT support, including but not limited to, IT system maintenance, network support, software development and maintenance, IT consulting, data management, and potentially cybersecurity services. Given the Department of State's global operations, these services likely supported critical infrastructure, communication systems, and information management platforms essential for diplomatic and consular functions. Further details on the Statement of Objectives (SOO) for this task order would be necessary to precisely define the services rendered.

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

A $106.5 million contract over approximately 4.5 years is a substantial award, placing it in the upper tier of IT service contracts. For the Department of State, which manages complex global operations, such investments in IT are common. However, without specific performance metrics or a detailed breakdown of services, a direct value comparison is difficult. Generally, large federal IT contracts can range from tens of millions to billions of dollars. The key is to benchmark against contracts with similar scope, duration, and service types (e.g., IT support, system integration, software development). Accenture Federal Services, as a large incumbent, likely competes for and wins numerous contracts of this magnitude across various agencies, suggesting this award is within the expected range for a contractor of its size and capability serving a major federal department.

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

The primary risk with 'Labor Hours' (LH) contracts, especially at this $106.5 million scale, is the potential for cost overruns if not managed meticulously. Unlike fixed-price contracts, LH contracts reimburse the contractor for the actual hours worked by their personnel, plus a fixed hourly rate. This means the total cost is directly tied to the effort expended. Risks include scope creep where tasks expand without formal modification, inefficient work practices by the contractor, or inaccurate estimation of labor needs. Effective oversight by the government is crucial, involving rigorous tracking of hours, validation of work performed, and comparison against established labor categories and rates to ensure fair pricing and prevent contractor inefficiency from inflating costs.

What does the 'Full and Open Competition After Exclusion of Sources' clause imply for the procurement process and potential bidders?

This clause indicates a nuanced approach to competition. 'Full and Open Competition' means that all qualified responsible sources were permitted to submit an offer. However, the addition of 'After Exclusion of Sources' suggests that prior to the open competition phase, certain potential sources were identified and excluded based on specific, documented reasons. These reasons could include factors like past performance issues, inability to meet minimum requirements, or specific agency policies. While it still aims for broad competition, the exclusion step means not every interested party had an opportunity to bid, potentially limiting the pool of offerors. The justification for exclusion must be sound to ensure the process remains fair and serves the government's best interests.

What is the track record of Accenture Federal Services LLC with the Department of State and similar large federal IT contracts?

Accenture Federal Services LLC is a major player in the federal IT contracting landscape and has a long-standing relationship with numerous government agencies, including the Department of State. They are known for handling large, complex IT projects and professional services. Their track record typically includes a mix of successful large-scale implementations, system modernizations, and ongoing support contracts. While specific performance details for every contract are not publicly available, their continued success in winning significant awards like this $106.5 million task order suggests a generally positive track record and a strong capability to meet the demanding requirements of federal clients. Agencies often rely on established contractors like Accenture for critical IT functions due to their experience and resources.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved, and where does this contract fit within that trend?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally trended upwards over the past decade, reflecting the increasing reliance of government agencies on technology for operations, data management, and service delivery. This category encompasses a wide array of IT services beyond standard software development or hardware maintenance, including IT consulting, system integration, and specialized IT support. Agencies like the Department of State consistently invest heavily in these services to maintain and upgrade their complex IT infrastructures. A $106.5 million task order for these services, awarded in 2019, fits within the pattern of significant federal investment in IT modernization and operational support, particularly for agencies with extensive global footprints and critical national security missions.

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: $109,069,212

Exercised Options: $108,192,839

Current Obligation: $106,548,513

Actual Outlays: $59,720,861

Subaward Activity

Number of Subawards: 65

Total Subaward Amount: $20,318,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline