Department of State awards $70.3M for Integrated Logistics Management System services to Accenture Federal Services

Contract Overview

Contract Amount: $70,373,203 ($70.4M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2023-09-30

End Date: 2026-03-31

Contract Duration: 913 days

Daily Burn Rate: $77.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTEGRATED LOGISTICS MANAGEMENT SYSTEM (ILMS) SYSTEMS INTEGRATION SERVICES - POOL 14 - DIPLOMATIC SECURITY (DS)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $70.4 million to ACCENTURE FEDERAL SERVICES LLC for work described as: INTEGRATED LOGISTICS MANAGEMENT SYSTEM (ILMS) SYSTEMS INTEGRATION SERVICES - POOL 14 - DIPLOMATIC SECURITY (DS) Key points: 1. Contract awarded via a Best Acquisition Program (BAP) call, indicating a pre-competed framework. 2. The contract is for Computer Systems Design Services, a common category for IT support. 3. The duration of 913 days suggests a need for sustained system integration and support. 4. The award is a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor. 5. Accenture Federal Services is a large, established federal contractor with a significant presence. 6. The contract is not set aside for small businesses, suggesting a focus on large prime contractors.

Value Assessment

Rating: good

The contract value of $70.3 million over approximately 2.5 years for systems integration services appears reasonable given the scope. Benchmarking against similar large-scale IT system integration contracts within the federal government suggests this is within a typical range. The firm fixed-price nature of the award helps control costs, as the contractor assumes the risk for cost overruns. However, without detailed task-level breakdowns, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, likely through a pre-existing Best Acquisition Program (BAP) call. This indicates that multiple vendors had the opportunity to bid on the underlying framework, and then task orders were competed within that framework. The specific number of bidders for this particular call order is not provided, but the 'full and open' designation suggests a competitive process was intended.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of State's Diplomatic Security (DS) division, which will receive enhanced logistics management capabilities. The services delivered will focus on systems integration for the Integrated Logistics Management System (ILMS). The geographic impact is primarily within the Department of State's operational environments, supporting its global mission. Workforce implications may include the need for specialized IT and systems integration personnel, potentially both within the government and at the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single large contractor for critical IT systems could pose a risk if performance falters.
Ensuring adequate knowledge transfer and documentation to the government at contract end.

Positive Signals

Award to a large, experienced contractor like Accenture Federal Services suggests a higher likelihood of successful execution.
Firm Fixed Price contract structure incentivizes contractor efficiency and cost control.
The use of a BPA call indicates a streamlined procurement process for a pre-vetted service.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The total federal spending on IT services is in the hundreds of billions annually. This specific award for logistics management system integration is crucial for agencies like the Department of State, which manage complex global operations. Comparable contracts often involve significant investments in modernizing legacy systems and integrating disparate IT platforms to improve efficiency and data management.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'ss': false and 'sb': false flags. The award to a large prime contractor like Accenture Federal Services means that any subcontracting opportunities for small businesses would be at the discretion of the prime. While large contracts can sometimes create subcontracting avenues, there is no explicit requirement or set-aside in this award to ensure small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of State's contracting officers and program managers. The firm fixed-price nature of the award provides a degree of accountability for the contractor to deliver within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements. The specific Inspector General jurisdiction would be that of the Department of State's Office of Inspector General.

Related Government Programs

Integrated Logistics Management System (ILMS)
Department of State IT Modernization Efforts
Federal Civilian Agency IT Services
Systems Integration Contracts
Best Acquisition Program (BAP) Contracts

Risk Flags

Potential for vendor lock-in
Cybersecurity risks during integration
Complexity of integrating legacy systems

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $70.4 million to ACCENTURE FEDERAL SERVICES LLC. INTEGRATED LOGISTICS MANAGEMENT SYSTEM (ILMS) SYSTEMS INTEGRATION SERVICES - POOL 14 - DIPLOMATIC SECURITY (DS)

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 $70.4 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-03-31.

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

Accenture Federal Services is a major federal contractor with a substantial history of performance across various civilian and defense agencies, including the Department of State. They have been involved in numerous large-scale IT system integration, modernization, and support contracts. Their track record typically includes managing complex projects, often with firm-fixed-price structures. While specific performance metrics for past Department of State contracts are not detailed here, Accenture's overall federal footprint suggests they possess the resources and experience necessary for this type of work. However, like any large contractor, past performance reviews and any past issues or successes on similar contracts would be critical for a deeper assessment.

How does the $70.3 million value compare to similar ILMS or logistics IT system integration contracts?

The $70.3 million award for Integrated Logistics Management System (ILMS) systems integration services over approximately 2.5 years is a significant but not unusual figure for large-scale federal IT projects. Similar contracts for enterprise resource planning (ERP) implementation, supply chain management systems, or comprehensive IT infrastructure overhauls within large federal agencies can range from tens to hundreds of millions of dollars. The value is influenced by factors such as the complexity of the existing systems, the scope of integration required, the number of users, and the duration of the contract. Given the critical nature of logistics management for an agency like the Department of State, this investment aligns with the typical expenditure for such modernization and integration efforts.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if the scope is not well-defined (though mitigated by the FFP structure), contractor performance issues, cybersecurity vulnerabilities introduced during integration, and challenges in user adoption. The FFP contract shifts significant cost risk to Accenture Federal Services, incentivizing them to manage costs effectively. Mitigation for performance issues relies on the Department of State's contract oversight, performance metrics, and potential remedies for non-performance. Cybersecurity risks are addressed through standard government security requirements and protocols that the contractor must adhere to. User adoption challenges are typically managed through change management plans, training, and phased rollouts, which are expected components of such a systems integration project.

How effective is the Integrated Logistics Management System (ILMS) expected to be post-integration?

The effectiveness of the ILMS post-integration hinges on the successful execution of the systems integration services awarded to Accenture Federal Services. The goal of such projects is typically to enhance efficiency, improve data accuracy, streamline workflows, and provide better visibility into logistics operations. For the Department of State's Diplomatic Security (DS) division, this could translate to more reliable tracking of assets, improved inventory management, and faster processing of logistical requests, which are critical for supporting diplomatic missions globally. The success will ultimately be measured by whether the integrated system meets the defined performance requirements and user needs, leading to tangible improvements in operational effectiveness.

What are the historical spending patterns for ILMS or similar logistics IT systems at the Department of State?

Historical spending on logistics IT systems at the Department of State, and within federal agencies generally, often shows a trend of increasing investment in modernization and integration. Agencies frequently face challenges with legacy systems that are outdated, difficult to maintain, and lack interoperability. Consequently, there's a continuous need for upgrades, replacements, and integration projects to improve efficiency and security. While specific historical dollar amounts for ILMS are not provided in this data, the Department of State, like other large federal entities, dedicates substantial resources to its IT infrastructure, including logistics management, to support its complex global operations. This $70.3 million award represents a significant investment in addressing current and future logistics IT needs.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 19AQMM23Q0041

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD STE 300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $93,261,341

Exercised Options: $93,261,341

Current Obligation: $70,373,203

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $12,260,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM23A0218

IDV Type: BPA

Timeline