State Dept Awards $76.3M BPA Call to Accenture for IT Services, Extending Existing Contract
Contract Overview
Contract Amount: $76,331,848 ($76.3M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of State
Start Date: 2025-06-01
End Date: 2027-05-31
Contract Duration: 729 days
Daily Burn Rate: $104.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ESTABLISH NEW CONSOLIDATION CALL ORDER UNDER ILMS ACCENTURE BPA 19AQMM23A0218 OF POOLS 1 THROUGH 8.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520
Plain-Language Summary
Department of State obligated $76.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: ESTABLISH NEW CONSOLIDATION CALL ORDER UNDER ILMS ACCENTURE BPA 19AQMM23A0218 OF POOLS 1 THROUGH 8. Key points: 1. Accenture Federal Services LLC secured a significant contract extension for IT services. 2. The award falls under an existing Blanket Purchase Agreement (BPA), indicating a continuation of services. 3. The contract value of $76.3M over 729 days suggests substantial IT support requirements. 4. The primary service category is Computer Systems Design Services, a critical area for government operations.
Value Assessment
Rating: good
The contract value of $76.3M over two years appears reasonable for comprehensive IT design and support services, especially given it's an extension of an existing BPA. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a full and open competition BPA call. This method generally promotes competitive pricing and ensures the government receives best value by allowing all eligible vendors to bid.
Taxpayer Impact: The use of a competitive BPA call likely ensures taxpayer funds are used efficiently for essential IT services.
Public Impact
Ensures continuity of critical IT systems and support for the Department of State. Supports the ongoing modernization and maintenance of government computer systems. Provides essential services that underpin diplomatic and operational functions. The large contract value indicates a significant investment in IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if future needs are heavily tied to Accenture's specific solutions.
- Reliance on a single vendor for a broad range of IT services could pose risks.
- The duration of the contract may not align with rapidly evolving technology needs.
Positive Signals
- Leverages an existing BPA, suggesting established processes and potential cost efficiencies.
- Awarded under full and open competition, promoting market-driven pricing.
- Provides continuity for essential IT services, minimizing disruption.
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design Services. Government spending in this area is consistently high due to the critical need for robust and secure IT infrastructure to support operations and data management.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is Accenture Federal Services LLC, a large corporation. There is no explicit mention of small business participation or subcontracting goals in the provided data.
Oversight & Accountability
The contract is managed by the Department of State. Oversight would typically involve contract officers, program managers, and potentially inspectors general to ensure performance, adherence to terms, and proper use of funds.
Related Government Programs
- Computer Systems Design Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Contract duration may outpace rapid technological advancements.
- Potential for vendor lock-in with a large incumbent provider.
- Lack of explicit small business participation noted.
- Reliance on a single vendor for a broad suite of IT services.
Tags
computer-systems-design-services, department-of-state, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $76.3 million to ACCENTURE FEDERAL SERVICES LLC. ESTABLISH NEW CONSOLIDATION CALL ORDER UNDER ILMS ACCENTURE BPA 19AQMM23A0218 OF POOLS 1 THROUGH 8.
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 $76.3 million.
What is the period of performance?
Start: 2025-06-01. End: 2027-05-31.
What specific IT systems and services are covered under this BPA call, and how do they align with the Department of State's strategic IT modernization goals?
The BPA call covers pools 1 through 8 under an existing Accenture BPA, implying a broad scope of Computer Systems Design Services. While the exact systems are not detailed, such contracts typically encompass IT infrastructure management, software development, cybersecurity, and technical support. Alignment with modernization goals would depend on the specific tasks outlined in the call order, which are not provided here. Further review of the BPA and call order documentation is needed.
Given the significant contract value, what are the primary risks associated with relying on Accenture for these critical IT services over the next two years?
Key risks include potential vendor lock-in, where the government becomes overly dependent on Accenture's proprietary solutions, making future transitions difficult and costly. Performance issues or service disruptions could significantly impact State Department operations. Furthermore, a lack of ongoing competitive pressure during the contract term might lead to less innovation or less favorable pricing adjustments over time.
How does the pricing structure of this BPA call compare to industry benchmarks for similar Computer Systems Design Services, and does the firm fixed price mitigate cost overruns?
The provided data does not include detailed pricing breakdowns to perform a direct industry benchmark comparison. However, the 'firm fixed price' (FFP) contract type is designed to mitigate cost overrun risks for the government, as the contractor assumes responsibility for cost increases. The overall value of $76.3M over two years suggests a substantial but potentially competitive rate, especially given the full and open competition.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
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: $151,409,242
Exercised Options: $76,931,523
Current Obligation: $76,331,848
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $6,298,692
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 19AQMM23A0218
IDV Type: BPA
Timeline
Start Date: 2025-06-01
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2026-03-31
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