Treasury's IRS awards $157.7M contract for CADE 2 ITPE Development to Accenture Federal Services
Contract Overview
Contract Amount: $157,733,845 ($157.7M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of the Treasury
Start Date: 2020-12-22
End Date: 2026-06-21
Contract Duration: 2,007 days
Daily Burn Rate: $78.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: IT
Official Description: CADE 2 ITPE DEVELOPMENT
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60673
State: Illinois Government Spending
Plain-Language Summary
Department of the Treasury obligated $157.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: CADE 2 ITPE DEVELOPMENT Key points: 1. Significant investment in IT systems modernization for the IRS. 2. Accenture Federal Services, a major IT contractor, secured the award. 3. Potential for long-term IT infrastructure development and support. 4. Focus on computer systems design services indicates complex technical requirements.
Value Assessment
Rating: good
The contract value of $157.7 million over its period of performance appears reasonable for a complex IT development project of this nature. Benchmarking against similar large-scale system development contracts would provide further clarity 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, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all qualified vendors to bid.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price for the government.
Public Impact
Modernization of critical IRS IT systems to improve efficiency and taxpayer services. Potential for enhanced data processing and analysis capabilities. Impact on the efficiency and effectiveness of tax administration.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Potential for scope creep in long-term IT development projects.
- Dependency on a single contractor for critical system development.
Positive Signals
- Awarded through full and open competition.
- Significant investment in modernizing essential government IT infrastructure.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending in this area is crucial for government agencies to maintain and upgrade their technological capabilities, with benchmarks varying widely based on project complexity and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large prime contractor. There is no information on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The award is a delivery order under a larger contract, suggesting existing oversight mechanisms. However, ongoing monitoring of performance, cost, and schedule will be crucial for ensuring accountability throughout the project's lifecycle.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Long contract duration (over 5 years).
- High contract value ($157.7M).
- Complex IT development services.
- Potential for vendor lock-in.
Tags
computer-systems-design-services, department-of-the-treasury, il, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $157.7 million to ACCENTURE FEDERAL SERVICES LLC. CADE 2 ITPE DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $157.7 million.
What is the period of performance?
Start: 2020-12-22. End: 2026-06-21.
What specific improvements in IRS operations are expected from the CADE 2 ITPE Development project?
The CADE 2 ITPE Development project is expected to significantly enhance the IRS's operational efficiency by modernizing its core IT infrastructure. This includes improving data processing capabilities, streamlining tax administration processes, and potentially enabling better analytics for tax compliance and taxpayer services. The goal is to create a more robust and agile IT environment to meet evolving demands.
What are the primary risks associated with the long-term development and maintenance of this IT system?
Key risks include potential cost overruns due to the complexity and duration of IT development, the possibility of scope creep leading to increased expenses and delays, and technological obsolescence if the system is not adaptable to future advancements. There's also a risk of vendor lock-in and potential security vulnerabilities that require continuous management and mitigation strategies.
How will the success of this ITPE development be measured to ensure value for taxpayer money?
Success will be measured through a combination of performance metrics, including system uptime, processing speed, error rates, and user satisfaction. Key performance indicators (KPIs) tied to specific project milestones and deliverables will be tracked. Ultimately, the value for taxpayer money will be assessed by the extent to which the developed system improves IRS efficiency, reduces operational costs, and enhances taxpayer services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $158,128,964
Exercised Options: $158,128,964
Current Obligation: $157,733,845
Actual Outlays: $147,944,773
Subaward Activity
Number of Subawards: 90
Total Subaward Amount: $89,508,788
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0036
IDV Type: GWAC
Timeline
Start Date: 2020-12-22
Current End Date: 2026-06-21
Potential End Date: 2026-06-21 11:51:58
Last Modified: 2025-12-18
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