Treasury's $75.3M COVID-19 IT Contract Awarded to Accenture Federal Services
Contract Overview
Contract Amount: $75,320,874 ($75.3M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of the Treasury
Start Date: 2021-09-20
End Date: 2026-09-19
Contract Duration: 1,825 days
Daily Burn Rate: $41.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RRP COVID-19
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $75.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: RRP COVID-19 Key points: 1. Significant contract value of $75.3 million for IT services. 2. Accenture Federal Services secured the award through full and open competition. 3. Potential risk associated with long-term IT contracts and evolving needs. 4. IT sector spending remains high, with a focus on digital transformation and modernization.
Value Assessment
Rating: good
The contract's firm-fixed-price structure provides cost certainty. Benchmarking against similar large-scale IT service contracts is recommended to ensure optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential IT services supporting the IRS's mission.
Public Impact
Supports critical IRS operations during and after the COVID-19 pandemic. Ensures continued availability and modernization of essential IT systems. Potential for job creation within the IT services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5 years) may lead to scope creep or outdated technology.
- Reliance on a single vendor for critical IT services.
- Potential for cost overruns if requirements change significantly.
Positive Signals
- Awarded through full and open competition, indicating competitive pricing.
- Firm-fixed-price contract provides budget predictability.
- Supports a vital government agency's operational needs.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Government IT spending is substantial, driven by modernization efforts and cybersecurity needs.
Small Business Impact
The contract was awarded to Accenture Federal Services, a large business. There is no explicit indication of small business subcontracting in the provided data.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's Internal Revenue Service. Standard government oversight mechanisms should apply to ensure performance and accountability.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Long-term contract duration may lead to technological obsolescence.
- Potential for vendor lock-in with a single provider.
- Scope creep could increase costs beyond the initial award.
- Dependence on a single vendor for critical IT infrastructure.
Tags
computer-systems-design-services, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $75.3 million to ACCENTURE FEDERAL SERVICES LLC. RRP COVID-19
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 $75.3 million.
What is the period of performance?
Start: 2021-09-20. End: 2026-09-19.
What specific IT systems or services are covered under this contract, and how do they align with the IRS's long-term strategic goals?
The contract covers 'Computer Systems Design Services' (NAICS 541512). While the specific systems are not detailed, these services typically encompass design, development, implementation, and maintenance of IT infrastructure and software. Alignment with strategic goals would depend on the IRS's current modernization roadmap, focusing on areas like taxpayer data management, digital service delivery, and cybersecurity enhancements.
What are the key performance indicators (KPIs) for this contract, and how will Accenture's performance be measured to ensure value for taxpayers?
Key performance indicators are not explicitly provided in the data. However, for IT service contracts of this nature, KPIs typically include system uptime, response times for issue resolution, project completion rates, adherence to security protocols, and user satisfaction. The IRS contracting officers will monitor these metrics against established benchmarks to ensure Accenture meets its contractual obligations and delivers value.
Given the 5-year duration, what mechanisms are in place to manage potential technological obsolescence or changes in IRS requirements?
The firm-fixed-price structure, while providing cost certainty, can pose challenges with evolving technology. Mechanisms to manage this include contract modification clauses for scope changes, regular performance reviews to identify emerging needs or obsolescence, and potentially incorporating flexibility for technology refreshes within the contract's framework. The IRS will need proactive contract management to adapt.
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: 4
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, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $80,796,369
Exercised Options: $75,320,875
Current Obligation: $75,320,874
Actual Outlays: $64,996,729
Subaward Activity
Number of Subawards: 114
Total Subaward Amount: $41,733,429
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0036
IDV Type: GWAC
Timeline
Start Date: 2021-09-20
Current End Date: 2026-09-19
Potential End Date: 2026-09-19 14:45:42
Last Modified: 2025-08-18
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