Treasury's $62M Tax Account Processing Contract Awarded to Accenture Federal Services
Contract Overview
Contract Amount: $62,087,190 ($62.1M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of the Treasury
Start Date: 2024-03-21
End Date: 2027-03-20
Contract Duration: 1,094 days
Daily Burn Rate: $56.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TAX ACCOUNT PROCESSING, BUSINESS TAX ACCOUNT DATA STORE AND ACCOUNT DATA SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $62.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: TAX ACCOUNT PROCESSING, BUSINESS TAX ACCOUNT DATA STORE AND ACCOUNT DATA SERVICES Key points: 1. Contract focuses on critical tax account data processing and storage. 2. Accenture Federal Services, a major IT services provider, secured the award. 3. The contract is a BPA Call under a larger agreement. 4. Spending is within the Computer Systems Design Services NAICS code.
Value Assessment
Rating: good
The award amount of $62M over 3 years appears reasonable for complex data processing and IT services. Benchmarking against similar large-scale data management contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded via Full and Open Competition, indicating a robust price discovery process. Utilizing a BPA Call suggests efficiency in leveraging existing contract vehicles.
Taxpayer Impact: Taxpayer funds are being used for essential government IT infrastructure and services, aiming for efficient tax processing.
Public Impact
Ensures continued operation of vital tax processing systems. Supports the IRS's mission to administer tax laws. Potential for improved efficiency and accuracy in tax data management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed carefully.
- Reliance on a single vendor for critical data services.
Positive Signals
- Awarded through full and open competition.
- Leverages existing BPA for potential cost savings.
Sector Analysis
This contract falls under IT services, specifically Computer Systems Design. Spending in this sector is substantial across government, with significant investments in data management and modernization.
Small Business Impact
The contract was awarded to Accenture Federal Services, a large business. There is no indication of specific small business participation in this particular award, though the underlying BPA might include such provisions.
Oversight & Accountability
The award is a BPA Call, implying oversight exists within the parent BPA. The IRS is responsible for ensuring performance and accountability for this specific task order.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns if scope creeps.
- Risk of data breaches or security vulnerabilities.
- Dependence on a single vendor for critical infrastructure.
- Ensuring long-term scalability and adaptability of services.
Tags
computer-systems-design-services, department-of-the-treasury, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $62.1 million to ACCENTURE FEDERAL SERVICES LLC. TAX ACCOUNT PROCESSING, BUSINESS TAX ACCOUNT DATA STORE AND ACCOUNT DATA SERVICES
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 $62.1 million.
What is the period of performance?
Start: 2024-03-21. End: 2027-03-20.
What is the specific scope of 'Tax Account Processing' and 'Account Data Services' to ensure alignment with IRS modernization goals?
The scope likely encompasses the management, storage, retrieval, and processing of all taxpayer account data. This includes maintaining the integrity of financial records, facilitating tax form processing, and supporting audits and inquiries. Alignment with modernization goals would involve ensuring these services support cloud migration, enhanced cybersecurity, and improved data analytics capabilities for the IRS.
How will the IRS ensure continued competition and prevent vendor lock-in with Accenture Federal Services for future iterations of these critical services?
The IRS can foster future competition by clearly defining service requirements and performance metrics, encouraging market research for alternative solutions, and potentially breaking down the services into smaller, more manageable contract vehicles. Proactive planning for contract re-competition and exploring multi-vendor strategies can mitigate vendor lock-in risks.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effective service delivery and taxpayer benefit?
Key performance indicators could include data accuracy rates, system uptime and availability, processing turnaround times for tax accounts, and cybersecurity incident response times. These KPIs would be measured through regular reporting by the contractor, independent government verification, and potentially user satisfaction surveys from IRS personnel utilizing the services.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 2032H5-24-Q-0004
Offers Received: 2
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: $167,811,545
Exercised Options: $76,761,373
Current Obligation: $62,087,190
Actual Outlays: $51,097,774
Subaward Activity
Number of Subawards: 28
Total Subaward Amount: $21,963,621
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 2032H523A00001
IDV Type: BPA
Timeline
Start Date: 2024-03-21
Current End Date: 2027-03-20
Potential End Date: 2029-03-20 18:30:57
Last Modified: 2026-03-20
More Contracts from Accenture Federal Services LLC
- - Tivod Supports the Origination, Disbursement, and Reporting of Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Direct Loans, Pell Grants, and the Teacher Education Assistance for College and Higher Education Grants. the Title IV Solution Shall Also Provide Ongoing Support for the Discontinued Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Academic Competitiveness Grants and National Science and Mathematics Access to Retain Talent Grants — $1.5B (Department of Education)
- This Task Order IS for an Enterprise-Wide Digital and Customer Care Platforms and Services Solution (enterprise-Wide Digital and Customer Care Solution, AKA Ewdccps, AKA DCC) That Will Enable an Fsa-Branded Omni-Channel Engagement Approach LED by a Mobile-First, Mobile-Complete, and Mobile-Continuous Digital Platform Supporting the Complete Lifecycle of Student Financing — $851.5M (Department of Education)
- FFM — $829.6M (Department of Health and Human Services)
- Award for Unified Enterprise Resource Planning Capability Support Services — $823.2M (Department of Defense)
- Federally Facilitated Exchange (FFE) — $787.2M (Department of Health and Human Services)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)