OPM's $66.9M workforce services contract to Accenture Federal Services awarded under full and open competition

Contract Overview

Contract Amount: $66,882,788 ($66.9M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Office of Personnel Management

Start Date: 2019-09-25

End Date: 2024-10-31

Contract Duration: 1,863 days

Daily Burn Rate: $35.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: RFTOP 18-27879 TO PROVIDE WORKFORCE PLANNING, RECRUITMENT, ASSESSMENT, SELECTION, HIRING SERVICES, AND FILE MANAGEMENT. THE HIRING EFFORT THAT COULD RANGE BETWEEN 13,000 AND 50,000 VACANCIES PER YEAR, BUT NO MORE THAN 65,000 IN A FIVE YEAR PERIOD.

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60673

State: Illinois Government Spending

Plain-Language Summary

Office of Personnel Management obligated $66.9 million to ACCENTURE FEDERAL SERVICES LLC for work described as: RFTOP 18-27879 TO PROVIDE WORKFORCE PLANNING, RECRUITMENT, ASSESSMENT, SELECTION, HIRING SERVICES, AND FILE MANAGEMENT. THE HIRING EFFORT THAT COULD RANGE BETWEEN 13,000 AND 50,000 VACANCIES PER YEAR, BUT NO MORE THAN 65,000 IN A FIVE YEAR PERIOD. Key points: 1. Contract aims to support significant federal hiring needs, potentially filling up to 65,000 vacancies over five years. 2. The labor hour pricing structure allows for flexibility in service delivery based on fluctuating demand. 3. Accenture Federal Services, a large established contractor, is positioned to deliver these critical HR services. 4. The contract's duration and scope suggest a substantial, ongoing need for federal workforce support. 5. Performance will be measured against service delivery and effectiveness in recruitment and hiring processes. 6. The broad range of services includes planning, recruitment, assessment, selection, and file management.

Value Assessment

Rating: good

The contract value of $66.9 million over approximately five years for comprehensive workforce services appears reasonable given the potential scale of federal hiring needs it addresses. While specific per-unit costs for individual hires or services are not detailed here, the overall ceiling allows for significant support. Benchmarking against similar large-scale federal HR support contracts would provide further insight into value for money, but the breadth of services and potential volume suggest a competitive pricing strategy was likely employed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bids suggests a competitive process, though the exact number of bidders is not fully detailed. Full and open competition generally promotes price discovery and allows the government to select the best value offering from a wide pool of potential contractors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure efficient and cost-effective workforce solutions for critical government functions.

Public Impact

Federal agencies benefit from streamlined and efficient recruitment and hiring processes, reducing time-to-fill for critical positions. The contract supports the federal government's ability to maintain adequate staffing levels across various departments and agencies. Workforce planning and assessment services can lead to a more skilled and effective federal employee base. The geographic impact is nationwide, as federal agencies across the country can utilize these services. Potential positive implications for the federal workforce through improved hiring experiences and talent acquisition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor for critical HR functions.
Scope creep could lead to increased costs beyond initial projections if not managed carefully.
Ensuring consistent quality of service across diverse agency needs may be challenging.

Positive Signals

Award to a well-established contractor with demonstrated experience in large-scale HR services.
Full and open competition suggests a robust vetting process and potential for competitive pricing.
Contract structure allows for flexibility to meet fluctuating federal hiring demands.

Sector Analysis

This contract falls within the Human Resources Consulting Services sector, a segment of the professional services industry that supports organizations in managing their workforce. The federal government is a significant consumer of these services, particularly for large-scale recruitment, assessment, and HR management. The market for federal HR services is competitive, with numerous large and small businesses vying for contracts. This specific contract's value is substantial, reflecting the government's ongoing need for efficient and effective human capital management.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While there is no explicit mention of subcontracting requirements for small businesses, large prime contractors are often encouraged or mandated to include small businesses in their supply chain. The absence of a small business set-aside means that opportunities for direct contracting with the government were likely limited for small businesses in this specific procurement, though they may still participate as subcontractors.

Oversight & Accountability

Oversight for this contract will primarily reside with the Office of Personnel Management (OPM), the contracting agency. Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Workforce Planning
Government Recruitment Services
HR Consulting Services
Talent Acquisition
Employee Selection Services
Federal Hiring Initiatives

Risk Flags

Potential for performance issues impacting federal hiring timelines.
Risk of cost escalation due to labor-hour contract structure.
Data security and privacy concerns related to handling applicant information.
Over-reliance on a single contractor for critical HR functions.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $66.9 million to ACCENTURE FEDERAL SERVICES LLC. RFTOP 18-27879 TO PROVIDE WORKFORCE PLANNING, RECRUITMENT, ASSESSMENT, SELECTION, HIRING SERVICES, AND FILE MANAGEMENT. THE HIRING EFFORT THAT COULD RANGE BETWEEN 13,000 AND 50,000 VACANCIES PER YEAR, BUT NO MORE THAN 65,000 IN A FIVE YEAR PERIOD.

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $66.9 million.

What is the period of performance?

Start: 2019-09-25. End: 2024-10-31.

What is Accenture Federal Services' track record with similar large-scale federal HR contracts?

Accenture Federal Services has a significant history of performing large-scale IT and professional services contracts for the federal government, including those related to human capital management. They have been involved in various projects for agencies like the Department of Defense, Department of Veterans Affairs, and others, often focusing on modernization, system implementation, and process improvement. Their experience typically encompasses complex program management, large workforces, and stringent security requirements. While specific details on past workforce planning and recruitment contracts of this exact scope are not provided here, their overall profile suggests they possess the capacity and experience to manage a contract of this magnitude. Further analysis would involve reviewing their past performance evaluations and contract history for similar services.

How does the per-unit cost of this contract compare to market rates for HR consulting services?

Determining a precise per-unit cost for this contract is challenging without more granular data on the specific services delivered and their associated labor hours or outcomes. The contract uses a 'Labor Hours' (pt: LABOR HOURS) pricing structure, meaning payment is based on the time spent by personnel. To benchmark this, one would need to compare the average hourly rates billed by Accenture Federal Services under this contract against prevailing market rates for similar HR consulting roles (e.g., recruiters, HR specialists, program managers) with comparable experience levels and security clearances. Given the contract's full and open competition award, it is likely that the rates were deemed competitive at the time of award. However, ongoing monitoring of labor hours and task orders would be necessary to ensure continued value for money.

What are the primary risks associated with a contract of this size and scope for workforce services?

A contract of this size and scope presents several risks. Firstly, there's the risk of **performance failure**, where the contractor may not meet the demanding hiring targets or quality standards required by federal agencies, leading to staffing shortfalls. Secondly, **cost overruns** are a concern, especially with a labor-hour contract; inefficient work or scope creep could inflate costs beyond the estimated $66.9 million ceiling. Thirdly, **dependency risk** arises, as agencies may become overly reliant on the contractor, making it difficult to transition services if needed. Finally, **data security and privacy** are critical risks, given the sensitive personal information handled during recruitment and hiring processes. Robust oversight and clear performance metrics are essential to mitigate these risks.

How effective has OPM been in managing large-scale service contracts in the past?

The Office of Personnel Management (OPM) has a complex history with managing large-scale contracts, particularly those involving IT systems and sensitive data. Historically, OPM has faced challenges, including significant data breaches and project delays in modernization efforts. However, the agency has also successfully managed numerous service contracts essential for its mission. The effectiveness can vary significantly depending on the specific contract, the oversight mechanisms in place, and the contractor's performance. For this particular workforce services contract, the success will hinge on OPM's ability to provide diligent program management, monitor performance metrics closely, and ensure accountability from Accenture Federal Services throughout the contract's duration.

What are the historical spending patterns for federal workforce planning and recruitment services?

Federal spending on workforce planning, recruitment, and HR services has historically been substantial and tends to fluctuate with government hiring needs, agency budgets, and administration priorities. Agencies like OPM, DoD, DHS, and others regularly procure services to manage their large workforces. Spending in this category can range from tens of millions to billions of dollars annually across the entire federal government, depending on the economic climate and federal employment levels. Contracts often involve large, multi-year efforts to support ongoing recruitment, talent management, and HR system modernization. This $66.9 million contract with Accenture Federal Services represents a significant, but not unprecedented, investment within this broader category of federal HR spending.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT 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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $97,551,272

Exercised Options: $66,882,788

Current Obligation: $66,882,788

Actual Outlays: $64,098,922

Subaward Activity

Number of Subawards: 72

Total Subaward Amount: $25,875,128

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02Q16DCR0034

IDV Type: IDC

Timeline