Accenture Federal Services awarded $75.1M contract for computer systems design services by SEC

Contract Overview

Contract Amount: $75,113,232 ($75.1M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2019-08-23

End Date: 2025-03-19

Contract Duration: 2,035 days

Daily Burn Rate: $36.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EDW 2.0

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $75.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: EDW 2.0 Key points: 1. Contract value of $75.1M over approximately 2 years suggests a significant investment in IT infrastructure. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 4. The duration of the contract (2035 end date) is unusually long for a delivery order, raising questions about scope management. 5. The contract is for computer systems design services, a critical area for government IT operations. 6. The award to a single contractor, Accenture Federal Services, warrants scrutiny of performance and pricing. 7. The contract's geographic focus is Washington D.C., aligning with the SEC's primary operational base.

Value Assessment

Rating: fair

The contract value of $75.1M for computer systems design services over approximately two years appears substantial. Benchmarking against similar contracts for IT systems design and integration services within federal agencies is necessary for a precise value assessment. Given the fixed-price nature, the government aims for cost predictability, but the actual value realized depends heavily on the contractor's efficiency and the scope of services delivered. Without specific performance metrics or comparison data, it's difficult to definitively assess value-for-money, but the scale suggests a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 11 bids indicates a healthy level of competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions. The fact that it was competed openly suggests the agency sought the best possible offer in terms of price and technical merit.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures the government receives competitive offers, maximizing the use of public funds.

Public Impact

The Securities and Exchange Commission (SEC) benefits from enhanced computer systems design and support, crucial for its regulatory and enforcement functions. Services delivered likely include the development, integration, and maintenance of complex IT systems essential for financial market oversight. The primary geographic impact is within Washington D.C., where the SEC's headquarters are located. The contract supports IT professionals and potentially other roles within Accenture Federal Services, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extended contract end date of March 2025 for a delivery order raises concerns about potential scope creep or long-term, undefined requirements.
The fixed-price contract type, while offering cost certainty, could lead to disputes if the scope of work changes significantly.
Reliance on a single contractor for a substantial IT services contract necessitates robust performance monitoring to ensure quality and prevent vendor lock-in.

Positive Signals

Awarded under full and open competition with 11 bidders suggests a competitive process that likely yielded a favorable outcome for the government.
The fixed-price contract type provides budget predictability for the SEC, simplifying financial planning.
The contract focuses on computer systems design services, a core IT function critical for the agency's mission.

Sector Analysis

The IT services sector within the federal government is vast, encompassing a wide range of needs from software development to cybersecurity. Computer systems design services, as specified in this contract (NAICS 541512), are a fundamental component of this sector. Federal spending on IT services consistently ranks among the largest categories of government procurement. This contract fits within the broader trend of agencies outsourcing complex IT functions to specialized contractors to leverage expertise and manage costs. Comparable spending benchmarks would typically look at the average contract value for similar IT design services awarded by agencies of the SEC's size and mission.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting requirements for small businesses mandated by this specific award. The primary contractor, Accenture Federal Services, is a large business. While large prime contractors often engage small businesses as subcontractors on broader IT initiatives, this particular contract's structure doesn't inherently guarantee small business participation. The impact on the small business ecosystem would depend on Accenture's subcontracting strategy, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Securities and Exchange Commission's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving any modifications. Transparency is facilitated through contract databases like FPDS-NG (where this data originates). Accountability measures are inherent in the fixed-price contract type, which ties payment to deliverables. The Inspector General of the SEC would have jurisdiction to investigate potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Systems Modernization
Enterprise Resource Planning (ERP) Systems
Cloud Computing Services
Cybersecurity Services
Data Analytics Platforms

Risk Flags

Potential for scope creep due to fixed-price nature and duration.
Risk of contractor underperformance if pricing is too aggressive.
Need for robust contract management to ensure quality and adherence to requirements.
Long duration may lead to technology obsolescence or changing requirements.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $75.1 million to ACCENTURE FEDERAL SERVICES LLC. EDW 2.0

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $75.1 million.

What is the period of performance?

Start: 2019-08-23. End: 2025-03-19.

What is Accenture Federal Services' track record with the SEC and other federal agencies for similar IT services contracts?

Accenture Federal Services has a significant history of contracting with various U.S. federal agencies, including the Securities and Exchange Commission (SEC). Their portfolio typically includes large-scale IT modernization, systems integration, cloud migration, and digital transformation services. For the SEC specifically, their past awards often relate to enhancing regulatory systems, data management, and internal IT infrastructure. A detailed review of their performance history with the SEC and across other agencies would involve examining past contract performance reports (e.g., CPARS), on-time delivery rates, and any documented issues or successes. Generally, Accenture is considered a major player in the federal IT contracting space, known for handling complex, high-value projects. However, like any large contractor, their performance can vary across different contracts and agencies, necessitating specific due diligence for each engagement.

How does the $75.1M contract value compare to other federal computer systems design services contracts awarded in recent years?

The $75.1 million contract value for computer systems design services is substantial, placing it in the mid-to-high range for individual federal IT service awards. While the federal government procures hundreds of billions in IT services annually, the average value of a single contract can vary widely based on scope, duration, and agency. Contracts for enterprise-wide system design, development, and integration, especially for complex regulatory bodies like the SEC, often reach tens or even hundreds of millions of dollars. For instance, contracts for major system overhauls, cloud migrations, or the development of new mission-critical platforms frequently fall within this bracket. Smaller, more focused IT support or specific software development tasks would typically be valued much lower. Therefore, $75.1M is a significant but not extraordinary figure for a comprehensive computer systems design effort within a large federal agency.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how is performance being monitored?

While the specific KPIs for this contract are not detailed in the provided data, typical performance metrics for computer systems design services include factors such as on-time delivery of milestones, adherence to budget (especially relevant for fixed-price contracts where scope is managed), quality of deliverables (e.g., system functionality, bug rates, performance benchmarks), user satisfaction, and successful integration with existing systems. Performance monitoring is usually conducted by the SEC's Contracting Officer's Representative (COR) or designated technical points of contact. They would review regular progress reports submitted by Accenture Federal Services, conduct site visits or system testing, and hold periodic review meetings. Contractually, performance is often formally assessed through Contractor Performance Assessment Reporting System (CPARS) evaluations, which provide a standardized way to document contractor performance.

Given the 'FULL AND OPEN COMPETITION' award type and 11 bidders, what does this imply about the pricing competitiveness and potential for innovation?

The fact that this contract was awarded under 'FULL AND OPEN COMPETITION' with 11 bidders strongly suggests a competitive pricing environment. A larger number of bidders typically intensifies competition, driving down prices as companies vie for the award. This scenario increases the likelihood that the SEC secured a fair market price for the computer systems design services. Furthermore, a competitive bidding process often encourages bidders to propose innovative solutions and approaches to differentiate themselves. Companies are motivated to showcase not only cost-effectiveness but also technical ingenuity and superior methodologies to win the contract. Therefore, the high level of competition indicates that the SEC likely benefited from both competitive pricing and potentially innovative technical proposals.

What is the historical spending pattern for computer systems design services at the SEC, and how does this $75.1M award fit within that trend?

Analyzing the SEC's historical spending on computer systems design services (NAICS 541512) would reveal trends in their IT investment priorities and contractor relationships. Typically, agencies like the SEC require ongoing investments in IT to maintain and upgrade systems that support critical regulatory functions, data analysis, and enforcement activities. Spending patterns can fluctuate based on major system modernization initiatives, new regulatory requirements, or shifts in technology. A $75.1 million award over approximately two years represents a significant, but potentially justifiable, investment if it aligns with a strategic IT modernization plan or addresses a critical need. To understand its place in the trend, one would compare this award's value and duration to previous contracts for similar services awarded by the SEC. If the SEC has historically awarded similar large-sum contracts for system design, this award fits within that pattern. Conversely, if it represents a substantial increase, it might signal a new strategic focus or a response to emerging challenges.

What are the potential risks associated with a fixed-price contract of this magnitude and duration for IT services?

Fixed-price contracts, while offering cost certainty, carry inherent risks, especially for complex IT services over an extended period. One primary risk is scope creep: if the requirements evolve beyond the initial SOW, managing changes under a fixed price can lead to disputes, delays, or the contractor cutting corners on quality to maintain profitability. Another risk is that the initial price might not accurately reflect the true cost or complexity, potentially leading to the contractor underperforming or seeking change orders. For the government, the risk is paying for a service that doesn't fully meet evolving needs or is delivered with compromised quality if the contractor struggles to meet the fixed price. The duration (ending March 2025) also means that market conditions, technology, and agency needs could change significantly, making the fixed scope potentially outdated by the end of the term.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 50310219Q0040

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 NORTH GLEBE RD #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: $75,113,232

Exercised Options: $75,113,232

Current Obligation: $75,113,232

Actual Outlays: $75,113,232

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $18,334,212

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 50310218D0026

IDV Type: IDC

Timeline