DHS Awards $156M Sole Source Contract to Accenture for HR Consulting

Contract Overview

Contract Amount: $156,456,613 ($156.5M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-03-01

End Date: 2023-11-30

Contract Duration: 639 days

Daily Burn Rate: $244.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOLE SOURCE CONTRACT AWARD RESULTING FROM RFP 70T01022R7663N001 RECRUITMENT AND HIRING BRIDGE CONTRACT.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $156.5 million to ACCENTURE FEDERAL SERVICES LLC for work described as: SOLE SOURCE CONTRACT AWARD RESULTING FROM RFP 70T01022R7663N001 RECRUITMENT AND HIRING BRIDGE CONTRACT. Key points: 1. Significant contract value of $156.5M for HR consulting services. 2. Sole source award indicates limited competition, potentially impacting price discovery. 3. Contract duration of 639 days suggests a substantial, ongoing need. 4. Focus on recruitment and hiring bridge services highlights a critical operational area for TSA.

Value Assessment

Rating: questionable

The contract's firm-fixed-price structure is standard, but the lack of competition makes a direct pricing assessment difficult. Benchmarking against similar sole-source HR consulting contracts would be necessary to evaluate value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This approach can lead to higher prices and reduced innovation compared to a fully competed contract.

Taxpayer Impact: The sole-source nature of this award raises concerns about whether taxpayers received the best possible value for the $156.5 million spent.

Public Impact

Impacts TSA's ability to recruit and hire personnel, crucial for national security and travel facilitation. Potential for increased costs to taxpayers due to the lack of competitive bidding. Highlights reliance on a single contractor for critical human resources functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole source award
Lack of competition
High contract value

Positive Signals

Firm fixed price contract type

Sector Analysis

This contract falls under Human Resources Consulting Services (NAICS 541612), a common area for government outsourcing. Spending benchmarks for this sector vary widely based on scope and duration, but large sole-source awards warrant scrutiny.

Small Business Impact

The awardee, Accenture Federal Services LLC, is a large business. There is no indication that small businesses were involved in this specific sole-source award, potentially missing opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the contractor is meeting all performance requirements and that costs are reasonable, despite the absence of a competitive process.

Related Government Programs

Human Resources Consulting Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Sole source award
Lack of competition
Potential for inflated pricing
Limited small business participation
High contract value

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $156.5 million to ACCENTURE FEDERAL SERVICES LLC. SOLE SOURCE CONTRACT AWARD RESULTING FROM RFP 70T01022R7663N001 RECRUITMENT AND HIRING BRIDGE CONTRACT.

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $156.5 million.

What is the period of performance?

Start: 2022-03-01. End: 2023-11-30.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves specific circumstances, such as the urgency of the requirement, the unique capabilities of the contractor, or the lack of other responsible sources. Agencies must document these justifications thoroughly. Without this documentation, it's difficult to assess if competitive strategies were adequately explored or if this was the most appropriate procurement method.

How does the pricing of this sole-source contract compare to industry benchmarks for similar HR consulting services, especially considering the lack of competition?

Assessing the pricing of a sole-source contract against industry benchmarks is challenging due to the absence of competitive bids. While the firm-fixed-price structure provides cost certainty, the lack of competition may have led to a higher price than could have been achieved through a competitive process. A detailed cost analysis and comparison with similar government or commercial contracts would be needed to determine if the price is fair and reasonable.

What are the key performance indicators (KPIs) for this contract, and how is Accenture's performance being measured to ensure effective service delivery?

Effective oversight of this sole-source contract requires clearly defined Key Performance Indicators (KPIs) tied to recruitment and hiring success rates, turnaround times, and candidate quality. Regular performance reviews and data analysis are crucial to ensure Accenture is meeting its contractual obligations and delivering value. Transparency in reporting these KPIs is essential for accountability and demonstrating the effectiveness of the services.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $173,888,152

Exercised Options: $165,879,215

Current Obligation: $156,456,613

Actual Outlays: $130,266,058

Subaward Activity

Number of Subawards: 160

Total Subaward Amount: $88,428,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline