DOE awards $39.8M IT network support contract to Accenture Federal Services

Contract Overview

Contract Amount: $39,826,045 ($39.8M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Energy

Start Date: 2020-09-03

End Date: 2025-07-14

Contract Duration: 1,775 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: AWARD OF FOLLOW-ON CONTRACT TO SUPPORT THE EIA IT NETWORK, NETWORK OPERATIONS CENTER, AND SECURITY OPERATIONS CENTER. CONTRACT WILL BE A TIME AND MATERIALS CONTRACT DIRECTS AT THE DOE OCIO CBOSS CONTRACTING VEHICLE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585

State: District of Columbia Government Spending

Plain-Language Summary

Department of Energy obligated $39.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: AWARD OF FOLLOW-ON CONTRACT TO SUPPORT THE EIA IT NETWORK, NETWORK OPERATIONS CENTER, AND SECURITY OPERATIONS CENTER. CONTRACT WILL BE A TIME AND MATERIALS CONTRACT DIRECTS AT THE DOE OCIO CBOSS CONTRACTING VEHICLE. Key points: 1. Contract awarded via a BPA Call, indicating a pre-competed framework. 2. Focus on IT network operations and security, critical for agency functions. 3. Time and Materials contract type may pose cost control challenges. 4. Follow-on nature suggests established performance and relationship. 5. Competition level indicates a fair market approach for this service. 6. Geographic concentration in DC may reflect agency presence.

Value Assessment

Rating: good

The award of $39.8 million for IT network support appears reasonable given the duration and scope. While specific cost breakdowns are not provided, the contract's follow-on nature and use of a BPA Call suggest some level of pre-negotiated rates or competitive pricing from the initial award. Benchmarking against similar IT network operations and security contracts would provide a more definitive value assessment, but the price point seems aligned with the complexity of supporting an agency's core IT infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, utilizing a Blanket Purchase Agreement (BPA) Call. This implies that the underlying BPA was competed, and this specific call likely involved a competitive process among pre-qualified vendors. The full and open competition suggests a broad market solicitation, allowing multiple qualified contractors to bid, which generally promotes competitive pricing and innovation.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential IT services, preventing potential overpricing associated with less competitive solicitations.

Public Impact

The Department of Energy's OCIO benefits from continuous IT network, NOC, and SOC support. Ensures reliable operation and security of critical agency IT infrastructure. Services are primarily delivered within the District of Columbia. Supports the federal IT workforce through the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The IT network operations and security services provided are essential for government agencies to maintain their digital infrastructure. Spending in this area is consistently high across federal agencies, with numerous large and small businesses competing for these types of contracts. The value of this contract is moderate within the context of large-scale federal IT support.

Small Business Impact

The contract was not set aside for small businesses and was awarded to Accenture Federal Services, a large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary focus was on securing the required IT services from a large, capable provider, with potential limited direct impact on the small business IT ecosystem unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Energy's Office of the Chief Information Officer (OCIO) and its contracting officers. As a Time and Materials contract, rigorous monitoring of labor hours and material costs is crucial. Transparency is facilitated through federal procurement databases, but detailed performance reports and cost justifications are internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

it-services, network-operations, security-operations, department-of-energy, accenture-federal-services, time-and-materials, full-and-open-competition, bpa-call, district-of-columbia, computer-systems-design-services, follow-on-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $39.8 million to ACCENTURE FEDERAL SERVICES LLC. AWARD OF FOLLOW-ON CONTRACT TO SUPPORT THE EIA IT NETWORK, NETWORK OPERATIONS CENTER, AND SECURITY OPERATIONS CENTER. CONTRACT WILL BE A TIME AND MATERIALS CONTRACT DIRECTS AT THE DOE OCIO CBOSS CONTRACTING VEHICLE.

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $39.8 million.

What is the period of performance?

Start: 2020-09-03. End: 2025-07-14.

What is the historical spending pattern for IT network and security support at the Department of Energy?

Historical spending data for IT network and security support at the Department of Energy (DOE) reveals a consistent and significant investment in maintaining its digital infrastructure. While specific figures for this exact contract's predecessors are not detailed here, the DOE, like most federal agencies, allocates substantial resources annually to IT operations, cybersecurity, and network management. This often involves a mix of large, multi-year contracts for core services and smaller, task-specific awards. The follow-on nature of this Accenture contract suggests a sustained need and potentially a history of satisfactory performance, indicating that similar levels of funding have likely been allocated to these functions over previous fiscal years. Analyzing broader DOE IT spending trends would show a significant portion dedicated to operational support and security, reflecting the critical nature of these services for the agency's mission.

How does the Time and Materials (T&M) contract type impact cost control for this IT support service?

The Time and Materials (T&M) contract type for this IT support service presents inherent challenges for cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure offers flexibility, particularly for services where the scope or duration is uncertain, such as IT support that may encounter unforeseen issues. However, it places a greater burden on the government to meticulously monitor and manage the contractor's effort. Without stringent oversight, including detailed tracking of hours, validation of tasks performed, and review of material costs, T&M contracts can lead to cost overruns. The Department of Energy's OCIO must implement robust controls, including clear ceilings and regular performance reviews, to ensure value and prevent excessive spending.

What is Accenture Federal Services' track record with the Department of Energy and similar IT contracts?

Accenture Federal Services (AFS) has a significant track record supporting various federal agencies, including the Department of Energy, across a wide range of IT services. Their experience often encompasses large-scale IT modernization, network management, cybersecurity, and business systems integration. Given that this is a follow-on contract, AFS likely has prior experience supporting the DOE's IT network, NOC, and SOC functions, potentially under the same or a related contracting vehicle. Their broader federal portfolio includes numerous contracts for similar IT support services, indicating a capacity to handle complex requirements. A review of past performance evaluations and contract awards would provide more specific insights into their performance history with the DOE and the success of previous engagements.

What are the key performance indicators (KPIs) typically used to measure the success of IT network and security operations contracts?

Key Performance Indicators (KPIs) for IT network and security operations contracts typically focus on availability, performance, security, and response times. For network operations, common KPIs include network uptime percentage, latency, bandwidth utilization, and mean time to repair (MTTR) for outages. For security operations, metrics often involve the number of security incidents detected and resolved, time to detect threats, vulnerability remediation rates, and compliance with security policies. Response times for service requests and incident escalations are also critical. The success of this contract hinges on Accenture Federal Services meeting or exceeding established benchmarks for these KPIs, ensuring the DOE's IT infrastructure remains operational, secure, and responsive to user needs.

How does the use of a BPA Call impact the overall cost-effectiveness compared to a standalone contract?

The use of a Blanket Purchase Agreement (BPA) Call, as seen in this award, generally enhances cost-effectiveness compared to initiating a standalone contract for similar services. BPAs are established after a full and open competition to streamline the procurement of recurring or anticipated needs. This pre-competition phase allows for negotiation of favorable pricing, terms, and conditions upfront. When a specific need arises, agencies can issue a BPA Call, which is essentially a task order against the established BPA. This process significantly reduces administrative burden and procurement lead times. For taxpayers, this translates to potentially lower overall costs due to negotiated volume discounts and reduced acquisition expenses associated with each individual call, while still ensuring a competitive process for the underlying BPA.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

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: $45,872,681

Exercised Options: $44,329,196

Current Obligation: $39,826,045

Actual Outlays: $32,248,169

Subaward Activity

Number of Subawards: 88

Total Subaward Amount: $13,785,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 89303019AIM000005

IDV Type: BPA

Timeline

Start Date: 2020-09-03

Current End Date: 2025-07-14

Potential End Date: 2025-07-14 00:00:00

Last Modified: 2025-05-13

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