DOE's $401.7M IT ODC contract to Accenture Federal Services shows strong competition and potential for value
Contract Overview
Contract Amount: $401,745,414 ($401.7M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Energy
Start Date: 2020-05-01
End Date: 2024-04-30
Contract Duration: 1,460 days
Daily Burn Rate: $275.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: BPA TASK ORDER ISSUED UNDER MASTER BPA 89303019AIM000005 FOR IT ODC PURCHASES SUPPORT SERVICES AND MATERIAL DELIVERY AND TRANSPORT FOR THE U.S. DEPARTMENT OF ENERGY (DOE) OFFICE OF CHIEF INFORMATION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $401.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: BPA TASK ORDER ISSUED UNDER MASTER BPA 89303019AIM000005 FOR IT ODC PURCHASES SUPPORT SERVICES AND MATERIAL DELIVERY AND TRANSPORT FOR THE U.S. DEPARTMENT OF ENERGY (DOE) OFFICE OF CHIEF INFORMATION Key points: 1. This contract represents a significant investment in IT support services for the Department of Energy. 2. The use of a Blanket Purchase Agreement (BPA) task order suggests a streamlined procurement process for ongoing needs. 3. Accenture Federal Services, a large established contractor, is well-positioned to deliver these complex services. 4. The 'Time and Materials' contract type carries inherent risk of cost overruns if not closely managed. 5. The contract's duration of 1460 days (4 years) indicates a long-term need for these IT services. 6. The 'Full and Open Competition' indicates a robust bidding process, likely driving competitive pricing.
Value Assessment
Rating: good
The total award amount of $401.7 million over four years for IT ODC purchases support services and material delivery is substantial. Benchmarking this against similar large-scale IT support contracts within federal agencies is challenging without more granular data on the specific services provided. However, the full and open competition suggests that pricing was likely vetted against multiple bidders, which generally promotes value for money. The 'Time and Materials' pricing structure, while flexible, requires diligent oversight to ensure costs remain aligned with the value delivered and do not escalate beyond reasonable market rates for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation implies a competitive environment. A full and open competition is generally the most effective method for ensuring fair market prices and encouraging a wide range of solutions, as it allows the government to select the best value offering from a broad pool of qualified contractors.
Taxpayer Impact: Taxpayers benefit from a full and open competition through the likelihood of receiving competitive pricing and a wider array of innovative solutions. This process helps ensure that federal funds are used efficiently by driving down costs and improving service quality.
Public Impact
The primary beneficiaries are the various offices within the U.S. Department of Energy, which will receive enhanced IT support services. Services include IT ODC purchases support, material delivery, and transportation, crucial for the department's operational efficiency. The geographic impact is primarily within the District of Columbia, where the Department of Energy's headquarters are located. This contract supports a significant IT services workforce, likely involving skilled professionals in project management, procurement, and technical support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Time and Materials' contract type can lead to cost overruns if not managed with strict oversight and clear performance metrics.
- Lack of specific details on the number of bidders in the 'full and open competition' makes it difficult to fully assess the intensity of price discovery.
- The large dollar value of the contract necessitates robust performance monitoring to ensure continued value for taxpayer money.
- Potential for scope creep exists with 'Time and Materials' contracts, requiring proactive management by the agency.
Positive Signals
- Awarded under a 'Full and Open Competition,' indicating a competitive bidding process that should yield favorable pricing.
- The contract is issued under a Master BPA, suggesting a pre-vetted and established procurement vehicle, potentially leading to faster delivery and reduced administrative burden.
- Accenture Federal Services is a large, experienced contractor with a significant presence in the federal IT services market.
- The contract duration of four years provides stability and allows for long-term planning and relationship building between the agency and the contractor.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on IT procurement, support, and logistics. The federal IT services market is vast and highly competitive, with agencies increasingly relying on contractors for specialized expertise and efficient service delivery. Comparable spending benchmarks would involve analyzing other large IT support and procurement contracts awarded to major federal IT service providers across various agencies. The market size for federal IT services is in the tens of billions of dollars annually, with significant portions dedicated to system design, integration, and operational support.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The large scale of the contract and the nature of the services (complex IT ODC purchases support) suggest that prime contracting opportunities for small businesses might be limited. However, Accenture Federal Services, as a large prime contractor, may be required to engage small businesses for subcontracting opportunities to meet federal small business utilization goals. The impact on the small business ecosystem would depend on the extent to which subcontracting plans are implemented and monitored.
Oversight & Accountability
Oversight for this contract would primarily reside with the U.S. Department of Energy's contracting officers and program managers. Given the significant dollar value, robust oversight mechanisms are expected, including regular performance reviews, audits, and adherence to the terms of the BPA and task order. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.
Related Government Programs
- IT Support Services
- IT Procurement
- Blanket Purchase Agreements (BPAs)
- Department of Energy IT Modernization Efforts
- Federal IT Services Contracts
- Logistics and Material Delivery Services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Need for robust oversight to manage scope and ensure value.
- Limited transparency on the number of bidders in the competition.
- Geographic concentration risk (DC).
Tags
it-services, department-of-energy, dc, full-and-open-competition, large-contract, time-and-materials, bpa-task-order, procurement-support, it-support, accenture-federal-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $401.7 million to ACCENTURE FEDERAL SERVICES LLC. BPA TASK ORDER ISSUED UNDER MASTER BPA 89303019AIM000005 FOR IT ODC PURCHASES SUPPORT SERVICES AND MATERIAL DELIVERY AND TRANSPORT FOR THE U.S. DEPARTMENT OF ENERGY (DOE) OFFICE OF CHIEF INFORMATION
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 $401.7 million.
What is the period of performance?
Start: 2020-05-01. End: 2024-04-30.
What is the specific breakdown of services provided under this BPA Task Order, and how do they align with the Department of Energy's strategic IT objectives?
The provided data indicates the contract is for 'IT ODC Purchases Support Services and Material Delivery and Transport.' This suggests a broad scope encompassing the acquisition of IT-related goods and services (ODC - Other Direct Costs), the logistical handling and delivery of materials, and transportation services. To fully align with DOE's strategic IT objectives, a detailed analysis of the task order's statement of work would be necessary. This would reveal how these support functions contribute to broader goals such as IT modernization, cybersecurity enhancement, data management, or cloud migration initiatives within the department. Without the specific SOW, it's presumed these services are foundational to enabling the department's IT infrastructure and operations.
How does the 'Time and Materials' pricing structure compare to other IT support contracts of similar scope within the federal government, and what are the associated risks?
Time and Materials (T&M) contracts are common for IT services where the scope of work is not clearly defined at the outset or is expected to evolve. Compared to fixed-price contracts, T&M offers flexibility but carries a higher risk of cost escalation for the government if not managed diligently. Agencies using T&M must implement stringent oversight, including labor hour tracking, approval of work, and potentially establishing ceiling prices. For a contract of this magnitude ($401.7M), the risk is significant. Competitors offering fixed-price or cost-plus-fixed-fee structures might present a lower risk profile for budget certainty, but potentially less adaptability. The value proposition of T&M here hinges on Accenture's ability to efficiently manage resources and the DOE's robust oversight to control costs.
What is Accenture Federal Services' track record with large-scale IT support and procurement contracts for federal agencies, particularly within the Department of Energy?
Accenture Federal Services (AFS) is a major player in the federal IT services market, consistently awarded large contracts across various civilian and defense agencies. Their track record includes extensive experience in IT modernization, cloud migration, cybersecurity, and large-scale system integration. AFS has historically held significant contracts with the Department of Energy, often related to IT infrastructure, financial systems, and program management support. While specific performance metrics for this particular BPA task order are not detailed here, AFS's general reputation is that of a capable, albeit expensive, contractor. Evaluating their performance on this contract would require examining past performance reviews, any contract disputes, and their ability to meet key performance indicators (KPIs) outlined in the contract.
Given the 'Full and Open Competition,' how many bids were received, and what does this number imply about the competitiveness of the IT services market for the Department of Energy?
The data indicates 'Full and Open Competition' but does not specify the number of bids received. A full and open competition means all responsible sources were allowed to compete, which is the preferred method for maximizing competition. The number of bids is crucial for assessing true market competitiveness. If numerous bids were received (e.g., 5+), it strongly suggests a healthy, competitive market for these IT services, likely driving down prices and fostering innovation. Conversely, if only a few bids were submitted (e.g., 2-3), it might indicate market concentration, specialized requirements that limit bidders, or potential barriers to entry. For a contract of this size and scope, a robust number of bidders would be expected and is beneficial for taxpayer value.
What are the potential risks associated with the geographic concentration (District of Columbia) for this contract, and are there opportunities for distributed workforces?
The primary geographic indicator is 'DC' (District of Columbia), suggesting the core operations or client interface for this contract are centered there. Risks associated with geographic concentration can include higher labor costs due to the cost of living in the DC metro area, potential disruptions from local events or infrastructure issues, and a limited local talent pool for highly specialized roles. However, for IT support services, especially those involving ODC purchases and logistics, a central hub might be efficient. Modern IT workforces often allow for distributed or remote work. It's plausible that while the contract is managed or headquartered in DC, the actual service delivery could leverage a distributed workforce, mitigating some geographic risks and potentially accessing a wider talent pool at varying cost structures.
How has historical spending on similar IT ODC support services by the Department of Energy trended over the past 5-10 years, and does this contract represent an increase or decrease?
Analyzing historical spending trends for IT ODC support services at the Department of Energy requires access to historical procurement data (e.g., FPDS). Without that specific data, it's difficult to definitively state if this $401.7M contract represents an increase or decrease. However, federal IT spending has generally been on an upward trend, driven by modernization needs, cybersecurity imperatives, and the increasing digitization of government operations. If DOE's IT needs have grown or shifted towards more outsourced support and procurement services, this contract could reflect that trend. Conversely, if the department has focused on insourcing or consolidating IT functions, it might represent a shift in strategy. A comparative analysis of prior years' spending on similar service categories would be needed for a precise assessment.
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
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: $660,000,000
Exercised Options: $528,000,000
Current Obligation: $401,745,414
Actual Outlays: $325,248,165
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303019AIM000005
IDV Type: BPA
Timeline
Start Date: 2020-05-01
Current End Date: 2024-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-08-14
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