DOE's $38M HR IT Modernization contract awarded to Accenture Federal Services for Computer Systems Design
Contract Overview
Contract Amount: $38,106,739 ($38.1M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Energy
Start Date: 2023-09-29
End Date: 2026-09-29
Contract Duration: 1,096 days
Daily Burn Rate: $34.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: HUMAN RESOURCE INFORMATION TECHNOLOGY MODERNIZATION
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $38.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: HUMAN RESOURCE INFORMATION TECHNOLOGY MODERNIZATION Key points: 1. Contract aims to modernize human resources information technology systems. 2. Accenture Federal Services, a large established contractor, secured this award. 3. The contract duration is approximately 3 years, indicating a medium-term project. 4. This award falls under the 'Computer Systems Design Services' NAICS code. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. No small business set-aside was utilized for this procurement.
Value Assessment
Rating: fair
Benchmarking the value of this $38.1 million contract for HR IT modernization is challenging without specific performance metrics or comparable contract data. The Time and Materials pricing structure, while flexible, carries inherent risks for cost overruns if not meticulously managed. Comparing it to similar large-scale IT modernization efforts within federal agencies would provide better context on whether the pricing is competitive for the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting a robust bidding process. The specific number of bidders is not provided, but this approach generally fosters competitive pricing and allows any qualified vendor to participate. The open competition is a positive indicator for price discovery and ensuring the government receives offers from a wide range of capable providers.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and encourages a broad pool of vendors to offer their best solutions, potentially leading to cost savings.
Public Impact
Federal employees will benefit from modernized HR systems, potentially improving efficiency and user experience. The services delivered will focus on the design and implementation of IT systems for human resources. The geographic impact is primarily within the Department of Energy's operational footprint. Workforce implications may include the need for specialized IT skills for implementation and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type increases risk of cost overruns if not closely monitored.
- Lack of specific performance metrics makes it difficult to assess value for money upfront.
- Limited information on the number of bidders in the full and open competition.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Contract aims to modernize critical HR IT infrastructure, potentially improving government efficiency.
- Accenture Federal Services is an experienced contractor in the federal IT space.
Sector Analysis
The federal IT services market is vast, with significant spending on system modernization and design. This contract for Computer Systems Design Services falls within a segment focused on improving internal government operations. Comparable spending benchmarks for similar HR IT modernization projects across agencies would provide a clearer picture of market rates and value.
Small Business Impact
This contract was not set aside for small businesses, nor is there an indication of specific subcontracting goals for small businesses. This means opportunities for small businesses to participate in this specific award are limited unless they are part of a larger bid or subcontracting effort initiated by the prime contractor.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the Department of Energy's contracting officers and program managers. Accountability measures would be tied to contract deliverables and performance standards. Transparency is generally facilitated through contract award databases, though detailed performance data may be less accessible.
Related Government Programs
- Human Resources Information Technology Modernization
- Computer Systems Design Services
- Department of Energy IT Modernization Initiatives
Risk Flags
- Cost Overrun Risk (Time and Materials)
- Scope Creep Potential
- Performance Measurement Clarity
Tags
it-services, computer-systems-design, human-resources, modernization, department-of-energy, full-and-open-competition, time-and-materials, large-contract, accidents-federal-services, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $38.1 million to ACCENTURE FEDERAL SERVICES LLC. HUMAN RESOURCE INFORMATION TECHNOLOGY MODERNIZATION
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 $38.1 million.
What is the period of performance?
Start: 2023-09-29. End: 2026-09-29.
What is Accenture Federal Services' track record with similar large-scale IT modernization contracts within the federal government?
Accenture Federal Services has a substantial track record with large federal IT contracts, including modernization efforts across various agencies. They have been involved in significant system implementations and upgrades, often focusing on areas like financial management, human resources, and enterprise resource planning. Their experience typically spans the full lifecycle of IT projects, from initial design and development to deployment and ongoing support. However, the specific success metrics and cost-effectiveness of past projects can vary, and a detailed review of their performance on comparable contracts would be necessary to fully assess their capability for this specific Department of Energy requirement.
How does the $38.1 million value compare to similar HR IT modernization contracts awarded by other federal agencies?
Comparing the $38.1 million value requires access to a database of similar HR IT modernization contracts across the federal government, including their scope, duration, and specific deliverables. Without such a benchmark, it's difficult to definitively state if this contract represents excellent, fair, or concerning value. Generally, large-scale IT modernization projects for critical functions like HR can range widely in cost depending on the complexity of existing systems, the desired end-state functionality, and the number of users impacted. A comprehensive analysis would involve identifying comparable contracts, normalizing for factors like inflation and contract type, and then assessing the cost per user or per module modernized.
What are the primary risks associated with a Time and Materials (T&M) contract for IT modernization, and how are they mitigated?
The primary risk with a Time and Materials (T&M) contract for IT modernization is the potential for cost overruns, as the government pays for the labor hours and materials used rather than a fixed price. This can occur if project scope creeps, inefficiencies arise, or if the contractor's estimated hours are inaccurate. Mitigation strategies employed by the government typically include establishing strong contract oversight, setting not-to-exceed (NTE) limits on labor hours or total contract value, defining clear milestones and deliverables, and conducting regular reviews of contractor progress and billing. Effective communication and a collaborative approach between the government and contractor are also crucial for managing T&M contracts successfully.
What specific performance metrics or KPIs will be used to measure the success of this HR IT modernization effort?
The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) that will be used to measure the success of this HR IT modernization effort. Typically, for such projects, KPIs might include metrics related to system uptime and availability, user satisfaction scores, reduction in manual processing times for HR tasks, data accuracy rates, successful integration with other government systems, and the achievement of specific modernization milestones within the contract timeline. The absence of this information in the award data suggests that these details are likely outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included here.
How does the duration of 1096 days (approximately 3 years) align with typical federal IT modernization project timelines?
A duration of approximately three years (1096 days) for a federal IT modernization project like this is generally within the typical range for significant system overhauls. Modernizing complex human resources information technology systems often involves extensive planning, development, testing, data migration, and phased rollouts. Shorter timelines might be feasible for smaller upgrades or specific module implementations, while longer durations could indicate a very large, multi-faceted program or potential delays. The three-year timeframe suggests a comprehensive approach rather than a quick fix, allowing for thorough execution and integration.
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 › IT AND TELECOM - APLLICATIONS
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: $39,511,932
Exercised Options: $39,511,932
Current Obligation: $38,106,739
Actual Outlays: $24,582,974
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,798,852
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303019AIM000005
IDV Type: BPA
Timeline
Start Date: 2023-09-29
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2026-03-11
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