Department of Energy awards $55.4M for computer systems design, with Accenture Federal Services as the primary contractor
Contract Overview
Contract Amount: $55,356,320 ($55.4M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Energy
Start Date: 2024-03-20
End Date: 2027-09-06
Contract Duration: 1,265 days
Daily Burn Rate: $43.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: ESTABLISH A BLANKET PURCHASE AGREEMENT (BPA) CALL ORDER 89303024FIM000137 AND PROVIDE INCREMENTAL FUNDING FOR .
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $55.4 million to ACCENTURE FEDERAL SERVICES LLC for work described as: ESTABLISH A BLANKET PURCHASE AGREEMENT (BPA) CALL ORDER 89303024FIM000137 AND PROVIDE INCREMENTAL FUNDING FOR . Key points: 1. The contract value of $55.4 million over its period of performance represents a significant investment in IT services. 2. Accenture Federal Services, a large established contractor, is performing this work, suggesting a focus on experienced providers. 3. The 'Computer Systems Design Services' category indicates a need for specialized IT infrastructure and support. 4. The contract's duration of over three years allows for sustained project execution and potential for long-term impact. 5. The use of Time and Materials pricing may require close monitoring to ensure cost efficiency and prevent scope creep.
Value Assessment
Rating: good
The contract value of $55.4 million for computer systems design services appears reasonable given the multi-year duration and the nature of IT infrastructure projects. Benchmarking against similar large-scale IT service contracts within the federal government would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing structure, while common for evolving IT needs, necessitates diligent oversight to control costs and ensure the government receives fair value for the labor and materials expended. Without specific comparable contract data, it's difficult to definitively state if this is an exceptional price, but it falls within expected ranges for this type of service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was utilized. This approach is generally favored as it allows for the widest possible pool of potential contractors to participate, theoretically leading to better pricing and innovative solutions. The fact that it was competed openly is a positive indicator for price discovery and market responsiveness.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality, ensuring federal dollars are used more efficiently.
Public Impact
The Department of Energy benefits from enhanced computer systems design and support, crucial for its operational efficiency. This contract supports the modernization and maintenance of critical IT infrastructure within the Department of Energy. The services delivered are likely to impact various internal operations and potentially external facing systems managed by the agency. The geographic impact is primarily within the District of Columbia, where the agency's headquarters are located, though IT services can have broader reach.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing if not closely managed.
- Dependence on a single contractor for critical IT systems design could pose a risk if performance falters.
- Scope creep could increase the overall cost beyond initial projections without strict change control.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Contractor has a significant presence and experience in federal IT services.
- Long contract duration allows for stable and consistent support for IT systems.
Sector Analysis
The federal IT services market is vast and highly competitive, with significant spending allocated to computer systems design and integration. This contract falls within the broader IT services sector, which includes areas like software development, cloud computing, cybersecurity, and IT infrastructure management. The Department of Energy, like many large federal agencies, relies heavily on sophisticated IT systems to manage its complex operations, research, and data. Spending in this area is often driven by the need to modernize legacy systems, enhance cybersecurity, and support new technological initiatives. Comparable spending benchmarks would typically look at the average cost of similar IT design and integration projects across agencies like the Department of Defense or GSA.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The primary contractor, Accenture Federal Services LLC, is a large business. While there is no direct set-aside, large federal contracts often include subcontracting requirements that can provide opportunities for small businesses. The extent to which small businesses will be involved as subcontractors is not detailed in the provided data, but it is a common practice to ensure small business participation in the federal contracting ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- IT Infrastructure Modernization Programs
- Enterprise IT Services
- Computer Systems Design Services
- Department of Energy IT Support Contracts
- Blanket Purchase Agreements (BPAs)
Risk Flags
- Potential for cost overruns with T&M pricing
- Contractor performance risk
- Scope creep potential
Tags
it-services, computer-systems-design, department-of-energy, accenture-federal-services, time-and-materials, full-and-open-competition, large-contract, district-of-columbia, federal-agency, it-modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $55.4 million to ACCENTURE FEDERAL SERVICES LLC. ESTABLISH A BLANKET PURCHASE AGREEMENT (BPA) CALL ORDER 89303024FIM000137 AND PROVIDE INCREMENTAL FUNDING FOR .
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 $55.4 million.
What is the period of performance?
Start: 2024-03-20. End: 2027-09-06.
What is Accenture Federal Services LLC's track record with the Department of Energy and similar IT service contracts?
Accenture Federal Services LLC is a well-established contractor with extensive experience in providing IT services to various federal agencies, including the Department of Energy. Their track record typically involves large-scale IT modernization, system integration, and digital transformation projects. For the Department of Energy, they have likely been involved in numerous contracts supporting the agency's mission-critical systems. A detailed review of their past performance on similar contracts would reveal their ability to meet deadlines, manage budgets, and deliver quality services. Past performance evaluations, if available in federal databases, would offer insights into their reliability and effectiveness in executing complex IT projects. Their history suggests a capacity for handling significant contract values and complex technical requirements.
How does the $55.4 million contract value compare to similar computer systems design services contracts awarded by the Department of Energy or other large federal agencies?
The $55.4 million contract value for computer systems design services over approximately 3.5 years is substantial and aligns with the scale of IT modernization and support efforts undertaken by large federal agencies. To benchmark this value, one would compare it to other IT services contracts awarded by the Department of Energy, as well as similar agencies like the Department of Defense, NASA, or the General Services Administration. Factors such as contract duration, scope of services (e.g., infrastructure design, software integration, cybersecurity), and the specific technologies involved heavily influence pricing. Contracts for enterprise-wide system overhauls or the implementation of new, complex IT architectures often reach or exceed this value. Without specific comparable contract data points, it's reasonable to assess this as a significant investment typical for comprehensive IT system design and implementation within a major federal agency.
What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude for computer systems design?
The primary risk associated with a Time and Materials (T&M) contract of this magnitude is the potential for cost overruns if not rigorously managed. T&M contracts pay the contractor for the actual labor hours and material costs incurred, plus a fixed fee or percentage for profit. This structure can incentivize longer project durations or less efficient work if oversight is lax. For computer systems design, risks include scope creep, where requirements expand beyond the initial agreement without formal change orders, leading to increased hours and costs. Another risk is the difficulty in accurately estimating the total project cost upfront, making budget forecasting challenging for the agency. Effective risk mitigation involves strong contract administration, detailed work breakdown structures, regular progress reviews, and clear definitions of 'materials' and 'labor categories' with pre-negotiated rates.
How does the 'full and open competition' award mechanism impact the value received by the Department of Energy and taxpayers?
Awarding this contract through 'full and open competition' is generally beneficial for the Department of Energy and taxpayers. This mechanism ensures that a wide range of qualified vendors can compete for the contract, fostering a competitive environment that typically drives down prices and encourages innovation. By allowing any responsible source to submit an offer, the agency increases the likelihood of securing the best possible value, both in terms of cost-effectiveness and the quality of services provided. The competitive process helps in price discovery, as bidders are incentivized to offer competitive rates to win the contract. This contrasts with sole-source or limited competition awards, which may result in higher prices due to reduced market pressure. Therefore, full and open competition is a key mechanism for ensuring taxpayer dollars are used efficiently.
What are the potential performance implications of awarding a large IT services contract to a single entity like Accenture Federal Services LLC?
Awarding a large IT services contract to a single entity like Accenture Federal Services LLC can have several performance implications. On the positive side, it allows for a deep understanding of the agency's specific needs and systems by a dedicated team, potentially leading to more integrated and cohesive solutions. It can also streamline communication and project management by having a single point of contact. However, a significant risk is the potential for vendor lock-in, where the agency becomes heavily reliant on the contractor's expertise and systems, making it difficult and costly to switch providers later. Performance can also be impacted if the contractor faces internal resource constraints or if their focus is divided among multiple large contracts. Robust performance metrics, service level agreements (SLAs), and regular performance reviews are crucial to ensure the contractor maintains high standards throughout the contract's duration.
What is the historical spending trend for computer systems design services at the Department of Energy, and how does this award fit into that pattern?
Analyzing historical spending trends for computer systems design services at the Department of Energy (DOE) would provide context for this $55.4 million award. Typically, large federal agencies like the DOE have consistent, and often increasing, spending in IT services due to the ongoing need for system modernization, cybersecurity enhancements, and support for evolving research and operational requirements. This award, being a significant sum, suggests a major project or a consolidation of services within the computer systems design domain. It could represent a new initiative, a continuation of a long-term strategy, or the replacement of expiring contracts. Understanding the DOE's budget allocations for IT and specifically for systems design over the past several years would reveal whether this award is an anomaly or part of a sustained investment pattern in this critical service area.
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: $99,858,598
Exercised Options: $95,045,786
Current Obligation: $55,356,320
Actual Outlays: $48,023,762
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $2,150,751
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303019AIM000005
IDV Type: BPA
Timeline
Start Date: 2024-03-20
Current End Date: 2027-09-06
Potential End Date: 2027-09-06 00:00:00
Last Modified: 2026-04-10
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