USDA Awards $46M for Computer Systems Design Services to Accenture Federal Services

Contract Overview

Contract Amount: $46,026,187 ($46.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Agriculture

Start Date: 2016-12-16

End Date: 2026-05-31

Contract Duration: 3,453 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $46.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF Key points: 1. Significant contract value of $46M over nearly 9 years. 2. Accenture Federal Services is a major player in IT services. 3. Potential for cost overruns or scope creep given the long duration. 4. IT sector spending is substantial and competitive.

Value Assessment

Rating: fair

The contract value of $46M spread over 9 years suggests a moderate annual spend. Benchmarking against similar large-scale IT service contracts is difficult without more granular data on specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, though the long-term nature of the contract warrants ongoing monitoring for value.

Public Impact

Ensures continued IT support for the Department of Agriculture's financial operations. Supports a large federal agency's critical infrastructure. Potential impact on other IT service providers competing for similar government contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (9 years) increases risk of price escalation and changing technology needs.
Reliance on a single vendor for critical IT services.
Potential for scope creep over the contract's life.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm Fixed Price contract type helps control costs.
Significant investment in essential government IT infrastructure.

Sector Analysis

This contract falls within the broad IT services sector, which is a major area of federal spending. Benchmarks for computer systems design services vary widely based on complexity and duration.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Large contracts like this are often awarded to major prime contractors, though they may subcontract to smaller firms.

Oversight & Accountability

The Office of the Chief Financial Officer is responsible for overseeing this contract. Regular performance reviews and audits are crucial to ensure accountability and adherence to contract terms.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Long contract duration increases risk of price escalation and technological obsolescence.
Potential for vendor lock-in due to the extended service period.
Lack of specific service details makes comprehensive value assessment difficult.
Reliance on a single vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $46.0 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $46.0 million.

What is the period of performance?

Start: 2016-12-16. End: 2026-05-31.

What specific computer systems design services are included in this $46M contract, and how do they align with the USDA's current and future IT needs?

The contract specifies 'Computer Systems Design Services' (NAICS 541512). A detailed breakdown of services is essential to assess alignment with USDA's evolving IT landscape. Without this, it's difficult to confirm if the spending is optimized for current needs or future-proofing.

Given the 9-year duration, what mechanisms are in place to manage potential technological obsolescence and ensure the services remain relevant and cost-effective?

The long duration necessitates robust contract management. Mechanisms like periodic technical reviews, performance-based metrics, and flexibility for technology refresh clauses are critical. The firm fixed price helps, but the agency must actively manage the evolving technological environment to avoid paying for outdated solutions.

How does the pricing structure of this firm fixed-price contract compare to industry benchmarks for similar long-term IT system design services?

Firm fixed-price contracts aim for cost certainty. However, without specific service details and labor categories, a direct benchmark is challenging. The government likely relied on competitive bids to establish a fair price. Ongoing monitoring of performance and market rates is key to ensuring continued value over the contract's lifespan.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,671,953

Exercised Options: $46,034,871

Current Obligation: $46,026,187

Actual Outlays: $31,115,914

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $19,868,802

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200002W

IDV Type: GWAC

Timeline