Accenture LLP awarded $25.9M for management support services by the Department of Commerce

Contract Overview

Contract Amount: $25,942,436 ($25.9M)

Contractor: Accenture LLP

Awarding Agency: Department of Commerce

Start Date: 2007-07-03

End Date: 2007-07-03

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGEMENT SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $25.9 million to ACCENTURE LLP for work described as: MANAGEMENT SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Services fall under 'Other Computer Related Services', indicating a focus on IT-adjacent support. 4. The award date is July 3, 2007, suggesting this is a historical contract. 5. The contract was awarded to a single vendor, Accenture LLP. 6. The contract was awarded by the Department of Commerce, Office of the Secretary. 7. The contract value is approximately $25.9 million. 8. The contract was awarded in Washington D.C.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the management support services provided. However, a $25.9 million award for management support over its duration suggests a significant engagement. Comparing this to similar contracts for management consulting and IT support services would be necessary to assess if the pricing was competitive. The firm fixed-price nature indicates a defined scope and budget, which can be beneficial for cost control if the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes a competitive environment. A competitive process is expected to drive down prices and ensure the government receives fair market value for the services procured. The absence of specific bidder numbers limits a deeper analysis of the competitive intensity.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process as it typically leads to more favorable pricing and a wider selection of qualified vendors, ensuring efficient use of public funds.

Public Impact

The Department of Commerce benefits from enhanced management support services. The services likely contribute to the operational efficiency and effectiveness of the Office of the Secretary. The geographic impact is concentrated in Washington D.C., where the contract was awarded. The contract supports the workforce within Accenture LLP, potentially involving skilled professionals in management and IT-related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of 'management support' makes it difficult to assess performance outcomes.
The age of the contract (awarded in 2007) means current relevance and performance data may be outdated.
Without knowing the number of bidders, the true level of competition and its impact on price cannot be fully evaluated.
The 'Other Computer Related Services' NAICS code is broad and could encompass a wide range of services, making specific performance assessment difficult.

Positive Signals

Awarded through full and open competition, indicating a commitment to a fair and transparent procurement process.
Firm Fixed Price contract type helps manage costs and provides budget certainty.
Accenture LLP is a well-established contractor with significant experience in government services.
The contract was awarded to a single entity, potentially allowing for streamlined project management and delivery.

Sector Analysis

The management support services procured likely fall within the broader professional, scientific, and technical services sector, with a specific focus on IT-adjacent consulting. This sector is characterized by a wide range of specialized firms, from large integrators like Accenture to smaller niche consultancies. Government spending in this area is substantial, supporting various functions from strategic planning to IT modernization. Comparable spending benchmarks would involve looking at other large management support or IT consulting contracts awarded by federal agencies.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss=false, sb=false). Therefore, it is unlikely that small businesses were specifically targeted for this award. The prime contractor, Accenture LLP, is a large business. There is no information provided regarding subcontracting plans or performance, so the impact on the small business ecosystem through subcontracting is unknown.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and the program office within the Department of Commerce. As a firm fixed-price contract, oversight would focus on ensuring the contractor meets the defined scope, deliverables, and performance standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract were raised.

Related Government Programs

Management and Administrative Services
IT Consulting Services
Professional Services
Government Contracting
Department of Commerce Contracts

Risk Flags

Contract awarded in 2007, historical data may not reflect current market conditions or performance standards.
NAICS code 541519 is broad, making specific service assessment difficult without further details.
Number of bidders not specified, limiting analysis of competitive intensity.
No information on small business subcontracting impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $25.9 million to ACCENTURE LLP. MANAGEMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is ACCENTURE LLP.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $25.9 million.

What is the period of performance?

Start: 2007-07-03. End: 2007-07-03.

What specific management support services were provided under this contract?

The provided data indicates the contract was for 'MANAGEMENT SUPPORT' under NAICS code 541519 ('Other Computer Related Services') and awarded to Accenture LLP by the Department of Commerce. However, the specific nature of the management support services is not detailed. This could range from strategic planning, organizational development, process improvement, project management, to IT strategy and implementation support. Without a detailed statement of work or task orders, it's impossible to ascertain the precise services rendered. The broad NAICS code suggests a potential IT component to the management support.

How does the $25.9 million contract value compare to similar management support contracts awarded by the Department of Commerce or other agencies?

Comparing the $25.9 million value requires context regarding the contract's duration and the specific services. If this was a multi-year contract, the annual value would be significantly lower. For instance, if it spanned five years, the annual value would be around $5.2 million. This figure needs to be benchmarked against similar large-scale management support or IT consulting contracts awarded to major federal contractors. Agencies like the Department of Defense or GSA often award contracts in the tens or hundreds of millions for similar services. A direct comparison would necessitate identifying contracts with comparable scope, duration, and service type within the federal procurement landscape.

What was Accenture LLP's track record with the federal government prior to or around the time of this award in 2007?

Accenture LLP has a long history of contracting with the U.S. federal government. By 2007, the company was already a significant player in providing a wide array of services, including IT consulting, systems integration, and management support, to various civilian and defense agencies. Their track record would have included numerous large-scale contracts, demonstrating their capacity and experience. Federal procurement databases would show a substantial portfolio of awards preceding this specific contract, indicating a level of established performance and familiarity with government requirements and processes.

What are the potential risks associated with a large, firm-fixed-price contract for management support services?

A primary risk with a firm-fixed-price (FFP) contract, especially for services like management support which can have evolving requirements, is scope creep. If the government's needs change significantly beyond the initial defined scope, the contractor may be hesitant to accommodate these changes without additional funding, potentially leading to disputes or unmet needs. Conversely, if the scope is too narrowly defined and the contractor is highly efficient, they might deliver minimal effort to maximize profit, potentially impacting the quality or depth of support. Another risk is that the FFP structure incentivizes the contractor to control costs rigorously, which could lead to cutting corners if not properly monitored. Effective oversight is crucial to mitigate these risks.

How has federal spending on management support and related IT services evolved since this contract was awarded in 2007?

Federal spending on management support and related IT services has generally increased significantly since 2007, driven by factors such as digital transformation initiatives, cybersecurity needs, cloud adoption, and the increasing complexity of government operations. Agencies have continued to rely on external expertise for strategic planning, IT modernization, data analytics, and program management. While specific figures fluctuate annually based on budget appropriations and agency priorities, the overall trend indicates sustained or growing investment in these service areas as agencies strive to improve efficiency, effectiveness, and citizen services in an increasingly digital world.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SA1301-7-RQ-0017

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

Address: 11951 FREEDOM DR STE 1000, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $25,942,436

Exercised Options: $25,942,436

Current Obligation: $25,942,436

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F4692G

IDV Type: FSS

Timeline