Accenture Federal Services awarded $35.5M for Commerce IT support, raising value-for-money questions

Contract Overview

Contract Amount: $35,540,763 ($35.5M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Commerce

Start Date: 2016-06-10

End Date: 2019-06-30

Contract Duration: 1,115 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::OT::IGF BUSINESS SYSTEMS SUPPORT FOR THE DEPARTMENT OF COMMERCE BUREAUS

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20877

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $35.5 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF BUSINESS SYSTEMS SUPPORT FOR THE DEPARTMENT OF COMMERCE BUREAUS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1115 days (approx. 3 years) indicates a medium-term engagement. 3. The primary service category (Other Computer Related Services) points to a broad IT support scope. 4. The contract's value of $35.5M places it in the mid-tier range for federal IT services. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller firms. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: questionable

Benchmarking the value of this $35.5M contract for IT support is challenging without specific performance metrics or comparable contract data. The average annual value is approximately $11.8M. Given the broad nature of 'Other Computer Related Services,' the cost-effectiveness hinges on the specific tasks performed and the efficiency of Accenture Federal Services. Further analysis would require comparing the labor hours and rates to industry standards for similar IT support services within the federal government.

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 bids. The presence of 5 bidders suggests a reasonable level of competition for this IT support requirement. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value propositions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes price discovery and can lead to more cost-effective solutions by leveraging market forces.

Public Impact

The Department of Commerce bureaus benefit from enhanced IT infrastructure and support services. Services delivered likely include IT system maintenance, upgrades, and potentially new technology implementation. The geographic impact is primarily within the Department of Commerce's operational locations, likely concentrated in Washington D.C. and other federal facilities. Workforce implications may include the direct employment of IT professionals by Accenture Federal Services and potential indirect impacts on government IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess true value for money.
The broad scope of 'Other Computer Related Services' could lead to scope creep if not managed tightly.
Reliance on a single large contractor for critical IT support may pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Accenture Federal Services is a large, established federal contractor with significant IT experience.
The contract duration suggests a stable, ongoing need for these IT services within the Department of Commerce.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies increasingly relying on contractors for specialized support. This contract falls within the 'Other Computer Related Services' category, which encompasses a wide range of IT functions beyond core software development or hardware maintenance. Comparable spending benchmarks for IT support services vary significantly based on scope, complexity, and agency needs, but contracts in the tens of millions are common for comprehensive support.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses in the provided data. This means that opportunities for small businesses to directly participate in this contract may be limited, unless they are part of a larger subcontracting plan by the prime contractor. The absence of set-asides could mean that the requirement was deemed too large or specialized for small business set-aside categories.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Commerce's contracting officers and program managers. Accountability measures are usually embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Department of Commerce IT Modernization Initiatives
Federal Civilian Agency IT Support Services
General Services Administration (GSA) IT Schedule Contracts
IT Professional Services Contracts

Risk Flags

Potential for vendor lock-in
Risk of performance degradation over contract term
Broad service category may obscure specific cost drivers

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $35.5 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF BUSINESS SYSTEMS SUPPORT FOR THE DEPARTMENT OF COMMERCE BUREAUS

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.5 million.

What is the period of performance?

Start: 2016-06-10. End: 2019-06-30.

What specific IT services are encompassed by 'Other Computer Related Services' for the Department of Commerce in this contract?

The 'Other Computer Related Services' (NAICS code 541519) category is broad and can include a wide array of IT support functions. For the Department of Commerce, this likely involves services such as IT system administration, network management, help desk support, cybersecurity monitoring, data management, IT consulting, and potentially the implementation or maintenance of specialized software or hardware not covered by more specific NAICS codes. Without the detailed Statement of Work (SOW), the precise nature of the services remains general. However, given the contract value and duration, it suggests a comprehensive, ongoing IT support engagement critical to the Department's operations.

How does the $35.5M contract value compare to historical IT spending by the Department of Commerce for similar services?

Comparing this $35.5M contract to historical spending requires access to detailed historical data for the Department of Commerce's IT services. However, as a rough estimate, the contract's average annual value is approximately $11.8M ($35.5M / 3 years). Federal agencies often spend tens to hundreds of millions annually on IT services. To provide a precise comparison, one would need to analyze past contracts awarded by the Department of Commerce under NAICS code 541519 or similar IT support categories, looking at both the total value and the number of contracts awarded over several fiscal years to identify trends and anomalies.

What is Accenture Federal Services' track record with the Department of Commerce and similar federal IT contracts?

Accenture Federal Services is a major contractor within the federal government, known for providing a wide range of IT and management consulting services across numerous agencies. Their track record with the Department of Commerce would likely include previous contracts for IT support, system integration, or modernization efforts. A review of federal procurement data (e.g., FPDS) would reveal the extent and nature of their past performance with Commerce, including contract values, performance ratings (if available), and any significant issues or successes. Generally, large firms like Accenture have extensive experience, but performance can vary by contract and program.

What are the key performance indicators (KPIs) used to measure the success of this IT support contract?

Key Performance Indicators (KPIs) for an IT support contract like this are crucial for assessing value and performance but are not detailed in the provided summary data. Typically, KPIs would focus on areas such as system uptime and availability, response times for help desk tickets, resolution rates for IT issues, cybersecurity incident response times, project completion rates for IT upgrades, and user satisfaction surveys. The contract's Statement of Work (SOW) would explicitly define these KPIs, along with acceptable performance levels and potential remedies for non-performance. Without the SOW, specific KPIs remain unknown.

What is the potential risk associated with relying on a single large contractor for critical IT support services?

Relying on a single large contractor like Accenture Federal Services for critical IT support presents several potential risks. These include vendor lock-in, where transitioning to another provider becomes difficult and costly. There's also the risk of performance degradation if the contractor faces internal issues, resource constraints, or reduced motivation due to lack of ongoing competition. Furthermore, a single point of failure could be catastrophic if the contractor's services are disrupted. To mitigate these risks, agencies often implement robust contract management, performance monitoring, and contingency planning, including maintaining knowledge transfer and potentially developing in-house capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: LABOR HOURS (Z)

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

Financial Breakdown

Contract Ceiling: $60,936,661

Exercised Options: $35,540,763

Current Obligation: $35,540,763

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $7,520,860

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0371N

IDV Type: FSS

Timeline