Accenture Federal Services LLC awarded $38.7M for Census Bureau IT support, highlighting system integration needs

Contract Overview

Contract Amount: $38,695,631 ($38.7M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Commerce

Start Date: 2014-05-13

End Date: 2019-09-30

Contract Duration: 1,966 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF TECHNOLOGIES MANAGEMENT OFFICE (TMO) UNIFIED TRACKING SYSTEM SUPPORT

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $38.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF TECHNOLOGIES MANAGEMENT OFFICE (TMO) UNIFIED TRACKING SYSTEM SUPPORT Key points: 1. Contract focuses on IT systems design and support, a critical function for data collection and analysis. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. A Time and Materials pricing structure was used, which can pose cost control challenges. 4. The contract duration of over 1900 days indicates a long-term need for these services. 5. The specific North American Industry Classification System (NAICS) code points to specialized computer systems design expertise. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: fair

The total award amount of $38.7 million over approximately five years suggests a significant investment in IT support. Benchmarking this against similar IT system design and support contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not managed closely, especially over a long contract duration. The absence of a specific ceiling price in the provided data makes a direct value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the solicitation was broadly advertised, but specific sources may have been excluded based on predefined criteria. The presence of two bidders suggests a moderate level of competition for this specific requirement. While competition is present, the exclusion of certain sources could potentially limit the range of innovative solutions or the most competitive pricing.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, potentially leading to cost savings compared to a sole-source award.

Public Impact

The U.S. Census Bureau benefits directly through enhanced IT infrastructure and support for its critical data collection and dissemination operations. The services delivered are essential for maintaining and improving the systems that underpin national statistical programs. The geographic impact is primarily national, given the Census Bureau's nationwide mandate, though the contractor's physical presence is noted as Maryland. Workforce implications include the potential for skilled IT professionals to be engaged in supporting vital government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not diligently managed and monitored.
The exclusion of sources in a 'full and open' competition might limit the breadth of competitive offers.
The long contract duration necessitates robust oversight to ensure continued relevance and value.
Lack of specific performance metrics in the provided data makes it difficult to assess contractor performance objectively.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
The contract supports a critical government function (Census Bureau operations).
The contractor, Accenture Federal Services LLC, is a well-established entity in the federal IT space.
The contract was awarded as a delivery order, suggesting it aligns with a pre-established contract vehicle.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market supporting government operations. The U.S. government is a major consumer of these services, with spending often concentrated in areas like system integration, custom software development, and IT infrastructure support. Comparable spending benchmarks would typically be found within IT services categories, often influenced by agency size, mission criticality, and the complexity of the systems being supported.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a specific set-aside requirement. However, the prime contractor, Accenture Federal Services LLC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. The overall impact on the small business ecosystem would depend on whether such subcontracting opportunities arise.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Census Bureau's contracting officers and program managers. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS.gov. The Inspector General for the Department of Commerce would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Systems Modernization
Cloud Computing Services
Data Analytics Platforms
Cybersecurity Support
Software Development Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of technology obsolescence over the contract's long duration.
Limited competition due to exclusion of sources.
Need for robust oversight to manage performance and costs effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $38.7 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF TECHNOLOGIES MANAGEMENT OFFICE (TMO) UNIFIED TRACKING SYSTEM SUPPORT

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 (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $38.7 million.

What is the period of performance?

Start: 2014-05-13. End: 2019-09-30.

What is the specific nature of the IT systems supported by IGF Technologies Management Office (TMO) Unified Tracking System Support?

The provided data indicates the contract is for 'Computer Systems Design Services' under NAICS code 541512, and the agency is the U.S. Census Bureau. The contract title, 'IGF::OT::IGF TECHNOLOGIES MANAGEMENT OFFICE (TMO) UNIFIED TRACKING SYSTEM SUPPORT,' suggests the services relate to the design, development, integration, or maintenance of a unified tracking system managed by the IGF Technologies Management Office. This system likely supports internal operations, project management, asset tracking, or workflow management within the Census Bureau's IT infrastructure. Without more detailed documentation, the precise functions of this 'unified tracking system' remain unspecified, but it is clearly a critical IT component for the agency's operations.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT support services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change frequently. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers more flexibility but less cost certainty for the government. For IT support services where requirements can evolve, T&M can be suitable, but it places a greater burden on government oversight to manage costs effectively and prevent scope creep. Fixed-Price Incentive (FPI) contracts, on the other hand, offer cost sharing between the government and contractor, incentivizing efficiency while providing some flexibility.

What are the potential risks associated with a long-duration contract (1966 days) for IT support?

Long-duration contracts, such as this 1966-day (approximately 5.4 years) award, carry several risks for IT support. Technology evolves rapidly, meaning the systems and services required at the end of the contract may be significantly different from those at the beginning, potentially leading to obsolescence or the need for costly modifications. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, diminishing future negotiating power. Furthermore, maintaining consistent performance and value over an extended period requires vigilant contract management, regular performance reviews, and potentially contract modifications to adapt to changing needs and market conditions. Ensuring the contractor remains motivated and innovative throughout the duration is also a challenge.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the bidding process and potential outcomes?

This procurement method signifies that the solicitation was advertised broadly to all responsible sources (full and open competition). However, the 'after exclusion of sources' clause indicates that certain potential bidders were specifically excluded from participating. The reasons for exclusion are typically based on factors like past performance issues, inability to meet specific technical requirements, or other pre-defined criteria outlined in the solicitation. While it aims to ensure only qualified vendors participate, it inherently reduces the pool of bidders compared to unrestricted full and open competition. This could potentially limit the range of pricing and technical approaches considered, possibly impacting the final price and the optimal solution achieved for the government.

How does the $38.7 million award compare to typical spending on IT system design services for federal agencies?

The $38.7 million award for IT system design services over approximately five years is a substantial contract, but its comparability depends heavily on the specific scope and complexity of the systems involved. Federal agencies, particularly those with large data management needs like the Census Bureau, often award multi-million dollar contracts for IT support. For instance, agencies like the Department of Defense, Health and Human Services, or NASA frequently issue contracts in this range or higher for enterprise resource planning (ERP) systems, data analytics platforms, or large-scale software development projects. The $38.7 million figure suggests a significant, long-term need for specialized IT expertise within the Census Bureau's operational framework.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

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

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

Financial Breakdown

Contract Ceiling: $53,827,385

Exercised Options: $43,772,675

Current Obligation: $38,695,631

Subaward Activity

Number of Subawards: 117

Total Subaward Amount: $4,333,591

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200113W

IDV Type: GWAC

Timeline