Department of Education's $1.09B Student Aid Contract Awarded to Accenture LLP Under Sole-Source Basis
Contract Overview
Contract Amount: $1,093,568,069 ($1.1B)
Contractor: Accenture LLP
Awarding Agency: Department of Education
Start Date: 2006-02-21
End Date: 2014-09-30
Contract Duration: 3,143 days
Daily Burn Rate: $347.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FEDERAL STUDENT AID COMMON ORIGINATION AND DISBURSEMENT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202
Plain-Language Summary
Department of Education obligated $1.09 billion to ACCENTURE LLP for work described as: FEDERAL STUDENT AID COMMON ORIGINATION AND DISBURSEMENT SERVICES Key points: 1. Significant contract value of over $1 billion for student aid services. 2. Accenture LLP is the sole awardee, raising questions about competition. 3. The contract spans nearly a decade, indicating long-term reliance. 4. Services fall under 'Other Activities Related to Credit Intermediation', a broad category.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing represents fair market value. The lack of competition suggests potential overpricing or suboptimal service delivery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses the price discovery benefits of a competitive process, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not be receiving the best possible value for the services rendered.
Public Impact
Impacts millions of students relying on federal financial aid. Ensures the operational continuity of student loan origination and disbursement. Potential for increased student loan costs if pricing is not optimized.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration without re-competition
Positive Signals
- Established vendor for critical student aid services
- Firm fixed price contract type
Sector Analysis
This contract falls within the IT and financial services sector, supporting critical government functions. Benchmarks for similar large-scale IT/financial services contracts are often in the hundreds of millions to billions, depending on scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. There is no indication of subcontracting opportunities for small businesses within this data.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the Department of Education is receiving adequate value and performance from Accenture LLP. Regular performance reviews and cost audits would be prudent.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to no competition.
- Long-term commitment without re-evaluation.
- Lack of transparency in the procurement process.
Tags
other-activities-related-to-credit-inter, department-of-education, dc, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $1.09 billion to ACCENTURE LLP. FEDERAL STUDENT AID COMMON ORIGINATION AND DISBURSEMENT SERVICES
Who is the contractor on this award?
The obligated recipient is ACCENTURE LLP.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $1.09 billion.
What is the period of performance?
Start: 2006-02-21. End: 2014-09-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's impossible to determine the specific rationale, but it's a critical factor in assessing the procurement's fairness and value.
What are the risks associated with a sole-source contract of this size and duration?
The primary risks include potential overpricing due to lack of competition, vendor lock-in, and reduced incentive for innovation. For a contract of this magnitude and duration, these risks are amplified, potentially leading to significant financial implications for the government and taxpayers.
How effectively has Accenture LLP performed on this contract, and has it met the Department of Education's objectives?
Performance data is not provided in the dataset. Assessing effectiveness would require reviewing performance metrics, user feedback, and program outcomes related to student aid origination and disbursement. Without this, effectiveness remains an unknown.
Industry Classification
NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Other Activities Related to Credit Intermediation
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,112,054,334
Exercised Options: $1,093,877,355
Current Obligation: $1,093,568,069
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2006-02-21
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2016-09-27
More Contracts from Accenture LLP
- Commercial Off-The Shelf Enterprise Resource Planning (ERP) Application - an Army-Wide Enterprise Financial System — $675.9M (Department of Defense)
- Federal Contract — $621.1M (Department of Education)
- Other Administrative Support Services — $357.2M (Department of Homeland Security)
- Federal Contract — $343.9M (Department of Defense)
- Financial Management Modernization Initiative — $291.0M (Department of Agriculture)
Other Department of Education Contracts
- Administrative Action — $2.2B (Conduent Education Solutions, LLC)
- - Tivod Supports the Origination, Disbursement, and Reporting of Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Direct Loans, Pell Grants, and the Teacher Education Assistance for College and Higher Education Grants. the Title IV Solution Shall Also Provide Ongoing Support for the Discontinued Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Academic Competitiveness Grants and National Science and Mathematics Access to Retain Talent Grants — $1.5B (Accenture Federal Services LLC)
- Provide Direct Loan Services Such AS Call Center and Financial Reporting - Nelnet From 12/15/2019 Through 12/14/2020 — $983.7M (Nelnet Servicing LLC)
- Debt Management and Collections System (dmcs) Igf::ct::igf — $906.9M (Maximus Federal Services, Inc.)
- This Task Order IS for an Enterprise-Wide Digital and Customer Care Platforms and Services Solution (enterprise-Wide Digital and Customer Care Solution, AKA Ewdccps, AKA DCC) That Will Enable an Fsa-Branded Omni-Channel Engagement Approach LED by a Mobile-First, Mobile-Complete, and Mobile-Continuous Digital Platform Supporting the Complete Lifecycle of Student Financing — $851.5M (Accenture Federal Services LLC)