Department of Education awards $621M for Other Computer Related Services to Accenture LLP over 11 years
Contract Overview
Contract Amount: $621,067,632 ($621.1M)
Contractor: Accenture LLP
Awarding Agency: Department of Education
Start Date: 1999-09-15
End Date: 2010-06-17
Contract Duration: 3,928 days
Daily Burn Rate: $158.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202
Plain-Language Summary
Department of Education obligated $621.1 million to ACCENTURE LLP for work described as: Key points: 1. Significant long-term contract value of $621M. 2. Sole provider for 'Other Computer Related Services' raises questions about competition. 3. Extended contract duration (11 years) may indicate evolving needs or limited market options. 4. Fixed Price Incentive contract type suggests performance-based incentives.
Value Assessment
Rating: questionable
The total award value of $621M over 11 years is substantial. Without specific per-unit cost data or benchmarks for 'Other Computer Related Services,' it's difficult to definitively assess pricing efficiency. The long duration could mask inefficiencies if not closely monitored.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded as a competitive delivery order, but the specific competition details are not provided. Given the long duration and the nature of the service, it's unclear if full and open competition was pursued or if it was a limited competition among pre-qualified vendors.
Taxpayer Impact: The significant award value suggests a substantial taxpayer investment. The effectiveness of competition in driving down costs and ensuring value for money is a key consideration for taxpayer impact.
Public Impact
Impacts educational technology and IT infrastructure for the Department of Education. Long-term commitment to a single vendor could affect innovation and adaptability. Potential for significant cost savings or overspending depending on contract management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear competition details
- Long contract duration
- Potential for vendor lock-in
Positive Signals
- Fixed Price Incentive contract type can drive performance
- Long-term relationship may ensure continuity of services
Sector Analysis
The 'Other Computer Related Services' sector is broad and can encompass a wide range of IT support, consulting, and development. Benchmarking spending in this category requires detailed service descriptions, but $621M over 11 years is a considerable investment for a single agency.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. This contract appears to have been awarded to a large business, potentially limiting opportunities for small businesses in this service area.
Oversight & Accountability
The long duration of the contract necessitates robust oversight to ensure performance, manage costs, and adapt to changing technological needs. Regular reviews and performance evaluations are crucial for accountability.
Related Government Programs
- Other Computer Related Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential lack of robust competition
- Long contract duration may lead to obsolescence or inefficiency
- Limited transparency on specific services and performance metrics
- No indication of small business participation
Tags
other-computer-related-services, department-of-education, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $621.1 million to ACCENTURE LLP. See the official description on USAspending.
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 $621.1 million.
What is the period of performance?
Start: 1999-09-15. End: 2010-06-17.
What specific 'Other Computer Related Services' were procured under this contract, and how did their scope evolve over the 11-year period?
The specific services procured are not detailed in the provided data. 'Other Computer Related Services' is a broad NAICS code. Understanding the exact deliverables, such as software development, IT consulting, system integration, or maintenance, is crucial for assessing value. The evolution of these services over an 11-year span would highlight the contract's adaptability and relevance to the Department of Education's changing technological landscape.
What were the key performance indicators (KPIs) and incentive structures within the Fixed Price Incentive contract, and how effectively did they align with the Department's objectives?
The effectiveness of a Fixed Price Incentive contract hinges on well-defined KPIs and incentive mechanisms. For this contract, understanding what metrics Accenture was measured against (e.g., system uptime, project completion rates, user satisfaction) and how deviations from target costs or performance levels triggered incentives or penalties is vital. Strong alignment ensures taxpayer funds are used efficiently to achieve desired outcomes.
Were there any post-award protests or challenges related to the competition or performance of this contract, and what was their outcome?
Information regarding post-award protests or challenges is not available in the provided data. Such challenges could indicate concerns about the fairness of the competition, the vendor's performance, or the contract's overall value. Investigating any such disputes would offer further insight into the contract's lifecycle and potential issues faced by the Department of Education.
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: COMPETITIVE DELIVERY ORDER
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $621,366,509
Exercised Options: $621,067,632
Current Obligation: $621,067,632
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4692G
IDV Type: FSS
Timeline
Start Date: 1999-09-15
Current End Date: 2010-06-17
Potential End Date: 2010-06-17 00:00:00
Last Modified: 2021-11-25
More Contracts from Accenture LLP
- Federal Student AID Common Origination and Disbursement Services — $1.1B (Department of Education)
- Commercial Off-The Shelf Enterprise Resource Planning (ERP) Application - an Army-Wide Enterprise Financial System — $675.9M (Department of Defense)
- 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)
- Federal Student AID Common Origination and Disbursement Services — $1.1B (Accenture LLP)
- 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.)