DoD's $58.4M contract for Army ICAMS services awarded to Accenture Federal Services LLC

Contract Overview

Contract Amount: $58,393,730 ($58.4M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2023-04-24

End Date: 2026-04-23

Contract Duration: 1,095 days

Daily Burn Rate: $53.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PKS-HILL-BERISH-AFSTS TO FOR ARMY ICAMS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $58.4 million to ACCENTURE FEDERAL SERVICES LLC for work described as: PKS-HILL-BERISH-AFSTS TO FOR ARMY ICAMS Key points: 1. Contract value represents a significant investment in administrative management and consulting services. 2. Accenture Federal Services LLC, a large established firm, secured this contract. 3. The contract duration of 1095 days suggests a need for sustained support. 4. The award was made under full and open competition, indicating a broad market solicitation. 5. The fixed-price contract type aims to control costs for the government. 6. This contract falls under the administrative management and general management consulting services NAICS code.

Value Assessment

Rating: good

The contract value of $58.4 million over three years for administrative management consulting services appears reasonable given the scope. Benchmarking against similar large-scale consulting contracts for federal agencies suggests this falls within expected ranges for complex program support. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value. However, a detailed breakdown of labor categories and hours would be needed for a more precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were likely invited to bid. The presence of four bids indicates a healthy level of interest and competition for this requirement. This competitive process is expected to drive more favorable pricing and service offerings for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by ensuring a wide range of qualified contractors can compete.

Public Impact

The primary beneficiary is the Department of the Army, which will receive enhanced administrative management and general management consulting services. The services delivered are expected to improve the efficiency and effectiveness of Army programs. The contract is geographically focused on the District of Columbia. The contract supports the federal workforce by engaging a large contracting firm with potentially significant personnel resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services become highly integrated and difficult to transition.
Reliance on a single large contractor could limit future competitive opportunities if not managed carefully.
Scope creep could increase costs beyond the initial estimates if not rigorously managed.

Positive Signals

Award to a well-established contractor with a track record in federal services.
Firm-fixed-price contract type provides cost predictability.
Full and open competition suggests a robust procurement process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for these services is competitive, with numerous large and small businesses vying for federal contracts. The value of this contract is substantial, reflecting the complexity and importance of the services provided to the Army.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if mandated or pursued by the prime contractor. Further analysis would be needed to determine if subcontracting plans were part of the award.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature provides a degree of financial oversight by capping costs. Accountability will be managed through performance metrics and delivery schedules outlined in the contract. Transparency is facilitated by the public nature of contract awards, though detailed performance data may be less accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Information Technology Services
Defense Management Consulting Contracts
Federal Administrative Support Services
Management and Program Support Contracts

Risk Flags

Potential for scope creep
Reliance on key personnel
Contract performance monitoring complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.4 million to ACCENTURE FEDERAL SERVICES LLC. PKS-HILL-BERISH-AFSTS TO FOR ARMY ICAMS

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $58.4 million.

What is the period of performance?

Start: 2023-04-24. End: 2026-04-23.

What is Accenture Federal Services LLC's past performance record with the Department of Defense, particularly on similar large-scale consulting contracts?

Accenture Federal Services LLC has a substantial history of contracting with the Department of Defense and other federal agencies. Their past performance typically includes a wide range of services, from IT modernization and cybersecurity to strategic planning and program management. For large-scale consulting contracts, their track record often demonstrates the capacity to manage complex projects, large teams, and significant budgets. However, like any large contractor, specific contract performance can vary, and a detailed review of past performance evaluations (e.g., CPARS) for similar contracts would be necessary to fully assess their reliability and effectiveness in delivering on this specific Army ICAMS requirement. Their extensive experience suggests a strong understanding of federal acquisition regulations and program execution.

How does the awarded amount of $58.4 million compare to the estimated value or budget for the Army ICAMS program?

Without access to the specific program budget or the government's independent cost estimate for the Army ICAMS program, a direct comparison is challenging. However, the awarded value of $58.4 million over three years (approximately $19.5 million per year) for administrative management and general management consulting services is a significant sum. This suggests a substantial scope of work or a high level of expertise required. To assess if this is a fair value, one would typically compare it to the government's estimate, the bids received from other competitors, and benchmark it against similar contracts for comparable services within the DoD or other federal agencies. The fact that it was awarded under full and open competition with four bids might imply that the pricing was competitive relative to market rates and the perceived value of the services.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure successful delivery?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided summary data. However, for a contract of this nature (administrative management and general management consulting services), typical KPIs would likely focus on areas such as timeliness of deliverables, quality of reports and analyses, adherence to project milestones, responsiveness to requests, and overall client satisfaction. SLAs might define response times for inquiries, availability of personnel, and accuracy of data provided. The firm-fixed-price nature of the contract implies that meeting these performance standards is crucial for the contractor to achieve profitability, and failure to do so could result in penalties or contract termination, depending on the specific terms negotiated.

What is the historical spending trend for administrative management and general management consulting services within the Department of the Army or DoD?

Historical spending on administrative management and general management consulting services within the Department of the Army and the broader Department of Defense is substantial and has generally trended upwards over the past decade, driven by increasing complexity of operations, modernization efforts, and the need for specialized expertise. Federal procurement data consistently shows significant outlays in this category across various agencies. While specific year-over-year trends fluctuate based on budget allocations and program priorities, the overall demand for these services remains robust. This contract's value aligns with the typical scale of major consulting engagements awarded by large military branches to support critical functions and strategic initiatives.

Are there any specific risks identified related to the contractor, Accenture Federal Services LLC, or the nature of the services being procured?

Potential risks associated with this contract include standard large-contract risks such as scope creep, potential for cost overruns if not managed tightly (despite the fixed-price nature, changes can occur), and reliance on key personnel. For Accenture Federal Services LLC, while they are a large and experienced contractor, risks could involve resource availability, potential conflicts of interest, or performance issues on specific tasks. The nature of management consulting also carries inherent risks related to the subjectivity of advice and the difficulty in measuring direct impact on organizational outcomes. Ensuring clear deliverables, robust oversight, and proactive risk management by both the government and the contractor are crucial to mitigate these potential issues.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD STE 300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $58,393,730

Exercised Options: $58,393,730

Current Obligation: $58,393,730

Actual Outlays: $7,222,015

Subaward Activity

Number of Subawards: 63

Total Subaward Amount: $14,058,841

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701420D0006

IDV Type: IDC

Timeline