Air Force awards $162.7M for Personnel and Pay System to Accenture Federal Services
Contract Overview
Contract Amount: $162,734,121 ($162.7M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Defense
Start Date: 2018-05-03
End Date: 2026-06-30
Contract Duration: 2,980 days
Daily Burn Rate: $54.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: AIR FORCE INTEGRATED PERSONNEL AND PAY SYSTEM
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $162.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: AIR FORCE INTEGRATED PERSONNEL AND PAY SYSTEM Key points: 1. Accenture Federal Services holds a significant contract for a critical personnel and pay system. 2. The contract is a Cost Plus Incentive Fee type, indicating shared risk and reward. 3. Full and open competition was used, suggesting a competitive bidding process. 4. The contract duration extends to June 2026, implying a long-term need. 5. The system supports personnel and pay functions, vital for military operations.
Value Assessment
Rating: good
The contract's Cost Plus Incentive Fee structure allows for performance-based adjustments. Benchmarking against similar custom programming services contracts is difficult without specific performance metrics, but the award amount is substantial for a system of this nature.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which typically drives competitive pricing. The use of a delivery order under a broader contract suggests a structured procurement process aimed at achieving fair market value.
Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for this essential system.
Public Impact
Impacts all Air Force personnel regarding pay and administrative functions. Modernization of HR systems can improve efficiency and reduce errors. Potential for data security and privacy concerns with personnel information.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can lead to cost overruns if not managed tightly.
- Long contract duration may not adapt well to rapidly changing technology.
- Lack of small business participation noted.
Positive Signals
- Full and open competition promotes market-driven pricing.
- System supports critical personnel and pay functions.
- Delivery order structure allows for phased implementation.
Sector Analysis
This contract falls under custom computer programming services, a key area within the IT sector. Spending benchmarks for similar large-scale personnel systems vary widely based on complexity and scope, but $162.7 million over several years indicates a significant investment.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small business participation was sought or if subcontracting opportunities exist.
Oversight & Accountability
The use of a Cost Plus Incentive Fee contract requires robust oversight to ensure performance targets are met and costs are controlled. The Department of the Air Force is responsible for monitoring Accenture's performance and expenditures.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Incentive Fee contract requires close monitoring.
- Long contract duration may lead to technology obsolescence.
- No indication of small business participation.
- Custom software development carries inherent risks of delays and cost overruns.
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $162.7 million to ACCENTURE FEDERAL SERVICES LLC. AIR FORCE INTEGRATED PERSONNEL AND PAY SYSTEM
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 $162.7 million.
What is the period of performance?
Start: 2018-05-03. End: 2026-06-30.
What are the key performance indicators (KPIs) tied to the incentive fee structure, and how do they ensure value for money?
The incentive fee structure is designed to align Accenture's performance with the Air Force's objectives for the Integrated Personnel and Pay System. Key performance indicators likely include system uptime, accuracy of pay calculations, user satisfaction, and timely deployment of new features. The incentive fee is earned when these KPIs exceed baseline targets, rewarding efficient and effective service delivery and ensuring taxpayer funds are used to achieve desired outcomes.
What are the primary risks associated with a long-term, custom software development contract like this, and how are they mitigated?
Primary risks include scope creep, technological obsolescence, and contractor performance issues. Mitigation strategies involve rigorous change control processes, regular technology reviews to ensure relevance, and strong contract management with clear performance metrics and oversight. The Cost Plus Incentive Fee structure also incentivizes the contractor to manage costs and performance effectively, sharing some of the risk.
How does this system contribute to the overall effectiveness and efficiency of Air Force personnel management and pay processes?
The Integrated Personnel and Pay System aims to modernize and streamline critical HR functions, consolidating disparate systems into a unified platform. This integration is expected to improve data accuracy, reduce administrative overhead, enhance reporting capabilities, and ensure timely and correct pay for service members. Ultimately, it supports operational readiness by ensuring personnel are managed and compensated effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Novetta Solutions, LLC
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: $168,127,499
Exercised Options: $165,063,634
Current Obligation: $162,734,121
Actual Outlays: $54,784,454
Subaward Activity
Number of Subawards: 48
Total Subaward Amount: $68,032,659
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA873215D0001
IDV Type: IDC
Timeline
Start Date: 2018-05-03
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-09-30
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