DoD's $118.7M IT contract to Accenture for computer systems design services awarded via full and open competition

Contract Overview

Contract Amount: $118,668,991 ($118.7M)

Contractor: Accenture LLP

Awarding Agency: Department of Defense

Start Date: 2001-04-02

End Date: 2011-04-01

Contract Duration: 3,651 days

Daily Burn Rate: $32.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: 200109!000239!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !FA877001C0020 !A!N!*!Y! !20010402!20070401!858485758!927992529!010850857!N!ACCENTURE LLP !11951 FREEDOM DRIVE !RESTON !VA!20190!21000!113!39!DAYTON !MONTGOMERY !OHIO !+000007854550!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541512!*!*!3! ! ! !*!*!*!B!*!*!A! !A !N!R!2!007!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $118.7 million to ACCENTURE LLP for work described as: 200109!000239!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !FA877001C0020 !A!N!*!Y! !20010402!20070401!858485758!927992529!010850857!N!ACCENTURE LLP !11951 FREEDOM DRIVE !RESTON !VA!20190!21000!113!39!DAYTON !MONTG… Key points: 1. Contract awarded for computer systems design services, indicating a need for specialized IT support. 2. The contract's duration of over 10 years suggests a long-term strategic requirement. 3. Awarded by the Department of Defense, highlighting significant government IT expenditure. 4. Accenture LLP, a major IT services provider, secured this substantial contract. 5. The contract type is a Definitive Contract, suggesting a well-defined scope of work. 6. The contract was awarded under full and open competition, implying a competitive bidding process.

Value Assessment

Rating: fair

The total award amount of $118.7 million over approximately 10 years represents a significant investment. Benchmarking this against similar large-scale IT services contracts for the Department of Defense is challenging without more granular data on the specific services rendered. However, the duration and scope suggest a substantial commitment. The Cost Plus Award Fee (CPAF) contract type allows for flexibility but also introduces potential for cost overruns if not managed tightly. Without specific performance metrics or comparison data, assessing the true value-for-money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 7 bids indicates a healthy level of interest and competition for this significant IT services requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from a competitive award process, which is expected to drive down costs and ensure the government receives the best possible value for its investment in these critical IT services.

Public Impact

The Department of Defense benefits from enhanced computer systems design and related IT services. This contract supports the operational readiness and technological infrastructure of the U.S. military. The services delivered are crucial for maintaining and upgrading complex defense IT systems. The geographic impact is primarily within the Department of Defense's operational footprint, potentially nationwide or global. Workforce implications include employment opportunities for IT professionals within Accenture and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) could lead to vendor lock-in and reduced flexibility for future technological shifts.
Cost Plus Award Fee (CPAF) structure requires diligent oversight to ensure costs remain reasonable and award fees are justified.
The sheer scale of the contract presents inherent management complexity and potential for scope creep if not carefully controlled.
Reliance on a single large contractor for such a critical IT function could pose a risk if the contractor faces financial instability or performance issues.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
The contract involves a major IT services provider (Accenture), implying access to significant expertise and resources.
The definitive contract type suggests a clear understanding of the requirements and deliverables.
The existence of 7 bids indicates a competitive market for these services, which is generally positive for the government.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and modernizing defense systems. Comparable spending benchmarks would involve looking at other large-scale IT support and systems integration contracts awarded by DoD and other federal agencies. The market size for government IT services is in the hundreds of billions annually, with a substantial portion dedicated to defense.

Small Business Impact

This contract does not appear to have a specific small business set-aside component, as indicated by 'sb': false. However, large prime contractors like Accenture are often required to meet small business subcontracting goals. The impact on the small business ecosystem would depend on whether Accenture actively seeks out and utilizes small businesses for subcontracting opportunities related to this contract. Without specific subcontracting plans, it's difficult to assess the direct benefit to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, potentially involving the Defense Contract Management Agency (DCMA) given the 'sa' field. Accountability measures are embedded within the Cost Plus Award Fee (CPAF) structure, which ties a portion of the payment to performance. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
Enterprise IT Services Contracts
Computer Systems Design and Related Services

Risk Flags

Long contract duration
Cost Plus Award Fee structure
Potential for cost overruns
Reliance on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $118.7 million to ACCENTURE LLP. 200109!000239!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !FA877001C0020 !A!N!*!Y! !20010402!20070401!858485758!927992529!010850857!N!ACCENTURE LLP !11951 FREEDOM DRIVE !RESTON !VA!20190!21000!113!39!DAYTON !MONTGOMERY !OHIO !+000007854550!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541512!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is ACCENTURE LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $118.7 million.

What is the period of performance?

Start: 2001-04-02. End: 2011-04-01.

What specific computer systems design services were provided under this contract?

The provided data indicates the contract falls under the North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services.' This broad category typically encompasses services such as designing and integrating computer hardware and software, providing IT consulting, and managing clients' IT infrastructure. For this specific Department of Defense contract with Accenture, the services likely involved the design, development, implementation, and potentially maintenance of complex IT systems supporting military operations. Without access to the contract's statement of work (SOW) or performance reports, the precise nature of the 'design' services—whether it focused on network architecture, software development, cybersecurity integration, or a combination thereof—remains unspecified in the summary data.

How does the $118.7 million total award compare to other similar IT contracts within the DoD?

The total award of $118.7 million over approximately 10 years places this contract in the mid-to-large tier for IT services within the Department of Defense. DoD routinely awards IT contracts ranging from millions to billions of dollars. For instance, major enterprise resource planning (ERP) systems, cloud migration initiatives, or large-scale cybersecurity programs can easily exceed this amount, often reaching hundreds of millions or even billions. Contracts for specific system design and integration, like this one, are common. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (e.g., 541512, 541511, 541519) awarded over comparable timeframes by DoD components. However, $118.7 million is a substantial sum, reflecting a significant commitment to IT infrastructure or capability development.

What are the key risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

Cost Plus Award Fee (CPAF) contracts, like this $118.7 million DoD award to Accenture, carry inherent risks primarily related to cost control and performance oversight. The 'cost-plus' element means the contractor is reimbursed for allowable costs plus a fee that is composed of a fixed base fee and an award amount. The award fee is contingent upon the government's subjective evaluation of the contractor's performance against specific criteria. Key risks include: 1) Potential for cost growth: If the performance criteria are not clearly defined or if the government's evaluation process is inconsistent, costs can escalate. 2) Subjectivity in award fee determination: The 'subjective' nature of the award fee can lead to disputes or perceptions of unfairness. 3) Contractor focus on 'award' over 'necessity': Contractors might prioritize achieving easily measurable performance metrics to maximize their award fee, potentially at the expense of other critical but harder-to-quantify aspects of the project. 4) Increased government oversight burden: The government must dedicate significant resources to monitor costs, evaluate performance, and justify award fee decisions, which can be resource-intensive.

What is Accenture's track record with large federal IT contracts, particularly within the DoD?

Accenture LLP has a substantial and long-standing track record of securing and performing on large federal IT contracts, including numerous awards from the Department of Defense. As a major global IT consulting and services firm, they possess extensive experience in areas such as systems integration, cloud computing, cybersecurity, data analytics, and digital transformation. Publicly available data often shows Accenture as a frequent recipient of significant federal contracts. For the DoD specifically, Accenture has been involved in projects ranging from modernizing financial systems and logistics platforms to supporting intelligence operations and developing new defense technologies. While specific performance details for individual contracts are often not public, their continued success in winning large-scale, competitive bids suggests a generally positive performance history and strong capabilities in meeting government requirements.

How has federal spending on computer systems design services (NAICS 541512) evolved over the past decade?

Federal spending on Computer Systems Design Services (NAICS 541512) has shown a generally upward trend over the past decade, reflecting the increasing reliance of government agencies on sophisticated IT infrastructure and digital solutions. While specific figures fluctuate annually based on budget appropriations and strategic priorities, the overall demand for these services has remained robust. Agencies across the board, including the Department of Defense, civilian departments, and intelligence agencies, have consistently invested in areas such as system modernization, cybersecurity enhancements, cloud migration, data management, and the integration of new technologies like AI and machine learning. This sustained spending reflects the critical role that well-designed and maintained IT systems play in enabling agency missions, improving operational efficiency, and ensuring national security. The trend indicates a persistent need for expertise in designing, implementing, and managing complex computer systems.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

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

Address: 11951 FREEDOM DRIVE, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $124,785,391

Exercised Options: $124,785,391

Current Obligation: $118,668,991

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline