DoD's $62.6M Contract for IT Services Awarded to Accenture LLP Faces Scrutiny

Contract Overview

Contract Amount: $62,593,062 ($62.6M)

Contractor: Accenture LLP

Awarding Agency: Department of Defense

Start Date: 2006-02-03

End Date: 2011-05-31

Contract Duration: 1,943 days

Daily Burn Rate: $32.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200606!000102!5700!FA8770!MSG/PK !GS35F4692G !C!N! !Y!FA877006F8001! !20060203!20101116!858485758!858485758!137820580!N!ACCENTURE LLP !11951 FREEDOM DR !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000004056180!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN&INTEGRATION SVCS !S1 !SERVICES !000 !NOT DISCERNABLE !541519!E! !6! ! ! ! ! !99990909!B!E!N! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $62.6 million to ACCENTURE LLP for work described as: 200606!000102!5700!FA8770!MSG/PK !GS35F4692G !C!N! !Y!FA877006F8001! !20060203!20101116!858485758!858485758!137820580!N!ACCENTURE LLP !11951 FREEDOM DR !RESTON !VA!20190!66672!059!51!RESTON !FAIR… Key points: 1. Contract awarded to Accenture LLP for IT services. 2. Significant spending of $62.6 million over its duration. 3. Competition method was 'Full and Open', suggesting broad market access. 4. Sector is IT services, specifically 'Other Computer Related Services'. 5. Contract duration was 1943 days, indicating a long-term engagement.

Value Assessment

Rating: fair

The contract's total value of $62.6 million over approximately 5.3 years suggests a substantial investment. Benchmarking against similar large-scale IT service contracts is difficult without more granular data on the specific services provided, but the amount is significant for the sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', which is generally positive for price discovery. However, the specific impact on price is not discernible from the provided data alone, as it doesn't detail the bidding process or number of bidders.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by leveraging market competition to secure the best possible prices for services.

Public Impact

Taxpayers funded a significant IT services contract for the Department of Defense. The contract supported the Air Force's automated information system design and integration. Accenture LLP, a major IT consulting firm, was the recipient of the award. The long duration of the contract implies a sustained need for these IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcomes.
Potential for cost overruns in long-term IT contracts.
Limited insight into the specific value delivered for the $62.6M spent.

Positive Signals

Awarded through full and open competition.
Contract was for essential IT system design and integration services.
Long contract duration may indicate successful service delivery and partnership.

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending in this area by the DoD is common for maintaining and upgrading complex systems. Benchmarks for similar large-scale IT integration contracts can vary widely based on scope and complexity.

Small Business Impact

The data indicates this contract was awarded to Accenture LLP, a large business. There is no information suggesting that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The contract was subject to standard federal procurement oversight. However, the provided data does not offer details on specific oversight mechanisms, performance reviews, or accountability measures implemented during its execution.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Significant contract value ($62.6M).
Long contract duration (over 5 years).
Lack of detailed performance outcome data.
Potential for IT project complexity leading to unforeseen costs.
Limited insight into specific value delivered for the investment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.6 million to ACCENTURE LLP. 200606!000102!5700!FA8770!MSG/PK !GS35F4692G !C!N! !Y!FA877006F8001! !20060203!20101116!858485758!858485758!137820580!N!ACCENTURE LLP !11951 FREEDOM DR !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000004056180!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN&INTEGRATION SVCS !S1 !SERVICES !000 !NOT DISCERNABLE !541519!E! !6! ! ! ! ! !99990

Who is the contractor on this award?

The obligated recipient is ACCENTURE LLP.

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 $62.6 million.

What is the period of performance?

Start: 2006-02-03. End: 2011-05-31.

What was the specific nature of the 'Automated Information System Design & Integration Services' provided, and how did they contribute to the Air Force's mission?

The data identifies the service as 'AUTOMATED INFO SYSTEM DESIGN&INTEGRATION SVCS' under PSC code 541519. While the exact systems are not detailed, these services typically involve the development, modification, and integration of complex software and hardware systems to meet specific operational requirements, likely enhancing the Air Force's command, control, or logistical capabilities.

Given the $62.6 million price tag and a duration of over five years, what measures were in place to ensure cost-effectiveness and prevent scope creep?

The contract utilized a 'Firm Fixed Price' (FFP) type, which generally incentivizes the contractor to control costs. However, the data doesn't specify oversight mechanisms like regular performance reviews, change control processes, or independent cost assessments that would be crucial for managing a contract of this magnitude and duration effectively.

How did the 'Full and Open Competition' process translate into value for the taxpayer, considering the significant contract amount?

Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that should theoretically lead to better pricing and service quality. While this method was used, the data doesn't provide details on the number of bids received or the final negotiated price relative to initial estimates, making it difficult to quantify the direct taxpayer value derived from this specific competition.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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 STE 1000, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $345,509,972

Exercised Options: $89,777,458

Current Obligation: $62,593,062

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4692G

IDV Type: FSS

Timeline