DoD's $122.7M DEAMS contract with Accenture awarded via sole-source, raising competition concerns
Contract Overview
Contract Amount: $122,745,313 ($122.7M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Defense
Start Date: 2014-10-31
End Date: 2017-04-30
Contract Duration: 912 days
Daily Burn Rate: $134.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF PROGRAM PLANNING AND CONTROL TO SUPPORT DEFENSE ENTERPRISE ACCOUNTING AND MANAGEMENT SYSTEM (DEAMS), DEAMS DEVELOPMENT FINAL PHASE (DDFP)
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $122.7 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF PROGRAM PLANNING AND CONTROL TO SUPPORT DEFENSE ENTERPRISE ACCOUNTING AND MANAGEMENT SYSTEM (DEAMS), DEAMS DEVELOPMENT FINAL PHASE (DDFP) Key points: 1. Contract awarded to Accenture Federal Services LLC for $122.7M. 2. Focuses on Defense Enterprise Accounting and Management System (DEAMS) development. 3. Awarded as a sole-source, 'NOT COMPETED' action. 4. Computer Systems Design Services sector, NAICS 541512. 5. Contract duration of 912 days.
Value Assessment
Rating: questionable
The contract's value of $122.7M for system development is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar large-scale IT development projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis ('NOT COMPETED'), indicating a lack of competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $122.7M contract may result in suboptimal pricing and reduced value for taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The DEAMS system is critical for defense accounting, so development delays or cost overruns could impact financial management. Lack of transparency in the procurement process raises questions about accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Definitive contract type
- Firm fixed price contract
Sector Analysis
This contract falls within the Computer Systems Design Services sector, which is a significant area of federal IT spending. Benchmarks for similar large-scale system development contracts are often influenced by competitive dynamics.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the government received fair value and that the procurement process was justified. Accountability for the $122.7M expenditure is crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award raises concerns about fair pricing.
- Lack of competition limits transparency and accountability.
- Potential for cost overruns due to absence of competitive pressure.
- No clear benefit to small businesses indicated.
Tags
computer-systems-design-services, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $122.7 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF PROGRAM PLANNING AND CONTROL TO SUPPORT DEFENSE ENTERPRISE ACCOUNTING AND MANAGEMENT SYSTEM (DEAMS), DEAMS DEVELOPMENT FINAL PHASE (DDFP)
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 $122.7 million.
What is the period of performance?
Start: 2014-10-31. End: 2017-04-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or situations where only one responsible source can provide the required services. Without specific documentation, it's impossible to confirm the rationale behind this $122.7M DEAMS contract award to Accenture Federal Services LLC.
How can the government ensure fair pricing without competition?
Ensuring fair pricing without competition is challenging. The government can employ techniques like detailed cost analysis, benchmarking against similar historical contracts, independent government cost estimates, and robust negotiation strategies. However, these methods are generally less effective than the price reductions driven by a competitive bidding process.
What is the potential impact of this sole-source award on future DEAMS development?
A sole-source award might set a precedent for future DEAMS-related procurements, potentially discouraging competition if not properly justified. It could also lead to complacency in cost management and innovation if the contractor faces no competitive pressure to improve efficiency or offer better pricing.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Accenture Public Limited Company (UEI: 985015354)
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: $122,745,313
Exercised Options: $122,745,313
Current Obligation: $122,745,313
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $8,631,182
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2014-10-31
Current End Date: 2017-04-30
Potential End Date: 2017-04-30 00:00:00
Last Modified: 2017-09-22
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