DoD's $71M Accenture Contract for UCA-DEAMS PPS Raises Concerns Over Value and Competition

Contract Overview

Contract Amount: $71,148,435 ($71.1M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2012-04-30

End Date: 2014-10-31

Contract Duration: 914 days

Daily Burn Rate: $77.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: UCA-DEAMS PPS, RELEASE 1, RELEASE 2

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433, UNITED STATES OF AMERICA

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $71.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: UCA-DEAMS PPS, RELEASE 1, RELEASE 2 Key points: 1. The contract awarded to Accenture Federal Services LLC for $71.15 million appears to be for IT services, specifically 'Other Computer Related Services'. 2. Despite being awarded under 'Full and Open Competition', the lack of detailed public information makes it difficult to assess the true value and competitive landscape. 3. The 'Time and Materials' contract type can pose risks for cost overruns if not managed tightly. 4. The sector is IT, with a focus on defense-specific systems, suggesting a need for specialized expertise.

Value Assessment

Rating: questionable

The contract value of $71.15 million over approximately 3 years for IT services needs further context. Without detailed breakdowns or comparisons to similar DoD IT service contracts, it's challenging to definitively assess if the pricing was competitive or represented good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under 'Full and Open Competition', the specific details of the bidding process and the number of competitors are not readily available. This lack of transparency hinders a thorough assessment of price discovery and whether the best possible price was achieved.

Taxpayer Impact: The $71.15 million expenditure represents taxpayer funds. Without clear evidence of competitive pricing and efficient service delivery, there's a potential for suboptimal use of these funds.

Public Impact

Taxpayers may not be receiving the best value for IT services due to potential lack of transparency in the bidding process. The Department of Defense relies on these services, making any inefficiencies or overspending a direct impact on operational capabilities. The use of a Time and Materials contract type could lead to increased costs if not meticulously monitored by the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics publicly available.
Time and Materials contract type can lead to cost overruns.
Limited public information on the competitive bidding process.

Positive Signals

Awarded under Full and Open Competition.
Contract supports critical defense systems (UCA-DEAMS).

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). Spending in this area for the Department of Defense is substantial, and benchmarks for similar large-scale IT support contracts are crucial for evaluating value.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve program management reviews, performance monitoring, and financial audits to ensure compliance and value for money. The limited public data makes assessing the effectiveness of this oversight challenging.

Related Government Programs

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

Risk Flags

Lack of detailed public information on contract performance and deliverables.
Potential for cost overruns due to Time and Materials pricing structure.
Uncertainty regarding the competitiveness of the 'Full and Open Competition' outcome.
No apparent small business participation.
Broadly defined service category ('Other Computer Related Services').

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.1 million to ACCENTURE FEDERAL SERVICES LLC. UCA-DEAMS PPS, RELEASE 1, RELEASE 2

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 $71.1 million.

What is the period of performance?

Start: 2012-04-30. End: 2014-10-31.

What specific IT services were provided under UCA-DEAMS PPS Releases 1 and 2, and how do these services align with current Air Force IT needs?

The contract description 'Other Computer Related Services' is broad. Understanding the specific deliverables, such as system integration, software development, or maintenance, is crucial. Aligning these services with evolving Air Force IT requirements ensures the contract remains relevant and avoids potential obsolescence or scope creep, ultimately impacting the value derived from the $71.15 million investment.

Given the 'Time and Materials' contract type, what mechanisms were in place to control costs and prevent overruns during the contract period?

Time and Materials contracts carry inherent risks of escalating costs if not managed stringently. Effective oversight would involve detailed tracking of labor hours and rates, robust review of material costs, and clear limitations on total expenditure. Without documented evidence of such controls, the risk of exceeding the $71.15 million ceiling or paying inflated prices for services increases significantly.

How did the 'Full and Open Competition' process ensure the most cost-effective solution was selected for the UCA-DEAMS PPS, considering the contract's duration and value?

While 'Full and Open Competition' suggests a broad solicitation, the effectiveness hinges on the evaluation criteria and the number/quality of bids received. If the evaluation heavily favored technical approach over price, or if only a limited number of qualified bidders participated, the resulting price might not be the most competitive. A thorough analysis would require access to the solicitation details and bid evaluation summaries.

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: TIME AND MATERIALS (Y)

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

Financial Breakdown

Contract Ceiling: $76,684,393

Exercised Options: $73,311,535

Current Obligation: $71,148,435

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $23,419,108

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0371N

IDV Type: FSS

Timeline