DoD's $137M ERP Common Services Contract with Accenture Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $137,039,073 ($137.0M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of Defense
Start Date: 2020-07-24
End Date: 2026-01-23
Contract Duration: 2,009 days
Daily Burn Rate: $68.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 28
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ERP COMMON SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $137.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: ERP COMMON SERVICES Key points: 1. Significant contract value of $137M for ERP Common Services. 2. Accenture Federal Services is the sole awardee, raising questions about competition. 3. The contract duration extends to 2026, indicating long-term reliance. 4. Focus on computing infrastructure and data processing services.
Value Assessment
Rating: questionable
The total award amount is $137M. Without specific performance metrics or benchmarks for ERP Common Services, it is difficult to definitively assess value for money. The lack of competitive bidding further complicates this assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as 'FULL AND OPEN COMPETITION', the data indicates a single awardee, Accenture Federal Services LLC. This suggests that while the opportunity was open, only one entity was ultimately selected or bid successfully, potentially limiting price discovery.
Taxpayer Impact: The substantial contract value of $137M represents a significant taxpayer investment. The effectiveness of the competition method will directly impact whether taxpayers are receiving optimal value for these essential IT services.
Public Impact
Impacts critical IT infrastructure for the Department of the Air Force. Potential for cost overruns if competition was not fully leveraged. Ensuring data security and service availability is paramount.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation.
- Long contract duration may reduce flexibility.
- High contract value requires close monitoring.
Positive Signals
- Provides essential ERP common services.
- Contract awarded to a known entity in the federal space.
Sector Analysis
This contract falls under the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting. The benchmark for similar contracts can vary widely based on scope and complexity, but $137M is a substantial investment for common services.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). There is no indication of subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The long duration and significant value of this contract warrant robust oversight from the Department of the Air Force to ensure performance, cost control, and adherence to contract terms. Regular performance reviews and audits are crucial.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for vendor lock-in due to long contract duration.
- Lack of clear competitive pressure may lead to suboptimal pricing.
- Dependency on a single provider for critical IT services.
- Need for strong performance monitoring to ensure value.
Tags
computing-infrastructure-providers-data-, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $137.0 million to ACCENTURE FEDERAL SERVICES LLC. ERP COMMON SERVICES
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 $137.0 million.
What is the period of performance?
Start: 2020-07-24. End: 2026-01-23.
What specific performance metrics are in place to ensure the $137M contract delivers optimal value for ERP Common Services?
The provided data does not detail specific performance metrics. Robust oversight would require the Department of the Air Force to establish clear Key Performance Indicators (KPIs) related to service availability, processing speed, uptime, and user satisfaction. These metrics should be regularly reviewed against the contract's objectives to ensure value for money is being achieved throughout the contract's lifecycle.
How can the Department of the Air Force mitigate risks associated with limited competition on this long-term contract?
To mitigate risks, the Air Force should actively monitor Accenture's performance and pricing. Periodic market research should be conducted to assess current market rates and identify potential alternative solutions or vendors. Exercising options should be carefully evaluated, and if possible, future solicitations should be structured to encourage broader participation and competitive pricing.
What is the expected effectiveness of these ERP Common Services in supporting the Air Force's mission objectives?
The effectiveness hinges on the successful implementation and ongoing support of critical ERP functionalities. These services are expected to streamline business processes, improve data management, and enhance operational efficiency across the Air Force. The long-term nature of the contract suggests a strategic intent to rely on these services for sustained mission support.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and 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: TWO STEP
Offers Received: 28
Pricing Type: FIRM FIXED PRICE (J)
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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $141,274,820
Exercised Options: $137,300,418
Current Obligation: $137,039,073
Actual Outlays: $63,290,136
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $14,948,226
Contract Characteristics
Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)
Cost or Pricing Data: NO
Timeline
Start Date: 2020-07-24
Current End Date: 2026-01-23
Potential End Date: 2026-01-23 00:00:00
Last Modified: 2025-07-30
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