DoD's $36M Accenture Contract for Computer Systems Design Services Awarded via Full and Open Competition
Contract Overview
Contract Amount: $36,186,930 ($36.2M)
Contractor: Accenture LLP
Awarding Agency: Department of Defense
Start Date: 2012-03-28
End Date: 2015-09-15
Contract Duration: 1,266 days
Daily Burn Rate: $28.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: LABOR
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $36.2 million to ACCENTURE LLP for work described as: LABOR Key points: 1. Significant contract value of $36.19 million. 2. Competition was full and open, indicating broad market engagement. 3. Contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. 4. Services fall under IT consulting and design, a critical sector for defense operations.
Value Assessment
Rating: fair
The contract's Cost Plus Incentive Fee structure requires careful monitoring to ensure costs remain reasonable and performance targets are met. Without specific benchmarks, it's difficult to definitively assess value, but the competition method suggests a potentially competitive pricing environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it encourages market competition, potentially leading to better prices and services.
Public Impact
Defense Information Systems Agency relies on these services for critical IT infrastructure. Contract duration of over 3 years impacts long-term IT planning. Accenture LLP is a major player in government IT contracting. Potential for innovation in computer systems design within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can incentivize overspending if not tightly controlled.
- Long contract duration may not adapt to rapidly changing technology.
- Reliance on a single large contractor for critical services.
Positive Signals
- Full and open competition ensures a wide range of potential solutions.
- Award to a reputable contractor like Accenture suggests capability.
- Clear performance period and delivery order structure.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services, which are crucial for modern defense operations. Spending benchmarks for similar services can vary widely based on complexity and scope, but $36 million over three years represents a substantial investment.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Accenture LLP, a large corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract's oversight would primarily fall under the Defense Information Systems Agency (DISA). Monitoring the Cost Plus Incentive Fee structure and ensuring performance against contract requirements are key oversight functions.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Cost Plus Incentive Fee structure carries inherent cost overrun risk.
- Long contract duration may not align with rapid technological advancements.
- Potential for contractor lock-in if systems become highly specialized.
- Lack of small business participation noted.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.2 million to ACCENTURE LLP. LABOR
Who is the contractor on this award?
The obligated recipient is ACCENTURE LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $36.2 million.
What is the period of performance?
Start: 2012-03-28. End: 2015-09-15.
What specific computer systems design services were provided, and how did they contribute to the DoD's mission?
The contract focused on 'Computer Systems Design Services' under NAICS code 541512. These services likely encompassed the design, development, integration, and maintenance of complex IT systems for the Department of Defense, potentially supporting critical command, control, and communication functions. The specific contribution would depend on the systems designed and their operational impact on defense capabilities.
What are the primary risks associated with a Cost Plus Incentive Fee contract for IT services, and how were they mitigated?
The primary risk of a Cost Plus Incentive Fee (CPIF) contract is the potential for cost overruns, as the contractor is reimbursed for costs plus a fee that is adjusted based on performance. Mitigation strategies would include clearly defined performance metrics, robust government oversight of costs and progress, and well-structured incentive targets that align contractor and government goals without encouraging unnecessary spending.
How effective was the full and open competition in achieving the best value for the government in this $36 million contract?
Full and open competition is designed to maximize the chances of achieving best value by allowing a broad range of qualified vendors to compete. While this method generally leads to competitive pricing and innovation, the ultimate effectiveness depends on the specific bids received, the evaluation criteria used, and the government's ability to negotiate favorable terms. Without access to the bidding process details, it's presumed effective due to the method chosen.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Accenture Public Limited Company (UEI: 985015354)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $36,186,930
Exercised Options: $36,186,930
Current Obligation: $36,186,930
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $3,426,969
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 263010071
IDV Type: IDC
Timeline
Start Date: 2012-03-28
Current End Date: 2015-09-15
Potential End Date: 2015-09-15 00:00:00
Last Modified: 2021-01-21
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