HHS awards $30.5M for IT security and counter-intelligence support to Accenture Federal Services

Contract Overview

Contract Amount: $30,470,097 ($30.5M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-07

End Date: 2023-03-10

Contract Duration: 2,010 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF - ORS AND ORF INFORMATION SECURITY PROGRAM AND COUNTER-INTELLIGENCE SUPPORT SERVICES.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30.5 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF - ORS AND ORF INFORMATION SECURITY PROGRAM AND COUNTER-INTELLIGENCE SUPPORT SERVICES. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration spans over 5 years, indicating a long-term need for these services. 3. The fixed-price contract type may offer cost certainty for the government. 4. The services provided are critical for information security and counter-intelligence within NIH. 5. The awardee, Accenture Federal Services, is a large, established government contractor. 6. The contract value is substantial, reflecting the importance of cybersecurity for a major health agency.

Value Assessment

Rating: good

The contract value of $30.5 million over approximately 5.5 years averages to about $5.5 million annually. Benchmarking this against similar IT security and counter-intelligence support contracts is challenging without more specific service details. However, for a large federal agency like NIH, this level of spending for critical cybersecurity functions appears reasonable. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 4 bids suggests a moderate level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a potentially lower price due to multiple companies vying for the contract. It also promotes a wider pool of qualified vendors, increasing the likelihood of selecting the best value solution.

Public Impact

The National Institutes of Health (NIH) benefits from enhanced information security and counter-intelligence capabilities. Federal employees and sensitive health data are better protected against cyber threats. The contract supports the operational integrity of critical health research and public health initiatives. The services likely involve skilled IT professionals, potentially impacting the cybersecurity workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single large contractor for critical security functions could pose a risk.
The effectiveness of counter-intelligence measures is difficult to quantify externally.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost predictability for the government.
Long-term contract duration suggests a sustained commitment to critical security needs.
The contractor, Accenture Federal Services, has a significant track record in government IT services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. The federal government is a major consumer of these services, particularly for cybersecurity, data management, and system integration. Spending in this area has been steadily increasing due to the growing threat landscape. Comparable spending benchmarks for similar security support services within large federal health agencies would likely be in the multi-million dollar range annually.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. The award to a large prime contractor like Accenture Federal Services means that opportunities for small businesses would primarily be through subcontracting, if any are pursued by the prime. This award does not directly contribute to the small business contracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Health and Human Services, specifically the National Institutes of Health. Performance reviews, regular reporting, and adherence to contract terms would be key oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Cybersecurity Support Services
Information Security Programs
Counter-Intelligence Services
IT Systems Design and Integration
Federal Information Security Management Act (FISMA) Compliance

Risk Flags

Potential for vendor lock-in
Reliance on contractor performance for critical security functions
Evolving threat landscape requires continuous adaptation of services

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30.5 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF - ORS AND ORF INFORMATION SECURITY PROGRAM AND COUNTER-INTELLIGENCE SUPPORT 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 Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $30.5 million.

What is the period of performance?

Start: 2017-09-07. End: 2023-03-10.

What is Accenture Federal Services' track record with the federal government, particularly in IT security and counter-intelligence?

Accenture Federal Services is a well-established and experienced contractor with a significant presence in the federal IT services market. They have a history of performing large-scale contracts for various civilian and defense agencies, including extensive work in cybersecurity, IT modernization, and data analytics. Their past performance on similar contracts, including those involving sensitive information systems and security protocols, would have been a key factor in their selection for this NIH requirement. While specific details of past performance are often proprietary, their continued success in winning and executing federal contracts suggests a generally positive track record in delivering complex IT solutions and security services.

How does the $30.5 million contract value compare to similar IT security and counter-intelligence contracts awarded by NIH or other large federal health agencies?

The $30.5 million contract value, spread over approximately 5.5 years, equates to an average annual value of roughly $5.5 million. This figure appears to be within a reasonable range for comprehensive IT security and counter-intelligence support services required by a major federal health agency like the National Institutes of Health. Large agencies often award multi-million dollar contracts for these critical functions due to the complexity of their IT infrastructure, the sensitivity of the data they handle (e.g., health records, research data), and the evolving nature of cyber threats. Without access to specific contract details and scope of work for comparable contracts, a precise benchmark is difficult, but the awarded amount is consistent with the scale of operations at NIH.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks associated with this contract include potential cybersecurity breaches despite the services rendered, contractor performance issues, and the risk of vendor lock-in. Mitigation strategies would involve robust oversight by NIH program managers, clearly defined performance metrics and service level agreements (SLAs), and regular performance reviews. The firm-fixed-price nature of the contract shifts some financial risk to the contractor. Furthermore, the requirement for full and open competition suggests that NIH sought the best available capabilities, and the presence of multiple bidders implies a degree of vetting. The contract's duration also allows for potential adjustments or re-competition if performance falters.

How effective are IT security and counter-intelligence support services in preventing breaches and protecting sensitive data for agencies like NIH?

The effectiveness of IT security and counter-intelligence support services is crucial but inherently difficult to measure definitively, as success often means preventing incidents that never occur. These services aim to establish robust defenses, detect threats early, respond to incidents, and protect sensitive data through measures like encryption, access controls, and threat intelligence. For an agency like NIH, which handles vast amounts of sensitive health and research data, these services are vital for maintaining public trust, ensuring research integrity, and complying with regulations like HIPAA. While no system is impenetrable, comprehensive and well-executed security and counter-intelligence programs significantly reduce the likelihood and impact of breaches.

What has been the historical spending trend for IT security and counter-intelligence support services at NIH or HHS over the past five years?

Historical spending on IT security and counter-intelligence support services at NIH and the broader Department of Health and Human Services (HHS) has generally trended upwards over the past five years, mirroring a government-wide increase in cybersecurity investments. This rise is driven by the escalating sophistication of cyber threats, increased reliance on digital infrastructure, and regulatory mandates. While the specific figures for this particular contract are $30.5 million over its period, overall agency budgets for IT security functions have seen consistent growth. Agencies are dedicating more resources to protect critical infrastructure, sensitive data, and national security interests from cyber adversaries.

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

Solicitation ID: NIHJT2010001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Inc.

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,470,097

Exercised Options: $30,470,097

Current Obligation: $30,470,097

Actual Outlays: $12,770,582

Subaward Activity

Number of Subawards: 92

Total Subaward Amount: $9,849,154

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200002W

IDV Type: GWAC

Timeline