DHS awarded Accenture a $10.9M contract for business support services, with a 1307-day duration

Contract Overview

Contract Amount: $10,936,608 ($10.9M)

Contractor: Accenture LLP

Awarding Agency: Department of Homeland Security

Start Date: 2005-03-03

End Date: 2008-09-30

Contract Duration: 1,307 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER 0010 - INCREMENT 2A

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.9 million to ACCENTURE LLP for work described as: TASK ORDER 0010 - INCREMENT 2A Key points: 1. The contract's fixed fee structure, while common, requires careful monitoring to ensure cost control. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract's duration of over three years indicates a need for sustained service delivery. 4. Performance was rated 'satisfactory' (ST), a standard but not exceptional indicator. 5. The services fall under 'All Other Business Support Services,' a broad category. 6. The contract was awarded by the Office of Procurement Operations, suggesting internal support functions. 7. The contract was awarded in 2005, indicating a historical service provision.

Value Assessment

Rating: fair

The contract's total value of $10.9 million over approximately 3.5 years averages to about $3.1 million annually. Without specific performance metrics or detailed cost breakdowns, it is difficult to definitively benchmark the value for money. However, for business support services, this annual figure appears within a reasonable range, though a more granular comparison to similar contracts for specific services would be necessary for a conclusive assessment. The Cost Plus Fixed Fee (CPFF) pricing structure means that while the contractor's profit is fixed, the government bears the risk of cost overruns, necessitating diligent oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The fact that it was competed broadly suggests that the agency sought a wide range of potential providers, which can lead to better price discovery and potentially more innovative solutions compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for obtaining services at the most competitive prices. It ensures that the government is not limited to a single provider and can leverage market forces to achieve better value.

Public Impact

The Department of Homeland Security benefits from essential business support services, enabling smoother internal operations. The contract supports administrative and operational functions within the agency. Services are likely delivered within the Washington D.C. metropolitan area, given the agency's primary locations. The contract supports a workforce engaged in business support roles, contributing to federal employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
The broad 'All Other Business Support Services' category may lack specific performance metrics, making detailed evaluation challenging.
The contract's age (awarded 2005) means current market rates and service needs may have evolved significantly.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The 'Satisfactory' performance rating suggests the contractor met basic requirements.
The fixed fee component provides some level of cost predictability for the government.

Sector Analysis

This contract falls within the Business Support Services sector, a broad category encompassing a wide range of administrative, operational, and management assistance functions. This sector is crucial for the efficient functioning of government agencies and private organizations alike. Spending in this area can vary significantly based on the specific services required, the size of the organization, and the complexity of its operations. Comparable spending benchmarks would depend heavily on the precise nature of the 'All Other Business Support Services' provided.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of the services and the contractor (Accenture LLP), it is unlikely that significant subcontracting opportunities for small businesses were mandated or a primary focus of this specific award. Further analysis would be needed to determine if any subcontracting plans were in place or if small businesses were involved in the supply chain.

Oversight & Accountability

The contract's performance was rated 'Satisfactory' (ST), indicating that the contractor met the basic requirements of the contract. Oversight mechanisms would typically involve contract officers, program managers, and potentially contracting officer's representatives (CORs) responsible for monitoring performance, ensuring compliance with terms and conditions, and approving invoices. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules for professional services
Department of Homeland Security (DHS) administrative support contracts
Federal IT and business consulting services

Risk Flags

Cost Overrun Risk (CPFF)
Scope Definition Ambiguity (Broad NAICS Code)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.9 million to ACCENTURE LLP. TASK ORDER 0010 - INCREMENT 2A

Who is the contractor on this award?

The obligated recipient is ACCENTURE LLP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2005-03-03. End: 2008-09-30.

What specific business support services were provided under this contract?

The contract falls under the NAICS code 561499, 'All Other Business Support Services.' This is a very broad category that can encompass a wide array of functions, including but not limited to administrative support, mail services, document preparation, call centers, and other non-specified business support activities. Without more detailed documentation or task order specifics, it is difficult to pinpoint the exact services rendered. However, given the awarding agency (DHS) and the nature of procurement operations, these services likely supported internal administrative, logistical, or operational functions critical to the department's mission.

How does the $10.9 million value compare to similar contracts for business support services at DHS?

Benchmarking the $10.9 million value requires comparing it against contracts for similar 'All Other Business Support Services' awarded by DHS or other large federal agencies during the 2005-2008 timeframe. Contracts for broad business support can vary widely in cost depending on the scope, duration, and specific deliverables. A direct comparison would necessitate identifying contracts with identical or highly similar NAICS codes and service descriptions. Generally, a $10.9 million contract over approximately 3.5 years, averaging around $3.1 million annually, is a substantial award, suggesting a significant scope of work. However, without more granular data on comparable contracts, it's challenging to definitively state if it represents excellent, fair, or questionable value.

What were the key performance indicators (KPIs) and how was Accenture's performance measured?

The contract indicates a performance rating of 'Satisfactory' (ST). While 'Satisfactory' implies that the contractor met the basic requirements and objectives of the contract, it does not typically denote exceptional performance. Specific Key Performance Indicators (KPIs) and the detailed measurement criteria are usually outlined within the contract's Performance Work Statement (PWS) or Statement of Work (SOW). These would define the specific services, quality standards, delivery timelines, and metrics used to evaluate the contractor's adherence to those standards. Without access to the PWS/SOW, the precise KPIs and measurement methods remain unknown, but the 'Satisfactory' rating suggests that performance met the minimum acceptable levels.

What is the significance of the Cost Plus Fixed Fee (CPFF) contract type for this service?

The Cost Plus Fixed Fee (CPFF) contract type means that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For business support services, CPFF can be used when the scope of work is not precisely defined at the outset or is expected to evolve. While the fixed fee provides some cost certainty regarding profit, the government assumes the risk of cost overruns if actual costs exceed estimates. This necessitates robust government oversight to ensure costs are reasonable and allocable to the contract. It can be advantageous when flexibility is needed but requires diligent management to control overall expenditure.

What was Accenture's track record with DHS prior to or during this contract?

Accenture LLP is a large, well-established global consulting and professional services company. Information regarding their specific track record with DHS prior to or during this 2005-2008 contract would typically be found in past performance evaluations included in their bid proposals for subsequent contracts, or within internal DHS performance databases. Federal procurement data often includes past performance information, though detailed historical performance narratives for specific contracts are not always publicly accessible. Given Accenture's size and market presence, it is likely they have had numerous contracts with various federal agencies, including DHS, over many years.

How did the duration of 1307 days (approx. 3.5 years) impact the contract's overall value and management?

A contract duration of 1307 days (approximately 3.5 years) is a significant commitment, allowing for the establishment of stable service delivery and potentially fostering efficiencies through contractor familiarity with agency needs. For the government, a longer duration can reduce the administrative burden associated with frequent re-competitions and contract transitions. However, it also means that the government is committed to a specific provider and pricing structure for an extended period. This extended timeframe necessitates careful initial planning and ongoing performance management to ensure the services remain relevant and cost-effective throughout the contract's life, especially in a dynamic environment.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

Address: 11951 FREEDOM DR, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,547,392

Exercised Options: $11,547,392

Current Obligation: $10,936,608

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: HSSCHQ04D00096

IDV Type: IDC

Timeline