DHS awards $11.5M contract for business support services to Accenture LLP over 9 years

Contract Overview

Contract Amount: $11,524,703 ($11.5M)

Contractor: Accenture LLP

Awarding Agency: Department of Homeland Security

Start Date: 2005-05-24

End Date: 2014-05-27

Contract Duration: 3,290 days

Daily Burn Rate: $3.5K/day

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: BLUE PRINT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.5 million to ACCENTURE LLP for work described as: BLUE PRINT Key points: 1. Significant contract value of $11.5M over a 9-year period. 2. Accenture LLP, a large established firm, is the sole awardee. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but may lead to higher costs. 4. The NAICS code 561499 covers a broad range of business support services, suggesting potential for scope creep.

Value Assessment

Rating: fair

The Cost Plus Award Fee (CPAF) structure allows for costs plus an incentive fee based on performance. While this can drive good outcomes, it lacks the cost certainty of fixed-price contracts and requires robust oversight to manage award fee determinations effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This appears to be a sole-source award, indicated by the absence of competition details and the contract being a delivery order. Sole-source awards limit price discovery and can potentially lead to higher costs for taxpayers if not rigorously justified and negotiated.

Taxpayer Impact: The lack of competition in sole-source awards can result in higher prices than might be achieved through a competitive bidding process, potentially increasing the financial burden on taxpayers.

Public Impact

Citizens rely on the Department of Homeland Security for essential services, making the effectiveness of contracted support critical. Long-term contracts like this can provide stability for service providers but require ongoing scrutiny to ensure continued value. The broad nature of 'All Other Business Support Services' means the public may not have a clear understanding of the specific functions being performed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Award Fee structure
Long contract duration
Broad service category

Positive Signals

Potential for performance incentives via award fee

Sector Analysis

Business support services are crucial for government operations, encompassing a wide array of functions. Benchmarks for this sector vary widely based on the specific services provided, but large, long-term contracts often represent significant investments.

Small Business Impact

The awardee, Accenture LLP, is a large business. There is no indication that small businesses were involved as subcontractors or partners in this contract, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The Cost Plus Award Fee structure necessitates strong oversight to ensure that award fees are justified and that costs are reasonable. The long duration of the contract requires sustained monitoring by the agency to ensure continued relevance and value.

Related Government Programs

All Other Business Support Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Potential for cost overruns due to CPAF structure
Lack of competitive bidding limits price discovery
Broad service category may obscure specific performance
Long contract duration requires sustained oversight
No apparent small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.5 million to ACCENTURE LLP. BLUE PRINT

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 $11.5 million.

What is the period of performance?

Start: 2005-05-24. End: 2014-05-27.

What specific business support services were procured under this contract, and how did their necessity justify a sole-source award?

The contract falls under NAICS code 561499, 'All Other Business Support Services,' which is a broad category. Without further details on the specific services rendered, it is difficult to assess their necessity or justify a sole-source award. A sole-source justification typically requires demonstrating that only one responsible source can provide the required services, which is often challenging for general support functions.

How were the award fees determined under this Cost Plus Award Fee contract, and were they consistently aligned with demonstrable performance improvements?

The effectiveness of a CPAF contract hinges on a well-defined award fee plan that clearly links incentives to measurable performance outcomes. Without access to the specific criteria and evaluation results used for determining award fees, it's impossible to assess whether taxpayers received commensurate value for the incentive payments made over the contract's nine-year lifespan.

What was the total cost of the contract, including all fees and reimbursements, and how does this compare to potential costs if the services had been competitively procured?

The contract value is listed at $11,524,703.16. As a sole-source CPAF contract, it is inherently difficult to establish a definitive benchmark against a competitive scenario. The absence of competition means potential cost savings from market forces were likely forgone. A thorough cost analysis during negotiation and ongoing oversight would be critical to ensure this value was reasonable.

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

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: $48,290,930

Exercised Options: $12,146,880

Current Obligation: $11,524,703

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSSCHQ04D00096

IDV Type: IDC

Timeline