DHS Spends $76.6M on IT Operations & Maintenance with Accenture LLP

Contract Overview

Contract Amount: $76,573,881 ($76.6M)

Contractor: Accenture LLP

Awarding Agency: Department of Homeland Security

Start Date: 2006-08-18

End Date: 2014-05-27

Contract Duration: 2,839 days

Daily Burn Rate: $27.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: ITM O&M - THE PRINCIPLE PURPOSE OF THIS EFFORT IS TO REQUIRE THE CONTRACTOR TO PROVIDE INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE IN SUPPORT OF US-VISIT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $76.6 million to ACCENTURE LLP for work described as: ITM O&M - THE PRINCIPLE PURPOSE OF THIS EFFORT IS TO REQUIRE THE CONTRACTOR TO PROVIDE INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE IN SUPPORT OF US-VISIT Key points: 1. Significant contract value of $76.6 million over its life. 2. Accenture LLP is the sole awardee, raising questions about competition. 3. Contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 4. The sector is IT Operations and Maintenance, a critical area for government functions.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure suggests a focus on performance incentives. However, without detailed cost breakdowns or benchmarks for similar IT O&M contracts, assessing the true value for money is challenging. The total award value of $76.6M over nearly 8 years needs closer scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, only one awardee, Accenture LLP, was selected. This could indicate a highly specialized service or potential limitations in the bidding process.

Taxpayer Impact: The $76.6 million expenditure represents a significant investment of taxpayer funds for essential IT support services.

Public Impact

Ensures continuity of critical US-VISIT IT infrastructure and operations. Supports a key Department of Homeland Security program. Potential for cost overruns due to the Cost Plus Award Fee structure if not managed tightly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole awardee despite full and open competition.
Cost Plus Award Fee contract type requires robust oversight.
Long contract duration (nearly 8 years) may not reflect current market conditions.

Positive Signals

Supports a vital government function (US-VISIT).
Awarded under full and open competition.

Sector Analysis

This contract falls within the IT Operations and Maintenance sector, which is crucial for maintaining government systems. Spending benchmarks for similar large-scale IT O&M contracts can vary widely based on scope and complexity.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. This contract appears to have been awarded to a large business, Accenture LLP, with no explicit mention of small business participation.

Oversight & Accountability

The Cost Plus Award Fee (CPAFF) contract type necessitates strong oversight to ensure costs are reasonable and award fees are justified. The Department of Homeland Security's Office of Procurement Operations would be responsible for monitoring performance and expenditures.

Related Government Programs

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

Risk Flags

Potential for cost creep due to CPAFF structure.
Lack of demonstrated competition despite 'full and open' designation.
Long contract duration may not reflect current technology needs.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $76.6 million to ACCENTURE LLP. ITM O&M - THE PRINCIPLE PURPOSE OF THIS EFFORT IS TO REQUIRE THE CONTRACTOR TO PROVIDE INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE IN SUPPORT OF US-VISIT

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 $76.6 million.

What is the period of performance?

Start: 2006-08-18. End: 2014-05-27.

What specific IT operations and maintenance services were provided under this contract, and how did they align with the initial objectives of the US-VISIT program?

The contract aimed to provide essential IT operations and maintenance for the US-VISIT program. This likely encompassed a range of services including system administration, network management, help desk support, software updates, and hardware maintenance to ensure the continuous functioning of critical border security and immigration systems.

Given the sole awardee despite full and open competition, what factors contributed to Accenture LLP being the only successful bidder?

Several factors could explain a sole awardee under full and open competition. These might include highly specialized technical requirements that only Accenture could meet, a perceived lack of qualified competitors, or potentially a flawed solicitation process that inadvertently limited the applicant pool. Further investigation into the solicitation and evaluation process is warranted.

How effectively did the Cost Plus Award Fee structure incentivize performance and control costs for this extensive IT O&M effort?

The effectiveness of the CPAFF structure hinges on clearly defined performance metrics and objective award fee criteria. Without access to the specific award fee determinations and cost audits, it's difficult to definitively assess cost control. However, CPAFF contracts inherently carry a risk of cost growth if not rigorously managed and overseen by the contracting agency.

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 AWARD FEE (R)

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: $87,372,615

Exercised Options: $86,808,682

Current Obligation: $76,573,881

Parent Contract

Parent Award PIID: HSSCHQ04D00096

IDV Type: IDC

Timeline