DHS awards $165M for UI Equipment to Accenture LLP over 10 years

Contract Overview

Contract Amount: $165,293,532 ($165.3M)

Contractor: Accenture LLP

Awarding Agency: Department of Homeland Security

Start Date: 2004-09-30

End Date: 2014-05-27

Contract Duration: 3,526 days

Daily Burn Rate: $46.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER 00018- UI EQUIPMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $165.3 million to ACCENTURE LLP for work described as: TASK ORDER 00018- UI EQUIPMENT Key points: 1. Significant contract value of $165.3M over a decade. 2. Accenture LLP, a large business, secured the award. 3. The contract falls under 'All Other Business Support Services'. 4. Full and open competition was utilized.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar 'All Other Business Support Services' contracts is difficult due to the broad NAICS code.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was used, suggesting a competitive bidding process. However, the long duration and broad service category might limit the effectiveness of price discovery over time.

Taxpayer Impact: Taxpayer funds were used in a competitive process, but the long-term nature and cost-plus structure warrant scrutiny for cost-efficiency.

Public Impact

Impacts the Department of Homeland Security's operational capabilities. Affects the market for business support services. Long-term commitment of taxpayer funds for essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years)
Cost Plus Fixed Fee contract type
Broad service category (NAICS 561499)

Positive Signals

Full and open competition
Awarded to a well-established contractor

Sector Analysis

This contract falls under business support services, a broad category. Spending benchmarks for such diverse services are challenging to establish, but the scale suggests significant operational reliance.

Small Business Impact

The contract was awarded to Accenture LLP, a large business. There is no indication that small businesses were involved as subcontractors.

Oversight & Accountability

The long duration and cost-plus nature of this contract necessitate robust oversight from the Office of Procurement Operations to ensure value for money and prevent cost overruns.

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 Cost Plus Fixed Fee structure.
Risk of obsolescence or misalignment with evolving needs over a 10-year term.
Lack of transparency on specific 'UI Equipment' and services.
Limited visibility into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $165.3 million to ACCENTURE LLP. TASK ORDER 00018- UI EQUIPMENT

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 $165.3 million.

What is the period of performance?

Start: 2004-09-30. End: 2014-05-27.

What specific UI equipment and services are covered under this task order, and how do they align with DHS's evolving needs?

The provided data lacks specifics on 'UI Equipment'. Understanding the exact nature of the equipment and services is crucial to assess if the $165.3M expenditure remains relevant and cost-effective over the 10-year period, especially given technological advancements and changing operational requirements within DHS.

How was the fixed fee determined in this Cost Plus Fixed Fee contract, and what mechanisms are in place to control costs and ensure efficiency?

The data does not detail the fixed fee calculation. For a Cost Plus Fixed Fee contract, the fixed fee is negotiated upfront. Effective oversight is critical to monitor costs, ensure the contractor operates efficiently, and prevent scope creep that could inflate the overall contract value beyond initial projections.

Given the full and open competition, what was the competitive landscape, and how did it influence the final pricing and terms?

While full and open competition was used, the long duration (10 years) and broad service category might have limited the number of truly competitive bids or the depth of price discovery over the contract's lifespan. Further analysis would be needed to understand the number of bidders and the rationale behind the award.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $276,906,555

Exercised Options: $186,157,632

Current Obligation: $165,293,532

Parent Contract

Parent Award PIID: HSSCHQ04D00096

IDV Type: IDC

Timeline