DHS Awards $126M Task Order to Accenture for Business Support Services Under Full and Open Competition

Contract Overview

Contract Amount: $126,025,671 ($126.0M)

Contractor: Accenture LLP

Awarding Agency: Department of Homeland Security

Start Date: 2008-06-18

End Date: 2014-05-27

Contract Duration: 2,169 days

Daily Burn Rate: $58.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER 020

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $126.0 million to ACCENTURE LLP for work described as: TASK ORDER 020 Key points: 1. Significant contract value of $126M highlights substantial investment in business support. 2. Accenture LLP, a major player, secured this task order, indicating competitive landscape. 3. Risk is moderate given the large value and fixed-fee structure, requiring diligent oversight. 4. The 'All Other Business Support Services' sector is broad, making direct benchmarks challenging.

Value Assessment

Rating: good

The Cost Plus Fixed Fee (CPFF) structure for a $126M contract suggests a need for robust cost monitoring to ensure value. While CPFF can incentivize contractor efficiency, it requires careful oversight to prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows the government to select the best value. This method suggests a thorough price discovery process.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by leveraging market forces to drive down costs and improve service quality.

Public Impact

Taxpayers benefit from competitive bidding, potentially securing services at optimal cost. Accenture's role in providing essential business support services impacts DHS operational efficiency. The long duration (2169 days) suggests a critical, ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in CPFF contracts
Broad service category may obscure specific performance metrics

Positive Signals

Awarded via full and open competition
Accenture is a well-established provider

Sector Analysis

This task order falls under 'All Other Business Support Services,' a broad category. Spending in this area can vary widely depending on agency needs, but large contracts like this indicate significant reliance on external support for core functions.

Small Business Impact

The data indicates this task order was not awarded to small businesses (ss: false, sb: false). This suggests the primary award went to a large, established contractor, potentially limiting opportunities for smaller firms in this specific procurement.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates strong oversight from the Department of Homeland Security's Office of Procurement Operations to ensure costs remain within budget and services meet defined objectives. Regular performance reviews and audits are crucial.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully.
The broad NAICS code (561499) makes it difficult to assess specific performance benchmarks.
The contract was not awarded to small businesses, potentially missing opportunities for economic inclusion.
Long contract duration (over 6 years) increases the risk of scope creep or evolving requirements not being adequately addressed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $126.0 million to ACCENTURE LLP. TASK ORDER 020

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 $126.0 million.

What is the period of performance?

Start: 2008-06-18. End: 2014-05-27.

What specific business support services were provided under this task order, and how did they contribute to the Department of Homeland Security's mission?

The task order falls under NAICS code 561499 (All Other Business Support Services). While specific details are not provided, such services can encompass a wide range, including administrative support, call centers, document management, and other operational assistance crucial for the agency's functioning. The $126M value suggests these services were integral to significant departmental operations.

Given the Cost Plus Fixed Fee structure, what mechanisms were in place to control costs and ensure the fixed fee remained reasonable throughout the contract's duration?

A Cost Plus Fixed Fee (CPFF) contract requires rigorous government oversight. Mechanisms likely included detailed cost accounting standards, regular audits of incurred costs, baseline budget reviews, and strict change order management. The fixed fee itself would have been negotiated based on estimated effort and risk, with the government monitoring contractor performance against this baseline.

How did the full and open competition process ensure the best value was achieved for this substantial $126M investment in business support services?

Full and open competition allows multiple qualified vendors to bid, fostering a competitive environment that drives down prices and encourages innovation. The Department of Homeland Security likely evaluated proposals based on a combination of technical merit, past performance, and price. This process aims to ensure that the selected contractor, Accenture LLP, offered the most advantageous solution for the government's needs at a fair price.

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

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: $141,736,632

Exercised Options: $141,736,632

Current Obligation: $126,025,671

Parent Contract

Parent Award PIID: HSSCHQ04D00096

IDV Type: IDC

Timeline