DHS awarded Accenture $36.4M for operations and maintenance support, spanning over 4 years

Contract Overview

Contract Amount: $36,377,226 ($36.4M)

Contractor: Accenture LLP

Awarding Agency: Department of Homeland Security

Start Date: 2010-04-01

End Date: 2014-05-27

Contract Duration: 1,517 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OPERATIONS & MAINTENANCE SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $36.4 million to ACCENTURE LLP for work described as: OPERATIONS & MAINTENANCE SUPPORT SERVICES Key points: 1. The contract value represents a significant investment in essential business support services for the Department of Homeland Security. 2. Accenture's role in providing these services suggests a focus on maintaining critical operational functions. 3. The duration of the contract indicates a need for sustained support, potentially pointing to long-term operational requirements. 4. The 'All Other Business Support Services' NAICS code suggests a broad scope of work, encompassing various administrative and operational functions. 5. The contract was awarded via full and open competition, implying a competitive bidding process. 6. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement with a fixed fee, balancing flexibility with cost control.

Value Assessment

Rating: good

Benchmarking this contract's value requires more specific data on the scope of 'Operations & Maintenance Support Services' provided. However, a $36.4 million award over four years for comprehensive support to a major agency like DHS suggests a reasonable investment for the services rendered. Without comparable contract data for similar support functions within DHS or other large federal agencies, a precise value-for-money assessment is challenging. The CPFF structure, while offering flexibility, can sometimes lead to higher costs if not managed diligently, but the fixed fee component provides a degree of cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended and likely occurred, which is beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of securing services at competitive market rates, preventing potential overpayment and promoting efficiency.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, receiving essential support services to maintain its operations. The services delivered likely encompass a range of administrative, logistical, and technical support functions critical to DHS's mission. The geographic impact is primarily within the operational areas of DHS, which could be nationwide or specific to agency locations. Workforce implications may include the direct employment of personnel by Accenture to fulfill the contract requirements, as well as supporting the internal DHS workforce by managing essential operational functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in 'All Other Business Support Services' given the broad NAICS code.
Cost management under a CPFF contract requires diligent oversight to ensure efficiency and prevent cost overruns.
Dependence on a single contractor for critical operations support could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract duration of over four years indicates a stable and reliable support structure for DHS.
Accenture's established presence and experience in government contracting suggest a capable provider.

Sector Analysis

This contract falls within the Business Support Services sector, specifically categorized under 'All Other Business Support Services' (NAICS 561499). This broad category encompasses a wide array of services that facilitate the day-to-day operations of organizations. The federal market for such services is substantial, with agencies across the government procuring support functions to enhance efficiency and focus on core missions. Comparable spending benchmarks would typically involve analyzing other large-scale support service contracts awarded to major federal contractors by agencies like DHS, DoD, or GSA.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. The primary contractor, Accenture LLP, is a large business. While large prime contracts can sometimes include subcontracting opportunities for small businesses, this contract's structure does not inherently guarantee such opportunities without specific clauses or voluntary subcontracting plans.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security's contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure compliance with contract terms. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

Department of Homeland Security Operations Support
Federal IT and Administrative Support Services
Accenture Government Contracts
Cost Plus Fixed Fee Contracts
Business Support Services

Risk Flags

Broad NAICS code may obscure specific service details.
CPFF contract type requires diligent cost oversight.
Potential for vendor lock-in if performance is satisfactory over the long term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $36.4 million to ACCENTURE LLP. OPERATIONS & MAINTENANCE SUPPORT SERVICES

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 $36.4 million.

What is the period of performance?

Start: 2010-04-01. End: 2014-05-27.

What is Accenture's track record with the Department of Homeland Security prior to this contract?

Accenture LLP has a significant history of contracting with various U.S. federal agencies, including the Department of Homeland Security (DHS). Prior to this specific $36.4 million award for operations and maintenance support, Accenture has secured numerous contracts across different DHS components for a wide range of services, including IT modernization, cybersecurity, financial management, and program management. Their extensive experience with DHS suggests a deep understanding of the agency's operational needs and challenges. Analyzing their past performance on similar contracts, including any performance ratings or past performance questionnaires, would provide further insight into their reliability and effectiveness in delivering services to DHS.

How does the $36.4 million value compare to similar operations and maintenance support contracts within DHS?

Directly comparing the $36.4 million value of this contract to similar operations and maintenance support contracts within DHS is challenging without access to a comprehensive database of all DHS contracts and their specific scopes of work. However, for a large federal agency like DHS, which manages a vast array of complex operations, an award of this magnitude over a four-year period for comprehensive support services is not uncommon. It suggests a substantial need for sustained operational assistance. To provide a more precise comparison, one would need to identify contracts with similar NAICS codes (561499) and service descriptions within DHS, and then normalize for contract duration and specific deliverables. Generally, large-scale support contracts for major federal departments can range from tens to hundreds of millions of dollars.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, such as this $36.4 million award to Accenture, revolve around cost control and contractor efficiency. While the fixed fee provides the contractor with an incentive to control costs (as they receive the same fee regardless of actual costs), there's a risk that the government may pay more than necessary if the contractor's actual costs are significantly higher than anticipated. Conversely, if costs are much lower, the government might feel the fixed fee represents poor value. Effective oversight is critical to ensure the contractor is performing efficiently and that costs are reasonable and allocable. Another risk is potential scope creep, where the definition of 'operations and maintenance support services' might expand beyond the original intent, leading to increased costs and potential disputes if not managed through formal contract modifications.

How effective is full and open competition in ensuring value for money for this type of service?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for operations and maintenance support services. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids that reflect fair market prices. This competitive pressure incentivizes contractors to offer their best pricing, technical solutions, and performance capabilities. For a broad service category like 'All Other Business Support Services,' a competitive process helps to clarify the market and identify the most capable and cost-effective providers. While the ultimate value depends on the specific evaluation criteria and the rigor of the source selection process, the principle of broad competition is a strong foundation for achieving good value.

What are the potential implications for future spending patterns in DHS business support services?

This contract, awarded to Accenture for $36.4 million over four years, could influence future spending patterns in DHS business support services in several ways. Firstly, if Accenture performs well, it may solidify their position as a preferred provider for similar services, potentially leading to future contract awards or extensions. Secondly, the success or challenges encountered with this CPFF contract could inform DHS's future contracting strategies, influencing decisions on contract types (e.g., fixed-price vs. cost-reimbursable) and competition levels for similar procurements. Thirdly, the specific services delivered under this contract might highlight areas where DHS has ongoing needs, potentially leading to increased or sustained investment in business support functions. Finally, the pricing and performance data generated from this contract can serve as a benchmark for future solicitations in this service category.

How does the 'All Other Business Support Services' NAICS code impact the assessment of this contract's scope and value?

The 'All Other Business Support Services' NAICS code (561499) is very broad, encompassing a wide array of non-classified business support activities. This broadness impacts the assessment because it makes it difficult to pinpoint the exact nature of the services Accenture is providing without further detail. It could range from administrative support, call centers, document management, to facilities support, among many other possibilities. Consequently, assessing the contract's value and comparing it to benchmarks becomes more challenging, as the 'value' is tied to a diverse set of potential services. It suggests that DHS has a multifaceted need for support that doesn't fit neatly into more specific service categories. This also implies that the contract's success hinges on clear performance metrics and diligent oversight to ensure the services delivered align with DHS's actual operational requirements and justify the $36.4 million investment.

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)

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: $37,833,562

Exercised Options: $37,833,562

Current Obligation: $36,377,226

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSSCHQ04D00096

IDV Type: IDC

Timeline