DHS awards $18.7M for Identity and Application Release Management Support Services to Accenture LLP

Contract Overview

Contract Amount: $18,663,347 ($18.7M)

Contractor: Accenture LLP

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-30

End Date: 2014-05-27

Contract Duration: 1,335 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: UNIQUE IDENTITY AND APPLICATION RELEASE MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.7 million to ACCENTURE LLP for work described as: UNIQUE IDENTITY AND APPLICATION RELEASE MANAGEMENT SUPPORT SERVICES Key points: 1. Accenture LLP secured a significant contract for critical IT support services. 2. The contract falls under 'All Other Business Support Services', a broad category. 3. The award was made via full and open competition, suggesting a competitive process. 4. The duration of the contract is substantial, spanning over three years.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount of $18.7M over 1335 days needs further analysis against similar support service contracts to determine true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the services rendered, though the cost-plus structure warrants monitoring.

Public Impact

Ensures continuity of essential IT services for the Department of Homeland Security. Supports the management of identity and application releases, crucial for operational security. The large contract value highlights the importance of these services to national security. Potential for follow-on contracts or expansion of services based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration may not reflect current market pricing.
Lack of specific performance metrics in provided data.

Positive Signals

Awarded through full and open competition.
Accenture LLP is a well-established provider in the IT services sector.
Services are critical to DHS operations.

Sector Analysis

This contract falls within the Business Support Services sector, specifically IT-related functions. Benchmarks for similar IT support services contracts are highly variable based on scope and duration, but $18.7M over three years for specialized management services is substantial.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The Department of Homeland Security's Office of Procurement Operations managed this award. Oversight would focus on ensuring the Cost Plus Fixed Fee structure is managed effectively to prevent cost overruns and that Accenture meets all contractual obligations.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
No indication of small business subcontracting.
Broad 'Business Support Services' category may obscure specific risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.7 million to ACCENTURE LLP. UNIQUE IDENTITY AND APPLICATION RELEASE MANAGEMENT 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 $18.7 million.

What is the period of performance?

Start: 2010-09-30. End: 2014-05-27.

What specific metrics were used to evaluate Accenture's performance under this contract, and how did they align with the fixed fee component?

The provided data does not detail specific performance metrics. For a Cost Plus Fixed Fee contract, oversight typically involves tracking cost expenditures against the fixed fee, ensuring the contractor operates within agreed-upon parameters. Performance evaluation would likely involve adherence to service level agreements (SLAs) for identity management and application release processes, and overall responsiveness to DHS needs.

How does the $18.7 million cost compare to industry benchmarks for similar identity and application release management support services over a 1335-day period?

Benchmarking this specific contract is challenging without granular details on the scope of services, required expertise, and specific technologies involved. However, for complex IT management services over approximately 3.7 years, $18.7 million represents a significant investment. Industry averages can vary widely, but this figure suggests a high level of specialized support or a broad range of responsibilities.

What was the rationale for choosing a Cost Plus Fixed Fee (CPFF) contract type for these services, and what mechanisms were in place to control potential cost escalations?

CPFF contracts are often used when the scope of work is not precisely defined or when there's a high degree of uncertainty, allowing flexibility while providing the contractor with a fixed profit. Mechanisms to control costs would typically include rigorous financial oversight, regular audits of expenditures, clear definition of allowable costs, and strong program management to ensure efficient service delivery within the established fee structure.

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: $18,883,870

Exercised Options: $18,663,347

Current Obligation: $18,663,347

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $10,440,596

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSSCHQ04D00096

IDV Type: IDC

Timeline