DHS's $260M US VISIT IDENT SYSTEM contract awarded to Accenture LLP for business support services

Contract Overview

Contract Amount: $260,636,679 ($260.6M)

Contractor: Accenture LLP

Awarding Agency: Department of Homeland Security

Start Date: 2004-09-30

End Date: 2011-10-31

Contract Duration: 2,587 days

Daily Burn Rate: $100.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: US VISIT IDENT SYSTEM

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 $260.6 million to ACCENTURE LLP for work described as: US VISIT IDENT SYSTEM Key points: 1. The contract's value of over $260 million over its lifespan indicates a significant investment in identity verification systems. 2. Awarded under full and open competition, the contract suggests a competitive bidding process for these services. 3. The long duration of the contract (over 7 years) may present risks related to technological obsolescence and evolving security needs. 4. The 'All Other Business Support Services' classification is broad, potentially encompassing a wide range of activities. 5. The contract's performance period spans a significant period, allowing for substantial development and implementation. 6. The 'COST PLUS AWARD FEE' contract type incentivizes performance but can lead to higher costs if not managed carefully.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. However, a $260 million expenditure over seven years for an identity verification system suggests a substantial investment. The 'COST PLUS AWARD FEE' structure implies that the final cost could vary based on performance, making direct price comparisons difficult without knowing the award fees earned. Compared to similar large-scale IT and business support service contracts, the per-year cost appears moderate for a system of this potential scope, but a detailed analysis of the services rendered is necessary for a true value assessment.

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 a bid. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency sought proposals from a wide range of potential contractors, aiming to secure the best value through a competitive process.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at a competitive price due to multiple vendors vying for the contract.

Public Impact

The primary beneficiaries are likely the Department of Homeland Security (DHS) and its various components, which rely on robust identity verification systems for national security and border management. The services delivered are expected to enhance the accuracy and efficiency of identifying individuals entering or interacting with U.S. systems. The geographic impact is national, particularly at ports of entry and other critical federal facilities across the United States. Workforce implications may include the need for specialized IT personnel, analysts, and support staff within DHS and potentially at Accenture LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST PLUS AWARD FEE' contract type can lead to cost overruns if award fee criteria are not strictly managed and performance targets are not clearly defined and achieved.
The long contract duration (over 7 years) increases the risk of technological obsolescence and the need for potential contract modifications to keep pace with evolving requirements.
The broad classification of 'All Other Business Support Services' might obscure the specific nature and cost drivers of the services provided, making detailed oversight more complex.
Lack of specific details on the number of bidders in the full and open competition makes it difficult to fully assess the intensity of the competition and its impact on pricing.
The contract's end date in 2011 means current relevance and ongoing operational status require further investigation.

Positive Signals

Awarded through 'FULL AND OPEN COMPETITION,' suggesting a robust and fair bidding process that likely resulted in competitive pricing.
The contract's significant duration implies a stable, long-term partnership, potentially leading to efficiencies and deep expertise development by the contractor.
The 'AWARD' designation in the award type (DO) might indicate a specific type of contract or award mechanism that could have favorable terms.
The contract was awarded to a well-known entity (Accenture LLP), which may suggest a level of confidence in their capabilities and past performance.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and characterized by rapid technological advancements. This contract falls under business support services, likely encompassing IT infrastructure, software development, data management, and potentially system integration related to identity verification. The market size for such services to federal agencies is substantial, with significant spending allocated to modernizing and securing national systems. Comparable spending benchmarks would typically involve analyzing other large-scale IT modernization projects or identity management systems procured by agencies like DHS, FBI, or DoD.

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 requirements for small businesses explicitly stated in this summary. The prime contractor, Accenture LLP, is a large business. While large contracts often include subcontracting plans, the specifics of such plans and their impact on the small business ecosystem are not detailed here. Without a small business set-aside, the primary focus of competition was likely on large, capable firms.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers within DHS, and potentially the agency's Inspector General. The 'COST PLUS AWARD FEE' structure necessitates careful monitoring of performance metrics against which award fees are determined. Transparency would depend on the agency's reporting practices and the public availability of contract performance data. Given the nature of identity systems, specific details of oversight might be sensitive.

Related Government Programs

Biometric Identification Systems
Homeland Security Information Systems
Federal Identity Management Programs
Border Security Technology
National Security IT Modernization

Risk Flags

Long contract duration may lead to technological obsolescence.
Cost Plus Award Fee structure requires diligent oversight to control costs.
Broad service classification may obscure specific cost drivers.
Contract ended in 2011, requiring investigation into successor systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $260.6 million to ACCENTURE LLP. US VISIT IDENT SYSTEM

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 $260.6 million.

What is the period of performance?

Start: 2004-09-30. End: 2011-10-31.

What specific services were included under the 'All Other Business Support Services' classification for the US VISIT IDENT SYSTEM?

The classification 'NAICS 561499 - All Other Business Support Services' is very broad and typically encompasses a wide array of non-classified business support activities. For the US VISIT IDENT SYSTEM, this could have included services such as program management, systems integration, IT support, data analysis, help desk operations, training, and potentially aspects of system development or maintenance. Without access to the detailed contract statement of work (SOW), it is difficult to pinpoint the exact services rendered. However, given the 'IDENT SYSTEM' context, it is highly probable that these services were directly related to the development, implementation, operation, or maintenance of systems designed to identify individuals.

How did Accenture LLP's past performance influence the award of this contract?

While the provided data does not explicitly detail Accenture LLP's past performance record or how it was evaluated for this specific contract, government agencies typically assess a contractor's past performance as a critical factor in award decisions. For a contract of this magnitude and duration, the agency likely reviewed Accenture's track record with similar large-scale IT projects, particularly those involving sensitive systems or government clients. This would include evaluating their ability to meet deadlines, manage costs, deliver quality services, and adhere to security protocols. A positive past performance record would have significantly strengthened Accenture's proposal and increased their likelihood of winning the contract.

What were the key performance indicators (KPIs) used to determine award fees for Accenture LLP?

The 'COST PLUS AWARD FEE' (CPAF) contract type implies that specific performance metrics and objectives were established, and Accenture LLP's achievement against these metrics would determine the amount of award fee received. While these KPIs are not detailed in the provided summary, they would typically be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For an identity system, KPIs could have included system uptime and availability, data accuracy rates, processing speed, security compliance adherence, successful integration with other systems, and user satisfaction. The agency would have monitored these KPIs throughout the contract period to assess performance and justify the award fee payments.

How does the $260M total contract value compare to other DHS IT procurements of similar scope?

Comparing the $260 million total contract value for the US VISIT IDENT SYSTEM to other DHS IT procurements requires access to a broader dataset of DHS contracts and their respective scopes. However, as a general benchmark, $260 million spread over approximately seven years (from 2004 to 2011) represents an average annual expenditure of roughly $37 million. This figure is substantial but not necessarily out of line for large-scale, mission-critical IT systems within a major federal agency like DHS, especially those related to national security and border management. To provide a precise comparison, one would need to identify other DHS contracts for identity management, biometric systems, or large IT infrastructure projects awarded during a similar timeframe and analyze their total values, durations, and the complexity of the services provided.

What are the potential risks associated with the long duration of this contract (2004-2011)?

The contract's duration, spanning from September 2004 to October 2011 (over 7 years), presents several potential risks. Firstly, technological obsolescence is a significant concern; IT systems and security threats evolve rapidly, and a system designed and implemented over such a long period might become outdated or vulnerable. Secondly, requirements creep or changes in agency needs could necessitate costly modifications or contract adjustments. Thirdly, maintaining contractor performance and engagement over an extended period can be challenging, potentially leading to complacency or a decline in service quality if not actively managed. Finally, the long timeframe increases the risk of unforeseen geopolitical or security landscape changes that could render the system's original purpose or design less effective.

Given the contract ended in 2011, what is the current status or successor system for the US VISIT IDENT SYSTEM?

The US-VISIT program, which this contract supported, underwent significant evolution and restructuring following its initial implementation. The program was integrated into broader border security and immigration enforcement initiatives. While the specific contract ended in 2011, the functions it supported likely transitioned to successor systems or programs within DHS. For instance, subsequent initiatives like the 'Entry/Exit' system enhancements, biometric data collection improvements, and integration with other law enforcement databases have continued. Identifying the exact successor system would require tracing DHS's IT modernization efforts post-2011, potentially involving programs like the 'Automated Commercial Environment' (ACE) or newer biometric identification and vetting systems.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $290,476,142

Exercised Options: $281,711,792

Current Obligation: $260,636,679

Parent Contract

Parent Award PIID: HSSCHQ04D00096

IDV Type: IDC

Timeline