DHS awarded Accenture $20.5M for custom computer programming, a sole-source contract with a 1368-day performance period

Contract Overview

Contract Amount: $20,473,847 ($20.5M)

Contractor: Accenture LLP

Awarding Agency: Department of Homeland Security

Start Date: 2009-01-01

End Date: 2012-09-30

Contract Duration: 1,368 days

Daily Burn Rate: $15.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PASS AUTOMATION - FUNDS TO COVER BASE PERIOD ON ACCENTURE CONTRACT. PERIOD OF PERFORMANCE: JANUARY 1, 2009- FEBRUARY 28, 2010. ACCENTURE CONTRACT DTSA20-03-C-00546.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.5 million to ACCENTURE LLP for work described as: PASS AUTOMATION - FUNDS TO COVER BASE PERIOD ON ACCENTURE CONTRACT. PERIOD OF PERFORMANCE: JANUARY 1, 2009- FEBRUARY 28, 2010. ACCENTURE CONTRACT DTSA20-03-C-00546. Key points: 1. The contract's value of $20.5 million over approximately 3.75 years suggests a significant investment in IT services. 2. Sole-source procurement raises questions about potential price inflation and lack of competitive pressure. 3. The firm fixed-price contract type shifts performance risk to the contractor, Accenture. 4. The contract's duration of 1368 days indicates a long-term need for these services. 5. The NAICS code 541511 points to a focus on custom computer programming, a critical area for agency operations. 6. The contract was awarded by the Department of Homeland Security (DHS) to Accenture LLP.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the services provided. However, a $20.5 million award for custom computer programming over nearly four years, procured sole-source, warrants scrutiny. While firm fixed-price contracts can offer cost certainty, the lack of competition may have led to a higher price than if multiple vendors had bid. Further analysis would require comparing the scope of work and deliverables to similar sole-source IT contracts within DHS or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This means that only one vendor, Accenture LLP, was solicited and awarded the contract. Sole-source procurements are typically used when only one responsible source is available or when there is a compelling justification for not seeking competition. The lack of competition limits the government's ability to explore alternative solutions and potentially secure more favorable pricing through a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as Accenture was the only provider considered.

Public Impact

The Department of Homeland Security benefits from specialized custom computer programming services. The Transportation Security Administration (TSA) is the specific agency receiving these services. The services likely support critical IT infrastructure and operational needs within TSA. The contract's duration suggests a sustained impact on TSA's technological capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of competition may indicate a lack of market research or a pre-determined vendor relationship.
The significant dollar amount warrants close monitoring of performance and value for money.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
Accenture LLP is a large, established contractor with experience in government IT services.
The contract supports critical functions within the Department of Homeland Security.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services (NAICS 541511). This is a broad category encompassing the design, development, and implementation of software and IT solutions tailored to specific client needs. The market for these services is highly competitive, with numerous large and small businesses offering expertise. However, sole-source awards in this area can bypass the typical competitive dynamics, potentially impacting price discovery and innovation.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large contractor like Accenture LLP, there are likely no direct subcontracting opportunities for small businesses mandated by this specific contract. This could represent a missed opportunity to engage the small business IT ecosystem, unless Accenture proactively includes them in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The Inspector General's office may also conduct audits or investigations into contract performance and expenditures, particularly given the sole-source nature and significant value. Transparency would be enhanced by public reporting of performance metrics and any justifications for the sole-source award.

Related Government Programs

DHS IT Services Contracts
Custom Computer Programming Services
Sole-Source IT Procurements
Transportation Security Administration IT Support

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.5 million to ACCENTURE LLP. PASS AUTOMATION - FUNDS TO COVER BASE PERIOD ON ACCENTURE CONTRACT. PERIOD OF PERFORMANCE: JANUARY 1, 2009- FEBRUARY 28, 2010. ACCENTURE CONTRACT DTSA20-03-C-00546.

Who is the contractor on this award?

The obligated recipient is ACCENTURE LLP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2009-01-01. End: 2012-09-30.

What specific custom computer programming services were provided under this contract?

The provided data indicates the contract was for 'Custom Computer Programming Services' under NAICS code 541511. However, it does not detail the specific nature of these services. Typically, this category includes the design, development, modification, testing, and support of software and IT systems tailored to an agency's unique requirements. Examples could range from developing new applications, enhancing existing systems, integrating disparate software, or providing specialized IT consulting. Without further documentation, the precise scope of work remains undefined, making a precise value assessment difficult.

What is the justification for this contract being awarded on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED,' signifying a sole-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can fulfill the requirement, or in cases of urgent need or national security. For a contract of this magnitude and duration, a detailed justification would typically be required, outlining why competition was not feasible or advantageous. Without this justification, it is difficult to assess whether the sole-source award was appropriate and in the best interest of the government.

How does the contract's value compare to similar custom computer programming services procured by DHS?

Direct comparison of this $20.5 million contract is challenging without more granular data on the specific services rendered and the contract's period of performance. However, the contract spanned from January 1, 2009, to September 30, 2012 (though the base period ended Feb 28, 2010), totaling 1368 days. This averages to approximately $5.44 million per year. While this figure is not inherently high for complex IT development, the sole-source nature means it cannot be directly benchmarked against competitive bids. A thorough comparison would require analyzing the scope of work against other sole-source or competitively awarded custom programming contracts within DHS for similar functionalities and durations.

What is Accenture LLP's track record with the Department of Homeland Security?

Accenture LLP is a major federal contractor with a significant presence across various government agencies, including the Department of Homeland Security (DHS). While this specific contract (DTSA20-03-C-00546) highlights a sole-source award for custom computer programming, Accenture has likely held numerous other contracts with DHS for a wide range of IT and professional services. Their extensive experience suggests a deep understanding of government IT environments and procurement processes. However, the nature and performance of past contracts, especially sole-source awards, would need to be reviewed to fully assess their track record specifically with DHS.

What are the potential risks associated with a sole-source contract of this size and duration?

The primary risk associated with a sole-source contract of this size ($20.5 million) and duration (over 3 years) is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible price. Other risks include vendor lock-in, where the agency becomes overly reliant on a single provider, potentially hindering flexibility and innovation. There's also a risk that the contractor may not prioritize efficiency or cost-effectiveness as rigorously as they would in a competitive environment. Furthermore, the justification for sole-sourcing itself could be flawed, leading to inefficient use of taxpayer funds.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,317,675

Exercised Options: $25,764,387

Current Obligation: $20,473,847

Timeline