DHS awards $61.8M for TSA Agile Services, with Accenture Federal Services as prime

Contract Overview

Contract Amount: $61,764,013 ($61.8M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2016-12-05

End Date: 2020-11-04

Contract Duration: 1,430 days

Daily Burn Rate: $43.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: "IGF::OT::IGF" THIS IS AWARD OF HYBRID (FIRM-FIXED-PRICE AND TIME AND MATERIALS)TASK ORDER FOR TSA AGILE SERVICES. EAGLE II IDIQ HSHQDC-14-D-E2005 TASK ORDER HSTS03-16-J-CIO585

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $61.8 million to ACCENTURE FEDERAL SERVICES LLC for work described as: "IGF::OT::IGF" THIS IS AWARD OF HYBRID (FIRM-FIXED-PRICE AND TIME AND MATERIALS)TASK ORDER FOR TSA AGILE SERVICES. EAGLE II IDIQ HSHQDC-14-D-E2005 TASK ORDER HSTS03-16-J-CIO585 Key points: 1. Contract awarded under the EAGLE II IDIQ, indicating a pre-competed framework. 2. Hybrid contract type (firm-fixed-price and time-and-materials) suggests flexibility for evolving needs. 3. Duration of 1430 days points to a long-term engagement for ongoing services. 4. The contract is for Computer Systems Design Services, a critical area for agency modernization. 5. Prime contractor Accenture Federal Services has a significant presence in federal IT contracting.

Value Assessment

Rating: good

The total award amount of $61.8 million over approximately four years suggests a substantial investment in IT services. Benchmarking this against similar large-scale IT service contracts for federal agencies would provide a clearer picture of value for money. The hybrid pricing structure allows for both fixed costs and variable costs, which can be efficient if managed well, but also carries a risk of cost overruns if not closely monitored. Without specific performance metrics or comparison data, a definitive value assessment is challenging, but the scale indicates a significant commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The EAGLE II IDIQ contract vehicle itself was established through a competitive process. The fact that it's a task order under an IDIQ means the competition likely occurred among pre-qualified vendors on that IDIQ. The number of bidders for this specific task order is not provided, but the 'full and open' designation implies a robust competitive environment was intended.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving agile IT services. These services are expected to support the modernization and efficiency of TSA's IT systems. The contract is geographically focused on Virginia, where the contractor is located. The delivery of these services likely impacts the federal IT workforce, potentially through direct employment or subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in the time and materials portion of the hybrid contract if not rigorously managed.
Dependence on a single prime contractor for critical IT services could pose a risk if performance falters.
The long duration of the contract may lead to vendor lock-in or reduced agility in adopting new technologies if not structured for flexibility.

Positive Signals

Awarded under a large, competitive IDIQ (EAGLE II) suggests a structured and vetted procurement process.
The use of agile methodologies implies a focus on iterative development and adaptability to changing requirements.
The hybrid contract type allows for a mix of predictable fixed costs and flexible time-and-materials, potentially optimizing resource allocation.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government spends billions annually on IT services, with a growing emphasis on agile development and cloud solutions. Contracts like this are crucial for agencies like the TSA to maintain and upgrade complex systems. Benchmarks for similar IT services contracts often range from hundreds of thousands to tens of millions of dollars annually, depending on scope and duration.

Small Business Impact

The data indicates that small business participation (sb) is false and the contract was not a small business set-aside (ss). This suggests that the prime contractor is likely a large business, and there may be limited direct subcontracting opportunities for small businesses unless specified within the contract's statement of work or through the prime's own subcontracting plan. The absence of set-aside status means the focus was on best value rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. The Inspector General's office for DHS would also have jurisdiction to investigate potential fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS.gov, where basic details are publicly available. The effectiveness of oversight depends on robust performance monitoring and adherence to contract terms.

Related Government Programs

EAGLE II IDIQ
TSA IT Modernization Programs
Federal Civilian Agency IT Services
Agile Development Contracts

Risk Flags

Potential for cost overruns due to Time & Materials component
Long contract duration may limit future flexibility
Dependence on a single prime contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $61.8 million to ACCENTURE FEDERAL SERVICES LLC. "IGF::OT::IGF" THIS IS AWARD OF HYBRID (FIRM-FIXED-PRICE AND TIME AND MATERIALS)TASK ORDER FOR TSA AGILE SERVICES. EAGLE II IDIQ HSHQDC-14-D-E2005 TASK ORDER HSTS03-16-J-CIO585

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $61.8 million.

What is the period of performance?

Start: 2016-12-05. End: 2020-11-04.

What is Accenture Federal Services' track record with similar large-scale IT service contracts within the federal government, particularly with agencies like DHS or TSA?

Accenture Federal Services (AFS) has a substantial track record of performing large-scale IT service contracts across various federal agencies, including the Department of Homeland Security (DHS) and its components like the TSA. They are a frequent recipient of prime contracts for system modernization, cloud migration, cybersecurity, and business process re-engineering. Their experience often involves complex, multi-year engagements similar to this task order. A review of their past performance on contracts of comparable size and scope would reveal their ability to deliver on time and within budget, as well as their approach to managing technical challenges and stakeholder expectations. Past performance evaluations and contract close-out reports, where available, provide insights into their reliability and effectiveness as a federal contractor.

How does the $61.8 million award compare to other federal contracts for similar 'TSA Agile Services' or 'Computer Systems Design Services' over a similar timeframe?

The $61.8 million award for TSA Agile Services over approximately four years (1430 days) positions it as a significant, but not exceptionally large, IT services contract within the federal landscape. For context, federal agencies collectively spend tens of billions annually on IT services. Contracts for similar 'Computer Systems Design Services' or 'Agile Development' can range widely, from a few million for specialized tasks to hundreds of millions for comprehensive enterprise-wide transformations. Given that this is a task order under an IDIQ (EAGLE II), the pricing is expected to be competitive among pre-qualified vendors. To assess value, one would compare the blended hourly rates or fixed-price components against market rates for comparable skill sets and services in the Washington D.C. metropolitan area and against other task orders issued under the same IDIQ.

What are the primary risks associated with this contract, considering its hybrid pricing structure (firm-fixed-price and time-and-materials) and long duration?

The primary risks associated with this hybrid contract stem from the combination of fixed-price and time-and-materials (T&M) components, coupled with its long duration. The T&M portion introduces cost uncertainty; if not managed meticulously with clear scope definitions and diligent oversight, it can lead to cost overruns as labor hours accumulate. Scope creep is a significant risk here, where requirements may expand beyond initial estimates, driving up costs under the T&M element. The long duration (over three years) increases the risk of technological obsolescence, requiring the contractor to maintain relevant skills and tools. Furthermore, there's a risk of vendor lock-in, where the TSA might become overly reliant on Accenture Federal Services, potentially hindering future flexibility or competition for subsequent phases or different services. Effective risk mitigation requires robust contract management, regular performance reviews, and clear communication channels.

How effective are the agile methodologies likely to be in delivering services for the TSA, and what performance metrics might be used to gauge success?

Agile methodologies are generally considered effective for IT projects requiring adaptability, rapid iteration, and continuous feedback, which aligns well with the dynamic needs of an agency like the TSA. Their effectiveness hinges on proper implementation, strong collaboration between the development team and stakeholders (like TSA program managers), and a culture that embraces iterative change. Success metrics for such a contract would likely include: **Delivery Speed:** Velocity (story points completed per sprint), cycle time (time from start to finish of a task). **Quality:** Defect density (number of bugs per unit of code), customer satisfaction scores, system uptime and reliability. **Adaptability:** Responsiveness to changing requirements, frequency of successful deployments. **Value:** Return on investment (ROI) for features delivered, reduction in operational costs or process inefficiencies. The TSA's program office would need to establish clear, measurable KPIs tied to these areas to ensure the agile approach is yielding tangible benefits.

What does the historical spending pattern for 'Computer Systems Design Services' at the TSA or DHS reveal about the significance of this $61.8 million award?

Historical spending data for 'Computer Systems Design Services' at the TSA and DHS would provide crucial context for this $61.8 million award. Agencies like DHS, responsible for critical national security and transportation functions, consistently invest heavily in IT infrastructure and services. Annual IT spending for DHS often runs into the billions, with a significant portion allocated to system design, development, and maintenance. A $61.8 million award for a specific service like Agile Services, while substantial, represents a fraction of the total IT budget. Analyzing past awards for similar services would indicate whether this contract is a continuation of existing efforts, a ramp-up in investment, or a new strategic initiative. It would also help benchmark the average award size and duration for such services within these agencies, revealing if this contract is typical, larger, or smaller than historical norms.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSTS03-16-R-CIO585

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $73,309,098

Exercised Options: $61,764,013

Current Obligation: $61,764,013

Subaward Activity

Number of Subawards: 353

Total Subaward Amount: $32,214,161

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC14DE2005

IDV Type: IDC

Timeline