Accenture LLP awarded $78.6M for IT operations and support, with a significant portion spent in the final year

Contract Overview

Contract Amount: $78,629,233 ($78.6M)

Contractor: Accenture LLP

Awarding Agency: Department of the Interior

Start Date: 2012-02-23

End Date: 2019-09-30

Contract Duration: 2,776 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT OPERATIONS AND SUPPORT

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80228

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $78.6 million to ACCENTURE LLP for work described as: IT OPERATIONS AND SUPPORT Key points: 1. Contract value represents a substantial investment in IT operations and support services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A notable portion of the contract's value was utilized towards the end of its term. 4. The services provided fall under 'Other Computer Related Services,' a broad category. 5. The contract duration of nearly 8 years indicates a long-term need for these services. 6. The firm-fixed-price structure aims to control costs and provide predictability.

Value Assessment

Rating: fair

Benchmarking the value of this $78.6 million contract is challenging without specific service details and performance metrics. However, the duration of nearly 8 years suggests a consistent need for IT operations and support. The firm-fixed-price contract type implies that the government aimed to control costs, but the total expenditure over the period needs to be assessed against the delivered value and any potential cost overruns or underruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive environment is generally expected to drive better pricing and service offerings. The number of bidders and the specific evaluation criteria would provide further insight into the effectiveness of the competition in securing optimal value for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a marketplace where contractors compete on price and quality, leading to more cost-effective solutions.

Public Impact

Federal agencies, specifically the Department of the Interior, benefit from sustained IT operations and support. Essential IT services are delivered to support the agency's mission-critical functions. The contract's impact is primarily within the federal government's operational infrastructure. Workforce implications may include IT support personnel employed by Accenture LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Concentration of spending towards the end of the contract period could indicate scope creep or deferred needs.
Lack of detailed service descriptions makes it difficult to assess true value for money.
The broad 'Other Computer Related Services' category might obscure specific cost drivers.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable and ongoing requirement met by the contractor.
Awarded through full and open competition, indicating a potentially competitive pricing environment.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically IT operations and support services. The market for these services is vast and highly competitive, with numerous large and small businesses offering a wide range of solutions. Federal spending in this area is consistently high as agencies rely on IT for daily operations, data management, and cybersecurity. Comparable spending benchmarks would typically be found by analyzing other large IT support contracts awarded by various federal agencies.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be indirect, potentially through subcontracting opportunities if Accenture LLP chose to engage small businesses. Without specific subcontracting plans, it's difficult to quantify the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of the Interior. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract databases like FPDS, which provide public access to award details, though detailed performance reports are often internal.

Related Government Programs

IT Professional Services
IT Operations and Maintenance
Computer Systems Design Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Long contract duration may increase risk of scope creep or changing technological needs.
Broad service category ('Other Computer Related Services') could obscure specific performance issues.
Concentration of spending towards the end of the contract term warrants further investigation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $78.6 million to ACCENTURE LLP. IT OPERATIONS AND SUPPORT

Who is the contractor on this award?

The obligated recipient is ACCENTURE LLP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $78.6 million.

What is the period of performance?

Start: 2012-02-23. End: 2019-09-30.

What specific IT operations and support services were provided under this contract?

The contract falls under the NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide range of IT support functions. Without more granular data, it's difficult to specify the exact services. However, typical services under this classification include IT infrastructure management, network support, help desk services, system administration, database management, and potentially IT consulting or project management related to operations. The Department of the Interior would have detailed the scope of work in the contract's statement of work, which is not publicly available in this data snippet.

How does the total contract value of $78.6 million compare to similar IT support contracts for federal agencies of similar size?

Comparing the $78.6 million total award value requires context regarding the duration and scope of services. This contract spanned nearly 8 years (2776 days). Annualized, this represents approximately $10 million per year. For a large federal agency like the Department of the Interior, this figure is within a reasonable range for comprehensive IT operations and support, especially considering the complexity and scale of federal IT infrastructure. However, without knowing the specific services rendered and the number of users supported, a precise benchmark against similar contracts is difficult. Contracts for specialized IT services or those with extensive cybersecurity requirements could be significantly higher or lower.

What are the key risk indicators associated with this contract, given its duration and value?

Key risk indicators for this contract include the potential for cost overruns if the firm-fixed-price was not adequately estimated for the full scope of work over nearly 8 years. Another risk is vendor lock-in, where the agency becomes heavily reliant on Accenture for critical IT functions, making transitions difficult. Performance risk is also present; ensuring consistent quality of IT support over such a long period can be challenging. Finally, the broad 'Other Computer Related Services' category could mask inefficiencies or a lack of specialized expertise if the contract's scope was not tightly managed and defined.

How effective was the full and open competition in ensuring value for money for this contract?

The fact that the contract was awarded under full and open competition is a positive indicator for value for money, as it suggests a competitive bidding process that should theoretically drive down prices and improve service quality. However, the effectiveness is not solely determined by the competition type but also by the clarity of the solicitation, the evaluation criteria, and the number of qualified bidders. Without details on the bidding process, it's presumed that competition led to a reasonable price. The long duration and significant value suggest that the Department of the Interior likely sought a stable, long-term partnership, and the competitive process aimed to secure this at a fair market price.

What is the historical spending pattern for IT operations and support within the Department of the Interior?

Historical spending patterns for IT operations and support within the Department of the Interior (DOI) are generally substantial, reflecting the agency's reliance on technology for its diverse missions, including land management, resource conservation, and law enforcement. DOI consistently invests in IT infrastructure, cybersecurity, and operational support. While this specific $78.6 million contract represents a significant single award, the DOI's overall IT budget typically runs into hundreds of millions or even billions of dollars annually, encompassing various contracts for hardware, software, services, and personnel. Analyzing past DOI IT budgets and contract awards would reveal trends in spending priorities and the types of IT services most frequently procured.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company

Address: 11951 FREEDOM DR STE 1000, 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: $78,629,233

Exercised Options: $78,629,233

Current Obligation: $78,629,233

Actual Outlays: $1,467,820

Subaward Activity

Number of Subawards: 79

Total Subaward Amount: $20,491,281

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND12PC70004

IDV Type: IDC

Timeline