DoD's $115M contract for program management services awarded to MAXIM SYSTEMS INC

Contract Overview

Contract Amount: $115,075,365 ($115.1M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 1999-09-02

End Date: 2006-09-30

Contract Duration: 2,585 days

Daily Burn Rate: $44.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 199912!1700!2152!D0232!SPACE AND NAVAL WARFARE SYSTEMS !N0003999C3226 !A!*!* !19990902!19991002!019631634!019631634!019631634!N!06UJ2!MAXIM SYSTEMS INC !1615 MURRAY CANYON RD !SAN DIEGO !CA!92108!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000000133038!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!A !N!R!2!003!B!* !Z!N!Z!* !* !N!B!*!C!*!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $115.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: 199912!1700!2152!D0232!SPACE AND NAVAL WARFARE SYSTEMS !N0003999C3226 !A!*!* !19990902!19991002!019631634!019631634!019631634!N!06UJ2!MAXIM SYSTEMS INC !1615 MURRAY CANYON RD !SAN DIEGO !CA!92108!66000!073!06!SAN DIEGO !SAN DI… Key points: 1. Contract awarded for program management and support services, indicating a need for specialized expertise. 2. The contract's duration of over 7 years suggests a long-term requirement for these services. 3. Awarded by the Department of Defense, highlighting significant government investment in defense-related program support. 4. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 5. The significant total value suggests a substantial scope of work and potential impact on defense operations. 6. The contractor, MAXIM SYSTEMS INC., is based in San Diego, CA, indicating a regional economic impact.

Value Assessment

Rating: fair

The total value of $115,007,536.49 over approximately 7 years suggests an average annual spend of around $16.4 million. Benchmarking this against similar program management support contracts within the Department of Defense is challenging without more specific service details. However, the Cost Plus Award Fee (CPAF) contract type implies that the final cost could vary based on performance, potentially exceeding initial estimates. The lack of detailed performance metrics or cost breakdowns makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of '3' in the 'no' field suggests there were at least three bids received. Full and open competition is generally expected to yield competitive pricing and a wider range of solutions, but the specific number of bidders and the details of the solicitation are not provided here. The final award price reflects the negotiated outcome of this competitive process.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces. This process ensures that the government explores various options and selects the most cost-effective solution available.

Public Impact

The primary beneficiaries are likely the Department of Defense agencies requiring program management and support services to execute their missions. Services delivered include program management, support services, and potentially specialized technical assistance related to defense systems. The geographic impact is centered around the contractor's location in San Diego, CA, and the Department of Defense entities served. Workforce implications include employment opportunities for program managers, analysts, and support staff within MAXIM SYSTEMS INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to cost overruns if not carefully managed and monitored.
The long contract duration may reduce flexibility to adapt to changing technological needs or strategic priorities.
Limited transparency on specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract's duration indicates a stable, long-term need, providing continuity for critical defense programs.
The contractor, MAXIM SYSTEMS INC., has secured a significant contract, suggesting a level of established capability and trust.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on program management and support. This sector is crucial for government operations, providing essential expertise that agencies may not possess internally. The Department of Defense is a major consumer of these services, often outsourcing complex program management functions to specialized firms. Comparable spending benchmarks would typically involve analyzing other large-scale program management contracts awarded by DoD or other federal agencies for similar services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss=false, sb=false). The primary awardee, MAXIM SYSTEMS INC., is not explicitly identified as a small business in this record. There is no information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though the prime contractor's own subcontracting practices are not detailed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Contract Management Agency (DCMA), which is listed as the servicing agency. The Cost Plus Award Fee structure implies performance-based oversight to determine award fees. Accountability measures would be tied to contract deliverables and performance metrics. Transparency is limited by the available data, but contract awards are generally subject to public reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Program Management Support Services
Professional and Technical Services
Cost-Plus Contracts
Department of Defense Contracts
Naval Warfare Systems Support

Risk Flags

Cost Plus Award Fee contract type carries inherent risk of cost growth.
Limited transparency on specific performance metrics hinders full value assessment.
Long contract duration may reduce adaptability to evolving requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $115.1 million to ACCENTURE FEDERAL SERVICES LLC. 199912!1700!2152!D0232!SPACE AND NAVAL WARFARE SYSTEMS !N0003999C3226 !A!*!* !19990902!19991002!019631634!019631634!019631634!N!06UJ2!MAXIM SYSTEMS INC !1615 MURRAY CANYON RD !SAN DIEGO !CA!92108!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!0001!+000000133038!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!A !N!R!2!0

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $115.1 million.

What is the period of performance?

Start: 1999-09-02. End: 2006-09-30.

What specific program management and support services were rendered under this contract?

The contract primarily covered 'PROGRAM MANAGEMENT/SUPPORT SERVICES' under the Product and Service Code (PSC) R408. While the specific details are not fully elaborated in the provided data, this typically encompasses a range of activities such as planning, organizing, directing, and controlling government projects and programs. This can include tasks like budget management, schedule tracking, risk assessment, resource allocation, coordination with stakeholders, and providing technical or administrative support to ensure program objectives are met. Given the awardee's name and the agency (SPACE AND NAVAL WARFARE SYSTEMS COMMAND), the services likely supported naval warfare systems development, acquisition, or sustainment.

How does the $115 million total contract value compare to similar program management contracts within the DoD?

The total value of $115 million over approximately seven years (September 1999 to September 2006) translates to an average annual value of roughly $16.4 million. This figure is substantial but falls within the range of large-scale support contracts awarded by the Department of Defense. Without knowing the specific scope, complexity, and duration of comparable contracts, a precise benchmark is difficult. However, major defense programs often involve multi-year, multi-million dollar contracts for program management and support. This contract's value suggests it supported a significant program or a portfolio of related activities within naval warfare systems.

What are the key risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

The primary risk with CPAF contracts is the potential for cost growth, as the contractor is reimbursed for allowable costs plus a fee that includes a base amount and an award amount tied to performance. If performance targets are met or exceeded, the total fee can be significantly higher than initially projected, increasing the overall contract cost. Another risk is the potential for 'gaming' the system, where contractors may focus on achieving easily measurable award fee criteria rather than the most critical program outcomes. Effective oversight and clearly defined, objective performance metrics are crucial to mitigate these risks and ensure the government receives good value.

What was the track record of MAXIM SYSTEMS INC. prior to or during this contract?

The provided data indicates MAXIM SYSTEMS INC. was awarded this significant contract in 1999. Further details on their specific track record, past performance on similar contracts, or any prior issues are not included in this dataset. To assess their track record, one would need to examine other contract awards, performance reviews, and any available debriefings or protest information associated with MAXIM SYSTEMS INC. The fact that they were awarded a large, full-and-open competitive contract by the Department of Defense suggests they met the necessary qualifications and demonstrated capability at the time of award.

How did the competition level (full and open) influence the pricing and outcome of this contract?

Awarding the contract under 'full and open competition' implies that the solicitation was broadly advertised, allowing any responsible source to submit an offer. This generally fosters a competitive environment where multiple companies vie for the contract. In theory, this competition should drive down prices as bidders seek to offer the most attractive terms. The data indicates there were at least three bids ('no': 3). While the specific pricing strategies of the bidders are unknown, the competitive process likely pressured them to offer competitive rates and fees, contributing to the final negotiated price. The government's ability to select from multiple qualified bidders is a key benefit of this approach.

What is the historical spending pattern for program management and support services within the relevant DoD command (SPAWAR) around this period?

This dataset represents a single contract award from 1999. To understand historical spending patterns for program management and support services within the Space and Naval Warfare Systems Command (SPAWAR) around this period, a broader analysis of federal procurement data would be necessary. This would involve aggregating spending on similar Product and Service Codes (like R408) awarded by SPAWAR or related naval commands between the late 1990s and early 2000s. Such an analysis would reveal trends in contract values, types of services procured, dominant contractors, and overall budget allocation for these support functions, providing context for the significance of the MAXIM SYSTEMS INC. contract.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline