State Department's $46M IT services BPA call for ILMS program shows strong competition

Contract Overview

Contract Amount: $46,030,896 ($46.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2013-09-26

End Date: 2015-09-25

Contract Duration: 729 days

Daily Burn Rate: $63.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THIS BPA CALL IS FOR COMPUTER RELATED SERVICES TO SUPPORT ILMS PROGRAM MANAGEMENT, OPERATIONS&MAINTENANCE, CUSTOMER SERVICE DESK, NEW TECH INITIATIVE, AND RELEASE MANAGEMENT.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $46.0 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF THIS BPA CALL IS FOR COMPUTER RELATED SERVICES TO SUPPORT ILMS PROGRAM MANAGEMENT, OPERATIONS&MAINTENANCE, CUSTOMER SERVICE DESK, NEW TECH INITIATIVE, AND RELEASE MANAGEMENT. Key points: 1. The contract was awarded under full and open competition, indicating a competitive marketplace for these IT services. 2. The fixed-price contract type suggests a defined scope and potential for cost control. 3. The duration of 729 days provides a stable period for service delivery. 4. The award to Accenture Federal Services LLC represents a significant commitment to a single vendor for these critical IT functions. 5. The contract's focus on program management, operations, maintenance, and new technology initiatives highlights its importance to the ILMS program. 6. The 'Other Computer Related Services' NAICS code suggests a broad range of IT support activities.

Value Assessment

Rating: good

Benchmarking the value of this specific BPA call is challenging without comparable contract data for the ILMS program. However, the firm fixed-price structure is generally favorable for cost predictability. The total award amount of $46,030,896.48 over approximately two years suggests a substantial investment in IT support for a critical government program. Further analysis would require comparing the per-unit costs of services rendered against industry benchmarks or similar government contracts for IT program management and operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was open, there might have been prior exclusions or specific circumstances leading to this designation. The presence of 63143 bids suggests a highly competitive process, which is generally beneficial for price discovery and ensuring the government receives competitive pricing. The high number of bids indicates strong market interest and a robust vendor pool for these types of IT services.

Taxpayer Impact: The extensive competition likely resulted in more favorable pricing for taxpayers by driving down costs through market forces. A competitive award process ensures that taxpayer funds are used efficiently by selecting the most cost-effective solution.

Public Impact

The primary beneficiaries are the Department of State personnel relying on the ILMS program for their daily operations. The contract delivers essential IT services including program management, operations and maintenance, customer service desk support, new technology initiatives, and release management. The geographic impact is primarily within the Department of State's operational footprint, supporting its global mission. Workforce implications include the direct employment of IT professionals by Accenture Federal Services LLC and the indirect impact on State Department staff who utilize the ILMS system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the significant scope and duration of the contract.
Reliance on a single vendor for critical IT functions could pose risks if performance falters.
The 'after exclusion of sources' clause warrants further investigation into any prior limitations on competition.

Positive Signals

The award was made under full and open competition, indicating a healthy market.
The firm fixed-price contract type provides cost certainty.
The high number of bids suggests a robust and responsive vendor community.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT services and support. The market for government IT services is substantial, with agencies increasingly relying on contractors for specialized expertise in areas like program management, cloud migration, cybersecurity, and system maintenance. The Department of State's ILMS program is a critical component of its operational infrastructure, and this contract represents a significant investment in ensuring its effective functioning and modernization. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded by federal agencies for similar program management and operational support services.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. The award to a large prime contractor like Accenture Federal Services LLC suggests that the primary focus was on securing comprehensive IT services from a major provider. This could limit direct opportunities for small businesses to participate in this specific contract, although they may be involved in other State Department IT procurements or as subcontractors to larger firms on different contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, performance expectations, and reporting requirements. Transparency is facilitated through contract award databases and public reporting mechanisms. The Inspector General for the Department of State would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Services Contracts
Large-Scale IT Program Management Contracts
Information Management Systems Contracts

Risk Flags

Potential for vendor lock-in
Reliance on a single large contractor
Need for detailed performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $46.0 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF THIS BPA CALL IS FOR COMPUTER RELATED SERVICES TO SUPPORT ILMS PROGRAM MANAGEMENT, OPERATIONS&MAINTENANCE, CUSTOMER SERVICE DESK, NEW TECH INITIATIVE, AND RELEASE MANAGEMENT.

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $46.0 million.

What is the period of performance?

Start: 2013-09-26. End: 2015-09-25.

What is the historical spending trend for IT services supporting the ILMS program prior to this BPA call?

Analyzing historical spending for the ILMS program prior to this specific BPA call is crucial for understanding the long-term investment and identifying any significant shifts in IT support costs. Without access to prior contract data specifically for ILMS, a direct comparison is not possible. However, federal agencies, including the Department of State, have generally seen increasing IT expenditures over the past decade due to the growing complexity of digital infrastructure, cybersecurity needs, and the push for modernization. If this BPA call represents a new consolidated effort or a significant expansion, prior spending might have been distributed across multiple smaller contracts or different service providers. Understanding the baseline spending would help assess whether the $46 million over two years represents an increase, decrease, or stable investment in ILMS IT support.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar IT support functions?

Determining the precise per-unit cost for services under this contract requires detailed breakdown of the firm fixed-price components, such as hourly rates for different labor categories or fixed prices for specific deliverables. The provided data does not offer this granular detail. However, the fact that the contract was awarded under full and open competition with a high number of bids suggests that the pricing was likely competitive. To benchmark effectively, one would need to compare the rates for specific roles (e.g., project managers, system administrators, help desk technicians) against government-wide IT schedule contracts (like GSA Schedules) or industry surveys for comparable IT services. A high number of bidders generally pressures prices down, implying that the awarded rates are likely within a reasonable market range, though not necessarily the absolute lowest possible.

What are the key performance indicators (KPIs) used to measure the success of Accenture Federal Services LLC in delivering these IT services?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, for a contract of this nature, typical KPIs would likely focus on service availability, response times for help desk support, system uptime, project completion rates for new initiatives, and adherence to security protocols. Performance would also be assessed against the defined scope of work, including program management effectiveness, operations and maintenance efficiency, and successful release management. The Department of State's contracting officer and program managers would be responsible for monitoring these KPIs and ensuring Accenture Federal Services LLC meets the contractual obligations. Failure to meet critical KPIs could lead to contractual remedies or impact future contract awards.

What is the track record of Accenture Federal Services LLC with the Department of State on similar IT contracts?

Accenture Federal Services LLC has a significant track record of working with various U.S. federal agencies, including the Department of State. While specific details on their past performance with the State Department for the ILMS program are not provided here, Accenture is a major federal IT contractor known for handling large-scale system implementations, modernization efforts, and ongoing IT support. Their experience typically spans a wide range of services, including program management, application development, cloud services, and cybersecurity. Agencies often select large, established contractors like Accenture for complex programs due to their demonstrated capacity, broad expertise, and established processes. A review of past performance evaluations and contract history within the Department of State would provide a more precise understanding of their specific successes and challenges on prior engagements.

Are there any identified risks associated with the 'after exclusion of sources' clause in the competition type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests that while the competition was ultimately open, there may have been an initial phase where certain sources were excluded, or a specific justification was needed to proceed with open competition after a period of limited sourcing. This clause can sometimes indicate a history where a particular vendor or technology was previously favored, or where a specific need arose that required a broader search. While not inherently a risk, it warrants scrutiny to ensure that the exclusion process was justified and did not unduly limit the initial pool of potential bidders. The high number of bids received (63,143) suggests that any initial exclusions did not significantly hinder overall market participation for this specific BPA call, mitigating potential risks related to limited competition.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,030,896

Exercised Options: $46,030,896

Current Obligation: $46,030,896

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $4,620,157

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline