State Department IT services contract awarded to Accenture Federal Services for over $46M, spanning three years

Contract Overview

Contract Amount: $46,003,664 ($46.0M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of State

Start Date: 2016-09-27

End Date: 2019-09-25

Contract Duration: 1,093 days

Daily Burn Rate: $42.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CL::IGF

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::CL::IGF Key points: 1. Contract value appears reasonable given the duration and scope of IT services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. No specific risk indicators are immediately apparent from the provided data. 4. Performance context is limited without details on specific services rendered. 5. This contract falls within the IT services sector, a common area for federal spending. 6. The contract was awarded as a BPA Call, indicating it's part of a larger framework agreement.

Value Assessment

Rating: good

The contract value of approximately $46 million over three years for IT services suggests a moderate annual spend. Benchmarking against similar IT service contracts would require more detailed service descriptions and performance metrics. However, the duration and the nature of IT support services generally align with market rates for large-scale government contracts. The absence of specific performance issues or cost overruns in the provided data points to a potentially good value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, there was a specific reason for excluding certain sources. This suggests a competitive process was initiated, but the final award might have been influenced by specific criteria or prior agreements. The number of bidders is not specified, which limits a full assessment of price discovery, but the 'full and open' designation generally implies a robust competitive environment.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and service terms to secure the contract.

Public Impact

The Department of State benefits from essential IT support services to maintain its operational infrastructure. The contract likely supports various IT functions, including system maintenance, network support, and potentially software development or integration. The geographic impact is primarily within the Department of State's operational locations, likely concentrated in Washington D.C. and potentially overseas facilities. The contract supports a workforce of IT professionals, both within the contractor's organization and potentially requiring collaboration with internal State Department IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the 'Time and Materials' pricing structure.
Dependence on a single contractor for critical IT services could pose a risk if performance falters.
The 'after exclusion of sources' clause warrants further investigation into the rationale behind excluding specific vendors.

Positive Signals

Awarded through a full and open competition process, indicating a structured procurement.
The contract duration of three years provides stability for IT service delivery.
Accenture Federal Services is a well-established contractor with significant experience in government IT.

Sector Analysis

This contract falls within the broader IT services sector, which is a significant component of federal spending. The North American Industry Classification System (NAICS) code 541519 ('Other Computer Related Services') encompasses a wide range of IT support, consulting, and integration services. The federal government consistently invests heavily in IT to modernize infrastructure, enhance cybersecurity, and improve service delivery. Comparable spending benchmarks would typically involve analyzing the average cost of similar IT support contracts across various agencies for similar durations and service complexities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Accenture Federal Services, is a large business. While large businesses may engage small businesses as subcontractors on their projects, this contract's structure does not mandate it.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or identified.

Related Government Programs

Department of State IT Modernization Programs
General Services Administration (GSA) IT Schedule Contracts
Other agency IT support service contracts
BPA Call awards for IT services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of detailed service scope in provided data.
Exclusion of sources in competition requires further justification review.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $46.0 million to ACCENTURE FEDERAL SERVICES LLC. IGF::CL::IGF

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: 2016-09-27. End: 2019-09-25.

What specific IT services were provided under this contract?

The provided data indicates the NAICS code is 541519, 'Other Computer Related Services,' and the contract type is 'Time and Materials.' This suggests a broad range of IT support activities, which could include IT help desk support, network administration, system maintenance, hardware/software installation and troubleshooting, IT consulting, and potentially custom IT development or integration services. However, without the detailed statement of work or task orders issued against this contract, the precise nature and scope of the services rendered remain unspecified. Further analysis would require access to the underlying contract documentation or task order details.

How does the contract value compare to similar IT service contracts awarded by the Department of State or other agencies?

The contract value of approximately $46 million over three years, averaging around $15.3 million annually, places it as a significant, but not exceptionally large, IT services contract. To provide a precise comparison, one would need to benchmark against contracts with similar NAICS codes (e.g., 541511, 541512, 541513, 541519), contract types (Time and Materials, Firm-Fixed-Price), and durations, awarded by agencies of comparable size and mission. Given the Department of State's global operations and complex IT needs, this annual spend is plausible. However, without access to a comprehensive database of comparable contracts with detailed service descriptions, a definitive value-for-money assessment is challenging.

What were the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that the agency initially intended to solicit offers from all responsible sources but subsequently excluded specific sources for documented reasons. Common justifications for such exclusions include prior performance issues with certain contractors, specific technical requirements that only a limited number of vendors could meet, or situations where a particular vendor's solution was deemed essential due to integration with existing systems. The Federal Acquisition Regulation (FAR) outlines specific conditions under which sources can be excluded. A thorough understanding would require reviewing the Justification and Approval (J&A) document associated with this procurement, which details the rationale for the exclusion.

What is the track record of Accenture Federal Services in delivering IT services to the federal government?

Accenture Federal Services (AFS) is a major contractor with extensive experience providing a wide array of IT services to numerous federal agencies. They have a well-established presence and a history of winning large-scale IT contracts across various domains, including cloud computing, cybersecurity, data analytics, and system modernization. Their track record generally includes successful delivery on complex projects, though like any large contractor, they may have faced challenges or criticisms on specific contracts. Performance data, past performance evaluations, and any contract disputes or awards would provide a more granular view of their specific track record relevant to this particular type of IT service.

How does the 'Time and Materials' contract type impact cost control and risk for this IT services contract?

A 'Time and Materials' (T&M) contract type, like the one used here, pays the contractor for direct labor hours at specified hourly rates and for the cost of materials. This type of contract is often used when the scope of work cannot be precisely defined at the outset or is expected to change. While it offers flexibility, it also places a greater burden on the government to monitor labor hours and costs to prevent overruns. For the Department of State, this means robust oversight is crucial to ensure that the hours billed are reasonable and directly related to the contract's objectives. The risk of cost escalation is higher compared to fixed-price contracts if not managed diligently.

What is the historical spending pattern for 'Other Computer Related Services' at the Department of State?

Historical spending on 'Other Computer Related Services' (NAICS 541519) by the Department of State would likely show a consistent and significant investment, reflecting the agency's reliance on IT for its global operations, diplomatic communications, and data management. Trends might indicate an increasing spend over time due to digital transformation initiatives, cybersecurity enhancements, and the need to support evolving technologies. Analyzing past years' spending data for this NAICS code would reveal the typical contract values, the number of awards, and the primary contractors involved, providing context for the $46 million award to Accenture Federal Services.

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

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company

Address: 800 N GLEBE RD STE 300, ARLINGTON, VA, 22203

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,005,653

Exercised Options: $46,005,653

Current Obligation: $46,003,664

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $11,949,750

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: SAQMMA09A0173

IDV Type: BPA

Timeline