DoD's $858M IT Services Contract with Accenture Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $126,362,403 ($126.4M)
Contractor: Accenture LLP
Awarding Agency: Department of Defense
Start Date: 2001-12-31
End Date: 2008-05-31
Contract Duration: 2,343 days
Daily Burn Rate: $53.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200204!000045!97AS!0140 !DEFENSE SUPPLY CENTER PHILADELPH!GS35F4692G !C!N! !Y!SP010302FA028 !20011231!20021230!858485758!927992529!010850857!N!ACCENTURE !11951 FREEDOM DR !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000005580931!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !C9E!ALL OTHER SUPPLIES AND EQUIPME!4000!NOT DISCERNABLE OR CLASSIFIED !541511!E! !6! ! ! ! ! !99990909!B!E!N! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001!
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $126.4 million to ACCENTURE LLP for work described as: 200204!000045!97AS!0140 !DEFENSE SUPPLY CENTER PHILADELPH!GS35F4692G !C!N! !Y!SP010302FA028 !20011231!20021230!858485758!927992529!010850857!N!ACCENTURE !11951 FREEDOM DR !RESTON !VA!20190!66672!059!51!RESTON !FAIRF… Key points: 1. The contract awarded to Accenture for IT services represents a significant expenditure, raising questions about its overall value. 2. While listed as full and open competition, the specific details of the price discovery process are not fully transparent. 3. Potential risks include overpricing and a lack of clear performance metrics, impacting taxpayer return on investment. 4. The IT services sector is highly competitive, suggesting opportunities for more cost-effective solutions. 5. The contract's duration and total value warrant close examination for efficiency and necessity.
Value Assessment
Rating: questionable
The total contract value of $858M over its life is substantial. Benchmarking against similar IT integration services contracts is difficult without granular data on specific deliverables and performance. The lack of detailed cost breakdowns makes a definitive value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the specific mechanisms used to ensure competitive pricing and the evaluation of proposals are not detailed, leaving room for potential price inefficiencies.
Taxpayer Impact: The significant expenditure necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively for critical IT services.
Public Impact
Taxpayers are funding a large IT services contract with potential questions around cost-effectiveness. The Department of Defense relies on these services, making performance and value critical for national security operations. Contracting practices in the IT sector can have broad implications for government efficiency and innovation. The long-term commitment to a single vendor warrants scrutiny regarding adaptability to future technological needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown
- Potential for price creep over contract duration
- Limited transparency on price discovery
- Long contract term
Positive Signals
- Awarded under full and open competition
- Experienced contractor (Accenture)
- Essential IT services for DoD
Sector Analysis
This contract falls within the IT services sector, specifically Automated Information System Design & Integration Services. Spending in this area is substantial across government agencies, with benchmarks varying widely based on complexity and scope. The $858M total value places it among larger IT service procurements.
Small Business Impact
The data does not indicate any specific set-asides or participation goals for small businesses within this contract. Large IT service contracts often involve significant subcontracting opportunities, but the primary awardee is a large business.
Oversight & Accountability
The contract's significant value and duration suggest a need for ongoing oversight from the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA) to ensure compliance, performance, and fair pricing. Transparency in reporting and regular performance reviews are key accountability mechanisms.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of detailed cost and performance data
- Potential for vendor lock-in
- Risk of cost overruns on long-term IT projects
- Limited insight into price negotiation effectiveness
- Need for clear justification of total contract value
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $126.4 million to ACCENTURE LLP. 200204!000045!97AS!0140 !DEFENSE SUPPLY CENTER PHILADELPH!GS35F4692G !C!N! !Y!SP010302FA028 !20011231!20021230!858485758!927992529!010850857!N!ACCENTURE !11951 FREEDOM DR !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000005580931!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !C9E!ALL OTHER SUPPLIES AND EQUIPME!4000!NOT DISCERNABLE OR CLASSIFIED !541511!E! !6! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is ACCENTURE LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $126.4 million.
What is the period of performance?
Start: 2001-12-31. End: 2008-05-31.
What specific performance metrics were used to justify the $858M expenditure, and how were they measured against the contractor's delivery?
The provided data does not detail the specific performance metrics tied to the contract's value. Typically, such metrics would include system uptime, response times, successful integration of new functionalities, and adherence to project timelines. Without this information, it's difficult to assess if the $858M expenditure yielded commensurate value in terms of operational effectiveness and efficiency for the Defense Logistics Agency.
Given the 'full and open competition' designation, what steps were taken to ensure the most competitive pricing was achieved for these complex IT integration services?
While designated as 'full and open competition,' the data lacks specifics on the bidding process, number of bidders, or the evaluation criteria used to determine the winning proposal and price. Effective price discovery in IT services often involves detailed cost proposals, competitive range determinations, and negotiation. The absence of these details raises questions about whether the government secured the best possible price.
How does the long-term nature of this contract (initial award in 2002, potential end date in 2008) align with the rapidly evolving landscape of IT and cybersecurity threats?
Long-term IT contracts can pose risks in a fast-changing technological environment. While they offer stability, they may not always be agile enough to incorporate the latest advancements or adapt to new security threats. The effectiveness of such a long contract hinges on robust modification clauses, regular reviews, and the contractor's ability to maintain cutting-edge solutions throughout its term.
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: 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 (UEI: 985015354)
Address: 11951 FREEDOM DR, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4692G
IDV Type: FSS
Timeline
Start Date: 2001-12-31
Current End Date: 2008-05-31
Potential End Date: 2008-05-31 00:00:00
Last Modified: 2021-11-25
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