DoD's $16.3M Warehouse Management System Support contract awarded to Accenture Federal Services

Contract Overview

Contract Amount: $16,363,245 ($16.4M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2024-05-29

End Date: 2026-05-28

Contract Duration: 729 days

Daily Burn Rate: $22.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WAREHOUSE MANAGEMENT SYSTEM TASK ORDER - PRODUCTION AND SUSTAINMENT SUPPORT

Place of Performance

Location: NEW CUMBERLAND, CUMBERLAND County, PENNSYLVANIA, 17070

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to ACCENTURE FEDERAL SERVICES LLC for work described as: WAREHOUSE MANAGEMENT SYSTEM TASK ORDER - PRODUCTION AND SUSTAINMENT SUPPORT Key points: 1. Contract provides essential production and sustainment support for a critical warehouse management system. 2. The firm-fixed-price contract type suggests a defined scope and predictable costs. 3. Competition was conducted under Simplified Acquisition Procedures (SAP), indicating a focus on efficiency for smaller procurements. 4. The contract duration of 729 days (2 years) allows for sustained support and system evolution. 5. Accenture Federal Services, a large incumbent, likely possesses deep knowledge of the system. 6. The award value of $16.3M falls within a moderate spending range for IT sustainment services.

Value Assessment

Rating: good

The contract value of $16.3M for two years of IT sustainment appears reasonable, especially considering the critical nature of warehouse management systems for the Defense Logistics Agency. Benchmarking against similar IT sustainment contracts for large federal agencies suggests that this price point is competitive. The firm-fixed-price structure helps control costs and provides predictability for the government. Without specific details on the scope of services, a precise value-for-money assessment is challenging, but the award to a known entity under a competitive process indicates a fair price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broad range of competition for procurements under the simplified acquisition threshold. While specific details on the number of bidders are not provided, SAP generally encourages a competitive environment. The use of SAP suggests that the agency sought to streamline the procurement process while still ensuring fair opportunity for qualified vendors to bid, which can lead to better price discovery and value for the government.

Taxpayer Impact: The use of SAP for this procurement likely resulted in a more efficient acquisition process, potentially saving taxpayer dollars through reduced administrative overhead compared to larger, more complex contracting vehicles. It also ensures that multiple vendors had the opportunity to compete, driving down costs.

Public Impact

The Department of Defense, specifically the Defense Logistics Agency, benefits from the continued operation and support of its warehouse management system. Services delivered include production and sustainment support, ensuring the system remains functional and up-to-date. The geographic impact is likely concentrated where the Defense Logistics Agency operates its warehouses, primarily within the United States. Workforce implications include the continued employment of IT professionals by Accenture Federal Services to support this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly specialized and requires unique expertise.
Reliance on a single task order for critical system sustainment could pose a risk if performance issues arise.
The scope of 'production and sustainment' needs clear definition to prevent scope creep and cost overruns.

Positive Signals

Accenture Federal Services is an established contractor with a track record in IT services.
The firm-fixed-price contract type provides cost certainty for the government.
The contract is competed, suggesting a level of market vetting and potential for competitive pricing.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software sustainment and support services. The market for IT services, particularly for large federal agencies like the Department of Defense, is substantial and highly competitive. This contract represents a task order under a broader agreement, likely a Blanket Purchase Agreement (BPA) or similar vehicle, designed to procure specialized IT support efficiently. Comparable spending benchmarks for IT sustainment for agencies of this size often range from millions to tens of millions annually, depending on the complexity and criticality of the systems supported.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific task order, as the 'sb' (small business set-aside) field is false. However, large prime contractors like Accenture Federal Services are often required to meet small business subcontracting goals on their overall contracts. The impact on the small business ecosystem would depend on whether Accenture utilizes small businesses for any subcontracting opportunities related to this task order, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency IT Support Services
Warehouse Management Systems
Federal IT Sustainment Contracts
Accenture Federal Services Contracts
Department of Defense IT Modernization

Risk Flags

Potential for performance issues impacting critical logistics operations.
Risk of system obsolescence if sustainment does not keep pace with technological advancements.
Dependence on a single contractor for critical system support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to ACCENTURE FEDERAL SERVICES LLC. WAREHOUSE MANAGEMENT SYSTEM TASK ORDER - PRODUCTION AND SUSTAINMENT SUPPORT

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 Logistics Agency).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2024-05-29. End: 2026-05-28.

What is Accenture Federal Services' track record with the Defense Logistics Agency and similar warehouse management systems?

Accenture Federal Services has a significant history of providing IT and management consulting services to various U.S. federal agencies, including the Department of Defense and its sub-agencies like the Defense Logistics Agency (DLA). Their experience often encompasses large-scale system implementation, sustainment, and modernization projects. While specific details on their performance on DLA's warehouse management systems are not publicly detailed in this award notice, their broad IT capabilities suggest they possess the foundational expertise. Performance metrics and past performance evaluations from previous DLA contracts would provide a more granular understanding of their track record. Generally, large IT service providers like Accenture are evaluated on factors such as on-time delivery, adherence to budget, technical proficiency, and responsiveness to agency needs.

How does the $16.3M award value compare to similar warehouse management system sustainment contracts in the federal government?

The $16.3 million award for two years of sustainment support for a warehouse management system is within a common range for federal IT contracts of this nature. Larger agencies often spend tens of millions annually on maintaining and supporting critical enterprise systems. For instance, contracts supporting enterprise resource planning (ERP) systems or complex logistics platforms can easily exceed this amount. The value is influenced by factors such as the system's complexity, the number of users, the criticality of its function (e.g., supporting military logistics), and the scope of services (e.g., 24/7 support, software updates, cybersecurity patching, help desk). Compared to smaller, less critical IT systems, this value is moderate; compared to enterprise-wide system overhauls, it is relatively contained, reflecting a focus on ongoing operational support.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance deficiencies by the contractor, leading to disruptions in warehouse operations. This is mitigated by the firm-fixed-price contract type, which incentivizes the contractor to perform efficiently, and by the Defense Logistics Agency's oversight mechanisms, including contract management and performance monitoring. Another risk is the potential for the system to become outdated or unable to meet evolving logistical needs; this is addressed through the 'production and sustainment' scope, which should include necessary updates and adaptations, and potentially through future contract actions for modernization. Vendor lock-in is also a concern, mitigated by ensuring clear contract exit strategies and maintaining documentation that allows for future transitions to different vendors or systems.

How effective is the Defense Logistics Agency in managing IT sustainment contracts of this magnitude?

The Defense Logistics Agency (DLA) manages a vast portfolio of IT systems and contracts, indicating significant experience in overseeing IT sustainment. Their effectiveness is generally assessed through their ability to maintain operational readiness of critical systems, achieve cost efficiencies, and adapt to evolving technological landscapes. DLA's long-standing role in supporting military logistics suggests a mature understanding of the requirements for systems like warehouse management. Success factors include robust contract administration, clear performance metrics, and strong program management. While specific effectiveness metrics for this particular contract are not available, DLA's overall mission success implies a generally effective approach to managing such procurements.

What are the historical spending patterns for warehouse management system support within the Department of Defense?

Historical spending patterns for warehouse management system (WMS) support within the Department of Defense (DoD) are substantial and reflect the critical role these systems play in military logistics and supply chain management. The DoD operates a complex network of warehouses globally, requiring robust WMS to track inventory, manage distribution, and ensure operational readiness. Spending typically involves a mix of sustainment contracts (like this one), software licensing, hardware maintenance, and periodic upgrades or replacements. Annual spending across the DoD for WMS and related logistics IT can easily reach hundreds of millions of dollars, varying based on modernization initiatives, the number of systems in place, and the scope of support required. This $16.3M task order represents a component of that larger spending picture.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD STE 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

Financial Breakdown

Contract Ceiling: $35,792,727

Exercised Options: $16,363,245

Current Obligation: $16,363,245

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $9,636,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470123A0004

IDV Type: BPA

Timeline