DoD's $72.6M JETS System contract awarded to Accenture Federal Services shows strong competition and long-term support

Contract Overview

Contract Amount: $72,628,643 ($72.6M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-26

End Date: 2025-12-01

Contract Duration: 1,650 days

Daily Burn Rate: $44.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 117

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 8508207528!JETS SYSTEM SUSTAINMENT/MAIN

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $72.6 million to ACCENTURE FEDERAL SERVICES LLC for work described as: 8508207528!JETS SYSTEM SUSTAINMENT/MAIN Key points: 1. The contract demonstrates a commitment to long-term system sustainment, indicating a focus on operational stability. 2. Full and open competition suggests a healthy market with multiple capable vendors vying for the work. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract points to the critical nature of the JETS system to defense operations. 5. The award value represents a significant investment in maintaining essential defense IT infrastructure.

Value Assessment

Rating: good

The contract value of $72.6 million over its period of performance appears reasonable given the scope of system sustainment for a critical defense IT system. Benchmarking against similar large-scale IT sustainment contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, but detailed performance metrics would be needed to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were allowed to bid. The presence of 117 bids suggests a highly competitive environment, which typically drives down prices and encourages innovation. This level of competition is a strong positive signal for the government's ability to secure favorable terms and pricing.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely resulted in a more cost-effective award than a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Department of Defense personnel who rely on the JETS system for critical operations. The contract ensures the continued availability and functionality of the Joint Enterprise Defense Infrastructure (JEDI) system. The geographic impact is likely nationwide, supporting defense operations across various military branches and locations. Workforce implications include the potential for sustained employment for IT professionals at Accenture Federal Services and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if system complexity increases significantly over time.
Reliance on a single contractor for sustainment could pose risks if the contractor faces financial or operational challenges.
Ensuring continued innovation and adaptation to evolving cyber threats within a long-term sustainment contract.

Positive Signals

Awarded under full and open competition, indicating a robust market response.
Firm fixed-price contract type provides cost certainty.
Long contract duration suggests a stable and reliable partnership for critical system support.
High number of bids (117) points to strong vendor interest and capability.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on system sustainment and maintenance for defense applications. The market for defense IT sustainment is substantial, driven by the need to maintain complex, mission-critical systems. Accenture Federal Services, as a major IT services provider, is well-positioned in this segment. Comparable spending benchmarks would involve analyzing other large sustainment contracts for enterprise IT systems within the federal government.

Small Business Impact

While the data does not explicitly state small business set-aside provisions or subcontracting goals, the large scale of this contract suggests potential opportunities for small businesses to participate as subcontractors. The prime contractor, Accenture Federal Services, may be required to meet certain small business subcontracting targets as part of the overall contract. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA) and the relevant contracting officers within the Department of Defense. Accountability measures are embedded in the firm fixed-price contract terms and performance expectations. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

JEDI Cloud Computing
DoD Enterprise IT Services
Defense Logistics Agency IT Support
Federal Civilian IT Modernization

Risk Flags

Long-term reliance on a single vendor for critical system sustainment.
Potential for technological obsolescence if sustainment efforts do not keep pace with industry advancements.
Ensuring robust cybersecurity measures are continuously updated and implemented throughout the contract lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.6 million to ACCENTURE FEDERAL SERVICES LLC. 8508207528!JETS SYSTEM SUSTAINMENT/MAIN

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 $72.6 million.

What is the period of performance?

Start: 2021-05-26. End: 2025-12-01.

What is Accenture Federal Services' track record with similar large-scale IT sustainment contracts within the Department of Defense?

Accenture Federal Services has a significant history of supporting the Department of Defense and other federal agencies with large-scale IT services, including system sustainment, modernization, and digital transformation initiatives. They have been involved in numerous complex projects requiring long-term support and integration across various defense systems. Their experience often includes managing enterprise resource planning (ERP) systems, cloud migration, and cybersecurity solutions. While specific details on past sustainment contracts of this exact nature are proprietary, their overall portfolio indicates a strong capability in handling the demands of critical defense IT infrastructure. Performance on previous contracts, including adherence to schedules, budgets, and technical requirements, would be a key factor in their selection for this JETS system sustainment award.

How does the awarded value of $72.6 million compare to the estimated cost of similar IT sustainment contracts for enterprise systems in the defense sector?

Benchmarking the $72.6 million award for the JETS system sustainment against similar contracts requires access to detailed cost data and scope definitions, which are often not publicly available. However, large-scale enterprise IT sustainment contracts within the DoD can range from tens of millions to hundreds of millions of dollars over their lifecycle, depending on the complexity, criticality, and user base of the system. Factors such as the number of users, the scope of services (e.g., software updates, hardware maintenance, help desk support, cybersecurity patching), and the required service level agreements (SLAs) significantly influence cost. Given that this contract spans over four years (May 2021 to December 2025), the annual value is approximately $18.15 million. This figure appears within a reasonable range for sustaining a significant enterprise IT system, especially considering the firm fixed-price nature which implies a defined scope of work and risk transfer to the contractor.

What are the primary risks associated with a long-term (over 4 years) IT system sustainment contract, and how are they mitigated in this award?

Long-term IT sustainment contracts carry several inherent risks. Technological obsolescence is a major concern, as systems can become outdated quickly. Scope creep, where the requirements expand beyond the original agreement, can lead to cost overruns, although this is mitigated by the firm fixed-price (FFP) contract type. Vendor lock-in is another risk, making it difficult and costly to switch providers. Performance degradation over time or a contractor's financial instability can also impact service delivery. In this award, the FFP structure helps control costs by fixing the price for a defined scope. The full and open competition suggests a market with multiple capable vendors, reducing the risk of over-reliance on a single provider. However, ongoing government oversight, clear performance metrics, and contract modification clauses are crucial for managing risks related to technological changes and ensuring continued performance throughout the contract's duration.

What is the expected program effectiveness or impact of this contract on the Department of Defense's operational capabilities?

The JETS (Joint Enterprise Defense Infrastructure) System Sustainment contract is expected to ensure the continued operational effectiveness and availability of a critical IT system for the Department of Defense. By providing ongoing maintenance, updates, and support, the contract aims to prevent system degradation, security vulnerabilities, and service disruptions. This directly supports the DoD's mission by ensuring that personnel have reliable access to the information and tools necessary for planning, executing, and managing defense operations. The effectiveness is measured by the system's uptime, performance metrics, and its ability to support evolving defense requirements, including cybersecurity resilience and interoperability with other defense systems. A well-sustained JETS system contributes to overall command and control capabilities and operational readiness.

How has federal spending on IT system sustainment, particularly within the DoD, trended over the past five years, and where does this contract fit?

Federal spending on IT system sustainment, especially within the Department of Defense, has been substantial and generally increasing over the past five years. This trend is driven by the aging of legacy systems, the increasing complexity of IT infrastructure, the growing threat landscape requiring constant security updates, and the push for digital modernization. The DoD, being the largest federal agency, accounts for a significant portion of this spending. Contracts for sustainment are crucial for maintaining the operational readiness of mission-critical systems. This $72.6 million JETS System Sustainment contract fits within this trend as a significant investment in maintaining a key defense IT platform. It represents a portion of the broader DoD budget allocated to ensuring the longevity and functionality of its vast IT ecosystem, reflecting the ongoing need to support and update complex systems rather than solely focusing on new acquisitions.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SP470921Q1014

Offers Received: 117

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $82,053,198

Exercised Options: $72,628,643

Current Obligation: $72,628,643

Actual Outlays: $25,568,993

Subaward Activity

Number of Subawards: 85

Total Subaward Amount: $15,406,903

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0023

IDV Type: IDC

Timeline