Treasury's $9.98M IT Services Contract with Accenture LLP Awarded via Competitive Delivery Order

Contract Overview

Contract Amount: $9,976,971 ($10.0M)

Contractor: Accenture LLP

Awarding Agency: Department of the Treasury

Start Date: 2006-06-27

End Date: 2012-04-26

Contract Duration: 2,130 days

Daily Burn Rate: $4.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TIPPS-3 PROCUREMENT

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $10.0 million to ACCENTURE LLP for work described as: TIPPS-3 PROCUREMENT Key points: 1. The contract, valued at $9.98 million, was awarded to Accenture LLP for computer systems design services. 2. Awarded as a competitive delivery order, indicating multiple bids were considered. 3. The contract duration was 2130 days, ending in April 2012. 4. The North American Industry Classification System (NAICS) code 541512 suggests a focus on IT infrastructure and support.

Value Assessment

Rating: fair

The contract was a Cost Plus Fixed Fee (CPFF) type, which can sometimes lead to higher costs if not managed closely. Benchmarking CPFF contracts for similar IT services is challenging without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded as a competitive delivery order, suggesting a robust price discovery process. The use of competitive bidding generally leads to better pricing outcomes for the government.

Taxpayer Impact: The competitive nature of the award likely resulted in a fair price for the services rendered, benefiting taxpayers.

Public Impact

Ensured the IRS had necessary IT support for its systems. Supported government operations through essential computer systems design. The competitive award process aimed to secure value for taxpayer money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can pose cost control risks.
Contract duration is long, potentially leading to scope creep or outdated technology.

Positive Signals

Awarded competitively, suggesting good market research and price negotiation.
Specific NAICS code indicates a focused service area.

Sector Analysis

This contract falls under the Information Technology sector, specifically computer systems design services. IT spending is a significant portion of federal budgets, with competitive procurement being crucial for cost efficiency.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors. Federal IT contracts often involve large prime contractors, but subcontracting opportunities for small businesses can exist.

Oversight & Accountability

As a competitive delivery order, it implies a structured procurement process. However, ongoing oversight of CPFF contracts is critical to ensure costs remain reasonable and within scope.

Related Government Programs

Computer Systems Design Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Cost Plus Fixed Fee structure
Long contract duration
Potential for cost overruns without strict oversight
Lack of small business participation data

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $10.0 million to ACCENTURE LLP. TIPPS-3 PROCUREMENT

Who is the contractor on this award?

The obligated recipient is ACCENTURE LLP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2006-06-27. End: 2012-04-26.

What was the specific scope of 'Computer Systems Design Services' under this contract?

The specific scope likely encompassed a range of IT services including system analysis, design, development, integration, and potentially maintenance of computer systems for the IRS. This could include software development, network infrastructure design, or database management, tailored to the agency's operational needs.

How did the 'Cost Plus Fixed Fee' structure impact the final cost compared to other contract types?

A CPFF contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it incentivizes the contractor to complete the work, it can lead to higher final costs if the government doesn't effectively monitor and control expenditures. The fixed fee, however, provides some predictability in contractor profit.

What were the key performance indicators (KPIs) used to measure the effectiveness of Accenture LLP's services?

Effectiveness KPIs would typically focus on project milestones, system performance, user satisfaction, and adherence to budget and schedule. For IT services, this might include system uptime, bug resolution rates, successful feature implementation, and timely delivery of project phases, all crucial for IRS operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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

Financial Breakdown

Contract Ceiling: $14,825,092

Exercised Options: $11,835,840

Current Obligation: $9,976,971

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: TIRNO06D00006

IDV Type: IDC

Timeline