Treasury's $60.4M Contract for Computer Systems Design Services Awarded to Accenture LLP

Contract Overview

Contract Amount: $60,448,456 ($60.4M)

Contractor: Accenture LLP

Awarding Agency: Department of the Treasury

Start Date: 2009-09-01

End Date: 2013-03-19

Contract Duration: 1,295 days

Daily Burn Rate: $46.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PARTIALLY FUNDING REQUISITION

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $60.4 million to ACCENTURE LLP for work described as: PARTIALLY FUNDING REQUISITION Key points: 1. Significant contract value of $60.4 million awarded to a single vendor. 2. Lack of competition raises questions about potential overpricing and value for money. 3. Long contract duration of 1295 days suggests a need for ongoing services. 4. The contract falls within the IT sector, a common area for large federal spending.

Value Assessment

Rating: questionable

The contract's 'NOT COMPETED' status and Time and Materials pricing model make a direct value assessment difficult without further data. The awarded amount of $60.4M over 1295 days suggests a daily rate of approximately $46,678, which appears high for standard IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition for a substantial contract value may result in inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The IRS relies on Accenture for critical computer systems design services. Long-term contracts can sometimes indicate a lack of flexibility or innovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Time and Materials pricing
Long contract duration

Positive Signals

Awarded to a known vendor
Addresses specific agency needs

Sector Analysis

This contract for Computer Systems Design Services (NAICS 541512) falls within the Information Technology sector. Federal spending in IT services is substantial, and competitive bidding is crucial for ensuring cost-effectiveness.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. This represents a missed opportunity to support small business participation in federal contracting.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was robust and that the pricing reflects fair market value.

Related Government Programs

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

Risk Flags

Sole-source award lacks competition.
Time and Materials pricing can lead to cost overruns.
High implied daily rate.
Long contract duration may indicate inflexibility.
No small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $60.4 million to ACCENTURE LLP. PARTIALLY FUNDING REQUISITION

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 $60.4 million.

What is the period of performance?

Start: 2009-09-01. End: 2013-03-19.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is critical for understanding why competition was bypassed. Without this information, it's difficult to assess if the government received the best possible value. Agencies typically require extensive documentation to justify sole-source procurements, often citing unique capabilities or urgent needs.

How does the hourly or daily rate compare to industry benchmarks for similar services?

Given the Time and Materials pricing and the total award amount over the duration, the implied daily rate is substantial. A thorough benchmark analysis against comparable government and commercial contracts for computer systems design services would be necessary to determine if this rate is reasonable or inflated.

What performance metrics or deliverables were established to ensure the effectiveness of these services?

For a contract of this magnitude and duration, clear performance metrics and deliverables are essential for accountability. Understanding these would help assess whether Accenture met the IRS's needs effectively and if the services provided were of high quality and contributed to the agency's mission.

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: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Accenture Public Limited Company (UEI: 985015354)

Address: 11951 FREEDOM DR, RESTON, VA, 11

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations

Financial Breakdown

Contract Ceiling: $176,779,733

Exercised Options: $172,768,420

Current Obligation: $60,448,456

Parent Contract

Parent Award PIID: TIRNO09D00022

IDV Type: IDC

Timeline