Accenture LLP received $27.2M for IT services, with a 3-year duration and full and open competition

Contract Overview

Contract Amount: $27,242,168 ($27.2M)

Contractor: Accenture LLP

Awarding Agency: Department of the Treasury

Start Date: 2012-09-28

End Date: 2015-09-29

Contract Duration: 1,096 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CL::IGF CLOSELY ASSOCIATED (LOW POSSIBILITY OF CONTRACTOR PERFORMING IG WORK) DESCOPED FUNDING FOR NEW CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $27.2 million to ACCENTURE LLP for work described as: IGF::CL::IGF CLOSELY ASSOCIATED (LOW POSSIBILITY OF CONTRACTOR PERFORMING IG WORK) DESCOPED FUNDING FOR NEW CONTRACT Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can carry higher cost risks if not managed closely. 3. The duration of 1096 days (3 years) indicates a medium-term engagement for the services provided. 4. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services'. 5. The contract was awarded by the Department of the Treasury to Accenture LLP. 6. The contract was a Delivery Order, implying it was part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

Benchmarking the value of this $27.2 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can lead to cost overruns if not meticulously managed. The fixed fee component provides some cost certainty for the contractor's profit, but the 'cost' portion is subject to variations. Without detailed breakdowns of labor categories, hours, and direct costs, a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit a bid. This typically suggests a robust bidding process where multiple vendors had the opportunity to compete for the work. The number of bidders is not specified, but the designation implies that the government sought the best value through a competitive solicitation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services offered.

Public Impact

The primary beneficiary is the Department of the Treasury, specifically the Internal Revenue Service (IRS), which received the IT services. The services delivered fall under 'Other Computer Related Services', likely supporting IRS operations and IT infrastructure. The geographic impact is centered in the District of Columbia, where the contract was awarded. Workforce implications would include IT professionals and support staff employed by Accenture LLP to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to achieve the fixed fee.
Lack of specific performance metrics makes it difficult to assess if the full value of the contract was realized.
The 'DESCOPED FUNDING FOR NEW CONTRACT' note suggests potential changes or reductions in the original scope, which could impact overall value.
The 'IGF::CL::IGF CLOSELY ASSOCIATED (LOW POSSIBILITY OF CONTRACTOR PERFORMING IG WORK)' indicator raises questions about the contractor's direct involvement in oversight or audit functions, which might be relevant depending on the service nature.

Positive Signals

Awarded under full and open competition, indicating a competitive process that should yield fair pricing.
The contract has a defined duration, providing a clear timeframe for service delivery and budget planning.
The fixed fee component in the CPFF structure provides a degree of predictability for the contractor's profit margin.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services'. The IT services market is vast and highly competitive, with government spending often focused on modernization, cybersecurity, and data management. Comparable spending benchmarks would depend heavily on the specific nature of the 'Other Computer Related Services' provided, but IT services represent a significant portion of federal procurement, often in the tens of billions annually across various agencies.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions (ss: false, sb: false). This suggests that the competition was not specifically targeted towards small businesses. Therefore, the primary impact on the small business ecosystem would be indirect, through potential subcontracting opportunities if Accenture LLP chose to engage small businesses, or through competition with larger firms that may also serve small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Treasury and the Internal Revenue Service contracting officers and program managers. The Inspector General for the Department of the Treasury would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency is facilitated by contract award databases, but detailed performance reports and cost breakdowns are often not publicly available.

Related Government Programs

IRS IT Modernization Programs
Department of the Treasury IT Support Contracts
Federal IT Services Procurement
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type may lead to higher costs if not managed effectively.
Potential for scope creep or changes given the nature of IT services and CPFF structure.
Limited public information on specific performance outcomes and value realization.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $27.2 million to ACCENTURE LLP. IGF::CL::IGF CLOSELY ASSOCIATED (LOW POSSIBILITY OF CONTRACTOR PERFORMING IG WORK) DESCOPED FUNDING FOR NEW CONTRACT

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 $27.2 million.

What is the period of performance?

Start: 2012-09-28. End: 2015-09-29.

What specific 'Other Computer Related Services' were provided under this contract?

The provided data indicates the NAICS code 541519, which covers 'Other Computer Related Services'. This is a broad category that can encompass a wide range of IT support, consulting, and development activities not specifically classified under other IT-related NAICS codes. Without further details from the contract's statement of work, it is impossible to specify the exact services. These could range from IT infrastructure management, network support, software maintenance, data analysis, or specialized IT consulting. The 'IGF::CL::IGF CLOSELY ASSOCIATED (LOW POSSIBILITY OF CONTRACTOR PERFORMING IG WORK)' note might suggest the services were not directly related to internal government IT audit or oversight functions, but rather operational IT support.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar IT services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is a high degree of uncertainty in the costs. The government agrees to pay the contractor's actual costs plus a fixed fee, which represents the contractor's profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost overruns. Compared to Cost Plus Incentive Fee (CPIF) contracts, the profit is fixed regardless of cost performance, potentially reducing the incentive for the contractor to control costs as rigorously as they might under a CPIF contract where the fee can be adjusted based on performance against cost targets.

What is the significance of the 'DESCOPED FUNDING FOR NEW CONTRACT' note?

The note 'DESCOPED FUNDING FOR NEW CONTRACT' suggests that the original scope or funding allocated for this contract may have been altered. 'Descoped' implies that certain tasks or deliverables originally planned were removed from the contract's scope. This could have occurred due to changes in program requirements, budget adjustments, or a realization that certain aspects were unnecessary or could be handled differently. The phrase 'for new contract' might indicate that this descoping was part of a transition to a new contract vehicle or a modification that effectively created a new baseline for the remaining work and funding.

What does the 'IGF::CL::IGF CLOSELY ASSOCIATED (LOW POSSIBILITY OF CONTRACTOR PERFORMING IG WORK)' indicator imply?

This indicator, 'IGF::CL::IGF CLOSELY ASSOCIATED (LOW POSSIBILITY OF CONTRACTOR PERFORMING IG WORK)', suggests that the contractor, Accenture LLP, is unlikely to be involved in performing work related to the Inspector General's (IG) functions, such as audits, investigations, or oversight activities. This is often a classification to distinguish between contractors performing core program work and those potentially involved in internal control or audit functions. For a contract focused on 'Other Computer Related Services', it is typical that the contractor would not be performing IG work, implying this contract is for operational IT support rather than internal governance or compliance functions.

What is the typical track record of Accenture LLP with federal IT contracts?

Accenture LLP is a major global professional services company that frequently contracts with the U.S. federal government across various agencies and sectors, including IT services, consulting, and digital transformation. They have a long history of managing large and complex federal contracts. While specific performance details for individual contracts are often not public, Accenture is generally recognized as a capable provider of IT solutions. However, like any large contractor, they may have faced scrutiny or challenges on specific projects. A comprehensive assessment would require reviewing performance evaluations (e.g., CPARS) and any reported issues from oversight bodies for their federal engagements.

How does the $27.2 million award compare to overall federal IT spending?

The $27.2 million award to Accenture LLP for IT services is a significant sum for a single contract but represents a relatively small fraction of the total federal IT spending. The U.S. federal government spends tens of billions of dollars annually on IT services, encompassing a vast array of procurements for hardware, software, cloud services, cybersecurity, and IT support across all agencies. This specific contract, while substantial for the Treasury/IRS, is one of many thousands of IT contracts awarded each year. Its significance lies more in its specific purpose for the IRS rather than its overall impact on the federal IT budget.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Address: 11951 FREEDOM DR STE 1000, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,488,120

Exercised Options: $28,488,120

Current Obligation: $27,242,168

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,554,895

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00007

IDV Type: IDC

Timeline