Treasury's IRS awards $81M for IT services to Accenture LLP under full and open competition
Contract Overview
Contract Amount: $81,088,997 ($81.1M)
Contractor: Accenture LLP
Awarding Agency: Department of the Treasury
Start Date: 2013-09-27
End Date: 2018-09-30
Contract Duration: 1,829 days
Daily Burn Rate: $44.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CL::IGF FOR CLOSELY ASSOCIATED
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220
Plain-Language Summary
Department of the Treasury obligated $81.1 million to ACCENTURE LLP for work described as: IGF::CL::IGF FOR CLOSELY ASSOCIATED Key points: 1. Significant contract value of $81M highlights substantial IT service needs. 2. Accenture LLP, a major player, secured the award, indicating strong competition. 3. Risk appears moderate given the firm-fixed-price structure and established vendor. 4. IT services sector is highly competitive, with many capable providers.
Value Assessment
Rating: good
The contract's firm-fixed-price structure suggests a clear understanding of costs. Benchmarking against similar large-scale IT service contracts would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for cost-effectiveness in essential IT services for the IRS.
Public Impact
Ensures continued operation and modernization of critical IRS IT systems. Supports tax administration and taxpayer services through reliable technology. Potential for improved efficiency and data security in financial operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 5 years may outpace rapid technological changes.
- Vendor lock-in potential with a single large provider for critical services.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type controls costs.
- Experienced vendor with a strong track record.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government agencies for modernization and operational support.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large contracts like this often involve prime contractors who may then subcontract to smaller firms.
Oversight & Accountability
The contract was awarded by the IRS, a major agency within the Department of the Treasury, suggesting established oversight mechanisms. Further review of specific oversight activities would be beneficial.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Long contract duration (5 years) may lead to outdated technology or services.
- Potential for vendor lock-in with a single large provider.
- Lack of specific details on service deliverables makes full value assessment challenging.
- No indication of small business participation.
Tags
other-computer-related-services, department-of-the-treasury, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $81.1 million to ACCENTURE LLP. IGF::CL::IGF FOR CLOSELY ASSOCIATED
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 $81.1 million.
What is the period of performance?
Start: 2013-09-27. End: 2018-09-30.
What specific IT services were procured under this contract, and how do they align with the IRS's strategic IT modernization goals?
The contract covers 'Other Computer Related Services' (NAICS 541519). While the specific services aren't detailed, this broad category typically includes IT consulting, system integration, and support. Alignment with IRS modernization would depend on the specific tasks performed, such as cloud migration, data analytics platform development, or cybersecurity enhancements.
Given the 5-year duration, what mechanisms are in place to ensure the services remain relevant and cost-effective as technology evolves?
The firm-fixed-price contract type provides cost certainty for the duration. However, to ensure relevance and cost-effectiveness, the contract likely includes clauses for performance reviews, potential modifications for scope changes, and possibly options for technology refresh. The IRS's contract management team would be responsible for monitoring technological advancements and negotiating necessary adjustments.
How does the performance of Accenture LLP on this contract compare to industry benchmarks for similar IT service engagements?
Performance comparison requires access to specific metrics like on-time delivery, budget adherence, and quality of deliverables. Without these details, a direct comparison is difficult. However, Accenture's status as a major IT services provider suggests a high likelihood of meeting performance expectations, though continuous monitoring by the IRS is crucial.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Accenture Public Limited Company
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: $81,505,545
Exercised Options: $81,505,545
Current Obligation: $81,088,997
Actual Outlays: $23,837
Subaward Activity
Number of Subawards: 102
Total Subaward Amount: $16,141,051
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TIRNO11D00007
IDV Type: IDC
Timeline
Start Date: 2013-09-27
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 16:11:16
Last Modified: 2022-09-30
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