Treasury's IRS awarded $34.1M for web portal services to Accenture Federal Services, highlighting IT modernization needs

Contract Overview

Contract Amount: $34,125,341 ($34.1M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of the Treasury

Start Date: 2011-08-10

End Date: 2016-11-03

Contract Duration: 1,912 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE AWARD FEE

Sector: IT

Official Description: WEB PORTALS TASK ORDER 0002

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $34.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: WEB PORTALS TASK ORDER 0002 Key points: 1. The contract value of $34.1 million over five years suggests a significant investment in IT infrastructure. 2. Accenture Federal Services, a large IT contractor, secured this award, indicating established relationships and capabilities. 3. The fixed-price award fee structure aims to incentivize performance while managing costs. 4. The duration of the task order (1912 days) points to a long-term need for these web portal services. 5. This award falls under computer systems design services, a critical area for government digital transformation. 6. The contract was awarded via full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The $34.1 million award for web portal services appears reasonable given the five-year duration and the nature of IT modernization projects. Benchmarking against similar large-scale IT service contracts for federal agencies suggests that this price point is within expected ranges for comprehensive system design and support. The fixed-price award fee structure provides a degree of cost control for the government, while also offering incentives for the contractor to meet performance objectives. Without specific details on the scope of services, a precise value-for-money assessment is challenging, but the overall investment aligns with the government's ongoing efforts to upgrade its digital infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of four bids (no: 4) suggests a competitive environment, which is generally favorable for price discovery and ensuring the government receives competitive pricing. The fact that a task order under a larger contract was competed openly implies that the agency sought the best value through a structured procurement process, rather than relying on a sole-source or limited competition approach.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive bidding environment. This ensures that the government is not overpaying for services and that taxpayer funds are used efficiently.

Public Impact

Taxpayers benefit from improved access to IRS services and information through modernized web portals. The contract delivers essential IT services for the design, development, and maintenance of critical IRS web platforms. The geographic impact is nationwide, as IRS web portals serve all taxpayers across the United States. Workforce implications include the need for skilled IT professionals within Accenture Federal Services to support this contract, and potentially internal IRS IT staff for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor's proprietary solutions become deeply integrated.
Risk of scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single large contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Award to a reputable contractor with a proven track record in large-scale IT projects.
Use of full and open competition suggests a commitment to achieving best value.
Fixed-price award fee structure provides incentives for performance and cost management.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The market for government IT services is substantial, with agencies continually seeking to modernize legacy systems and enhance digital service delivery. This task order represents a component of the broader trend in federal IT spending aimed at improving citizen engagement and operational efficiency. Comparable spending benchmarks for similar large-scale web portal development and maintenance contracts within the federal government would likely be in the tens to hundreds of millions of dollars over several years, depending on the complexity and scope.

Small Business Impact

This contract does not appear to have a small business set-aside component (sb: false). Given the nature and scale of the services required for a major federal agency's web portals, it is common for such contracts to be awarded to large system integrators. However, the prime contractor, Accenture Federal Services, may engage small businesses as subcontractors to fulfill specific aspects of the work, contributing to the broader small business ecosystem. Further analysis would be needed to determine the extent of any subcontracting plan and its impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Treasury's Internal Revenue Service (IRS) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The contract's fixed-price award fee structure includes performance metrics that would be evaluated. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would typically apply if any allegations of fraud, waste, or abuse arise related to the contract.

Related Government Programs

IRS IT Modernization Initiatives
Federal Civilian Agency IT Services
Web Portal Development and Maintenance Contracts
Accenture Federal Services Contracts
Computer Systems Design Services

Risk Flags

Potential for cost overruns if scope is not managed
Risk of technical integration challenges with legacy systems
Dependence on contractor performance for critical taxpayer services

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $34.1 million to ACCENTURE FEDERAL SERVICES LLC. WEB PORTALS TASK ORDER 0002

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34.1 million.

What is the period of performance?

Start: 2011-08-10. End: 2016-11-03.

What is Accenture Federal Services' track record with the IRS and other federal agencies for similar IT projects?

Accenture Federal Services has a significant history of contracting with the IRS and other federal agencies, often undertaking large-scale IT modernization and digital transformation projects. Their portfolio includes work on tax systems, financial management, and citizen-facing portals. For the IRS specifically, they have been involved in various initiatives aimed at improving taxpayer services and internal operations. Their track record generally indicates experience with complex, high-value IT contracts. However, a detailed review of past performance, including any past performance evaluations or disputes, would be necessary for a comprehensive assessment of their suitability for this specific web portal task order.

How does the $34.1 million cost compare to similar web portal projects at other federal agencies?

The $34.1 million cost for this five-year task order for IRS web portal services is within the expected range for large federal IT projects of this nature. Federal agencies frequently invest tens of millions of dollars in developing, modernizing, and maintaining their public-facing websites and internal portals. Factors influencing cost include the complexity of required functionalities, integration with existing systems, user base size, and security requirements. For instance, other agencies like the Social Security Administration or the Department of Veterans Affairs have undertaken similarly scaled projects for their digital platforms. While this figure is substantial, it reflects the critical nature of reliable and accessible web services for taxpayer interaction.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential cost overruns if the scope is not well-defined, technical challenges in integrating new portal features with legacy IRS systems, and performance issues impacting user experience. Mitigation strategies likely involve robust project management, clear definition of requirements, phased implementation, rigorous testing, and performance-based incentives within the award fee structure. The fixed-price nature of the award also helps contain costs, provided the scope remains stable. Continuous monitoring by IRS program managers and adherence to cybersecurity best practices are crucial for mitigating security-related risks.

How effective has Accenture Federal Services been in delivering similar web portal solutions for the government?

Accenture Federal Services has a broad history of delivering IT solutions, including web portals, for various government entities. Their effectiveness is generally demonstrated through the successful completion of numerous contracts, often involving complex system integrations and large user bases. For instance, they have been involved in projects enhancing citizen access to government services and improving internal operational efficiencies. Specific effectiveness metrics for this particular task order would be tied to the performance standards outlined in the contract and evaluated through the award fee mechanism. A review of past performance reports and user feedback on similar government portals they have managed would provide further insight into their effectiveness.

What are the historical spending patterns for web portal services at the IRS?

Historical spending patterns for web portal services at the IRS have likely shown a consistent and significant investment in maintaining and upgrading its digital infrastructure. As a primary interface for taxpayers, the IRS continuously needs to adapt its web presence to evolving technology, new tax laws, and user expectations. This includes spending on development, maintenance, security, and enhancements. Over the years, the IRS has likely shifted spending from older, monolithic systems towards more agile, cloud-based, and user-centric portal solutions. The $34.1 million awarded here represents a substantial, but not necessarily unprecedented, investment within this ongoing modernization effort, reflecting the critical role of digital services.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: TIRNO09R00051

Offers Received: 4

Pricing Type: FIXED PRICE AWARD FEE (M)

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $338,407,210

Exercised Options: $267,172,824

Current Obligation: $34,125,341

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $6,896,930

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00041

IDV Type: IDC

Timeline