Treasury's $57.5M IRS Contract with Accenture for Computer Systems Design Services Awarded via Full and Open Competition
Contract Overview
Contract Amount: $57,517,739 ($57.5M)
Contractor: Accenture Federal Services LLC
Awarding Agency: Department of the Treasury
Start Date: 2012-12-04
End Date: 2017-03-09
Contract Duration: 1,556 days
Daily Burn Rate: $37.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIXED PRICE AWARD FEE
Sector: IT
Official Description: IGF::CT::IGF
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $57.5 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::CT::IGF Key points: 1. Significant contract value of $57.5 million over its period of performance. 2. Accenture Federal Services LLC secured this award, indicating strong competition in the IT services sector. 3. The contract's fixed-price award fee structure aims to balance cost control with performance incentives. 4. This award falls under the Computer Systems Design Services NAICS code, a common area for federal IT spending.
Value Assessment
Rating: good
The contract's fixed-price award fee structure suggests a focus on achieving defined performance objectives within a set budget. Benchmarking against similar large-scale IT service contracts would provide further insight into its pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust bidding process that likely drove competitive pricing. The use of a delivery order mechanism implies it was part of a larger indefinite-delivery contract.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment that can drive down costs and improve service quality.
Public Impact
Impacts IRS operations through enhanced computer systems design and support. Supports federal IT infrastructure modernization efforts. Demonstrates government's reliance on private sector expertise for complex IT solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if award fee targets are consistently met without strict oversight.
- Vendor lock-in risk if transition to a new vendor is complex or costly.
Positive Signals
- Awarded through full and open competition, promoting fairness and value.
- Fixed-price award fee structure incentivizes performance and cost management.
- Long-term contract provides stability for critical IRS IT services.
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Federal IT spending is a substantial portion of the overall budget, with significant investments in maintaining and upgrading systems.
Small Business Impact
The data indicates this contract was awarded to Accenture Federal Services LLC and does not specify any small business participation. Further analysis would be needed to determine if small businesses were subcontracted.
Oversight & Accountability
The contract's duration and value necessitate ongoing oversight to ensure performance objectives are met and taxpayer funds are used efficiently. Regular reviews of award fee determinations and service delivery are crucial.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns if award fee criteria are not strictly managed.
- Dependency on a single large contractor for critical IT services.
- Complexity of IT systems may lead to unforeseen challenges and cost increases.
- Ensuring continued innovation and adaptation within a fixed-price framework.
Tags
computer-systems-design-services, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $57.5 million to ACCENTURE FEDERAL SERVICES LLC. IGF::CT::IGF
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 $57.5 million.
What is the period of performance?
Start: 2012-12-04. End: 2017-03-09.
What specific computer systems design services were rendered under this contract, and how did they contribute to the IRS's mission?
The contract, NAICS 541512, likely encompassed a range of services including system analysis, design, development, integration, and potentially ongoing support for IRS IT infrastructure. These services are critical for maintaining taxpayer databases, processing returns, and ensuring secure digital operations, directly supporting the IRS's core mission of tax administration and enforcement.
Given the fixed-price award fee structure, what mechanisms were in place to prevent scope creep and ensure cost control?
A fixed-price award fee contract typically includes detailed performance work statements and objective criteria for earning award fees. Robust contract management by the IRS, including regular performance reviews, change control processes, and clear communication channels, would be essential to prevent scope creep and ensure costs remain aligned with the contract's objectives and budget.
How effectively did the full and open competition process ensure the best value was obtained for the government and taxpayers?
Full and open competition is designed to maximize the pool of potential bidders, thereby increasing the likelihood of receiving competitive offers. The effectiveness in ensuring best value depends on the clarity of the solicitation, the evaluation criteria used, and the rigor of the negotiation process. A well-executed competitive process generally yields better pricing and higher quality services for the government.
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
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: $57,517,739
Exercised Options: $57,517,739
Current Obligation: $57,517,739
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $4,876,132
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
Start Date: 2012-12-04
Current End Date: 2017-03-09
Potential End Date: 2017-03-09 00:00:00
Last Modified: 2017-03-09
More Contracts from Accenture Federal Services LLC
- - Tivod Supports the Origination, Disbursement, and Reporting of Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Direct Loans, Pell Grants, and the Teacher Education Assistance for College and Higher Education Grants. the Title IV Solution Shall Also Provide Ongoing Support for the Discontinued Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Academic Competitiveness Grants and National Science and Mathematics Access to Retain Talent Grants — $1.5B (Department of Education)
- This Task Order IS for an Enterprise-Wide Digital and Customer Care Platforms and Services Solution (enterprise-Wide Digital and Customer Care Solution, AKA Ewdccps, AKA DCC) That Will Enable an Fsa-Branded Omni-Channel Engagement Approach LED by a Mobile-First, Mobile-Complete, and Mobile-Continuous Digital Platform Supporting the Complete Lifecycle of Student Financing — $851.5M (Department of Education)
- FFM — $829.6M (Department of Health and Human Services)
- Award for Unified Enterprise Resource Planning Capability Support Services — $823.2M (Department of Defense)
- Federally Facilitated Exchange (FFE) — $787.2M (Department of Health and Human Services)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)