DoD's $139M GFEBS-SA contract awarded to Accenture Federal Services, a sole-source IT services agreement

Contract Overview

Contract Amount: $139,294,859 ($139.3M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2017-04-24

End Date: 2022-11-30

Contract Duration: 2,046 days

Daily Burn Rate: $68.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF GENERAL FUND ENTERPRISE BUSINESS SYSTEMS - SENSITIVE ACTIVITIES (GFEBS-SA)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $139.3 million to ACCENTURE FEDERAL SERVICES LLC for work described as: IGF::OT::IGF GENERAL FUND ENTERPRISE BUSINESS SYSTEMS - SENSITIVE ACTIVITIES (GFEBS-SA) Key points: 1. The contract's value of $139.3 million over approximately 6.8 years suggests a significant investment in IT systems. 2. As a sole-source award, the absence of a competitive bidding process raises questions about potential overpricing and value for money. 3. The 'DEFINITIVE CONTRACT' award type indicates a long-term commitment, potentially locking in costs and limiting flexibility. 4. The contract's focus on 'Computer Systems Design Services' positions it within the broader IT services sector, a critical area for defense operations. 5. The lack of small business participation noted (sb: false) suggests limited opportunities for smaller firms within this specific contract. 6. The contract's duration of 2046 days (approx. 5.6 years) is substantial, requiring careful performance monitoring.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar IT systems. However, the absence of competition inherently limits the government's ability to secure the best possible pricing. The firm fixed-price structure provides cost certainty but may not reflect the most economical solution achievable through a competitive process. Further analysis would require understanding the specific services rendered and their criticality to GFEBS-SA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Accenture Federal Services LLC, was solicited. This approach bypasses the standard competitive procurement process, which typically involves multiple bidders vying for the contract. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities or urgent needs), they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive pressure to drive down costs. The absence of multiple bids means there was no direct comparison to ensure the government received the most cost-effective solution available in the market.

Public Impact

The primary beneficiary is the Department of the Army, which receives critical IT system support for its enterprise business functions. The contract delivers computer systems design services, likely encompassing development, integration, and maintenance of the GFEBS-SA system. The geographic impact is primarily within the Department of Defense's operational footprint, supporting its nationwide and potentially global activities. Workforce implications include the employment of IT professionals by Accenture Federal Services to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Long contract duration (over 5 years) may reduce flexibility and increase risk of obsolescence if not managed proactively.
Lack of small business set-aside means limited direct opportunities for small businesses on this prime contract.
The 'DEFINITIVE CONTRACT' type, while providing certainty, can sometimes be less adaptable to evolving requirements than other contract types.

Positive Signals

Firm Fixed Price (FFP) contract type provides cost certainty for the government, minimizing the risk of cost overruns.
Award to a known entity (Accenture Federal Services) may indicate a reliance on established expertise for a critical system.
The contract supports a significant enterprise business system (GFEBS-SA), suggesting a focus on essential government functions.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design. The IT services market is vast and highly competitive, with numerous firms offering a wide range of solutions. However, for specialized enterprise resource planning (ERP) systems like GFEBS-SA, the pool of qualified contractors can be more limited. Comparable spending benchmarks for large-scale defense IT system development and maintenance can range from tens of millions to billions of dollars, depending on the system's complexity and scope.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of significant subcontracting opportunities for small businesses. The absence of these provisions means that the primary contract value flows to the large business prime contractor, Accenture Federal Services. This limits the direct economic benefit to the small business ecosystem from this specific award, although the prime contractor may engage small businesses in other capacities not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally limited for sole-source awards compared to competitively bid contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Fund Enterprise Business Systems (GFEBS)
Defense Enterprise Accounting and Management System (DEAMS)
Standard Financial Information Structure (SFIS)
Army Enterprise Resource Planning (ERP) Systems
Department of Defense Financial Management Systems

Risk Flags

Sole-source award may indicate limited competition, potentially leading to higher costs.
Long contract duration increases the risk of technology obsolescence and requires diligent program management.
Lack of small business participation limits opportunities for smaller firms in the contracting ecosystem.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $139.3 million to ACCENTURE FEDERAL SERVICES LLC. IGF::OT::IGF GENERAL FUND ENTERPRISE BUSINESS SYSTEMS - SENSITIVE ACTIVITIES (GFEBS-SA)

Who is the contractor on this award?

The obligated recipient is ACCENTURE FEDERAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $139.3 million.

What is the period of performance?

Start: 2017-04-24. End: 2022-11-30.

What is the specific nature of the 'Sensitive Activities' (SA) within GFEBS-SA that necessitated a sole-source award?

The provided data does not specify the exact nature of the 'Sensitive Activities' (SA) within GFEBS-SA. Typically, 'sensitive activities' in government contracts might refer to areas requiring enhanced security, specialized handling of classified information, or unique operational requirements that are difficult to define or procure competitively. Without further details from the contract documentation or agency justifications, it is impossible to ascertain the precise reasons for the sole-source award related to these sensitive activities. This lack of transparency is common in sole-source procurements where proprietary information or national security concerns may limit public disclosure.

How does the $139.3 million contract value compare to historical spending on GFEBS-SA or similar systems?

Direct historical spending comparisons for this specific 'GFEBS-SA - Sensitive Activities' contract are not available in the provided data. However, the $139.3 million awarded to Accenture Federal Services over approximately 5.6 years (2017-2022) represents a substantial investment. Enterprise Resource Planning (ERP) systems for large organizations like the Department of Defense are complex and costly to develop, implement, and maintain. Annual spending on major defense IT programs can easily reach tens or hundreds of millions of dollars. Without access to the full contract history and detailed scope of work, it's difficult to benchmark this specific award against broader historical trends for GFEBS or comparable defense financial management systems.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. In a Firm Fixed Price (FFP) contract, performance is typically measured against the defined scope of work and delivery schedule. For IT system design services, KPIs might include system uptime, response times, successful integration of new modules, defect resolution rates, and adherence to cybersecurity protocols. SLAs would outline the expected level of service and remedies for non-performance. These details are usually found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included in the summary data.

What is Accenture Federal Services' track record with the Department of Defense, particularly on large IT system contracts?

Accenture Federal Services LLC has a significant track record of working with the Department of Defense (DoD) and other federal agencies on large-scale IT and consulting projects. They are a major player in the government contracting space, known for their expertise in areas like enterprise resource planning (ERP), cloud migration, cybersecurity, and digital transformation. Their past performance with the DoD likely includes work on various financial management systems, logistics, and personnel systems. While this specific contract was sole-source, Accenture's broader experience suggests they possess the capabilities to handle complex IT system design and support requirements for defense clients.

Given the sole-source nature, what mechanisms are in place to ensure ongoing value and prevent contractor lock-in?

To mitigate risks associated with sole-source awards and prevent contractor lock-in, the government typically employs several mechanisms. These include robust contract oversight by contracting officers and program managers, regular performance reviews, and potentially independent cost analyses. The contract itself would likely contain clauses for termination for convenience, allowing the government to end the contract if it's no longer needed or if a better alternative emerges. Furthermore, the government may conduct market research periodically to assess if competition is feasible for future requirements or modifications. Strong change control processes are also crucial to manage scope creep and ensure that any changes align with the original value proposition.

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: ONLY ONE SOURCE

Solicitation ID: W52P1J17R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 NORTH GLEBE RD #300, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $139,294,859

Exercised Options: $139,294,859

Current Obligation: $139,294,859

Actual Outlays: $1,875,406

Subaward Activity

Number of Subawards: 298

Total Subaward Amount: $53,506,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline