DoD awards $192M for Enterprise Task Management Software, with Accenture Federal Services as prime

Contract Overview

Contract Amount: $192,117,537 ($192.1M)

Contractor: Accenture Federal Services LLC

Awarding Agency: Department of Defense

Start Date: 2021-06-25

End Date: 2026-08-14

Contract Duration: 1,876 days

Daily Burn Rate: $102.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE TASK MANAGEMENT SOFTWARE SOLUTIONS (ETMS2) SOFTWARE-AS-A-SERVICE. EO 14042 INCLUDED IN THE CONTRACT.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $192.1 million to ACCENTURE FEDERAL SERVICES LLC for work described as: ENTERPRISE TASK MANAGEMENT SOFTWARE SOLUTIONS (ETMS2) SOFTWARE-AS-A-SERVICE. EO 14042 INCLUDED IN THE CONTRACT. Key points: 1. Contract value of $192.1 million over its period of performance. 2. Awarded as a Definitive Contract with a Firm Fixed Price structure. 3. Full and Open Competition was utilized for this procurement. 4. The contract includes adherence to Executive Order 14042 regarding COVID-19 mandates. 5. Accenture Federal Services LLC is the primary contractor. 6. The contract duration is approximately 5 years, ending in August 2026. 7. The North American Industry Classification System (NAICS) code is 511210 (Software Publishers).

Value Assessment

Rating: good

The contract value of $192.1 million for Enterprise Task Management Software Solutions (ETMS2) over nearly five years appears reasonable given the scope of enterprise-level software-as-a-service. Benchmarking against similar large-scale SaaS procurements for government-wide task management or collaboration tools would provide a more precise value-for-money assessment. The firm fixed-price nature suggests cost certainty for the government, but requires careful scope management to avoid change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under Full and Open Competition, indicating that all responsible sources were permitted to submit offers. The presence of 6 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government receives offers from a diverse range of capable vendors.

Taxpayer Impact: A competitive process like this typically leads to better pricing for taxpayers by encouraging vendors to offer their most competitive rates to win the contract.

Public Impact

Provides enterprise task management software solutions to the Department of Defense. Enhances operational efficiency and task tracking across various Army units. Supports approximately 10,240 users, indicating a broad impact within the DoD. The software-as-a-service model ensures accessibility and potential for scalability. Contributes to the modernization of DoD's digital infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a long-term SaaS contract.
Ensuring data security and privacy within a cloud-based SaaS environment.
Managing user adoption and training across a large user base.
Dependence on contractor performance for critical task management functions.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and Open Competition suggests a competitive award process.
Definitive contract structure allows for clear tasking and delivery.
Executive Order 14042 inclusion addresses important public health requirements.
Accenture Federal Services is a well-established government contractor.

Sector Analysis

The Enterprise Task Management Software Solutions (ETMS2) contract falls within the broader Software Publishers (NAICS 511210) and IT Services sectors. This market is characterized by rapid innovation and a significant government demand for cloud-based solutions to improve efficiency and collaboration. The total addressable market for government IT services and software is in the hundreds of billions of dollars annually, with task management and collaboration tools being a critical component for large organizations like the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor, Accenture Federal Services LLC, is a large business. There is no explicit information provided regarding small business subcontracting plans. The impact on the small business ecosystem would depend on whether Accenture actively seeks small business partners for subcontracting opportunities, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Army. As a Software-as-a-Service (SaaS) contract, ongoing performance monitoring, service level agreement adherence, and security compliance would be key oversight areas. Transparency is facilitated through contract award databases, but detailed operational oversight reports are typically internal to the agency.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Defense Information Technology Contracting Organization (DITCO) procurements
Enterprise Resource Planning (ERP) systems
Cloud computing services for government

Risk Flags

Potential for vendor lock-in
Data security and privacy concerns in SaaS
User adoption and training challenges
Dependence on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $192.1 million to ACCENTURE FEDERAL SERVICES LLC. ENTERPRISE TASK MANAGEMENT SOFTWARE SOLUTIONS (ETMS2) SOFTWARE-AS-A-SERVICE. EO 14042 INCLUDED IN THE CONTRACT.

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 $192.1 million.

What is the period of performance?

Start: 2021-06-25. End: 2026-08-14.

What is Accenture Federal Services' track record with similar large-scale IT service contracts for the Department of Defense?

Accenture Federal Services LLC has a significant history of performing large-scale IT service contracts for the Department of Defense and other federal agencies. They are known for providing a wide range of services including cloud migration, cybersecurity, enterprise resource planning (ERP) implementation, and digital transformation initiatives. Their past performance often includes managing complex software solutions and large user bases, similar to the ETMS2 contract. While specific details of past performance metrics are not publicly available for this particular contract, their extensive experience in the federal IT space suggests a capacity to handle such requirements. However, a deeper dive into past performance reviews and any reported issues on previous DoD contracts would be necessary for a comprehensive assessment.

How does the $192.1 million contract value compare to similar enterprise task management software procurements?

The $192.1 million contract value for Enterprise Task Management Software Solutions (ETMS2) over approximately five years is substantial, reflecting the scale of deployment within the Department of Defense. To benchmark this value, one would compare it to other large government procurements for similar Software-as-a-Service (SaaS) platforms, such as enterprise collaboration tools, project management software, or workflow automation systems. For instance, other agencies might procure similar solutions through enterprise-wide agreements or individual large contracts. The average cost per user per year is a key metric for comparison. Without specific details on the number of active users or the feature set included in this $192.1 million award, a precise comparison is difficult. However, for a large federal agency, this figure is within the expected range for comprehensive, enterprise-wide task management solutions.

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

Key risks associated with this contract include potential vendor lock-in due to the long-term SaaS nature, ensuring robust data security and privacy in a cloud environment, and managing user adoption and training across a large, dispersed user base within the DoD. Mitigation strategies likely involve clearly defined service level agreements (SLAs) that specify performance and uptime requirements, stringent cybersecurity protocols and compliance checks mandated by the contract, and comprehensive training programs developed by the contractor and overseen by the agency. The firm fixed-price structure also introduces a risk of scope creep if not managed carefully, which is typically mitigated through rigorous contract change control processes. The inclusion of EO 14042 also adds a layer of compliance risk management.

How effective is the chosen competition level (Full and Open) in ensuring value for taxpayer money on this contract?

The Full and Open Competition strategy employed for this contract is generally considered the most effective method for ensuring value for taxpayer money. By allowing all responsible sources to compete, it fosters a competitive environment where multiple vendors submit proposals, driving down prices and encouraging innovation. The fact that six bidders participated indicates a robust competition. This broad participation increases the likelihood that the government secures the best possible price and solution for its needs. While a competitive award doesn't guarantee optimal value in all cases (as performance and execution are critical), it establishes a strong foundation for achieving it by leveraging market forces to the government's advantage.

What are the historical spending patterns for enterprise task management software within the Department of Defense?

Historical spending patterns for enterprise task management software within the Department of Defense are likely characterized by a transition from on-premise, custom-built solutions to more standardized, cloud-based Software-as-a-Service (SaaS) offerings. Prior to widespread SaaS adoption, the DoD may have invested heavily in developing or acquiring bespoke systems, leading to fragmented solutions and higher maintenance costs. More recently, there has been a push towards consolidating these capabilities into enterprise-wide platforms to improve interoperability, reduce duplication, and leverage economies of scale. Spending has likely increased in recent years as agencies embrace digital transformation and cloud-first strategies, with contracts like ETMS2 representing a significant investment in modernizing these critical operational tools.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J20RETMS

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Novetta Solutions, LLC

Address: 800 N GLEBE RD STE 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: $250,804,312

Exercised Options: $192,117,537

Current Obligation: $192,117,537

Actual Outlays: $2,513,230

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $14,362,094

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Timeline