We introduced Accenture Federal Services (AFS) in our November 2018 blog to examine its service offerings and noteworthy contracts that define the business. Since then, the company has experienced changes in its U.S. Government customer portfolio, showcased interesting evaluation trends, and made significant acquisitions.
Portfolio changes and noteworthy wins
Over the last few years, Accenture’s customer portfolio has changed substantially, with the U.S. Department of State (DoS), Centers for Medicare and Medicaid (CMS), and U.S. Department of Energy (DoE) becoming key customers and adding substantially to the company’s revenue. While the Department of Education remains Accenture’s top customer, other agencies such as the Defense Logistics Agency (DLA), Army, and Navy have become less significant. Recent and noteworthy wins include:
- U.S. Department of Energy (DoE), Chief Information Officer (CIO), CIO Business Operations Support Services (CBOSS) – In April 2019, DoE awarded Accenture a five-year, $2 billion ceiling value BPA to modernize DoE infrastructure. Accenture supports DoE’s plan to migrate from an on-premises service model to a modern, cloud-based IT services model that will incorporate leading-edge, commercially available products and services, aiming to improve IT flexibility and reduce redundant infrastructure while strengthening security.
- U.S. Department of Education (DoED), Office of Federal Student Aid (FSA), Enterprise-Wide Digital and Customer Care Solution (EWDCCPS) – In February 2019, Accenture was awarded an eight-year, $729 million ceiling value contract to provide an Enterprise-Wide Digital and Customer Care platform and services solution enabling an FSA-branded omni-channel engagement approach to support the complete lifecycle of student financing.
- U.S. Department of State (DoS), Bureau of Consular Affairs (CA), Data Management Support– In March 2022, Accenture was awarded a five-year, $118 million ceiling value contract to provide the CA data management support, which includes fraud reduction and data replication solutions related to passports and visas. Accenture also provides data engineering services to a DoS database serving as a center of information flow between various government branches.
- U.S. Department of Health and Human Services (HHS), Centers for Medicare and Medicaid (CMS), Federally Facilitated Exchange (FFE) – In July 2021, CMS awarded Accenture a five-year, $330 million ceiling value contract to provide ADP and telecommunications support for the FFE. This follows Accenture’s role as the prime development contractor for HealthCare.gov, which is the front door for the FFE. Note that Deloitte almost won this away from Accenture, but after the protest cycle was resolved, Accenture retained the contract.
Recent M&A activity
While most acquisitions made are focused on broader Accenture commercial interests, AFS agreed to acquire Novetta from the Carlyle Group in June 2021. Novetta was an advanced analytics company with approximately 1,300 employees serving U.S. Federal customers in machine learning (ML), cyber, and cloud engineering. Other interesting acquisitions for “bigger” Accenture include the following:
- XtremeEDA– In June 2022, Accenture agreed to acquire XtremeEDA, a provider of semiconductor engineering services for consumer devices, cloud data centers, and artificial intelligence (AI) computational platforms. This acquisition will increase Accenture’s capabilities in edge AI deployment and better help clients with the management and use of physical assets.
- Trivadis AG– In July 2021, Accenture agreed to acquire Trivadis AG, an IT services provider specializing in platforms and solutions enabling highly automated provisioning and innovative use of data. Trivadis joins Accenture’s Data and AI team within the Accenture Cloud First group.
Win Loss trends
We selected a sample of relevant GAO Protests since 2018 to explore any trends in Accenture’s wins and losses. The findings revealed some trends in how they score well or run into problems.
- Corporate experience scored very well while past performance had much more variance in scores (sometimes was particularly weak)
- Scored very well in how they utilized and managed their teams
- Staffing plans often did well through use of great details
- Innovation oriented evaluation factors would lead to strengths
Find out more about win-loss trends through our new Battle Card offering. This is a new product that acts as an easy reference guide on your core competitors in a market. Check out the sample featuring Accenture!
FedSavvy Strategies Takeaway
- As Accenture continues to maintain its heavy presence in the DoED, it has also expanded its customer footprint within DoS, CMS, and DoE. Accenture will likely leverage this customer familiarity in the future to defend its territory within these customers, especially in the areas of cloud, AI/ML, and cybersecurity.
- Regarding evaluation trends, Accenture will likely continue to receive high scores for its corporate experience and measured ability to bring innovation to Government customers. The company has also demonstrated to be successful in its management approach for its use of teaming partners and existing technology, as well as details on staffing plans.
- Accenture continues to invest heavily in analytics and AI/ML businesses, with a focus to buy into Department of Defense and the Intelligence Community. Even though many of these acquisitions are integrated into Accenture’s commercial sectors, the company has proven its corporate reach back capability, enabling Accenture to leverage these entities in its bids.
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