DoD's $29.7M SITEC task order to NTT DATA for computer services shows strong competition and fair value

Contract Overview

Contract Amount: $29,696,644 ($29.7M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of Defense

Start Date: 2012-01-01

End Date: 2018-12-31

Contract Duration: 2,556 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SITEC SPECIALTY SERVICES CPFF TASK ORDER ENTITLED USACAPOC

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $29.7 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: SITEC SPECIALTY SERVICES CPFF TASK ORDER ENTITLED USACAPOC Key points: 1. The contract achieved a competitive outcome with 7 bidders, suggesting robust price discovery. 2. The cost-plus-fixed-fee structure, while common, requires careful monitoring of indirect costs. 3. Performance duration of 2556 days indicates a long-term need for these specialized services. 4. The North Carolina location may offer insights into regional IT service market dynamics. 5. This award falls within the 'Other Computer Related Services' NAICS code, a broad category. 6. The absence of small business set-aside flags suggests a focus on large prime contractors.

Value Assessment

Rating: good

Benchmarking this $29.7 million task order against similar IT services contracts is challenging due to the specific nature of 'USACAPOC' support. However, the contract's duration and the competitive bidding process suggest that the pricing was likely negotiated to be fair. The cost-plus-fixed-fee (CPFF) pricing structure is typical for complex, evolving requirements where scope is not fully defined upfront. While CPFF can lead to higher costs if not managed diligently, the presence of multiple bidders implies a degree of market discipline on pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven (7) bids received. This level of competition is generally considered healthy and indicates that the solicitation was widely disseminated and accessible to a broad range of potential offerors. A higher number of bidders typically leads to more competitive pricing and a greater likelihood of selecting the best value solution for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the overall cost and ensured the government received a competitive price for the services rendered.

Public Impact

The U.S. Special Operations Command (USOC) is the primary beneficiary, receiving specialized computer-related services. The services provided likely support critical mission functions within USOC. The contract's duration suggests sustained operational support rather than a one-time project. The geographic impact is centered in North Carolina, potentially supporting local IT job markets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize fee, requiring robust oversight.
The broad 'Other Computer Related Services' NAICS code may obscure the specific nature and cost drivers of the services.
Long contract durations can sometimes lead to cost overruns if not actively managed and re-evaluated.

Positive Signals

Full and open competition with 7 bidders indicates a healthy market and likely competitive pricing.
The award to a large, established IT services provider suggests a capacity to handle complex requirements.
The task order structure implies a defined need within a larger contract vehicle, potentially leveraging existing agreements.

Sector Analysis

This contract falls under the broad 'Other Computer Related Services' category (NAICS 541519), which encompasses a wide array of IT support and consulting. The federal IT services market is substantial, with agencies consistently investing in technology to support operations and missions. This specific task order, supporting US Special Operations Command, highlights the critical role of specialized IT services in defense and national security sectors. Comparable spending benchmarks are difficult to pinpoint without more detail on the specific services, but IT services represent a significant portion of the federal procurement budget.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). The award went to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, a large prime contractor. This suggests that the requirement was likely beyond the scope or capacity of small businesses, or that the competition strategy prioritized large-scale solutions. There is no explicit information on subcontracting plans, but large prime contracts often include provisions for small business participation, which would be detailed in the full contract.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee (CPFF) task order would typically be managed by the U.S. Special Operations Command (USOC) contracting and program officials. Accountability measures would be embedded in the contract's performance work statement (PWS) and key performance indicators (KPIs). Transparency is generally facilitated through contract award databases like FPDS-NG, where basic details are published. The specific Inspector General jurisdiction would depend on the agency's internal structure, likely the DoD IG.

Related Government Programs

IT Professional Services
Special Operations Command Support
Computer Systems Design Services
Defense Information Technology Contracting

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to prevent cost overruns.
Broad NAICS code may obscure specific service details and cost drivers.
Long contract duration necessitates ongoing performance management and potential re-evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.7 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. SITEC SPECIALTY SERVICES CPFF TASK ORDER ENTITLED USACAPOC

Who is the contractor on this award?

The obligated recipient is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $29.7 million.

What is the period of performance?

Start: 2012-01-01. End: 2018-12-31.

What specific services were provided under the SITEC task order for USACAPOC?

The provided data indicates the task order falls under NAICS code 541519, 'Other Computer Related Services,' and was awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. While the specific name 'USACAPOC' suggests support for the U.S. Army Capabilities Development and Integration Directorate or a similar entity focused on capability development, the exact nature of the 'Other Computer Related Services' is not detailed. This could range from IT infrastructure management, software development, cybersecurity support, data analysis, or specialized technical consulting. Without access to the Performance Work Statement (PWS) or contract details, the precise services remain unspecified, though they are clearly critical to the operational needs of the U.S. Special Operations Command.

How does the $29.7 million total value compare to similar IT services contracts for defense entities?

The $29.7 million total value for this task order, spanning approximately 6 years (2556 days), positions it as a moderately sized IT services contract within the defense sector. Large defense agencies like the Department of Defense frequently award IT contracts ranging from a few million to hundreds of millions of dollars. For instance, contracts for enterprise resource planning (ERP) systems, large-scale network modernization, or major software development efforts can easily exceed this amount. However, for specialized support services like those potentially provided under this task order, $29.7 million over six years represents a significant, sustained investment. Its value is comparable to other long-term, mission-critical IT support contracts awarded to major federal IT contractors.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially one valued at $29.7 million over nearly seven years, is the potential for cost overruns and reduced contractor incentive for efficiency. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee. While the fee is fixed, the contractor is not directly incentivized to minimize costs beyond what is necessary to perform the work, as their profit margin (the fee) remains constant regardless of the total cost incurred. This can lead to scope creep or less stringent cost management compared to fixed-price contracts. Effective oversight, detailed cost tracking, and robust performance monitoring by the government are crucial to mitigate these risks and ensure value for money.

Given the 'full and open competition' and 7 bidders, what does this imply about the contractor's track record?

The fact that this task order was awarded under 'full and open competition' with seven bidders suggests that the contracting environment was perceived as accessible and attractive to a wide range of qualified companies. For the winning contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, this implies they were able to successfully compete against six other firms. While this doesn't directly detail their past performance on *this specific* task order (as it was awarded), it indicates they possess the capabilities, resources, and potentially a strong past performance record that allowed them to submit a winning proposal in a competitive scenario. Agencies often evaluate past performance heavily in source selection, so a competitive win often correlates with a demonstrated ability to deliver.

How does this contract's spending pattern compare to historical federal IT spending trends?

This $29.7 million task order, awarded between 2012 and 2018, aligns with historical federal IT spending trends which have consistently shown significant investment in IT services, particularly within the Department of Defense. During this period, federal agencies were increasingly focused on modernizing IT infrastructure, enhancing cybersecurity, and leveraging technology for mission effectiveness. The 'Other Computer Related Services' category is a common area of expenditure. The duration of the contract (over 6 years) also reflects a trend towards longer-term engagements for complex IT support needs, rather than short-term projects. Overall, this spending is consistent with the substantial and ongoing federal commitment to IT procurement.

What is the potential impact of this contract on the IT services market in North Carolina?

The contract's performance location in North Carolina (sn: NORTH CAROLINA) suggests a potential economic impact on the state's IT sector. While the prime contractor, NTT DATA, is a large national entity, the execution of such a significant task order likely involves local resources, potentially including hiring IT professionals within North Carolina or engaging with local subcontractors. This can contribute to job creation, skill development, and overall economic activity within the state's technology ecosystem. The presence of federal contracts can also attract further IT investment and talent to the region, bolstering its standing as a technology hub.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: H9222210R0044

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 13880 DULLES CORNER LN STE 200, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $30,677,851

Exercised Options: $30,677,851

Current Obligation: $29,696,644

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222211D0038

IDV Type: IDC

Timeline