NTT DATA Services Federal Government, LLC awarded $11.9M for Business Transformation Agency IT support
Contract Overview
Contract Amount: $11,936,317 ($11.9M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Defense
Start Date: 2006-12-14
End Date: 2011-12-13
Contract Duration: 1,825 days
Daily Burn Rate: $6.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SYSTEM ENGINEER
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22240
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.9 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: SYSTEM ENGINEER Key points: 1. Contract value represents a significant investment in IT modernization and business process improvement. 2. The firm fixed-price contract type suggests a focus on defined deliverables and cost control. 3. Competition was robust, indicating potential for competitive pricing and a wide range of technical solutions. 4. The contract duration of five years allows for sustained support and integration with agency goals. 5. Performance is situated within the Wired Telecommunications Carriers sector, highlighting infrastructure and connectivity needs. 6. The award to a large, established firm suggests a need for extensive experience and capacity.
Value Assessment
Rating: good
The contract value of $11.9 million over five years averages to approximately $2.38 million annually. Benchmarking this against similar IT services contracts for business transformation within the Department of Defense is challenging without more specific service details. However, the firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the scope is well-defined. The number of bidders (4) suggests a competitive environment that likely influenced pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with four bidders participating. This level of competition is generally favorable as it allows the government to solicit proposals from a broad range of qualified vendors, fostering innovation and potentially driving down costs through market forces. The presence of multiple bidders suggests that the market has sufficient capacity and interest in providing these services.
Taxpayer Impact: Full and open competition typically benefits taxpayers by ensuring that the government receives the best possible value through a wide selection of qualified contractors and competitive pricing. It minimizes the risk of inflated costs associated with limited or sole-source procurements.
Public Impact
Federal employees within the Business Transformation Agency are the primary beneficiaries, receiving enhanced IT infrastructure and support. Services delivered likely include IT systems engineering, network support, and potentially business process automation tools. The geographic impact is concentrated within the agency's operational locations, primarily in Virginia. Workforce implications may involve the integration of NTT DATA's personnel with agency staff for seamless IT operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if services become deeply integrated without clear exit strategies.
- Reliance on a single large contractor could limit flexibility in adopting new technologies.
- Scope creep could lead to cost increases if not managed tightly under the fixed-price structure.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Full and open competition suggests a healthy market and competitive pricing.
- Long-term contract allows for sustained support and development of institutional knowledge.
- Award to an established firm indicates a high likelihood of meeting performance requirements.
Sector Analysis
This contract falls within the IT services sector, specifically related to telecommunications and wired networks, supporting business transformation initiatives. The IT services market is vast and highly competitive, with significant government spending allocated to modernization and operational support. Comparable spending benchmarks would depend on the specific IT services procured, but contracts of this size are common for agencies undertaking significant digital transformation efforts.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, is a large entity. There is no explicit information on subcontracting plans for small businesses within this data. The absence of a small business set-aside suggests that the scope of work was deemed to require the capabilities of a larger firm or that the competition was open to all qualified offerors regardless of size.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Business Transformation Agency. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to meet defined performance standards. Transparency is generally facilitated through contract award databases and reporting requirements, though specific internal oversight mechanisms are not detailed here.
Related Government Programs
- Department of Defense IT Modernization Programs
- Federal Agency Business Process Improvement Initiatives
- Wired Telecommunications Services Contracts
- IT Systems Engineering Support Contracts
Risk Flags
- Contract duration may lead to technology obsolescence if not managed proactively.
- Firm fixed-price contracts can be susceptible to scope creep if requirements are not tightly controlled.
- Reliance on a single large vendor could pose integration challenges with future technology adoption.
Tags
it-services, department-of-defense, business-transformation, wired-telecommunications, firm-fixed-price, full-and-open-competition, large-business, virginia, systems-engineering, ntt-data-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.9 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. SYSTEM ENGINEER
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 (Business Transformation Agency).
What is the total obligated amount?
The obligated amount is $11.9 million.
What is the period of performance?
Start: 2006-12-14. End: 2011-12-13.
What specific IT systems and services are encompassed by this contract for the Business Transformation Agency?
While the provided data specifies the contractor (NTT DATA SERVICES FEDERAL GOVERNMENT, LLC), contract value ($11.9M), and period of performance (5 years), it does not detail the specific IT systems or services. However, given the agency's name (Business Transformation Agency) and the NAICS code (517110 - Wired Telecommunications Carriers), the services likely include network infrastructure management, telecommunications support, potentially cloud integration, cybersecurity measures related to network operations, and IT support for business process re-engineering tools. The contract aims to enhance the agency's operational efficiency through robust IT capabilities.
How does the $11.9 million contract value compare to typical IT spending for similar agency transformation efforts?
The $11.9 million contract value over five years equates to an average annual spend of approximately $2.38 million. This figure is moderate for federal IT contracts supporting agency-wide transformation. Larger agencies or those with more complex IT infrastructures might see annual spending in the tens or hundreds of millions. However, for a specific business transformation initiative within a focused agency like the Business Transformation Agency, this amount suggests a significant but targeted investment. Benchmarking requires detailed comparison of service scope, agency size, and specific IT modernization goals.
What are the key risks associated with a five-year firm fixed-price IT services contract of this magnitude?
Key risks include scope creep, where the project's requirements expand beyond the initial agreement, potentially leading to cost overruns for the contractor and disputes over contract modifications. Another risk is technological obsolescence; IT evolves rapidly, and a five-year contract might see the technology become outdated if not managed proactively. Contractor performance is also a risk; if NTT DATA fails to deliver as per the contract, the agency may face disruptions. Finally, over-reliance on a single vendor for critical transformation services can create dependency and limit future flexibility.
What is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC's track record with similar federal IT contracts?
NTT DATA SERVICES FEDERAL GOVERNMENT, LLC is a well-established federal contractor with a significant history of performance across various agencies and IT service domains. While specific details for this exact contract are not provided, their general profile suggests experience in large-scale IT projects, including systems integration, telecommunications, and business transformation support. Their past performance data, available through federal procurement databases, would offer a more granular view of their success rates, contract types, and client agencies, allowing for a more precise assessment of their suitability for this role.
How does the 'full and open competition' with 4 bidders impact the value proposition for taxpayers?
The 'full and open competition' with four bidders is a positive indicator for taxpayers. It suggests that the government cast a wide net, allowing multiple companies to compete for the contract. With four bidders, there is a reasonable level of competition, which typically drives down prices as companies strive to offer the most attractive bid. This competitive pressure encourages efficiency and innovation from the contractors, ultimately leading to better value for taxpayer dollars compared to sole-source or limited competition scenarios where choices are restricted.
What are the potential long-term implications of this contract for the Business Transformation Agency's IT infrastructure?
This contract likely signifies a strategic investment in modernizing the Business Transformation Agency's IT infrastructure over a five-year period. The firm fixed-price nature suggests a focus on achieving specific, measurable outcomes related to business transformation. Potential long-term implications include improved operational efficiency, enhanced data management capabilities, better system integration, and potentially a more secure and reliable IT environment. The success of these implications hinges on effective contract management, clear performance metrics, and the contractor's ability to deliver on evolving technological needs within the defined scope.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
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
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Computer Corporation (UEI: 114315195)
Address: 8270 WILLOW OAKS CORPORATE DR STE 500, FAIRFAX, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $13,459,880
Exercised Options: $13,459,880
Current Obligation: $11,936,317
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ04D0005
IDV Type: IDC
Timeline
Start Date: 2006-12-14
Current End Date: 2011-12-13
Potential End Date: 2011-12-13 00:00:00
Last Modified: 2011-06-27
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