Department of Education's $46.9M virtual data center contract awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC

Contract Overview

Contract Amount: $46,883,178 ($46.9M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of Education

Start Date: 2010-09-01

End Date: 2012-03-06

Contract Duration: 552 days

Daily Burn Rate: $84.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPERATIONS AND MAINTENANCE AND VARIOUS TECHNICAL UPDATES TO THE VIRTUAL DATA CENTER, SUCH AS CHANGES TO SERVERS, COMPUTER MEMORY, STORAGE, ETC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $46.9 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: OPERATIONS AND MAINTENANCE AND VARIOUS TECHNICAL UPDATES TO THE VIRTUAL DATA CENTER, SUCH AS CHANGES TO SERVERS, COMPUTER MEMORY, STORAGE, ETC. Key points: 1. Contract focuses on essential virtual data center operations and technical updates. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type indicates predictable costs for the government. 4. Contract duration of 552 days covers a significant operational period. 5. The contract value is moderate for IT infrastructure services. 6. Services include server, memory, and storage management. 7. Geographic focus is Washington D.C.

Value Assessment

Rating: good

The contract value of approximately $46.9 million over 552 days represents a moderate investment in IT infrastructure maintenance and updates. Benchmarking against similar contracts for virtual data center operations and maintenance is crucial for a precise value assessment. However, the firm fixed-price nature of the award provides cost certainty, which is a positive indicator for value realization. The specific technical updates included will determine the full scope of value delivered.

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 bids. With 5 bidders participating, the competition level appears healthy, which typically drives more competitive pricing and better value for the government. The presence of multiple bidders suggests that the market for these services is robust and that the agency was able to solicit a range of offers.

Taxpayer Impact: A competitive bidding process generally leads to lower prices for taxpayers by encouraging vendors to offer their best terms. The active participation of 5 bidders suggests that taxpayer funds were likely used efficiently in this procurement.

Public Impact

The Department of Education benefits from reliable and updated virtual data center infrastructure. Services ensure the continuity and efficiency of the department's IT operations. The contract supports the technical backbone for educational data management and services. Workforce implications are primarily within the IT sector, supporting specialized technical roles. The geographic impact is concentrated in Washington D.C., where the department's operations are based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future updates are highly specialized.
Reliance on a single contractor for critical data center infrastructure.
Scope creep could increase costs beyond the initial fixed price if not managed carefully.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition suggests a competitive market and potentially better pricing.
Experienced contractor likely to deliver reliable services.
Focus on essential maintenance and updates ensures operational stability.

Sector Analysis

The IT services sector, particularly data center management and maintenance, is a critical component of government operations. This contract falls under Computer Facilities Management Services, a sub-sector that involves the operation and maintenance of client computing environments. The market for these services is competitive, with numerous providers offering specialized solutions. Government spending in this area is substantial, reflecting the increasing reliance on robust and secure IT infrastructure.

Small Business Impact

This contract was not set aside for small businesses and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor suggests that small businesses may not have been primary participants in this specific procurement, potentially limiting their direct opportunities on this contract. Further analysis would be needed to determine if small businesses are involved in the supply chain.

Oversight & Accountability

The firm fixed-price contract type provides a degree of oversight through cost control. The Department of Education's contracting officers are responsible for monitoring performance and ensuring compliance with contract terms. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Modernization Programs
Cloud Computing Services Contracts
Data Center Operations and Maintenance
Information Technology Support Services

Risk Flags

Potential for vendor lock-in
Reliance on critical infrastructure maintenance
Need for continuous technological adaptation

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $46.9 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. OPERATIONS AND MAINTENANCE AND VARIOUS TECHNICAL UPDATES TO THE VIRTUAL DATA CENTER, SUCH AS CHANGES TO SERVERS, COMPUTER MEMORY, STORAGE, ETC.

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 Education (Department of Education).

What is the total obligated amount?

The obligated amount is $46.9 million.

What is the period of performance?

Start: 2010-09-01. End: 2012-03-06.

What is the track record of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC with the Department of Education and other federal agencies?

NTT DATA SERVICES FEDERAL GOVERNMENT, LLC has a significant track record with federal agencies, including the Department of Education. Their past performance often involves large-scale IT services, including infrastructure management, application development, and modernization. Analyzing their contract history reveals a pattern of securing and successfully executing complex IT contracts. For the Department of Education specifically, their involvement in data center operations suggests a deep understanding of the agency's IT environment. A review of their performance ratings on past federal contracts would provide further insight into their reliability and effectiveness in delivering services similar to those required in this virtual data center contract.

How does the per-unit cost or overall value of this contract compare to similar virtual data center contracts awarded by other federal agencies?

Benchmarking this contract's value requires comparing its total cost and duration against similar virtual data center operations and maintenance contracts awarded by other federal agencies. Factors such as the scope of services (e.g., server count, storage capacity, specific update requirements), contract type (firm fixed-price vs. cost-plus), and the competitive landscape at the time of award all influence pricing. Without direct access to a comprehensive database of comparable contracts with detailed service breakdowns, a precise per-unit cost comparison is challenging. However, the $46.9 million award over approximately 1.5 years suggests a moderate investment. Agencies often seek competitive bids to ensure they are receiving fair market value, and the presence of 5 bidders here is a positive sign for price discovery.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential vendor lock-in, where the agency becomes overly reliant on NTT DATA for specialized knowledge and future updates, making transitions difficult. Another risk is scope creep, where the requirements may expand beyond the initial agreement, potentially leading to cost overruns if not managed strictly under the firm fixed-price structure. Technical obsolescence is also a risk, as virtual data center technologies evolve rapidly; the contract must ensure that updates keep pace with industry standards. Mitigation strategies likely involve robust contract management by the Department of Education, clear definition of services, regular performance reviews, and potentially incorporating clauses for technology refresh cycles. The firm fixed-price nature itself acts as a risk mitigation for cost overruns, provided the scope is well-defined.

How effective has NTT DATA SERVICES FEDERAL GOVERNMENT, LLC been in delivering virtual data center services in the past, based on available performance data?

Assessing the effectiveness of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC in delivering virtual data center services requires examining their past performance records and contractor performance assessment reporting (CPARS) data, if publicly available. Generally, large IT service providers like NTT DATA have extensive experience and established processes for managing complex infrastructure. Their ability to win and retain significant federal contracts suggests a history of satisfactory performance. For this specific contract, effectiveness would be measured by uptime, successful implementation of technical updates, adherence to security protocols, and responsiveness to issues. Without specific CPARS data for this contract, we infer effectiveness from their broader federal contracting history and the fact that the contract was awarded and presumably executed.

What are the historical spending patterns for virtual data center operations and maintenance at the Department of Education?

Analyzing historical spending patterns for virtual data center operations and maintenance at the Department of Education would involve reviewing the agency's budget allocations and contract awards over several fiscal years. This contract, valued at approximately $46.9 million over 552 days (roughly 1.5 years), represents a significant but potentially consistent investment in maintaining critical IT infrastructure. Understanding past spending trends would reveal whether the agency has consistently outsourced these services, whether spending has increased or decreased, and how this current contract fits within that historical context. It would also help determine if the Department has previously used NTT DATA or other vendors for similar services, providing a baseline for evaluating current expenditure levels.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dell Computer Corporation (UEI: 114315195)

Address: 8270 WILLOW OAKS CORPORATE DR, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $46,883,178

Exercised Options: $46,883,178

Current Obligation: $46,883,178

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $9,414,300

Parent Contract

Parent Award PIID: ED06CO0107

IDV Type: IDC

Timeline