DoD's $141M submarine program support contract awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC

Contract Overview

Contract Amount: $141,091,658 ($141.1M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-30

End Date: 2008-05-26

Contract Duration: 239 days

Daily Burn Rate: $590.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROFESSIONAL SUPPORT SERVICES IN SUPPORT OF IN SERVICE SUBMARINE PROGRAM OFFICES

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $141.1 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: PROFESSIONAL SUPPORT SERVICES IN SUPPORT OF IN SERVICE SUBMARINE PROGRAM OFFICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 239 days is relatively short for a program of this scale. 4. The contract was awarded as a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The small business set-aside flag is false, meaning it was not specifically targeted for small businesses. 6. The contract is for professional support services for in-service submarine program offices.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without knowing the full scope of the IDIQ it belongs to. However, the raw dollar amount of $141 million for 239 days of engineering services suggests a significant investment. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. Without detailed performance metrics and cost breakdowns, it's difficult to definitively assess value for money. Comparisons to similar submarine program support contracts would be necessary for a more robust assessment.

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. The presence of 21 bidders suggests a robust competitive environment. A high number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie to win the award. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. The significant number of bidders suggests that the government received a range of proposals, increasing the likelihood of selecting the best value at a competitive price.

Public Impact

The primary beneficiaries are the Department of the Navy's in-service submarine program offices, which receive critical engineering and professional support. Services delivered include essential support for maintaining and enhancing the operational readiness and effectiveness of the submarine fleet. The geographic impact is primarily within the District of Columbia, where the contract was awarded. Workforce implications include the employment of skilled engineers and support personnel by NTT DATA SERVICES FEDERAL GOVERNMENT, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractors to incur costs, potentially leading to budget overruns if not closely monitored.
The relatively short duration of 239 days for a contract of this magnitude might indicate a need for frequent re-competition or task order issuance, which can add administrative burden.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
The contract is for engineering services, which can be complex and prone to scope creep if not clearly defined and managed.

Positive Signals

Awarded through full and open competition with 21 bidders, indicating a competitive environment that should drive value.
NTT DATA SERVICES FEDERAL GOVERNMENT, LLC is a known entity in federal IT and professional services, suggesting a level of established capability.
The contract supports critical submarine program offices, indicating alignment with national defense priorities.
The contract was awarded as a delivery order, suggesting it fits within a pre-established IDIQ framework, potentially streamlining future procurements.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government and private sector activities, including defense, infrastructure, and research. Spending in engineering services is often tied to major capital projects, defense procurements, and complex system development. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts for defense platforms or major government programs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). This means that large businesses were eligible to compete and likely were the primary awardees. While there is no direct indication of subcontracting plans for small businesses from the provided data, large prime contractors are often required to meet small business subcontracting goals on their contracts. The absence of a small business set-aside suggests that the primary focus was on obtaining the best technical and price solution from the broadest possible pool of offerors, rather than specifically fostering small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee remains appropriate. Transparency is typically managed through contract reporting mechanisms and potential audits by the Defense Contract Audit Agency (DCAA). Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Submarine Force Support Services
Department of Defense Engineering Services
Professional Services Contracts
Cost Plus Fixed Fee Contracts
Indefinite-Delivery/Indefinite-Quantity (IDIQ) Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Short contract duration for a large sum may indicate task order complexity or frequent re-competition needs.
Lack of detailed performance metrics in provided data hinders value assessment.
Engineering services can be prone to scope creep if not meticulously managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $141.1 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. PROFESSIONAL SUPPORT SERVICES IN SUPPORT OF IN SERVICE SUBMARINE PROGRAM OFFICES

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $141.1 million.

What is the period of performance?

Start: 2007-09-30. End: 2008-05-26.

What is the historical spending pattern for professional support services for submarine programs within the Department of the Navy?

Analyzing historical spending for submarine program support within the Department of the Navy requires access to comprehensive federal procurement databases. Generally, spending in this area is substantial and consistent, reflecting the long-term commitment to maintaining and modernizing the submarine fleet. Contracts often span multiple years and involve significant dollar values due to the complexity and criticality of submarine operations and development. Factors influencing spending include the lifecycle stage of various submarine classes (e.g., new construction, modernization, sustainment), technological advancements, and geopolitical requirements. Specific historical data would reveal trends in contract types, competition levels, and average award values for similar services, providing context for the $141 million awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of cost control for engineering services?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This contract type is often used when the scope of work is not precisely defined or when there is significant uncertainty, making fixed-price contracts impractical. While CPFF provides flexibility, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor has less incentive to control costs beyond what is necessary to complete the work within the agreed-upon scope. Effective cost control under CPFF relies heavily on robust government oversight, detailed cost accounting standards, and clear definition of allowable costs. Other contract types like Firm-Fixed-Price (FFP) offer better cost certainty but are suitable only when requirements are well-defined. Incentive contracts (e.g., Cost Plus Incentive Fee) aim to balance cost control with flexibility by adjusting the fee based on performance against targets.

What are the potential risks associated with a CPFF contract for complex engineering services like submarine program support?

The primary risk with a CPFF contract for complex engineering services is the potential for cost escalation. Since the contractor is reimbursed for actual costs, there's less inherent pressure to minimize expenses compared to fixed-price arrangements. This can be exacerbated in areas like submarine program support, where technical challenges, unforeseen issues, and evolving requirements are common. Scope creep is another significant risk; if the government's needs change or are not clearly defined initially, the contractor may incur additional costs that are passed on, increasing the total contract value beyond initial estimates. Furthermore, the government bears the financial risk if the project's cost exceeds projections. Effective risk mitigation requires stringent oversight, clear contract terms, robust change management processes, and regular audits of contractor expenditures.

What is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC's track record with similar Department of Defense contracts?

NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, and its predecessor entities, have a substantial track record of performing IT and professional services for the Department of Defense and other federal agencies. They have been awarded numerous contracts across various domains, including IT modernization, cybersecurity, data analytics, and mission support. Their experience often involves large-scale, complex projects requiring deep technical expertise and program management capabilities. A review of their contract history would likely show a pattern of successful performance on similar defense-related contracts, though specific performance ratings and past performance evaluations would be necessary for a complete assessment. Their ability to secure significant contracts like this one suggests a demonstrated capability and a generally positive reputation within the federal contracting community.

How does the number of bidders (21) impact the potential value for money in this contract?

A high number of bidders, such as the 21 observed in this procurement, generally indicates a competitive marketplace and increases the likelihood of achieving good value for money. When multiple capable companies vie for a contract, they are incentivized to offer competitive pricing and superior technical solutions to win the award. This intense competition can drive down costs, encourage innovation, and ensure the government selects the best overall value proposition. The presence of numerous bidders suggests that the contract requirements were well-defined and accessible to a broad range of potential offerors, preventing market concentration and fostering a more efficient price discovery process. This contrasts with sole-source or limited-competition scenarios where the government may have less leverage to negotiate favorable terms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dell Technologies Inc. (UEI: 601839660)

Address: 8270 WILLOW OAKS CORPORATE DR STE 300, FAIRFAX, VA, 22031

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $2,119,733,458

Exercised Options: $270,217,172

Current Obligation: $141,091,658

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002401D7010

IDV Type: IDC

Timeline