Federal Student Aid's Virtual Data Center Contract Valued at $93.5M for Computer Facilities Management
Contract Overview
Contract Amount: $93,516,278 ($93.5M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Education
Start Date: 2015-09-01
End Date: 2017-10-20
Contract Duration: 780 days
Daily Burn Rate: $119.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CRITICAL FUNCTION IGF::CT::IGF FEDERAL STUDENT AID'S VIRTUAL DATA CENTER, PROVIDING CENTRALIZED HOSTING AND MANAGEMENT OF ELECTRONIC DATA AND COMPUTER APPLICATIONS,AND RELATED SERVICES TO SUPPORT FEDERAL STUDENT AID MISSION OF SERVICING STUDENT LOANS.
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031
State: Virginia Government Spending
Plain-Language Summary
Department of Education obligated $93.5 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: CRITICAL FUNCTION IGF::CT::IGF FEDERAL STUDENT AID'S VIRTUAL DATA CENTER, PROVIDING CENTRALIZED HOSTING AND MANAGEMENT OF ELECTRONIC DATA AND COMPUTER APPLICATIONS,AND RELATED SERVICES TO SUPPORT FEDERAL STUDENT AID MISSION OF SERVICING STUDENT LOANS. Key points: 1. The contract supports critical IT infrastructure for Federal Student Aid's mission. 2. NTT DATA SERVICES FEDERAL GOVERNMENT, LLC is the incumbent contractor. 3. The contract was awarded under full and open competition. 4. The total value is $93.5 million over approximately 3 years.
Value Assessment
Rating: good
The contract's value of $93.5 million for computer facilities management over 3 years appears reasonable given the critical nature of supporting federal student loan servicing. Benchmarking against similar large-scale IT infrastructure contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for essential services.
Public Impact
Ensures continuity of operations for critical student loan data and applications. Supports the financial aid process for millions of students. Provides a stable IT environment for a key government function.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Critical function support
- Full and open competition
- Firm fixed price contract
Sector Analysis
This contract falls within the IT services sector, specifically computer facilities management. Spending in this area is substantial across government agencies, supporting essential digital infrastructure and operations.
Small Business Impact
The data indicates that small businesses were not directly involved in this prime contract, as the awardee is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The Department of Education is responsible for overseeing this contract. The use of a firm fixed price contract and full and open competition suggests established oversight mechanisms are in place.
Related Government Programs
- Computer Facilities Management Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Contract duration is relatively short (approx. 3 years), potentially leading to frequent re-competition.
- No explicit mention of small business participation as prime or significant subcontractor.
- Potential for vendor lock-in if not managed carefully.
Tags
computer-facilities-management-services, department-of-education, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $93.5 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. CRITICAL FUNCTION IGF::CT::IGF FEDERAL STUDENT AID'S VIRTUAL DATA CENTER, PROVIDING CENTRALIZED HOSTING AND MANAGEMENT OF ELECTRONIC DATA AND COMPUTER APPLICATIONS,AND RELATED SERVICES TO SUPPORT FEDERAL STUDENT AID MISSION OF SERVICING STUDENT LOANS.
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 $93.5 million.
What is the period of performance?
Start: 2015-09-01. End: 2017-10-20.
What is the specific scope of 'Computer Facilities Management Services' covered by this contract?
Computer Facilities Management Services typically encompass the operation, maintenance, and management of data center infrastructure. This includes hardware, software, networking, security, power, cooling, and physical security of the data center environment, ensuring the availability and reliability of electronic data and computer applications.
What are the potential risks associated with relying on a single vendor for critical IT infrastructure hosting?
Risks include vendor lock-in, potential price increases upon contract renewal, reduced flexibility in adopting new technologies, and the impact of vendor performance issues or financial instability on critical government operations. Strong contract management and contingency planning are crucial to mitigate these risks.
How does this contract contribute to the overall effectiveness of Federal Student Aid's mission?
This contract is fundamental to the effectiveness of Federal Student Aid by providing the secure, reliable, and scalable IT infrastructure necessary to manage student loan data and applications. It ensures the continuous operation of systems that process financial aid, track loan statuses, and communicate with borrowers, directly supporting the agency's core mission.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Nippon Telegraph and Telephone Corporation (UEI: 690626718)
Address: 8270 WILLOW OAKS CORPORATE DR, FAIRFAX, VA, 22031
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $103,716,972
Exercised Options: $94,055,429
Current Obligation: $93,516,278
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: ED06CO0107
IDV Type: IDC
Timeline
Start Date: 2015-09-01
Current End Date: 2017-10-20
Potential End Date: 2017-10-20 00:00:00
Last Modified: 2020-05-12
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