Interior's $51.7M IT support contract awarded to NTT DATA, highlighting a 5-year term with 5 bidders

Contract Overview

Contract Amount: $51,679,080 ($51.7M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of the Interior

Start Date: 2019-02-15

End Date: 2024-08-14

Contract Duration: 2,007 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CUSTOMER SERVICE BRANCH END USER INFORMATION TECHNOLOGY SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $51.7 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: CUSTOMER SERVICE BRANCH END USER INFORMATION TECHNOLOGY SUPPORT Key points: 1. Value for money appears fair given the 5-year duration and the nature of IT support services. 2. Competition dynamics show a healthy level of interest with 5 bidders for this IT support contract. 3. Risk indicators are moderate, typical for long-term IT service contracts. 4. Performance context is essential for ongoing IT support, requiring continuous adaptation to evolving technology. 5. Sector positioning places this contract within the broader federal IT services market, a significant spending category.

Value Assessment

Rating: fair

The contract's total value of approximately $51.7 million over five years suggests a moderate annual spend for IT support. Benchmarking against similar government-wide IT support contracts indicates that this pricing is within a reasonable range, though specific service level agreements and the complexity of the systems supported would provide a more precise value assessment. The Time and Materials pricing model allows for flexibility but requires diligent oversight to ensure cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five distinct bidders vying for the opportunity. The presence of multiple bidders suggests a competitive marketplace for these IT support services, which generally leads to better price discovery and potentially more favorable terms for the government. The selection process likely involved a thorough evaluation of technical capabilities, past performance, and price.

Taxpayer Impact: The robust competition indicates that taxpayer dollars were likely used efficiently, as multiple companies competed to offer the best value. This level of competition helps prevent price gouging and encourages contractors to be responsive to government needs.

Public Impact

Federal employees within the Department of the Interior benefit from reliable end-user IT support, enabling efficient operations. Essential IT services are delivered, including computer systems design and support, crucial for the agency's mission. The geographic impact is primarily centered in Maryland, where the contractor's presence is noted. Workforce implications include the direct employment of IT professionals by NTT DATA to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Time and Materials pricing structure if not closely monitored.
Dependency on a single contractor for critical IT infrastructure support could pose a risk if performance degrades.
Ensuring consistent service quality across all end-users throughout the contract's duration requires strong performance management.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Long-term contract (5 years) provides stability and continuity for essential IT services.
Contractor has a significant presence in the federal IT services market, suggesting experience.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The federal IT services market is a substantial segment of government spending, with agencies continually seeking support for their complex and evolving technological needs. Comparable spending benchmarks for similar IT support contracts across various agencies often range from tens to hundreds of millions of dollars over multi-year periods, depending on scope and duration.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if initiated by the prime contractor, rather than through direct set-aside awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Interior's contracting officers and program managers, who are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. Transparency is facilitated through contract databases like FPDS, which provide public access to contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Chief Information Officers-Solutions and Partners 3 (CIO-SP3)
Alliant Government Services
IT Professional Services and Cloud Computing Services (IT-P SCS)

Risk Flags

Time and Materials pricing structure requires diligent oversight to control costs.
Long-term contract duration may introduce risks related to technological obsolescence or changing agency needs.
Dependency on a single contractor for critical IT support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $51.7 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. CUSTOMER SERVICE BRANCH END USER INFORMATION TECHNOLOGY SUPPORT

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 the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $51.7 million.

What is the period of performance?

Start: 2019-02-15. End: 2024-08-14.

What is the historical spending pattern for IT support services within the Department of the Interior?

Historical spending on IT support services by the Department of the Interior has been substantial and consistent, reflecting the agency's reliance on technology to manage vast natural resources and fulfill its mission. While specific figures for prior IT support contracts are not detailed here, the agency consistently invests in maintaining and upgrading its IT infrastructure. This includes funding for help desk operations, network management, cybersecurity, and application support. The trend generally shows an increasing demand for sophisticated IT solutions, driven by digital transformation initiatives and the need for robust data management and accessibility across the department's diverse bureaus and offices. The $51.7 million awarded to NTT DATA represents a significant, but not necessarily anomalous, portion of this ongoing investment in IT operational support.

How does the per-unit cost of this contract compare to similar IT support contracts awarded by other federal agencies?

A precise per-unit cost comparison is challenging without detailed breakdowns of the services provided (e.g., hourly rates for different skill sets, number of users supported, specific systems managed). However, the overall value of $51.7 million spread over approximately five years for end-user IT support suggests an average annual expenditure of roughly $10.3 million. When considering the scale of a large federal department like the Interior, this figure appears moderate. Benchmarking against contracts for similar scope and duration across agencies like the Department of Agriculture or the Environmental Protection Agency would likely show a range, with this contract falling within typical parameters for comprehensive IT support. Factors such as geographic concentration, complexity of the IT environment, and specific service level agreements heavily influence per-unit costs.

What is NTT DATA's track record with federal IT support contracts?

NTT DATA Services Federal Government, LLC has a significant track record of performing IT support and related services for various U.S. federal agencies. Their portfolio includes contracts for IT modernization, cloud migration, cybersecurity, and end-user support, similar to the services required by the Department of the Interior. The company has held numerous prime contracts across different departments and agencies, demonstrating its capacity to manage large-scale IT operations. Past performance evaluations, typically a key component in federal contract awards, would have been assessed during the bidding process for this Department of the Interior contract. While specific performance metrics for all past contracts are not publicly detailed, their continued success in winning competitive bids suggests a generally positive history of meeting government requirements.

What are the primary risks associated with this specific IT support contract?

The primary risks associated with this IT support contract include potential cost overruns due to the Time and Materials (T&M) pricing structure, which can be less predictable than fixed-price contracts if not managed diligently. There's also a risk of service degradation or performance issues over the five-year period, requiring robust performance monitoring and contract management by the Department of the Interior. Another risk is vendor lock-in, where the agency becomes highly dependent on NTT DATA for critical IT functions, potentially limiting future flexibility. Furthermore, evolving technological landscapes and cybersecurity threats necessitate continuous adaptation, posing a risk if the contractor's capabilities do not keep pace with emerging requirements.

How effective has the 'full and open competition' strategy been in ensuring value for this contract?

The 'full and open competition' strategy is generally considered effective in ensuring value for federal contracts, and this IT support contract is likely no exception. By allowing all eligible responsible sources to submit bids, the government maximizes the pool of potential offerors, fostering a competitive environment. This competition drives down prices, encourages innovation, and ensures that the government receives the best possible technical solution at a reasonable cost. The fact that five bidders participated indicates a healthy market response. The effectiveness is further realized through the evaluation process, where technical merit, past performance, and price are weighed. For this contract, the competitive award to NTT DATA suggests that their proposal offered the best overall value proposition to the Department of the Interior at the time of award.

Industry Classification

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

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

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: $66,543,369

Exercised Options: $66,543,369

Current Obligation: $51,679,080

Actual Outlays: $49,023,089

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200017W

IDV Type: GWAC

Timeline