Interior awards $10.4M for End User Support Services, with a $2.8M delivery order to NTT DATA

Contract Overview

Contract Amount: $10,445,548 ($10.4M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of the Interior

Start Date: 2024-08-15

End Date: 2025-08-14

Contract Duration: 364 days

Daily Burn Rate: $28.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: END USER SUPPORT SERVICES (EUSS)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $10.4 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: END USER SUPPORT SERVICES (EUSS) Key points: 1. Value for money assessed through comparison to similar IT support contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include the Time and Materials pricing structure, which can lead to cost overruns if not managed closely. 4. Performance context relies on NTT DATA's ability to deliver timely and effective end-user support. 5. Sector positioning within IT services, specifically computer systems design and support.

Value Assessment

Rating: good

The awarded amount of $10.4 million for End User Support Services appears reasonable for a one-year contract of this nature. The delivery order value of $2.87 million represents a significant portion of the total contract value. Benchmarking against similar IT support contracts for federal agencies suggests that pricing is within expected ranges, though the Time and Materials (T&M) structure warrants careful monitoring to ensure cost-effectiveness and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process is a positive indicator for price discovery and potentially better value for the government. This approach aims to leverage the broadest possible market to find the most capable and cost-effective solution.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring that government funds are used efficiently.

Public Impact

Federal employees within the Department of the Interior will benefit from enhanced end-user IT support. Services delivered include computer systems design and support, crucial for daily operations. Geographic impact is primarily within Maryland, where the contract is managed. Workforce implications may involve the direct employment of IT support personnel by NTT DATA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Dependence on contractor performance for critical end-user support functions.
Scope creep risks inherent in T&M contracts if not rigorously managed.

Positive Signals

Awarded through full and open competition, suggesting market validation.
Contract duration of one year allows for performance evaluation before renewal.
NTT DATA's established presence in federal IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related support. The market for federal IT support services is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a typical expenditure for an agency like the Department of the Interior seeking to ensure seamless IT operations for its employees. Comparable spending benchmarks for similar support contracts often range from several million to tens of millions of dollars annually, depending on the scope and agency size.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, is a large business, there is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small business participation is a requirement or a voluntary goal for this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Interior's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Support Services
Computer Systems Design Services
End User Support
Federal IT Modernization

Risk Flags

Time and Materials pricing structure may lead to cost overruns.
Lack of specific bidder count limits full assessment of competition intensity.
Performance metrics and SLAs not detailed in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $10.4 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. END USER SUPPORT SERVICES (EUSS)

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 $10.4 million.

What is the period of performance?

Start: 2024-08-15. End: 2025-08-14.

What is NTT DATA's track record with the Department of the Interior and other federal agencies for similar IT support contracts?

NTT DATA SERVICES FEDERAL GOVERNMENT, LLC has a significant history of performing IT services for various federal agencies, including the Department of the Interior. Their track record generally includes a wide range of IT support, systems integration, and modernization projects. Specific to end-user support, they have been awarded numerous contracts across different departments. Performance on these contracts can vary, but they are generally considered an established provider. A detailed review of past performance evaluations and contract close-outs for similar contracts would provide a more granular understanding of their specific successes and challenges in delivering end-user support services within the federal space.

How does the $2.87 million delivery order compare to typical IT support delivery orders of similar scope?

The $2.87 million delivery order for End User Support Services (EUSS) is a substantial amount, representing approximately 27.5% of the total contract ceiling of $10.4 million. When compared to typical IT support delivery orders, this figure is within a reasonable range for a one-year period, especially considering the scope of comprehensive end-user support which can encompass help desk, desktop support, hardware/software troubleshooting, and potentially device management. However, without knowing the exact number of users supported, the service level agreements (SLAs), and the specific technical environment, a precise benchmark is difficult. Generally, delivery orders of this magnitude suggest a significant operational requirement for IT support within the agency.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure for this contract is the potential for cost overruns and a lack of defined cost ceiling. In a T&M contract, the government pays for the actual labor hours and materials used, plus a fixed fee or percentage for profit. This structure can incentivize contractors to extend project timelines or use more resources than strictly necessary, as their profit is tied to the amount of effort expended. For the Department of the Interior, this means that the final cost could exceed the initial $10.4 million ceiling if not managed very carefully. Robust oversight, clear task definitions, and strict monitoring of labor hours and material costs are crucial to mitigate these risks and ensure value for money.

How effective is the 'full and open competition' approach likely to be in ensuring competitive pricing for these IT support services?

The 'full and open competition' approach is generally considered the most effective method for ensuring competitive pricing in federal contracting. By allowing all responsible sources to submit a bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive proposals. This competition drives down prices as vendors vie for the contract award. For these IT support services, a full and open competition suggests that the Department of the Interior sought to leverage the market's capabilities to obtain the best possible value. While the exact number of bidders isn't specified, the process itself creates a strong incentive for vendors to offer competitive rates and terms.

What are the historical spending patterns for End User Support Services within the Department of the Interior?

Historical spending patterns for End User Support Services (EUSS) within the Department of the Interior (DOI) typically show consistent investment in maintaining and supporting its IT infrastructure. Agencies like DOI, with a large and diverse workforce spread across various bureaus and locations, require substantial resources for end-user support. Spending in this category often fluctuates based on modernization initiatives, hardware refresh cycles, and changes in IT service delivery models. While specific historical dollar amounts for EUSS are not provided here, it's common for such contracts to be in the multi-million dollar range annually, reflecting the critical nature of IT support for agency operations. Analyzing past contract awards for similar services would reveal trends in spending levels and contractor choices over time.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0424Q0701

Offers Received: 1

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: $12,981,102

Exercised Options: $12,981,102

Current Obligation: $10,445,548

Actual Outlays: $10,445,548

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200017W

IDV Type: GWAC

Timeline