DoD Awards $25.1M Desktop Support Contract to NTT DATA, Raising Value and Competition Concerns
Contract Overview
Contract Amount: $25,109,108 ($25.1M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Defense
Start Date: 2009-04-07
End Date: 2012-09-26
Contract Duration: 1,268 days
Daily Burn Rate: $19.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: BASE YEAR DESKTOP SUPPORT SERVICES
Place of Performance
Location: FORT MONMOUTH, MONMOUTH County, NEW JERSEY, 07703
Plain-Language Summary
Department of Defense obligated $25.1 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: BASE YEAR DESKTOP SUPPORT SERVICES Key points: 1. Contract value of $25.1M over 3 years for desktop support. 2. NTT DATA SERVICES FEDERAL GOVERNMENT, LLC is the awardee. 3. Department of Defense, specifically the Army, is the procuring agency. 4. Competition was full and open, but the award type is a delivery order. 5. The contract falls under Wired Telecommunications Carriers (NAICS 517110).
Value Assessment
Rating: fair
The contract value of $25.1M for three years of desktop support appears within a reasonable range for large federal IT service contracts. However, without specific details on service scope and performance metrics, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, as a delivery order, it may represent a portion of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could influence the overall competitiveness.
Taxpayer Impact: Taxpayer funds are being used for essential IT support services. The competitive award process aims to ensure reasonable pricing, but ongoing monitoring is crucial to confirm value for money.
Public Impact
Ensures continued IT support for Department of the Army personnel. Supports federal agency operations through reliable desktop services. Impacts the IT services market by awarding a significant contract. Potential for technology refresh and service improvements through the contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost creep in Time and Materials contracts.
- Limited insight into the competitive landscape beyond 'full and open'.
Positive Signals
- Awarded under full and open competition.
- Supports critical Army IT infrastructure.
- Contract duration provides stability for service delivery.
Sector Analysis
This contract falls within the IT services sector, specifically supporting telecommunications infrastructure. Federal spending in this area is substantial, driven by the need for robust and secure IT operations across all agencies. Benchmarks for similar desktop support contracts vary widely based on scope, location, and service level agreements.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, is a large corporation. There is no direct analysis of small business participation or subcontracting opportunities from the provided information.
Oversight & Accountability
Oversight would typically involve contract performance reviews, financial audits, and adherence to service level agreements by the Department of the Army. The use of a delivery order suggests it might be part of a larger contracting vehicle requiring oversight at multiple levels.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of detailed performance metrics in the provided data.
- Limited insight into the specific scope of 'desktop support'.
- The award is a delivery order, potentially obscuring the full contract value and competition.
Tags
wired-telecommunications-carriers, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.1 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. BASE YEAR DESKTOP SUPPORT SERVICES
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 Army).
What is the total obligated amount?
The obligated amount is $25.1 million.
What is the period of performance?
Start: 2009-04-07. End: 2012-09-26.
What specific services are included in the 'desktop support' and how do they align with industry standards for this contract value?
The provided data lacks granular detail on the specific services encompassed by 'desktop support.' A comprehensive assessment would require reviewing the Statement of Work (SOW) to understand if it includes hardware/software maintenance, help desk operations, cybersecurity support, or device lifecycle management. Comparing these services against industry benchmarks for similar federal contracts is crucial to determine if the $25.1M value represents fair and reasonable pricing for the defined scope.
Given the Time and Materials (T&M) pricing structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient resource utilization?
Time and Materials contracts inherently carry a higher risk of cost overruns due to their flexible nature. Effective mitigation requires robust government oversight, including detailed tracking of labor hours and material costs, clear definitions of 'materials,' and established ceiling prices. The Department of the Army should implement strict monitoring protocols and potentially require regular reporting on resource allocation and expenditure to ensure taxpayer funds are used efficiently and costs remain controlled.
How does the performance of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC on this contract compare to their performance on similar federal IT support contracts, and what is the impact on overall governmen
Assessing the effectiveness of NTT DATA on this specific contract requires access to performance evaluations, past performance reviews, and potentially user satisfaction data. Comparing their track record on similar federal IT support contracts would provide a broader picture of their reliability and efficiency. Positive performance contributes to seamless agency operations and user productivity, while underperformance can lead to IT disruptions, increased support costs, and reduced mission effectiveness for the Department of the Army.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Technologies Inc.
Address: 8270 WILLOW OAKS CORPORATE DR, FAIRFAX, VA, 22031
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,109,108
Exercised Options: $25,109,108
Current Obligation: $25,109,108
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0011
IDV Type: IDC
Timeline
Start Date: 2009-04-07
Current End Date: 2012-09-26
Potential End Date: 2012-09-26 00:00:00
Last Modified: 2022-04-08
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