GSA awards $57.9M contract to NTT DATA for engineering and logistics support, with a 5-year duration

Contract Overview

Contract Amount: $57,932,016 ($57.9M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: General Services Administration

Start Date: 2019-06-13

End Date: 2024-12-12

Contract Duration: 2,009 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: N4 ENGINEERING AND LOGISTICS PROGRAMS SUPPORT IGF::OT::IGF

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

General Services Administration obligated $57.9 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: N4 ENGINEERING AND LOGISTICS PROGRAMS SUPPORT IGF::OT::IGF Key points: 1. Contract value of $57.9M over 5 years suggests a significant investment in specialized support services. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for evolving requirements. 4. The primary service category is Administrative Management and General Management Consulting Services, a broad area. 5. The contract's duration of 5 years allows for long-term planning and integration of services. 6. The award to a single contractor, NTT DATA, highlights their specialized capabilities in this domain.

Value Assessment

Rating: good

The contract value of $57.9M over five years, averaging approximately $11.6M annually, appears reasonable for comprehensive engineering and logistics program support. Benchmarking against similar large-scale consulting and logistics contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the government has a clear understanding of the scope and expects predictable costs, which is generally a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The presence of robust competition is generally expected to lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best value through a wide range of proposals and potentially lower bid prices.

Public Impact

The primary beneficiary is the General Services Administration (GSA), which receives essential engineering and logistics program support. Services delivered likely encompass strategic planning, operational efficiency improvements, and logistical management for federal programs. The geographic impact is broad, potentially supporting federal operations nationwide, though specific locations are not detailed. Workforce implications may include the utilization of specialized consultants and logistics experts, both within the contractor and potentially within GSA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed under the fixed-price contract.
Dependence on a single contractor for critical support functions could pose a risk if performance falters.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to ambiguity in service delivery.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded favorable terms.
Firm fixed-price contract type provides cost predictability for the government.
Long contract duration (5 years) allows for sustained support and integration of services.

Sector Analysis

This contract falls within the professional services sector, specifically administrative and management consulting, which is a significant area of federal spending. The market for these services is large and competitive, with numerous firms offering expertise in engineering, logistics, and program management. This contract represents a portion of the government's investment in optimizing its operational and logistical capabilities through external expertise.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). While the prime contractor, NTT DATA, is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on NTT DATA's own subcontracting plan and the specific needs of the contract's scope.

Oversight & Accountability

Oversight for this contract would primarily reside with the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms likely include regular performance reviews, contract management oversight, and adherence to the terms of the firm fixed-price delivery order. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight details are not provided.

Related Government Programs

Federal IT Consulting Services
Logistics and Supply Chain Management Support
Program Management Support Services
Government Administrative Services Contracts

Risk Flags

Potential for scope creep with FFP contract
Contractor performance risk
Dependence on single contractor

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $57.9 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. N4 ENGINEERING AND LOGISTICS PROGRAMS SUPPORT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $57.9 million.

What is the period of performance?

Start: 2019-06-13. End: 2024-12-12.

What is the historical spending pattern for similar engineering and logistics support contracts awarded by GSA?

Historical spending on similar engineering and logistics support contracts by GSA can vary significantly based on agency needs, contract scope, and duration. GSA, through its Federal Acquisition Service, manages a vast portfolio of contracts. Analyzing past awards for 'Administrative Management and General Management Consulting Services' (NAICS 541611) with durations of 3-5 years and values in the tens of millions would reveal trends. For instance, prior years might show a mix of fixed-price and cost-plus contracts, with varying levels of competition. Spending can fluctuate based on federal budget allocations and specific program requirements, such as modernization efforts or operational efficiency drives. Understanding these patterns helps contextualize the current $57.9M award as potentially average, high, or low relative to historical norms for comparable services.

How does the per-unit cost or hourly rate for this contract compare to market benchmarks for similar consulting services?

Determining the precise per-unit cost or hourly rate for this contract is challenging without detailed breakdowns of labor categories and hours. However, the total award of $57.9M over approximately 60 months (2009 days / ~20 business days/month * 12 months/year = ~60 months) suggests an average annual value of around $9.65M. If we assume a standard 40-hour work week and roughly 2080 hours per year per full-time equivalent (FTE), this could imply a significant number of FTEs or high-value specialized roles. Market benchmarks for management and engineering consulting services vary widely by experience level, specialization, and geographic location. For senior consultants or specialized engineers, hourly rates can range from $150 to $400+, and annual salaries can exceed $150,000-$200,000 plus overhead. A comprehensive comparison would require access to the specific labor rates negotiated within this firm fixed-price contract.

What is NTT DATA's track record with GSA and other federal agencies for similar service contracts?

NTT DATA Services Federal Government, LLC has a substantial track record of performing contracts with GSA and other federal agencies. As a large, established IT and professional services provider, they frequently compete for and win large-scale contracts across various domains, including management consulting, IT modernization, and logistics support. Their past performance with GSA would be documented through contract databases and performance evaluations. Agencies typically assess contractors on factors like technical execution, cost control, schedule adherence, and overall customer satisfaction. A review of their contract history would reveal the types of services they have provided, their performance ratings, and any significant issues or commendations received, providing insight into their capability to execute this specific engineering and logistics support contract effectively.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While specific Key Performance Indicators (KPIs) for this contract are not publicly detailed, typical measures for engineering and logistics program support contracts include metrics related to efficiency gains, cost savings achieved, project completion rates (on time and within budget), accuracy of logistical operations, responsiveness to client needs, and overall client satisfaction. For a firm fixed-price contract, adherence to the defined scope and schedule is paramount. Performance might also be assessed against specific deliverables outlined in the contract statement of work, such as the successful implementation of new logistical processes, the completion of engineering studies, or the achievement of defined operational improvements. GSA would likely have a performance management plan in place to track these KPIs.

What is the potential risk associated with the firm fixed-price contract type for this scope of work?

The primary risk associated with a firm fixed-price (FFP) contract type for engineering and logistics support lies in the potential for scope creep and the contractor's ability to accurately estimate all costs upfront. If the requirements evolve significantly beyond the initial scope defined in the contract, the contractor may incur unexpected costs, potentially leading to reduced profit margins or disputes. Conversely, if the contractor underestimated the effort or complexity, they might struggle to deliver the required services within the agreed price, potentially impacting quality or leading to contract termination. For the government, the risk is that the FFP structure might disincentivize innovation or flexibility if not managed carefully, and that the initial price might include a significant contingency premium to cover the contractor's risk.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Solicitation ID: ID09190005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2551 DULLES VIEW DR #400, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $64,416,619

Exercised Options: $64,416,619

Current Obligation: $57,932,016

Actual Outlays: $-15,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA19D0069

IDV Type: FSS

Timeline