HHS awards $14.15M for IT support, with NTT DATA Services leading the task order

Contract Overview

Contract Amount: $14,153,401 ($14.2M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2022-05-18

End Date: 2026-05-29

Contract Duration: 1,472 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SNS IT SUPPORT SERVICES TASKS 1-5

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.2 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: SNS IT SUPPORT SERVICES TASKS 1-5 Key points: 1. Value for money assessed through firm-fixed-price structure, encouraging cost control. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and reliance on a single vendor for task orders. 4. Performance context is within administrative management and general management consulting services. 5. Sector positioning is in IT support services for a critical public health preparedness agency.

Value Assessment

Rating: good

The firm-fixed-price contract type is generally favorable for value, as it shifts cost risk to the contractor. Benchmarking against similar IT support contracts within federal agencies would provide a clearer picture of whether the $14.15 million total value over its duration represents competitive pricing. The absence of specific performance metrics or detailed cost breakdowns in the provided data limits a more granular value assessment.

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 presence of two bidders, as indicated by 'no': 2, shows some level of competition, though a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally benefits taxpayers by fostering a more competitive environment that can lead to better pricing and service quality compared to sole-source or limited competition awards.

Public Impact

Benefits the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS by ensuring critical IT support. Delivers administrative management and general management consulting services essential for operational continuity. Geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include the potential for IT professionals employed by NTT DATA SERVICES FEDERAL GOVERNMENT, LLC to support federal operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over 4 years (1472 days) could lead to vendor lock-in and potential price increases over time.
Reliance on a single delivery order for a significant amount may concentrate risk if performance issues arise.
The NAICS code 541611 (Administrative Management and General Management Consulting Services) is broad and may not fully capture the specific IT support functions, potentially obscuring detailed performance analysis.

Positive Signals

Firm-fixed-price contract type incentivizes contractor efficiency and cost control.
Full and open competition suggests a structured procurement process that aims for best value.
The contract is awarded to a known entity, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, which may have a track record with the agency.

Sector Analysis

The IT support services sector is a critical component of federal operations, enabling agencies to manage complex digital infrastructures and deliver services. Spending in this area is consistently high across government. This contract fits within the broader category of professional services, specifically IT consulting and support, which is a mature market with numerous established players. Comparable spending benchmarks would involve looking at other IT support contracts awarded by HHS or similar agencies for administrative and management functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus is on large business prime contractors.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Contracting Officer's Representative (COR) within the agency, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are embedded in the firm-fixed-price structure, which incentivizes the contractor to meet deliverables within budget. Transparency is facilitated by contract award databases, though detailed performance reports and specific oversight activities are often not publicly disclosed.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian IT Services Contracts
Administrative Management Consulting Services
IT Support Services for Public Health Agencies

Risk Flags

Broad NAICS code may obscure specific IT support functions.
Long contract duration increases risk of obsolescence and price escalation.
Limited number of bidders in a full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.2 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. SNS IT SUPPORT SERVICES TASKS 1-5

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 Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2022-05-18. End: 2026-05-29.

What is the track record of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC with the Department of Health and Human Services?

NTT DATA SERVICES FEDERAL GOVERNMENT, LLC has a significant history of contracting with various federal agencies, including the Department of Health and Human Services (HHS). While specific details of their past performance on similar IT support or administrative management contracts within HHS are not provided in this data snippet, their presence as a large federal contractor suggests they have experience navigating federal procurement processes and delivering services. A deeper dive into contract databases like FPDS or USASpending would reveal the scope, value, and performance history of their previous awards with HHS, allowing for a more informed assessment of their reliability and capability for this specific task order.

How does the total contract value of $14.15 million compare to similar IT support contracts within HHS?

The total contract value of $14.15 million for SNS IT SUPPORT SERVICES TASKS 1-5 is a moderate-sized award for IT support services within a large agency like HHS. To benchmark this value effectively, one would need to compare it against other firm-fixed-price delivery orders or task orders issued by HHS or its sub-agencies (like ASPR) for similar administrative management and IT support functions over comparable durations. Factors such as the specific services required, the number of labor hours, and the complexity of the IT environment would influence pricing. Without access to a broader dataset of comparable contracts, it's challenging to definitively state whether $14.15 million represents a particularly high, low, or average cost.

What are the primary risks associated with this firm-fixed-price contract for IT support?

While firm-fixed-price (FFP) contracts are generally favored for controlling costs, they carry specific risks. For this IT support contract, a primary risk is that the contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, might cut corners on service quality or personnel to maximize profit if the initial price was set too low or if unforeseen technical challenges arise. Another risk is scope creep; if the requirements evolve significantly beyond the initial task order definition, the government may need to issue new contracts or modifications, potentially at higher costs. Additionally, the long duration (1472 days) increases the risk of the technology or requirements becoming outdated, necessitating costly adjustments or replacements. The government also bears the risk if the contractor fails to perform adequately, potentially leading to disruptions in critical IT services.

How effective is the 'full and open competition' strategy in ensuring value for this specific IT support contract?

The 'full and open competition' strategy is designed to maximize value by allowing all responsible sources to submit offers, thereby fostering a competitive environment that ideally drives down prices and improves service quality. For this $14.15 million IT support contract, the fact that it was competed fully and openly, with two bidders participating, suggests a structured procurement process aimed at achieving best value. However, the effectiveness is contingent on the number of actual bidders and the rigor of the evaluation criteria. If only two bidders participated, the competitive pressure might be less intense than if numerous bids were received. The value realized depends on whether the chosen offer represented the best balance of price, technical merit, and past performance, as determined by the agency's evaluation process.

What are the historical spending patterns for IT support services at the Office of Assistant Secretary for Preparedness and Response (ASPR)?

Analyzing historical spending patterns for IT support services at ASPR is crucial for contextualizing this $14.15 million award. Without specific historical data, we can infer that ASPR, as a critical agency within HHS focused on public health emergencies, likely requires robust and continuous IT support. Spending in this area would be influenced by factors such as the agency's size, the complexity of its IT infrastructure, the number of users, and the criticality of its mission. Consistent or increasing spending on IT support could indicate growing needs or reliance on technology. Conversely, significant fluctuations might suggest shifts in strategy, technology adoption, or outsourcing decisions. Understanding these patterns helps assess whether the current contract aligns with historical investment levels and future requirements.

What are the implications of the 'Administrative Management and General Management Consulting Services' NAICS code for this IT support contract?

The classification of this contract under NAICS code 541611, 'Administrative Management and General Management Consulting Services,' is somewhat broad for a contract explicitly described as 'SNS IT SUPPORT SERVICES TASKS 1-5.' While IT support can encompass management consulting aspects (e.g., advising on IT strategy, process improvement), this code primarily categorizes services related to organizational efficiency, strategic planning, and operational improvement rather than direct IT infrastructure maintenance or technical support. This broad classification might obscure the specific nature and performance metrics of the IT support being delivered, potentially making it harder to assess the value and effectiveness of the technical services rendered. It suggests the contract may include advisory or management components alongside technical IT functions.

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 › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $14,153,401

Exercised Options: $14,153,401

Current Obligation: $14,153,401

Actual Outlays: $9,531,446

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA19D0069

IDV Type: FSS

Timeline