HHS CDC Awards $140M IT Support Contract to NTT DATA Services Under Full and Open Competition

Contract Overview

Contract Amount: $140,038,150 ($140.0M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-01

End Date: 2025-03-14

Contract Duration: 2,021 days

Daily Burn Rate: $69.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS)

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $140.0 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS) Key points: 1. The contract is for IT Infrastructure Support Services (ITISS) valued at $140M. 2. NTT DATA SERVICES FEDERAL GOVERNMENT, LLC is the sole awardee. 3. The contract was awarded under full and open competition. 4. The period of performance extends through March 2025.

Value Assessment

Rating: good

The contract value of $140M over approximately 5.5 years suggests a reasonable annual spend. Benchmarking against similar IT support contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for essential IT infrastructure support.

Public Impact

Ensures continuity of critical IT infrastructure for the Centers for Disease Control and Prevention. Supports public health initiatives by maintaining essential technological systems. Provides employment opportunities within the IT sector through the awarded contract.

Waste & Efficiency Indicators

Waste Risk Score: 69 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. The $140M value is significant for this type of service, reflecting the scale of CDC's IT needs.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of performance and cost-effectiveness by HHS and CDC is crucial for accountability.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $140.0 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS)

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 (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $140.0 million.

What is the period of performance?

Start: 2019-09-01. End: 2025-03-14.

What are the specific IT infrastructure support services included in this contract?

The contract is for Information Technology Infrastructure Support Services (ITISS). While the specific services are not detailed in the provided data, they typically encompass a broad range of support including network management, system administration, help desk support, cybersecurity maintenance, and hardware/software lifecycle management to ensure the operational readiness of the CDC's IT environment.

What is the risk of cost overruns or inefficiencies given the contract duration?

The contract duration of over five years presents a moderate risk of cost overruns or inefficiencies if not actively managed. While the firm-fixed-price structure provides some cost control, market shifts in technology and labor costs could impact the vendor's profitability and potentially lead to requests for modification or reduced service quality if margins are squeezed.

How effectively does this contract support the CDC's mission-critical functions?

This contract is crucial for supporting the CDC's mission-critical functions by ensuring the reliable operation of its IT infrastructure. Stable and secure IT systems are fundamental for data collection, analysis, public health surveillance, and communication, all of which are central to the CDC's ability to respond to health threats and advance public health.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D30119Q69851

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: $142,091,340

Exercised Options: $140,050,023

Current Obligation: $140,038,150

Actual Outlays: $86,582,629

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $31,282,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0028

IDV Type: GWAC

Timeline

Start Date: 2019-09-01

Current End Date: 2025-03-14

Potential End Date: 2025-03-14 00:00:00

Last Modified: 2025-06-06

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