HHS Awards $24.3M for CDC Computer Systems Design Services to NTT DATA
Contract Overview
Contract Amount: $24,326,617 ($24.3M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2025-03-15
End Date: 2026-02-28
Contract Duration: 350 days
Daily Burn Rate: $69.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IT SERVICES
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $24.3 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: IT SERVICES Key points: 1. Contract awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for $24.3M. 2. Service category is Computer Systems Design Services (NAICS 541512). 3. Contract duration is from March 15, 2025, to February 28, 2026. 4. Awarded under Full and Open Competition. 5. The contract type is Time and Materials.
Value Assessment
Rating: good
The contract value of $24.3M for approximately 350 days of service appears reasonable for specialized IT design services. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.
Cost Per Unit: $69,505 (daily rate estimate)
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that should drive favorable pricing. The Time and Materials pricing structure allows for flexibility but requires careful monitoring to control costs.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by encouraging multiple bids and potentially lower prices.
Public Impact
Ensures continued IT infrastructure support for the CDC's critical public health missions. Supports the operational needs of a major federal health agency. Potential for innovation in computer systems design to improve public health data management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely managed.
- Lack of specific performance metrics in the provided data.
- Potential for scope creep given the nature of design services.
Positive Signals
- Awarded under full and open competition.
- Supports a critical federal health agency.
- Experienced contractor likely to deliver reliable services.
Sector Analysis
This contract falls within the IT Services sector, specifically Computer Systems Design. Spending in this area is substantial across federal agencies, supporting everything from infrastructure to data analytics. Benchmarks vary widely based on complexity and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large, established IT services provider. There is no indication of subcontracting opportunities for small businesses in the provided details.
Oversight & Accountability
Oversight will be crucial, particularly given the Time and Materials contract type. The contracting agency (HHS/CDC) must ensure diligent monitoring of hours, rates, and deliverables to maintain cost control and ensure value.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Time and Materials contract type.
- High estimated daily rate.
- Lack of specific performance metrics.
- Potential for scope creep.
- No small business set-aside identified.
Tags
computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $24.3 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. IT 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 Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $24.3 million.
What is the period of performance?
Start: 2025-03-15. End: 2026-02-28.
What specific computer systems design services are included in this contract, and how do they align with the CDC's strategic IT goals?
The provided data categorizes this as 'Computer Systems Design Services' (NAICS 541512). While the exact scope isn't detailed, it likely encompasses the design, development, integration, and potentially maintenance of IT systems critical for the CDC's operations, such as data management platforms, public health surveillance systems, or research computing infrastructure. Alignment with strategic goals would require reviewing the specific Statement of Work (SOW).
What are the potential risks associated with the Time and Materials (T&M) contract type for this $24.3M award?
The primary risk of a T&M contract is the potential for cost overruns, as the final price is not fixed. Without strict oversight, the contractor could incur higher labor hours or material costs than anticipated, leading to a price exceeding initial estimates. This necessitates robust monitoring by the government to ensure efficient work and prevent scope creep.
How does the daily rate benchmark of $69,505 compare to industry standards for similar IT design services in the federal sector?
A daily rate of $69,505, if accurate, appears high for a standard IT design service. This figure likely represents the total contract value divided by the estimated number of workdays (350 days). A more granular analysis of blended hourly rates for different labor categories (e.g., senior architects, engineers, project managers) would be needed to accurately benchmark against industry standards and determine if it represents good value.
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
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
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: $24,326,617
Exercised Options: $24,326,617
Current Obligation: $24,326,617
Actual Outlays: $13,981,263
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0028
IDV Type: GWAC
Timeline
Start Date: 2025-03-15
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-08-18
More Contracts from NTT Data Services Federal Government, LLC
- Support Services for PEO Subs — $344.8M (Department of Defense)
- (information Technology Infrastructure Support Services (itiss)) — $208.2M (Nuclear Regulatory Commission)
- Ames Consolidated Information Technology Services 2 (acits 2) Contract for IT Support AT Ames Research Center Includes the Following IT Systems and Facility Support, Network Communications System Support, Business Systems Support, Scientific Computing Systems Support and Outreach. Performance Period for the Base IS Sept 1, 2008 Through Sept 30, 2009 — $205.2M (National Aeronautics and Space Administration)
- 200210!025327!1700!BZ005 !naval SEA Systems Command !N0002401D7010 !A!N! !N!0011 !20020703!20030702!175344753!175344753!191692813!n!adi Technology Corporation !1800 N Beauregard ST !alexandria !va!22311!50000!001!11!washington !district of Columbia !D.C. !+000001139368!n!n!000000000000!r499!other Professional Services !S1 !services !2000!NOT Discernable or Classified !541330!E! !5!B!M! !A!D!20060331!B! ! !A! !a!n!u!2!021!b! !Z!N!Z! ! !n!b!n!n! ! !C! !a!a!000!a!b!n! ! ! ! ! ! !0001! — $199.4M (Department of Defense)
- Support to the Niaid Office of CIO Cyber Technologies Support Program — $157.3M (Department of the Interior)
View all NTT Data Services Federal Government, LLC federal contracts →
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →