Army Spends $21M on Desktop Support from NTT DATA, Raising Value Concerns
Contract Overview
Contract Amount: $21,183,523 ($21.2M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Defense
Start Date: 2010-09-23
End Date: 2013-03-31
Contract Duration: 920 days
Daily Burn Rate: $23.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 1ST ARMY DESKTOP SUPPORT
Place of Performance
Location: ROCK ISLAND, ROCK ISLAND County, ILLINOIS, 61299
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $21.2 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: 1ST ARMY DESKTOP SUPPORT Key points: 1. The $21.18 million contract for desktop support services was awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. 2. The contract falls under the Wired Telecommunications Carriers NAICS code (517110), suggesting a focus on network infrastructure. 3. Awarded under full and open competition, the pricing and value require further scrutiny given the duration and cost. 4. The lack of small business participation is noted, though not explicitly required by the contract type.
Value Assessment
Rating: questionable
The total award value of $21.18 million over approximately 3 years (920 days) averages to roughly $23,000 per day. This seems high for standard desktop support, warranting a comparison to similar contracts for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically promotes competitive pricing. However, the final price and value achieved need to be assessed against market benchmarks to ensure taxpayer funds were used efficiently.
Taxpayer Impact: The significant expenditure on desktop support services necessitates a thorough review to ensure it represents a fair price and delivers optimal value to taxpayers.
Public Impact
Taxpayers may be overpaying for essential desktop support services if the contract's value is not benchmarked against industry standards. The duration of the contract (over 2.5 years) means any inefficiencies or overpricing could have a sustained negative impact on the budget. The specific nature of 'desktop support' within the 'Wired Telecommunications Carriers' NAICS code could indicate specialized services or a misclassification, impacting transparency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High daily cost for desktop support
- Potential for misaligned NAICS code
- Lack of explicit small business participation
Positive Signals
- Awarded under full and open competition
- Clear contract awardee
Sector Analysis
This contract falls under the IT services sector, specifically related to telecommunications infrastructure. Spending benchmarks for desktop support can vary widely based on the scope of services, number of users, and service level agreements. The $21M award for this duration suggests a substantial user base or complex support requirements.
Small Business Impact
The contract data indicates that small businesses were not involved in this award (ss=false, sb=false). While not always a requirement, exploring opportunities for small business participation in future IT service contracts can foster competition and economic growth.
Oversight & Accountability
The Department of the Army awarded this contract. Standard oversight mechanisms should be in place to monitor performance and expenditures. Further review of performance reports and payment records would be necessary to assess the effectiveness of oversight.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High total contract value for desktop support
- Potential NAICS code misclassification
- Lack of small business participation
- Long contract duration without clear value justification
Tags
wired-telecommunications-carriers, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.2 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. 1ST ARMY DESKTOP SUPPORT
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 $21.2 million.
What is the period of performance?
Start: 2010-09-23. End: 2013-03-31.
What specific services are included under 'desktop support' for this contract, and how do they justify the daily cost?
The contract details for 'desktop support' need to be examined to understand the scope of services provided. This includes hardware/software troubleshooting, user account management, network connectivity assistance, and potentially device lifecycle management. The justification for the daily cost hinges on the complexity, response times, and breadth of these services, especially if they extend beyond basic helpdesk functions to include on-site support or specialized system administration.
How does the 'Wired Telecommunications Carriers' NAICS code accurately reflect the desktop support services rendered?
The classification under NAICS code 517110 (Wired Telecommunications Carriers) seems unusual for a contract primarily focused on 'desktop support.' Typically, desktop support falls under IT services or computer systems design. This discrepancy raises questions about whether the contract encompasses broader network infrastructure management or if there's a potential misclassification, which could affect how spending is tracked and benchmarked against relevant industry peers.
What mechanisms are in place to ensure the $21M spent on desktop support represents effective value for the Department of the Army?
Effective value is typically ensured through performance metrics, service level agreements (SLAs), and regular performance reviews. The Army should have established KPIs for response times, resolution rates, and user satisfaction. Periodic contract performance evaluations and comparisons against industry benchmarks for similar services are crucial to confirm that the $21M expenditure is justified and delivering the expected outcomes efficiently.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Nippon Telegraph and Telephone Corporation (UEI: 690626718)
Address: 8270 WILLOW OAKS CORPORATE DR, FAIRFAX, VA, 22031
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,183,523
Exercised Options: $21,183,523
Current Obligation: $21,183,523
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: 2010-09-23
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2017-09-05
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