Department of Education awards $38.2M contract for IT transition services, highlighting facility management needs

Contract Overview

Contract Amount: $38,188,263 ($38.2M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of Education

Start Date: 2006-09-01

End Date: 2008-08-31

Contract Duration: 730 days

Daily Burn Rate: $52.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICES REQUIRED TO PLAN FOR THE TRANSITION OF OPERATIONS FROM THE INCUMBANT CONTRACTOR'S FACILITY

Place of Performance

Location: PLANO, COLLIN County, TEXAS, 75075

State: Texas Government Spending

Plain-Language Summary

Department of Education obligated $38.2 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: SERVICES REQUIRED TO PLAN FOR THE TRANSITION OF OPERATIONS FROM THE INCUMBANT CONTRACTOR'S FACILITY Key points: 1. Contract focuses on IT infrastructure transition, indicating a need for specialized facility management expertise. 2. The award was made under full and open competition, suggesting a robust market for these services. 3. A firm-fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of 730 days (2 years) suggests a significant, but not indefinite, operational requirement. 5. The contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, has secured a substantial award for this service. 6. The contract's value is significant within the IT services sector, reflecting the complexity of operational transitions.

Value Assessment

Rating: good

The contract value of approximately $38.2 million over two years for IT transition and facility management services appears reasonable given the scope. Benchmarking against similar large-scale IT transition contracts suggests that pricing is competitive, especially considering the specialized nature of managing incumbent contractor facilities. The firm-fixed-price structure further supports value by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bids suggests a healthy level of competition for this service, which typically leads to better pricing and service offerings for the government. This approach ensures that the most capable and cost-effective solution is selected.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and encouraging innovation among contractors, leading to a more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Education's IT operations, ensuring a smooth transition of services. Services delivered include planning and execution of IT facility transitions, critical for maintaining operational continuity. The geographic impact is likely concentrated where the incumbent contractor's facilities are located, with potential for broader IT infrastructure implications. Workforce implications may include the transfer or hiring of IT and facility management personnel by the winning contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition planning is not robust.
Risk of cost overruns if unforeseen complexities arise during facility transition.
Dependence on contractor's ability to manage sensitive IT infrastructure securely.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty.
Full and open competition suggests a competitive market and potentially better value.
Contractor's experience in federal IT services is a positive indicator.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on IT facilities management and transition services. The market for such services is substantial, driven by ongoing modernization efforts and contract re-competitions across federal agencies. Comparable spending benchmarks for large-scale IT infrastructure management and migration projects often run into tens or hundreds of millions of dollars, making this award significant but not extraordinary within the federal IT landscape.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business. Further analysis would be needed to determine if any subcontracting opportunities exist within the scope of this large prime contract for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Education's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to meet specific deliverables and performance standards. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly disclosed.

Related Government Programs

IT Infrastructure Management Services
IT Transition and Modernization
Cloud Migration Services
Data Center Operations Support
Federal IT Services Contracts

Risk Flags

Potential for service disruption during transition
Risk of data security breaches
Dependency on incumbent contractor cooperation
Complexity of managing physical IT facilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $38.2 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. SERVICES REQUIRED TO PLAN FOR THE TRANSITION OF OPERATIONS FROM THE INCUMBANT CONTRACTOR'S FACILITY

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 Education (Department of Education).

What is the total obligated amount?

The obligated amount is $38.2 million.

What is the period of performance?

Start: 2006-09-01. End: 2008-08-31.

What is the track record of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC in managing similar IT transition and facility management contracts for federal agencies?

NTT DATA SERVICES FEDERAL GOVERNMENT, LLC has a significant history of performing IT services for the federal government. While specific details on past transition contracts of this exact nature require deeper investigation into their contract portfolio, the company is a major IT services provider with extensive experience in areas like infrastructure management, system integration, and IT modernization across various civilian and defense agencies. Their ability to secure large federal contracts suggests a proven capacity to handle complex projects. A thorough review would involve examining past performance evaluations and contract histories for similar scope and scale to fully assess their suitability for this specific transition.

How does the awarded amount of $38.2 million compare to the estimated value or budget for this IT transition service?

The awarded amount of $38.2 million for a 730-day (2-year) contract provides a clear benchmark for the government's investment. Without access to the agency's original independent government cost estimate (IGCE) or pre-solicitation budget information, a direct comparison is challenging. However, the fact that the contract was awarded under full and open competition with 5 bidders suggests that the final price was likely competitive and potentially within the agency's expected range. If the agency had a significantly different internal estimate, it might indicate either an exceptionally good negotiation or potential risks not fully captured in the initial planning.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure successful transition?

While the specific KPIs and SLAs are not detailed in the provided summary data, contracts of this nature typically include stringent performance metrics. These would likely focus on the timely and successful migration of IT systems and data, minimal disruption to ongoing operations during the transition period, adherence to security protocols, and effective management of the physical facilities. Key performance areas might include system uptime during migration, data integrity checks, completion of transition milestones by set deadlines, and compliance with all relevant federal IT security standards (e.g., NIST guidelines). The firm-fixed-price nature implies that meeting these defined performance standards is critical for the contractor to receive full payment.

What is the historical spending pattern for IT transition and facility management services at the Department of Education?

Analyzing historical spending patterns for IT transition and facility management at the Department of Education would require access to multi-year federal procurement data. This specific contract, awarded in 2006 and ending in 2008, represents a snapshot from that period. To understand broader trends, one would need to examine spending on similar services before and after this contract, as well as identify other contracts related to IT infrastructure upgrades, data center management, or operational shifts. Such an analysis could reveal whether this $38.2 million award is consistent with previous investments, indicative of an increasing need, or part of a larger strategic IT modernization initiative within the department.

What are the potential risks associated with transitioning IT operations from an incumbent contractor's facility?

Transitioning IT operations from an incumbent contractor's facility presents several risks. These include potential disruptions to ongoing services if the transition is not managed meticulously, data loss or corruption during migration, security vulnerabilities introduced during the handover process, and knowledge transfer gaps if the incumbent contractor is not fully cooperative. There's also the risk of unforeseen technical complexities within the existing infrastructure that may not be apparent during the planning phase. Furthermore, ensuring continuity of operations and maintaining service levels throughout the transition period requires careful coordination and robust project management to mitigate these inherent challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dell Computer Corporation (UEI: 114315195)

Address: 8550 ARLINGTON BLVD, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $38,188,263

Exercised Options: $38,188,263

Current Obligation: $38,188,263

Parent Contract

Parent Award PIID: ED06CO0107

IDV Type: IDC

Timeline