Education's $41M Virtual Data Center Contract Awarded to NTT DATA Services
Contract Overview
Contract Amount: $41,000,000 ($41.0M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Education
Start Date: 2008-08-19
End Date: 2009-12-31
Contract Duration: 499 days
Daily Burn Rate: $82.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OPERATIONS AND MAINTENANCE AND VARIOUS TECHNICAL UPDATES TO THE VIRTUAL DATA CENTER, SUCH AS CHANGES TO SERVERS, COMPUTER MEMORY, STORAGE, ETC.
Place of Performance
Location: PLANO, COLLIN County, TEXAS, 75075
State: Texas Government Spending
Plain-Language Summary
Department of Education obligated $41.0 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: OPERATIONS AND MAINTENANCE AND VARIOUS TECHNICAL UPDATES TO THE VIRTUAL DATA CENTER, SUCH AS CHANGES TO SERVERS, COMPUTER MEMORY, STORAGE, ETC. Key points: 1. The contract focuses on essential virtual data center operations and maintenance. 2. NTT DATA Services, a large federal contractor, secured this award. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract value is substantial, indicating significant investment in IT infrastructure.
Value Assessment
Rating: fair
The contract value of $41 million for virtual data center services appears within a reasonable range for a one-year duration, though specific benchmarks for 'Computer Facilities Management Services' are not readily available without deeper analysis of contract scope and specific service levels.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and promotes competitive pricing. This method is generally effective in achieving fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure maintenance and upgrades, aiming for efficient service delivery through a competitive process.
Public Impact
Ensures continuity of critical IT operations for the Department of Education. Supports the underlying infrastructure for various educational technology services. Potential for cost savings through competitive bidding on essential services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in if not managed carefully.
- Dependence on a single vendor for critical infrastructure.
Positive Signals
- Awarded through full and open competition.
- Addresses essential operational needs.
- Clear contract duration and award amount.
Sector Analysis
This contract falls under Computer Facilities Management Services, a critical segment of the IT sector. Spending in this area is vital for government operations, and benchmarks vary widely based on the complexity and scale of the data center.
Small Business Impact
The contract was awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, a large business. There is no indication that small businesses were involved as subcontractors in this specific award.
Oversight & Accountability
The award was made under full and open competition, suggesting a structured procurement process. Oversight would typically involve contract performance monitoring by the Department of Education to ensure service delivery and adherence to terms.
Related Government Programs
- Computer Facilities Management Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Full and open competition utilized.
- Addresses essential IT infrastructure needs.
- Contract awarded to a known entity in the federal contracting space.
- Clear contract end date.
- Significant investment in IT operations.
Tags
computer-facilities-management-services, department-of-education, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $41.0 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. OPERATIONS AND MAINTENANCE AND VARIOUS TECHNICAL UPDATES TO THE VIRTUAL DATA CENTER, SUCH AS CHANGES TO SERVERS, COMPUTER MEMORY, STORAGE, ETC.
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 $41.0 million.
What is the period of performance?
Start: 2008-08-19. End: 2009-12-31.
What specific performance metrics are in place to ensure the effectiveness of these virtual data center services?
The provided data does not detail specific performance metrics. Effective oversight would require the Department of Education to establish and monitor key performance indicators (KPIs) related to uptime, response times, security, and data integrity to ensure the virtual data center meets operational requirements and provides value.
How does the pricing compare to industry benchmarks for similar virtual data center management contracts?
Without detailed service level agreements and specific technical requirements, a precise comparison is difficult. However, the $41 million contract value for a period of approximately 16 months suggests a significant investment. Benchmarking would require analyzing the scope of services, including server management, memory, storage, and technical updates, against comparable government and commercial contracts.
What is the potential long-term risk associated with this contract for the Department of Education?
A primary long-term risk could be vendor lock-in, making it difficult and costly to switch providers in the future. Additionally, over-reliance on a single vendor for critical infrastructure could pose security vulnerabilities or hinder the adoption of newer, more cost-effective technologies if the contract terms are not flexible.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Computer Corporation (UEI: 114315195)
Address: 8270 WILLOW OAKS CORPORATE DR, FAIRFAX, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $41,000,000
Exercised Options: $41,000,000
Current Obligation: $41,000,000
Parent Contract
Parent Award PIID: ED06CO0107
IDV Type: IDC
Timeline
Start Date: 2008-08-19
Current End Date: 2009-12-31
Potential End Date: 2016-08-31 00:00:00
Last Modified: 2013-09-05
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