Education's $38.8M Virtual Data Center Contract Awarded to NTT DATA Services
Contract Overview
Contract Amount: $38,853,875 ($38.9M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Education
Start Date: 2011-09-01
End Date: 2013-09-04
Contract Duration: 734 days
Daily Burn Rate: $52.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
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: FAIRFAX, FAIRFAX County, VIRGINIA, 22031
State: Virginia Government Spending
Plain-Language Summary
Department of Education obligated $38.9 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. Contract value of $38.8M for virtual data center operations and maintenance. 2. NTT DATA SERVICES FEDERAL GOVERNMENT, LLC is the awardee. 3. Services include server, memory, and storage updates. 4. Contract duration of 734 days. 5. Awarded under full and open competition.
Value Assessment
Rating: good
The contract value of $38.8M for a 734-day period suggests a reasonable price for comprehensive virtual data center management. Benchmarking against similar IT infrastructure contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: The competitive bidding process likely ensured taxpayer funds were used efficiently for essential IT infrastructure services.
Public Impact
Ensures continuity of critical IT operations for the Department of Education. Supports the agency's mission by maintaining essential data center infrastructure. Updates to virtual data center components enhance system performance and reliability. Potential for improved data security and accessibility for educational resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if future upgrades are not managed carefully.
- Reliance on a single vendor for critical infrastructure management.
Positive Signals
- Full and open competition ensures market-driven pricing.
- Firm Fixed Price contract provides cost certainty.
- Experienced vendor likely to deliver reliable services.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computer facilities management. Spending in this area is crucial for government operations, with benchmarks varying widely based on the scope and complexity of the data center.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the awardee is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. Further analysis would be needed to determine if small business participation was included as a subcontracting goal.
Oversight & Accountability
The award was made under full and open competition, suggesting a transparent process. However, ongoing oversight of service delivery and performance against contract requirements is essential to ensure value for money.
Related Government Programs
- Computer Facilities Management Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Lack of specific performance metrics in provided data.
- Potential for scope creep in 'various technical updates'.
- Dependence on a single vendor for critical infrastructure.
- Need for clarity on long-term IT strategy alignment.
Tags
computer-facilities-management-services, department-of-education, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $38.9 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 $38.9 million.
What is the period of performance?
Start: 2011-09-01. End: 2013-09-04.
What specific technical updates were included in the contract, and how do they align with the Department of Education's long-term IT strategy?
The contract details 'various technical updates to the virtual data center, such as changes to servers, computer memory, storage, etc.' While these are essential maintenance and upgrade activities, their alignment with the Department's long-term IT strategy is not explicitly stated. A review of the SOW and any associated strategic IT planning documents would be necessary to assess this alignment and ensure the investments support future agency goals.
What are the key performance indicators (KPIs) for this contract, and how is NTT DATA SERVICES' performance being measured?
The provided data does not specify the key performance indicators (KPIs) or the performance measurement methods for this contract. Effective oversight would require clearly defined KPIs related to uptime, response times, security compliance, and successful implementation of technical updates. Regular performance reviews and reporting by NTT DATA SERVICES are crucial to ensure the agency receives the contracted services effectively.
What is the potential for cost savings or efficiency gains through these virtual data center updates?
The potential for cost savings and efficiency gains depends on the specific nature of the updates. Modernizing servers, memory, and storage could lead to reduced energy consumption, improved processing speeds, and greater scalability, potentially lowering operational costs over time. However, the initial investment and the effectiveness of the implemented solutions in achieving these efficiencies need to be evaluated against the contract's performance metrics.
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: 8270 WILLOW OAKS CORPORATE DR, FAIRFAX, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $38,913,875
Exercised Options: $38,913,875
Current Obligation: $38,853,875
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $200,263
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: ED06CO0107
IDV Type: IDC
Timeline
Start Date: 2011-09-01
Current End Date: 2013-09-04
Potential End Date: 2013-11-30 00:00:00
Last Modified: 2014-01-17
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