Federal Student Aid Spends $42.9M on Virtual Data Center Services, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $42,877,294 ($42.9M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Education
Start Date: 2014-09-01
End Date: 2016-04-30
Contract Duration: 607 days
Daily Burn Rate: $70.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CRITICAL FUNCTION IGF::CT::IGF ORDER ADDITIONAL INFRASTRUCTURE SERVICES FOR THE FEDERAL STUDENT AID'S VIRTUAL DATA CENTER, PROVIDING CENTRALIZED HOSTING AND MANAGEMENT OF ELECTRONIC DATA AND COMPUTER APPLICATIONS, AND RELATED SERVICES TO SUPPORT FEDERAL STUDENT AID MISSION OF SERVICING STUDENT LOANS.
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031
State: Virginia Government Spending
Plain-Language Summary
Department of Education obligated $42.9 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: CRITICAL FUNCTION IGF::CT::IGF ORDER ADDITIONAL INFRASTRUCTURE SERVICES FOR THE FEDERAL STUDENT AID'S VIRTUAL DATA CENTER, PROVIDING CENTRALIZED HOSTING AND MANAGEMENT OF ELECTRONIC DATA AND COMPUTER APPLICATIONS, AND RELATED SERVICES TO SUPPORT FEDERAL STUDENT AID MISSION OF SER… Key points: 1. The Department of Education awarded a $42.9M contract for critical virtual data center infrastructure services. 2. NTT DATA SERVICES FEDERAL GOVERNMENT, LLC secured the contract through full and open competition. 3. The contract supports Federal Student Aid's mission of servicing student loans. 4. This spending falls under Computer Facilities Management Services (NAICS 541513).
Value Assessment
Rating: good
The contract's value of $42.9M for 607 days of service appears reasonable given the critical nature of virtual data center infrastructure. Benchmarking against similar large-scale 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 using full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.
Taxpayer Impact: The competitive award process likely ensured taxpayer funds were used efficiently for essential IT services supporting student loan programs.
Public Impact
Ensures continuity of operations for critical student loan servicing systems. Supports the financial aid process for millions of students. Modernizes federal IT infrastructure for enhanced data management and application hosting.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Positive Signals
- Full and open competition utilized
- Supports critical federal mission
- Clear service description
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. Spending on virtual data centers is a significant component of federal IT modernization efforts, aiming for efficiency and scalability.
Small Business Impact
The contract was awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, a large business. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
The Department of Education is responsible for oversight of this contract. The use of full and open competition suggests a structured procurement process, but ongoing performance monitoring is crucial for accountability.
Related Government Programs
- Computer Facilities Management Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Lack of explicit performance metrics
- No mention of small business participation
- Limited detail on specific service components
Tags
computer-facilities-management-services, department-of-education, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $42.9 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. CRITICAL FUNCTION IGF::CT::IGF ORDER ADDITIONAL INFRASTRUCTURE SERVICES FOR THE FEDERAL STUDENT AID'S VIRTUAL DATA CENTER, PROVIDING CENTRALIZED HOSTING AND MANAGEMENT OF ELECTRONIC DATA AND COMPUTER APPLICATIONS, AND RELATED SERVICES TO SUPPORT FEDERAL STUDENT AID MISSION OF SERVICING STUDENT LOANS.
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 $42.9 million.
What is the period of performance?
Start: 2014-09-01. End: 2016-04-30.
What is the projected cost savings or efficiency gain from utilizing this virtual data center compared to previous infrastructure solutions?
The provided data does not explicitly detail cost savings or efficiency gains. However, the shift to virtual data centers generally aims to reduce hardware costs, improve scalability, and enhance disaster recovery capabilities, indirectly contributing to long-term financial efficiencies for the agency.
What are the key performance indicators (KPIs) used to measure the success and effectiveness of these virtual data center services?
Specific KPIs are not detailed in the provided data. Typically, for virtual data center services, KPIs would include uptime percentages, response times, data security compliance, scalability metrics, and adherence to service level agreements (SLAs) to ensure the effective support of Federal Student Aid's mission.
How does the pricing of this contract compare to industry benchmarks for similar virtual data center services?
Without specific service details and volume metrics, a direct comparison to industry benchmarks is challenging. However, the contract's value and duration suggest a significant undertaking. A detailed analysis of the per-unit costs for compute, storage, and network resources would be necessary for a robust benchmark assessment.
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 Technologies Inc. (UEI: 601839660)
Address: 8270 WILLOW OAKS CORPORATE DR, FAIRFAX, VA, 22031
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,877,294
Exercised Options: $42,877,294
Current Obligation: $42,877,294
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $5,693,187
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: ED06CO0107
IDV Type: IDC
Timeline
Start Date: 2014-09-01
Current End Date: 2016-04-30
Potential End Date: 2016-04-30 00:00:00
Last Modified: 2016-09-19
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