NTT DATA Services' $37.5M contract for Education Data Exchange Network operations and maintenance shows a 3-year duration

Contract Overview

Contract Amount: $37,543,550 ($37.5M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of Education

Start Date: 2005-06-30

End Date: 2009-12-29

Contract Duration: 1,643 days

Daily Burn Rate: $22.9K/day

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPERATE & MAINTAIN THE DEPARTMENT'S EDUCATION DATA EXCHANGE NETWORK

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Education obligated $37.5 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: OPERATE & MAINTAIN THE DEPARTMENT'S EDUCATION DATA EXCHANGE NETWORK Key points: 1. The contract value of $37.5 million over approximately 3 years suggests a moderate annual spend for critical data infrastructure. 2. NTT DATA SERVICES FEDERAL GOVERNMENT, LLC has been awarded this contract, indicating a potentially established relationship or competitive win. 3. The 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' NAICS code points to a focus on IT infrastructure and data management. 4. The contract was awarded under the Department of Education, highlighting its role in supporting the agency's data exchange capabilities. 5. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, potentially benefiting the government. 6. With 3 bids received, the competition level indicates some market interest but may not represent the broadest possible engagement.

Value Assessment

Rating: fair

The total contract value of $37.5 million over roughly three years averages to about $12.5 million annually. Benchmarking this against similar contracts for operating and maintaining large-scale data exchange networks is challenging without more specific service details. However, the duration and scope suggest a significant investment in IT infrastructure. The firm-fixed-price nature is generally favorable for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract received 3 bids, which is a limited level of competition. While not a sole-source award, a higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The limited competition might suggest barriers to entry for other providers or a niche market for this specific service.

Taxpayer Impact: With only 3 bids, taxpayers may not have benefited from the most aggressive pricing that could have been achieved through a more robust bidding process.

Public Impact

Educational institutions and researchers benefit from a stable and operational data exchange network, facilitating the sharing of vital education statistics. The contract ensures the continuous operation and maintenance of the Department of Education's data exchange infrastructure. The geographic impact is national, supporting data sharing across the US education system. Workforce implications include IT professionals involved in network operations, data management, and system maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (3 bids) may result in higher costs for taxpayers.
The contract duration of approximately 3 years could be extended, potentially locking in a provider without re-competition.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.

Positive Signals

Firm-fixed-price contract type shifts cost risk to the contractor.
The contract supports a critical function for the Department of Education's data infrastructure.
NTT DATA SERVICES FEDERAL GOVERNMENT, LLC is an established IT services provider.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. The market for such services is large and competitive, with numerous providers offering cloud hosting, data management, and network operations. The Department of Education's need for a secure and reliable data exchange network is a common requirement across government agencies, often involving significant investments in IT infrastructure.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the services and the prime contractor, it's possible that larger IT firms are the primary participants in this market. Further analysis would be needed to determine if small businesses are involved in subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Education's contracting officers and program managers. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be defined in the contract's statement of work and performance standards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Data Center Consolidation Initiative
IT Infrastructure Modernization Programs
Cloud Computing Services Contracts
Education Statistics and Data Systems

Risk Flags

Limited competition
Potential cybersecurity risks
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $37.5 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. OPERATE & MAINTAIN THE DEPARTMENT'S EDUCATION DATA EXCHANGE NETWORK

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 $37.5 million.

What is the period of performance?

Start: 2005-06-30. End: 2009-12-29.

What is the historical spending pattern for the Education Data Exchange Network prior to this contract?

Analyzing historical spending for the Education Data Exchange Network prior to this specific contract award is crucial for understanding trends and identifying potential anomalies. Without access to prior contract data or detailed spending reports, it's difficult to establish a baseline. However, the current contract's value of approximately $37.5 million over three years suggests an average annual expenditure of around $12.5 million. If previous contracts were for similar services and durations, spending might have been in a comparable range. Conversely, significant deviations could indicate changes in scope, service levels, or market pricing. A thorough review of past solicitations and awards for this network would be necessary to provide a definitive historical spending context and assess if current spending aligns with past investment levels or represents a significant increase or decrease.

How does the annual cost of this contract compare to similar government-wide data exchange network contracts?

Comparing the annual cost of this contract, estimated at $12.5 million, to similar government-wide data exchange network contracts requires careful consideration of scope, complexity, and service level agreements. Data exchange networks can vary significantly in scale, the types of data handled, security requirements, and the number of users or connected systems. For instance, a network supporting sensitive national security data might command higher operational costs than one focused on educational statistics. Benchmarking against contracts for agencies like the National Science Foundation or the Census Bureau, which also manage large data repositories, could provide a relative perspective. However, without detailed service descriptions and performance metrics for comparable contracts, a precise value-for-money assessment is challenging. The limited competition (3 bids) also suggests that pricing might not be as optimized as in more broadly competed procurements.

What are the key performance indicators (KPIs) used to measure the success of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC in operating and maintaining the network?

The specific Key Performance Indicators (KPIs) used to measure the success of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC in operating and maintaining the Education Data Exchange Network are not detailed in the provided data. Typically, for such IT infrastructure contracts, KPIs would focus on network uptime and availability (e.g., 99.9% uptime), data transfer speeds and reliability, system response times, security incident response times, and successful data integrity checks. User satisfaction surveys from educational institutions and researchers could also be employed. The firm-fixed-price nature of the contract implies that the contractor is responsible for meeting defined performance standards, and failure to do so could result in penalties or contract termination. A review of the contract's Statement of Work (SOW) and Performance Work Statement (PWS) would be necessary to identify the precise KPIs and their associated targets.

What is the contractor's track record with the Department of Education and similar federal agencies?

NTT DATA SERVICES FEDERAL GOVERNMENT, LLC has a significant track record of performing IT services for the federal government, including the Department of Education. As a large, established IT services provider, they have likely held numerous contracts across various agencies. Their experience would encompass a wide range of services, potentially including network operations, data management, cloud services, and application development. To assess their specific track record on this contract, one would need to examine past performance evaluations (e.g., CPARS reports) for this and similar contracts. Positive past performance indicates reliability and capability, while negative feedback might raise concerns about their ability to meet the current contract's requirements effectively and efficiently. Their longevity in the federal contracting space suggests a capacity to navigate complex government requirements.

Are there any identified risks associated with the technology or services provided under this contract?

Potential risks associated with the technology and services provided under this contract primarily revolve around cybersecurity and data integrity. The Education Data Exchange Network likely handles sensitive student and institutional data, making it a target for cyber threats. Risks include potential data breaches, unauthorized access, or service disruptions due to cyberattacks. Another risk is technological obsolescence; the infrastructure must be maintained and potentially upgraded to keep pace with evolving technologies and security standards. Dependence on a single contractor, even with limited competition, can also pose a risk if the contractor experiences financial instability or significant operational issues. Furthermore, ensuring compliance with data privacy regulations (like FERPA) adds a layer of complexity and risk if not managed meticulously.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Contractor Details

Parent Company: Dell Technologies Inc. (UEI: 601839660)

Address: 8270 WILLOW OAKS CORPORATE DR, FAIRFAX, VA, 22031

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $37,543,550

Exercised Options: $37,543,550

Current Obligation: $37,543,550

Parent Contract

Parent Award PIID: GS00F0049M

IDV Type: FSS

Timeline