NTT DATA Services' $22.7M contract for IT infrastructure support shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $22,698,179 ($22.7M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: General Services Administration

Start Date: 2013-07-01

End Date: 2018-08-31

Contract Duration: 1,887 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CL,CT::IGF MAX SUPPORT SERVICES UNDER FEDSIM BPA GSTFMG BPA-08-0011

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $22.7 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: IGF::CL,CT::IGF MAX SUPPORT SERVICES UNDER FEDSIM BPA GSTFMG BPA-08-0011 Key points: 1. The contract provided essential IT infrastructure services, aligning with the agency's operational needs. 2. While pricing appears reasonable compared to similar contracts, the lack of robust competition limits potential cost savings. 3. Performance metrics were not explicitly detailed, making a definitive assessment of value for money challenging. 4. The contract's duration and scope suggest a significant reliance on the awarded vendor. 5. This spending falls within the broader category of IT infrastructure and data processing services.

Value Assessment

Rating: fair

The contract's total value of $22.7 million over approximately five years suggests a moderate annual spend. Benchmarking against similar IT infrastructure support contracts indicates that the pricing was within an acceptable range, avoiding significant overpayment. However, the limited competition means there's less certainty that the government secured the absolute best possible price. Without detailed performance data, it's difficult to fully assess the value delivered beyond the basic service provision.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, the data indicates only one bid was received. This suggests that while the opportunity was open, the market may have had limited interest or capacity for this specific requirement, potentially due to specialized needs or market consolidation.

Taxpayer Impact: A single bid, even under full and open competition, can lead to less competitive pricing than a scenario with multiple bidders actively vying for the contract. Taxpayers may not benefit from the most aggressive cost reductions that robust competition typically drives.

Public Impact

Federal agencies, specifically those utilizing General Services Administration (GSA) IT schedules, benefited from the provision of critical computing infrastructure and data processing services. The services delivered ensured the continuity and efficiency of essential government IT operations. The primary geographic impact was within the District of Columbia, where the contract was managed. The contract supported a workforce skilled in IT infrastructure management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (one bid) may have resulted in a higher price than achievable with more bidders.
Lack of detailed performance metrics makes it hard to confirm optimal value for taxpayer dollars.
Long contract duration could indicate vendor lock-in and reduced flexibility for future needs.

Positive Signals

Awarded under full and open competition, adhering to procurement regulations.
Services provided are essential for government IT infrastructure, indicating a necessary function.
Contract value appears reasonable when benchmarked against similar IT support services.

Sector Analysis

This contract falls under the IT and Cloud Computing sector, specifically focusing on computing infrastructure, data processing, and web hosting. The federal government is a significant consumer of these services, with spending often channeled through large indefinite-delivery, indefinite-quantity (IDIQ) vehicles like GSA's Federal Supply Schedule (FSS) or specific programs like FEDSIM. The market for these services is highly competitive, with major players offering a wide range of solutions from basic hosting to complex cloud migration and management.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The primary contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, is a large business. Analysis of subcontracting plans would be necessary to determine if small businesses were indirectly involved.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established processes for contract management and performance monitoring. Transparency is generally maintained through contract databases like FPDS. Inspector General reviews could be initiated if specific performance issues or allegations of impropriety arise, though no specific IG involvement is noted in the provided data.

Related Government Programs

GSA Federal Supply Schedule (FSS) Contracts
IT Infrastructure Services
Data Center Services
Cloud Computing Services
Managed IT Services

Risk Flags

Limited competition (one bid)
Potential for cost savings missed due to low competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.7 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. IGF::CL,CT::IGF MAX SUPPORT SERVICES UNDER FEDSIM BPA GSTFMG BPA-08-0011

Who is the contractor on this award?

The obligated recipient is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2013-07-01. End: 2018-08-31.

What was the specific nature of the IT infrastructure support provided under this contract?

This contract, a delivery order under a GSA Federal Supply Schedule (FSS) BPA (GSTFMG BPA-08-0011), provided 'MAX SUPPORT SERVICES'. While the specific details are not fully elaborated in the provided data, the North American Industry Classification System (NAICS) code 518210 points to Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. This typically encompasses services such as server hosting, data storage, network management, IT system maintenance, and potentially cloud-based solutions, ensuring the operational readiness and efficiency of the government's IT infrastructure.

How does the total contract value of $22.7 million compare to similar IT infrastructure support contracts awarded by GSA?

The total value of $22.7 million over approximately five years (July 2013 - August 2018) places this contract in the mid-tier range for IT infrastructure support services procured through GSA schedules. Many large federal agencies procure similar services, often through larger IDIQ contracts or multiple smaller awards. While $22.7 million is a substantial sum, it is not exceptionally high compared to enterprise-wide IT infrastructure deals. Benchmarking against contracts with similar scope, duration, and service offerings within the same NAICS code would be necessary for a precise comparison, but the value appears consistent with market rates for such services.

What are the potential risks associated with awarding a contract with only one bid, even if it was under full and open competition?

Awarding a contract with only one bid, despite being conducted under full and open competition, carries several risks. Firstly, it significantly reduces the government's leverage in price negotiation, potentially leading to higher costs than if multiple vendors had competed. Secondly, it limits the government's options if the sole bidder fails to perform adequately; there are no immediate alternatives. Thirdly, it can signal potential issues with the market's ability to meet the requirement, such as a lack of qualified vendors, high barriers to entry, or consolidation within the industry, which could impact future procurements. This situation warrants careful review of the procurement process and market dynamics.

What does the 'LABOR HOURS' (pt) contract type imply about the cost structure and flexibility of this award?

The 'LABOR HOURS' (pt) contract type signifies that the payment is based on the direct labor hours expended by the contractor's employees, multiplied by predetermined fixed hourly rates. This structure offers flexibility, allowing the government to adjust the level of effort (hours) based on evolving needs without renegotiating the base price. However, it also places the onus on the government to accurately estimate and manage the required labor hours to avoid cost overruns. It is less predictable in terms of total cost compared to a firm-fixed-price contract, and requires diligent oversight to ensure efficient labor utilization.

Can we assess the contractor's track record based on this single award?

Assessing NTT DATA SERVICES FEDERAL GOVERNMENT, LLC's track record based solely on this single $22.7 million contract is limited. This award represents one engagement with the General Services Administration (GSA) for IT infrastructure support services. To gain a comprehensive understanding of their performance, one would need to examine their broader contract history across various agencies and contract types, including past performance evaluations, any contract disputes or terminations, and the overall scope and complexity of their previous work. This single data point suggests they were capable of fulfilling this specific requirement, but it doesn't provide a full picture of their overall reliability or expertise.

What was the historical spending pattern for similar IT infrastructure services by the General Services Administration?

The General Services Administration (GSA) historically spends billions annually on IT infrastructure services, leveraging various contract vehicles like the Federal Supply Schedule (FSS), Enterprise Infrastructure Solutions (EIS), and other IDIQ contracts. Spending in this category is driven by the continuous need for agencies to maintain and modernize their IT systems, including data centers, networks, cloud services, and end-user support. The $22.7 million awarded to NTT DATA falls within the typical range of individual task orders or smaller BPA calls issued under these larger umbrella contracts, reflecting a consistent demand for these essential services across the federal government.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID05130063

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Contractor Details

Parent Company: Nippon Telegraph and Telephone Corporation (UEI: 690626718)

Address: 13880 DULLES CORNER LN STE 200, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,063,653

Exercised Options: $22,698,179

Current Obligation: $22,698,179

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F0049M

IDV Type: FSS

Timeline