NTT DATA Services Federal Government awarded $24.7M for engineering services, with 3 bids received
Contract Overview
Contract Amount: $24,731,825 ($24.7M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Defense
Start Date: 2011-09-01
End Date: 2017-01-04
Contract Duration: 1,952 days
Daily Burn Rate: $12.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LABOR
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.7 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: LABOR Key points: 1. Contract value of $24.7M over 1952 days suggests a moderate daily expenditure. 2. Engineering services are critical for defense infrastructure, indicating a high-impact sector. 3. A firm fixed-price contract type generally offers cost certainty for the government. 4. The contract was awarded under full and open competition, implying a broad search for qualified bidders. 5. The duration of the contract (over 5 years) suggests a need for sustained engineering support. 6. The number of bids (3) indicates a reasonable level of competition for this requirement.
Value Assessment
Rating: good
The contract's total value of $24.7 million over approximately 5.4 years translates to an average annual spend of around $4.6 million. Benchmarking this against similar large-scale engineering services contracts within the Department of Defense requires access to a broader dataset of comparable awards. However, the firm fixed-price structure suggests an attempt to control costs. Without specific per-unit metrics or detailed service descriptions, a precise value-for-money assessment is challenging, but the competitive award process provides a positive signal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The solicitation resulted in three bids, indicating a moderate level of interest and competition for this engineering services requirement. While three bidders suggest that the market is not overly saturated, it also implies that the government received multiple options, which can contribute to price discovery and potentially better terms.
Taxpayer Impact: The full and open competition process, even with three bidders, is generally favorable for taxpayers as it aims to secure the best value by allowing a wide range of contractors to compete, potentially driving down prices through market forces.
Public Impact
The primary beneficiaries are likely the Department of Defense and its various branches, receiving essential engineering support. Services delivered include engineering expertise crucial for defense systems and infrastructure. The geographic impact is primarily within the United States, supporting defense operations. Workforce implications include employment opportunities for engineers and technical staff within NTT DATA SERVICES FEDERAL GOVERNMENT, LLC and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen complexities in engineering projects.
- Risk of contractor performance issues impacting critical defense engineering timelines.
- Dependence on a single contractor for a significant period could limit flexibility in adopting new technologies or approaches.
Positive Signals
- Firm fixed-price contract provides cost certainty for the government.
- Awarded through full and open competition, suggesting a robust vetting of potential contractors.
- The contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, has a track record in federal contracting, implying experience with government requirements.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide array of government functions, particularly in defense, infrastructure, and technology development. The market for engineering services is substantial, with significant government spending allocated annually. This specific award contributes to the overall defense information technology and engineering support landscape, where specialized expertise is consistently in demand.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, may still engage small businesses as subcontractors to fulfill parts of the contract, depending on their internal procurement strategies and the specific needs of the engineering services required.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Defense Information Systems Agency (DISA). Accountability measures are embedded within the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Defense Information Technology Services
- Engineering and Technical Support Services
- Federal IT Services Contracts
- Department of Defense Procurement
Risk Flags
- Potential for cost growth if scope is not well-defined.
- Contract performance risk if contractor lacks necessary expertise.
- Dependency on contractor for critical services.
Tags
engineering-services, department-of-defense, defense-information-systems-agency, firm-fixed-price, delivery-order, full-and-open-competition, ntt-data-services-federal-government-llc, professional-scientific-and-technical-services, virginia, it-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.7 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. LABOR
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 Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $24.7 million.
What is the period of performance?
Start: 2011-09-01. End: 2017-01-04.
What is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC's overall track record with the Department of Defense?
NTT DATA SERVICES FEDERAL GOVERNMENT, LLC has a significant history of contracting with the Department of Defense across various agencies and service areas. Their awards span IT services, engineering support, and other professional services. Analyzing their complete federal contract history reveals a pattern of securing large-value contracts, often through competitive bidding processes. Performance reviews and past performance information, where available in federal databases, would provide further insight into their reliability and effectiveness in delivering on complex defense requirements. Their sustained presence suggests a capacity to meet the demanding standards of military and defense-related projects.
How does the $24.7 million value compare to similar engineering services contracts awarded by DISA?
The $24.7 million total award value for engineering services over approximately 5.4 years places this contract in the mid-to-large tier for individual task orders or delivery orders within the defense sector. To provide a precise comparison, one would need to analyze a cohort of similar engineering services contracts awarded by the Defense Information Systems Agency (DISA) or other Department of Defense components over a comparable timeframe. Factors such as the specific type of engineering (e.g., software, hardware, systems, civil), the duration, and the competitive landscape influence contract values. Without a direct benchmark dataset, it's challenging to definitively state if this represents exceptional value, but the competitive award process suggests a market-driven price.
What are the primary risks associated with a firm fixed-price contract for engineering services?
The primary risk with a firm fixed-price (FFP) contract for engineering services lies in potential cost overruns for the contractor if project complexities are underestimated or unforeseen issues arise. This could lead to the contractor seeking change orders or, in extreme cases, impacting performance quality to maintain profitability. For the government, the risk is that the fixed price might not represent the absolute best value if market conditions change significantly or if the contractor's efficiency is exceptionally high. However, FFP contracts are generally favored for their cost certainty, shifting most of the cost risk to the contractor, which can be advantageous when requirements are well-defined.
How effective is 'full and open competition' in ensuring competitive pricing for defense engineering services?
Full and open competition is generally considered the most effective method for ensuring competitive pricing for defense engineering services, as it maximizes the pool of potential bidders. By allowing all responsible sources to compete, the government increases the likelihood of receiving multiple proposals, which fosters price discovery and encourages contractors to offer their best pricing and technical solutions. While this specific contract received three bids, which is a reasonable number, the effectiveness is also contingent on the number of capable contractors in the market for the specific services required. A higher number of bids typically correlates with stronger price competition.
What is the historical spending trend for engineering services within the Defense Information Systems Agency?
Analyzing historical spending trends for engineering services within the Defense Information Systems Agency (DISA) would reveal the agency's consistent reliance on external expertise for its complex technological infrastructure and defense systems. DISA typically procures a wide range of engineering support, from software development and cybersecurity to network engineering and systems integration. Spending in this category often fluctuates based on specific program requirements, modernization efforts, and national security priorities. A review of past years' spending data would likely show a significant and sustained investment in these critical services, reflecting the agency's mission-essential functions.
What are the implications of awarding a multi-year contract like this for technological innovation?
Awarding a multi-year contract, such as this one spanning over five years, can have mixed implications for technological innovation. On one hand, it provides stability and allows the contractor to invest in specialized resources and personnel, potentially leading to deeper expertise and more robust solutions. On the other hand, a long-term commitment to a single contractor might inadvertently stifle innovation if the contract terms are rigid and do not incentivize the adoption of emerging technologies or more efficient methods. The government's ability to incorporate new technological advancements would depend on the contract's flexibility, change management clauses, and the contractor's willingness and capability to adapt.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Nippon Telegraph and Telephone Corporation
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: $24,731,825
Exercised Options: $24,731,825
Current Obligation: $24,731,825
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $3,033,826
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F0014K
IDV Type: FSS
Timeline
Start Date: 2011-09-01
Current End Date: 2017-01-04
Potential End Date: 2017-01-04 00:00:00
Last Modified: 2022-04-26
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