DoD's $11.7M IT services contract to NTT DATA awarded in 2008, with unclear performance metrics

Contract Overview

Contract Amount: $11,773,080 ($11.8M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of Defense

Start Date: 2008-12-14

End Date: 2008-12-14

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT INTEGRATED SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: IT INTEGRATED SERVICES Key points: 1. Contract awarded in 2008 for IT integrated services, suggesting a long-standing relationship. 2. The contract type is Time and Materials, which can lead to cost overruns if not managed closely. 3. Awarded by the Defense Threat Reduction Agency, indicating a focus on critical defense infrastructure. 4. The North American Industry Classification System (NAICS) code 518210 points to data processing and hosting services. 5. No specific performance metrics or outcomes are detailed in the provided data. 6. The contract has been active for over a decade, raising questions about its continued relevance and value.

Value Assessment

Rating: questionable

Benchmarking the value of this $11.7 million IT services contract is challenging without specific performance data or comparison to similar, more recent contracts. The Time and Materials (T&M) pricing model, while flexible, carries inherent risks for cost control. Without clear deliverables or performance benchmarks, it's difficult to assess if the agency received good value for the funds expended over its long duration. The lack of updated information suggests potential obsolescence or a need for re-evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. However, the age of the award means current market conditions and pricing may differ significantly from when the contract was initially established.

Taxpayer Impact: A full and open competition at the time of award suggests taxpayers benefited from a competitive bidding process, potentially leading to a more favorable initial price.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Threat Reduction Agency, receiving IT integrated services. Services likely include computing infrastructure, data processing, and web hosting, crucial for agency operations. The geographic impact is primarily within the agency's operational areas, likely supporting national security missions. Workforce implications are tied to the IT support staff required to manage and deliver these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of performance metrics makes it difficult to assess value for money over the contract's long lifespan.
Time and Materials contract type poses a risk of cost escalation without stringent oversight.
The contract's age (awarded in 2008) raises concerns about technological relevance and potential obsolescence.
Limited information available on specific services delivered and their impact on agency goals.

Positive Signals

Awarded through full and open competition, suggesting a competitive initial pricing environment.
NTT DATA is a known entity in the federal IT services space, implying some level of established capability.
The contract supports a critical defense agency, indicating its importance to national security operations.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. The market for these services is vast and highly competitive, with numerous providers ranging from large system integrators to specialized cloud service providers. Comparable spending benchmarks would typically involve analyzing IT service contracts of similar scope and duration within the federal government, particularly those supporting defense agencies. The trend in this sector has been a shift towards cloud-based solutions and managed services, making older, infrastructure-centric contracts like this one potentially less cost-effective if not adapted.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, is a large entity, and any subcontracting would likely be at the discretion of the contractor to fulfill specific service needs.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and the program office within the Defense Threat Reduction Agency. Accountability measures would be tied to the terms and conditions of the Time and Materials contract, requiring detailed reporting of labor hours and materials. Transparency is limited by the available public data; while the award itself is public, the detailed performance reports and financial expenditures are not readily accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Infrastructure Services
Data Center Operations
Cloud Computing Services
Managed IT Services
Defense Information Technology Support

Risk Flags

Long Contract Duration
Time and Materials Pricing
Lack of Performance Metrics
Potential Technological Obsolescence
Limited Publicly Available Detail

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. IT INTEGRATED SERVICES

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 Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2008-12-14. End: 2008-12-14.

What specific IT integrated services were delivered under this contract, and how did they contribute to the Defense Threat Reduction Agency's mission?

The provided data indicates the contract falls under NAICS code 518210, which covers Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. Therefore, the services likely encompassed the provision and management of IT infrastructure, data storage and processing capabilities, and web hosting solutions. These services are fundamental to enabling any agency's operations, including the Defense Threat Reduction Agency (DTRA). For DTRA, such services would be critical for managing intelligence data, supporting command and control systems, facilitating communication, and enabling research and development activities related to threat reduction. Without specific task orders or performance reports, the exact nature and impact of these services on DTRA's mission objectives remain unspecified in the public record.

How does the $11.7 million total award value compare to similar IT services contracts awarded by the DoD around 2008?

Comparing the $11.7 million total award value for this IT integrated services contract to similar DoD contracts awarded around 2008 requires access to a broader dataset of federal procurement. However, for its time, $11.7 million represented a significant investment in IT services. Contracts of this magnitude typically supported substantial infrastructure needs or enterprise-wide solutions. The DoD, being a large consumer of IT services, often awarded multi-year contracts in the tens or hundreds of millions of dollars for complex systems and ongoing support. This particular contract, awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, under full and open competition, suggests it was intended to meet a substantial requirement. Benchmarking would ideally involve looking at contracts for similar NAICS codes (e.g., data processing, infrastructure hosting) awarded to similarly sized contractors by defense agencies during that period to gauge relative pricing and scope.

What are the potential risks associated with a Time and Materials (T&M) contract of this duration for IT services?

Time and Materials (T&M) contracts, while offering flexibility, carry inherent risks, especially for long-duration contracts like this one awarded in 2008. The primary risk is cost escalation, as the government pays for direct labor hours at specified hourly rates and for the cost of materials. Without stringent oversight, detailed tracking of hours, and well-defined scope limitations, contractors may not be incentivized to control costs efficiently. For IT services, the risk is compounded by the rapid pace of technological change; T&M contracts can become less cost-effective if the underlying technology or service requirements evolve significantly over time. Furthermore, the government bears more of the risk for determining the level of effort required, potentially leading to overpayment if the scope is not well-managed or if efficiencies are not realized. The long duration increases the likelihood of scope creep and makes it harder to forecast final costs accurately.

Given the contract was awarded in 2008, what is the likelihood of technological obsolescence and its impact on value for money?

The likelihood of technological obsolescence for an IT services contract awarded in 2008 is very high. The technology landscape evolves rapidly, with advancements in cloud computing, cybersecurity, data analytics, and artificial intelligence occurring constantly. A contract focused on 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' from over a decade ago may be based on legacy systems or architectures that are no longer efficient, secure, or cost-effective compared to modern solutions. This obsolescence directly impacts value for money; the agency might be paying for services that could be obtained more affordably or with greater capability through newer technologies. Without evidence of modernization or adaptation within the contract's scope, it's probable that the delivered services are less advanced than current market offerings, potentially hindering the agency's operational effectiveness and increasing long-term costs.

What does the 'VA' (Virginia) state designation signify in the context of this federal contract?

The 'VA' designation likely refers to the state of Virginia, indicating the primary place of performance or the location of the contractor's office relevant to this contract. Virginia is a significant hub for federal contracting, particularly for defense and IT services, due to its proximity to Washington D.C., numerous military installations, and a robust ecosystem of government contractors and cleared personnel. While the contract is awarded by the Department of Defense (DoD) through the Defense Threat Reduction Agency (DTRA), the 'VA' designation suggests that the work performed under this contract, or a significant portion of it, was likely carried out by NTT DATA SERVICES FEDERAL GOVERNMENT, LLC within Virginia. This could influence factors like local economic impact, state-specific regulations, and the availability of a skilled workforce.

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

Pricing Type: TIME AND MATERIALS (Y)

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: $18,697,100

Exercised Options: $12,277,067

Current Obligation: $11,773,080

Parent Contract

Parent Award PIID: GS00F0049M

IDV Type: FSS

Timeline