HHS Spends $141.8M on IT Infrastructure Support Services with NTT DATA
Contract Overview
Contract Amount: $141,818,149 ($141.8M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2009-02-03
End Date: 2017-05-30
Contract Duration: 3,038 days
Daily Burn Rate: $46.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $141.8 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES Key points: 1. Significant contract value of $141.8 million over 8 years. 2. NTT DATA SERVICES FEDERAL GOVERNMENT, LLC is the sole awardee. 3. Contract falls under Wired Telecommunications Carriers (NAICS 517110). 4. Full and open competition was utilized. 5. Services provided to the Centers for Disease Control and Prevention (CDC).
Value Assessment
Rating: fair
The contract value of $141.8 million over 8 years suggests a substantial investment. Benchmarking against similar IT infrastructure support contracts would be necessary to fully assess value, but the duration and scope indicate a significant commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The existence of two offers indicates some level of price discovery, though the specific impact on the final price is not detailed.
Taxpayer Impact: Taxpayer funds are utilized for essential IT infrastructure support, with competition aiming to ensure reasonable pricing. The long-term nature of the contract warrants ongoing scrutiny for cost-effectiveness.
Public Impact
Ensures critical IT infrastructure for the CDC remains operational. Supports public health initiatives by maintaining essential technology. Long-term contract provides stability for service delivery. Potential for vendor lock-in if not managed carefully.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (8 years) may limit flexibility.
- Sole awardee for a significant period.
- Lack of specific performance metrics in provided data.
Positive Signals
- Awarded under full and open competition.
- Supports a critical public health agency (CDC).
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Information Technology sector, specifically IT infrastructure support. Spending in this area is crucial for government operations, with benchmarks varying widely based on service scope and duration. The $141.8 million over 8 years represents a significant, long-term investment.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Therefore, the extent of small business participation in this contract is unknown based on this information.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a structured procurement process. Oversight would typically involve contract management by the CDC to ensure service delivery and adherence to terms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Long contract duration may lead to price increases or outdated technology.
- Lack of transparency on specific performance metrics.
- Potential for vendor lock-in.
- Limited competition indicated by only two offers.
Tags
wired-telecommunications-carriers, department-of-health-and-human-services, ga, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $141.8 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT 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 Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $141.8 million.
What is the period of performance?
Start: 2009-02-03. End: 2017-05-30.
What was the competitive landscape during the bidding process, and how did it influence the final pricing?
The contract was awarded under full and open competition, with two offers received. While competition generally drives down prices, the specific impact on this $141.8 million contract is not detailed. Further analysis of the bidding process and award decision would be needed to fully understand the price discovery achieved.
What are the key performance indicators (KPIs) for this contract, and how has NTT DATA performed against them?
The provided data does not include specific Key Performance Indicators (KPIs) for this contract. Effective oversight would require the CDC to establish and monitor KPIs related to IT infrastructure uptime, response times, and service quality to ensure value for money and mitigate performance risks.
How does the per-unit cost of these IT infrastructure support services compare to industry benchmarks for similar government contracts?
A precise per-unit cost benchmark is not available without detailed service breakdowns and specific metrics. However, the total value of $141.8 million over approximately 8 years (3038 days) suggests a substantial ongoing expenditure. Comparing this to similar long-term, comprehensive IT support contracts would be necessary for a robust assessment.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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: $142,012,931
Exercised Options: $142,012,931
Current Obligation: $141,818,149
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0011
IDV Type: IDC
Timeline
Start Date: 2009-02-03
Current End Date: 2017-05-30
Potential End Date: 2017-05-30 00:00:00
Last Modified: 2018-08-29
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