NTT DATA Services awarded $48.2M for CDC Information Management Services over 5 years
Contract Overview
Contract Amount: $48,231,483 ($48.2M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2017-02-23
End Date: 2022-02-11
Contract Duration: 1,814 days
Daily Burn Rate: $26.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF FOR CDC INFORMATION MANAGEMENT SERVICES
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $48.2 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: IGF::OT::IGF FOR CDC INFORMATION MANAGEMENT SERVICES Key points: 1. Contract value represents a significant investment in critical public health IT infrastructure. 2. Full and open competition suggests a robust market for these services. 3. The contract duration of 1814 days indicates a long-term need for these services. 4. The use of Time and Materials pricing may introduce cost variability. 5. This contract supports the CDC's mission-critical operational needs. 6. The award was made to a single contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC.
Value Assessment
Rating: good
The contract value of $48.2 million over approximately five years for computer systems design services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts for federal health agencies suggests this pricing is within expected ranges. The Time and Materials (T&M) pricing model, while offering flexibility, warrants close monitoring to ensure cost efficiency and prevent scope creep. Without specific details on the services delivered and the labor categories involved, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance of fair pricing.
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. The presence of 4 bids (no: 4) suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and encourages contractors to offer competitive terms and innovative solutions. The fact that multiple bidders participated implies that the market has sufficient capacity and interest in providing these types of IT services to the CDC.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery. It reduces the risk of overpaying for services and promotes a more responsible use of public funds.
Public Impact
The primary beneficiary is the Centers for Disease Control and Prevention (CDC), which receives essential IT support to maintain its information systems. Services delivered include computer systems design, crucial for managing public health data and operational systems. The geographic impact is national, as the CDC's operations are nationwide and its data impacts public health across the United States. Workforce implications include the potential for employment opportunities within NTT DATA SERVICES FEDERAL GOVERNMENT, LLC and its subcontractors to support this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing structure if not closely managed.
- Dependence on a single contractor for critical IT infrastructure could pose a risk if performance issues arise.
- The long contract duration may lead to vendor lock-in, potentially limiting future flexibility or cost savings.
Positive Signals
- Awarded through full and open competition, indicating a competitive market and likely fair pricing.
- The contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, has a track record in federal IT services.
- The contract supports the critical mission of the CDC, ensuring continuity of essential public health functions.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of the broader federal spending on IT modernization and support, enabling agencies like the CDC to manage vast amounts of data and critical operational systems. Comparable spending benchmarks for large-scale IT support contracts often run into tens or hundreds of millions of dollars over several years.
Small Business Impact
This contract was not set aside for small businesses (ss: false, sb: false). The award to a large prime contractor like NTT DATA SERVICES FEDERAL GOVERNMENT, LLC suggests that subcontracting opportunities may exist for small businesses within the IT services ecosystem. However, the extent of small business participation would depend on the prime contractor's subcontracting plan and the specific nature of the services required. Without explicit set-aside goals or reporting on subcontracting, the direct impact on the small business ecosystem is not clearly defined by this award alone.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the CDC. The Inspector General's office for the Department of Health and Human Services (HHS) would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed spending breakdowns may not always be publicly available. The Time and Materials pricing structure necessitates robust oversight to ensure costs remain aligned with the work performed.
Related Government Programs
- CDC Information Technology Services
- HHS IT Modernization Efforts
- Federal Health IT Contracts
- Computer Systems Design Services
- Large-Scale Federal IT Support Contracts
Risk Flags
- Potential for cost creep due to Time and Materials pricing.
- Long contract duration may limit future flexibility.
- Dependence on a single contractor for critical systems.
Tags
it-services, computer-systems-design, department-of-health-and-human-services, centers-for-disease-control-and-prevention, full-and-open-competition, time-and-materials, large-contract, federal-government, georgia, information-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $48.2 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. IGF::OT::IGF FOR CDC INFORMATION MANAGEMENT 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 $48.2 million.
What is the period of performance?
Start: 2017-02-23. End: 2022-02-11.
What is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC's track record with federal IT contracts, particularly with the Department of Health and Human Services?
NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, and its predecessor entities, have a significant history of performing IT services for various federal agencies, including HHS. They have been awarded numerous contracts for a wide range of IT solutions, from system development and integration to infrastructure support and cybersecurity. Their experience with HHS and its sub-agencies like the CDC suggests a familiarity with the agency's unique requirements and operational environment. Analyzing their past performance on similar contracts would involve reviewing contract databases for performance ratings, any past performance issues, and the successful completion of prior engagements. This extensive background indicates a capacity to handle complex federal IT requirements.
How does the $48.2 million contract value compare to similar CDC IT support contracts awarded over the past five years?
The $48.2 million contract value for five years of IT support services for the CDC is substantial but falls within the typical range for large-scale, mission-critical IT procurements within federal health agencies. Similar contracts for comprehensive computer systems design and support services for agencies of the CDC's size and scope often range from tens to hundreds of millions of dollars over similar timeframes. Factors influencing this value include the complexity of the systems supported, the criticality of the data managed, the required security protocols, and the duration of the contract. The competitive nature of this award suggests the price was deemed fair and reasonable in the market context for such services.
What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?
The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred. This can lead to unpredictable expenditures for the government, especially if the scope of work is not well-defined or if there are inefficiencies in the contractor's performance. For the CDC, this means that the final cost could exceed the initial estimates if tasks take longer than anticipated or if more resources are utilized than planned. Effective oversight, detailed task tracking, and clear definition of labor categories and rates are crucial to mitigate these risks and ensure cost control.
How effective are the current oversight mechanisms in ensuring the CDC receives optimal value for this $48.2 million investment?
The effectiveness of oversight mechanisms for this contract relies heavily on the diligence of the CDC's contracting officers and program managers. Standard oversight includes regular performance reviews, monitoring of labor hours and costs against task orders, and ensuring deliverables meet specified requirements. The Inspector General's office provides an additional layer of accountability by investigating potential fraud, waste, or abuse. For a T&M contract, robust oversight is particularly critical to validate the necessity of hours billed and the reasonableness of material costs. The success of these mechanisms in ensuring optimal value depends on adequate staffing, clear performance metrics, and proactive management of the contractor's performance and expenditures.
What has been the historical spending trend for similar computer systems design services at the CDC over the last decade?
Historical spending on computer systems design services at the CDC over the last decade has likely shown a consistent and increasing trend, reflecting the growing reliance on robust IT infrastructure for public health surveillance, data analysis, and response coordination. Agencies like the CDC continuously invest in modernizing their systems to handle large datasets, improve interoperability, and enhance cybersecurity. While specific figures for this exact contract category might fluctuate year-to-year based on specific project needs and budget allocations, the overall trajectory for federal IT spending, particularly in critical sectors like public health, has been upward. This $48.2 million award aligns with this broader trend of sustained investment in essential IT capabilities.
What are the implications of awarding this contract through full and open competition for future IT service procurements at the CDC?
Awarding this contract through full and open competition has positive implications for future IT service procurements at the CDC. It signals to the market that the CDC is committed to fair and transparent procurement processes, which can encourage a wider range of vendors, including innovative small businesses, to participate in future bids. This competitive environment helps drive down costs and improve the quality of services offered. Furthermore, it establishes a benchmark for pricing and performance expectations, potentially making it easier to evaluate future proposals and ensuring that the CDC continues to receive competitive offers for its IT needs, thereby maximizing the value of taxpayer investments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 2010N11852
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 8270 WILLOW OAKS CORPORATE DR, FAIRFAX, VA, 22031
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $61,655,465
Exercised Options: $48,231,483
Current Obligation: $48,231,483
Actual Outlays: $3,880,223
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSD200201037209I
IDV Type: IDC
Timeline
Start Date: 2017-02-23
Current End Date: 2022-02-11
Potential End Date: 2022-02-11 00:00:00
Last Modified: 2024-12-10
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