Dhs's $12.7M Website Maintenance Contract Awarded to NTT Data Services Federal Government, LLC

Contract Overview

Contract Amount: $12,696,791 ($12.7M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2005-10-01

End Date: 2010-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Sector: Other

Official Description: WEBSITE MAINTENANCE

Place of Performance

Location: FAIRFAX, FAIRFAX CITY County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.7 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: WEBSITE MAINTENANCE Key points: 1. The contract value represents a significant investment in maintaining critical digital infrastructure for the U.S. Coast Guard. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The contract duration of 5 years indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 518210 points to a market focused on data processing and web hosting. 5. The award was made under a Blanket Purchase Agreement (BPA) Call, which can streamline procurement for established agreements. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total value of approximately $12.7 million over five years, averaging around $2.5 million annually, appears reasonable for comprehensive website maintenance services for a federal agency of the Coast Guard's size. However, a detailed assessment of value for money would require analysis of the specific services rendered, the quality of those services, and comparison to industry standards for similar-sized organizations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of full and open competition is a standard and preferred method for federal procurements, aiming to maximize taxpayer value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially driving down costs and improving the quality of the website maintenance provided to the U.S. Coast Guard.

Public Impact

The U.S. Coast Guard benefits from reliable and up-to-date website services, crucial for its public outreach, operational information dissemination, and internal communications. The public gains access to essential information regarding Coast Guard operations, safety advisories, recruitment, and other vital services through the maintained website. The contract supports the digital presence of a key component of the Department of Homeland Security, ensuring its online platforms are functional and secure. The workforce implications are primarily within the IT services sector, potentially supporting jobs in web development, maintenance, and cybersecurity through the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contract is renewed without re-competition.
Risk of scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical website infrastructure.
Ensuring ongoing cost-effectiveness over the full contract term.
Maintaining up-to-date cybersecurity measures against evolving threats.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Long-term contract duration (5 years) provides stability for service delivery.
Contractor has experience in federal government IT services.
The BPA Call mechanism can indicate a pre-vetted and established relationship.
Focus on essential website maintenance ensures core functionality.

Sector Analysis

The IT services sector, specifically focusing on web hosting, data processing, and related services, is a large and competitive market. Federal agencies like the Department of Homeland Security are significant consumers of these services to maintain their extensive online presence. The market size for government IT services is in the billions, with agencies constantly seeking efficient and secure solutions for their digital infrastructure. This contract fits within the broader category of IT infrastructure support, a critical component for government operations.

Small Business Impact

This contract does not appear to have a small business set-aside. The prime contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, is a large business. While there is no direct set-aside, the contract may still offer subcontracting opportunities for small businesses, depending on the contractor's subcontracting plan and the nature of the services required. The absence of a set-aside means that small businesses were not specifically targeted for this prime contract award.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers within the Department of Homeland Security. Performance reviews, regular reporting, and adherence to service level agreements would be key oversight mechanisms. Transparency is generally maintained through contract award databases and public reporting requirements. The Department of Homeland Security's Office of Inspector General may also conduct audits or investigations if specific concerns arise regarding contract performance or financial management.

Related Government Programs

Department of Homeland Security IT Services
U.S. Coast Guard IT Infrastructure
Federal Government Website Hosting
Data Processing Services
Web Hosting Services

Risk Flags

Long contract duration without clear performance review milestones.
Potential for cost overruns if market rates for IT services increase.
Cybersecurity risks associated with maintaining public-facing websites.
Dependence on a single vendor for critical digital infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.7 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. WEBSITE MAINTENANCE

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 Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2005-10-01. End: 2010-09-30.

What is the track record of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC with similar federal contracts?

NTT DATA SERVICES FEDERAL GOVERNMENT, LLC has a substantial history of securing and performing on federal contracts across various agencies, including the Department of Homeland Security. Their portfolio often includes large-scale IT services, cloud computing, data management, and application development. Analysis of their past performance on contracts of similar size and scope would reveal their ability to meet deadlines, manage budgets, and deliver quality services. Federal procurement data often shows a pattern of successful contract completions, though specific performance metrics and any past disputes or issues would require deeper investigation into individual contract histories and performance evaluations.

How does the annual cost of this contract compare to industry benchmarks for similar services?

The annual cost for this contract averages approximately $2.5 million ($12.7 million / 5 years). Benchmarking this against industry standards for website maintenance for a federal agency of the U.S. Coast Guard's size is complex without granular details on the scope of services. However, for comprehensive website hosting, maintenance, security, and potential development support, this figure is within a plausible range. Larger federal agencies often pay a premium due to stringent security, compliance, and uptime requirements. A detailed comparison would involve analyzing the specific Service Level Agreements (SLAs), the number of websites/applications supported, traffic volumes, and the level of cybersecurity measures mandated, then comparing these to commercial offerings and other government contracts.

What are the primary risks associated with this website maintenance contract?

Key risks include potential cybersecurity vulnerabilities if the contractor's security protocols are not robust or up-to-date, leading to data breaches or service disruptions. Another risk is vendor lock-in, where the agency becomes overly reliant on NTT DATA, making future transitions difficult or costly. Performance degradation or failure to meet Service Level Agreements (SLAs) could impact the U.S. Coast Guard's ability to communicate effectively with the public and its personnel. Furthermore, the long-term nature of the contract introduces a risk of cost escalation if market rates for services increase significantly over the five-year period, and the agency does not have adequate mechanisms to control these increases.

How effective has NTT DATA been in delivering IT services to the federal government historically?

NTT DATA SERVICES FEDERAL GOVERNMENT, LLC has a broad history of delivering IT services to the federal government, often handling complex and large-scale projects. Their effectiveness is generally reflected in their ability to win subsequent contracts and maintain relationships with agencies. Performance metrics from past contracts, if publicly available through sources like the Federal Procurement Data System (FPDS) or agency performance reports, would provide a more direct assessment. While winning contracts indicates a level of perceived capability, actual effectiveness is best measured by on-time delivery, adherence to budget, quality of service, and client satisfaction, which can vary across different engagements.

What is the historical spending trend for website maintenance by the U.S. Coast Guard or DHS?

Analyzing historical spending trends for website maintenance by the U.S. Coast Guard or the broader Department of Homeland Security would require access to detailed historical procurement data. Generally, federal agencies have seen increasing investment in IT infrastructure and digital services over the years, driven by the need for modernization, enhanced cybersecurity, and improved public-facing platforms. Spending on website maintenance is likely to fluctuate based on specific modernization projects, changes in agency priorities, and the lifecycle of existing web infrastructure. A trend towards cloud-based solutions and managed services is also common, potentially impacting how such maintenance is procured and budgeted.

What specific services are included under this $12.7 million contract?

The contract, NAICS code 518210, covers 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.' For a website maintenance contract of this magnitude and duration, this typically includes services such as hosting the U.S. Coast Guard's websites, ensuring uptime and availability, regular software updates and patching for content management systems and underlying infrastructure, cybersecurity monitoring and incident response, data backup and recovery, performance optimization, and potentially content management support or minor updates. The exact scope would be detailed in the contract's Statement of Work (SOW) and any associated Task Orders under the BPA Call.

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: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Evaluated Preference: NONE

Contractor Details

Parent Company: Dell Technologies Inc. (UEI: 601839660)

Address: 8550 ARLINGTON BLVD, FAIRFAX, VA, 22031

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: HSCG2306ATBX004

IDV Type: BPA

Timeline