Interior Department's $38.6M IT contract with NTT DATA awarded under full and open competition

Contract Overview

Contract Amount: $38,646,178 ($38.6M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of the Interior

Start Date: 2013-09-16

End Date: 2019-03-15

Contract Duration: 2,006 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CTSAP TASK 2 DELL IGF::CT::IGF

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $38.6 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: CTSAP TASK 2 DELL IGF::CT::IGF Key points: 1. Contract value of $38.6 million over its period of performance. 2. Awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. 3. Procured via full and open competition, indicating broad market access. 4. Contract type is Time and Materials, often used for evolving IT needs. 5. Task order for Computer Systems Design Services. 6. Performance period spans from September 2013 to March 2019. 7. Geographic location of performance is Maryland. 8. No small business set-aside was utilized.

Value Assessment

Rating: fair

The contract value of $38.6 million for Computer Systems Design Services over approximately 5.5 years appears within a reasonable range for IT support contracts of this nature. However, without specific details on the services rendered and the complexity of the systems supported, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale IT service contracts for federal agencies would provide a clearer picture of whether the pricing reflects competitive market rates for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 6 bidders (indicated by 'no': 6) is a positive sign for robust competition, which typically drives better pricing and service quality. This level of competition helps ensure that the government is receiving a fair market price for the services provided.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to cost savings and improved service delivery compared to sole-source or limited competition awards.

Public Impact

Benefits the Department of the Interior by providing essential IT systems design services. Ensures the continued operation and potential enhancement of critical IT infrastructure. Services are delivered within Maryland, impacting the local IT workforce and economy. Supports the agency's mission by maintaining and improving its technological capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Lack of specific performance metrics makes it difficult to assess efficiency.
Limited information on the specific IT systems supported hinders a deeper analysis.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Multiple bidders participated, suggesting market interest and potential for good value.
Contract duration of over 5 years allowed for sustained support and knowledge transfer.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are crucial for supporting agency operations, cybersecurity, and digital transformation initiatives. Comparable spending benchmarks for IT services can vary widely based on scope, complexity, and agency needs, but this $38.6 million award represents a significant investment in IT support.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract were likely limited to subcontracting roles, if any were pursued by the prime contractor. The absence of small business participation goals suggests a focus on larger, established IT service providers for this particular requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Interior's contracting officers and program managers. The contract's performance period and delivery order structure would necessitate ongoing monitoring of deliverables, costs, and adherence to terms. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of the Interior IT Services
Computer Systems Design Services
Federal IT Contracts
NTT DATA Federal Contracts

Risk Flags

Time and Materials contract type requires diligent oversight to manage costs.
Lack of specific performance metrics may hinder objective evaluation of contractor performance.
Limited detail on specific services provided makes value assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $38.6 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. CTSAP TASK 2 DELL IGF::CT::IGF

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 the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $38.6 million.

What is the period of performance?

Start: 2013-09-16. End: 2019-03-15.

What specific Computer Systems Design Services were provided under this contract?

The provided data indicates the contract was for 'Computer Systems Design Services' (NAICS code 541512) awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC by the Department of the Interior. However, the specific nature of these services, such as network design, software integration, system architecture development, or IT infrastructure planning, is not detailed in the summary data. These services are critical for ensuring the agency's IT systems are efficient, secure, and aligned with its operational needs. Further analysis would require reviewing the contract's Statement of Work (SOW) to understand the precise technical tasks and deliverables expected from the contractor.

How does the $38.6 million contract value compare to similar IT services contracts within the Department of the Interior?

Comparing the $38.6 million contract value requires access to a broader dataset of IT services contracts awarded by the Department of the Interior over a similar timeframe. Without this comparative data, it's difficult to definitively state whether this award is high, low, or average. However, for a contract spanning over five years and covering comprehensive computer systems design, $38.6 million is a substantial but not necessarily outlier figure for a federal agency of the Interior's size and scope. Benchmarking against contracts for similar services (e.g., IT consulting, system integration, network management) within the agency or across comparable departments would provide better context on its relative value.

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

Time and Materials (T&M) contracts, like the one awarded to NTT DATA, carry inherent risks, primarily related to cost control. Because payment is based on the hours worked and the materials used, there is a risk of cost overruns if the project scope is not well-defined or if project timelines extend beyond initial estimates. This contract type can incentivize longer project durations rather than efficiency. To mitigate these risks, robust oversight, clear task definitions, and regular progress monitoring are essential. The government must ensure that the contractor's time and material charges are reasonable and that the work performed is necessary and productive.

What was the track record of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC with the Department of the Interior prior to this award?

The provided data does not include information on NTT DATA SERVICES FEDERAL GOVERNMENT, LLC's prior contract history with the Department of the Interior. To assess their track record, one would need to examine historical contract awards to this vendor from the Department of the Interior, looking at factors such as past performance ratings, any contract disputes or terminations, and the overall value and duration of previous engagements. A strong track record of successful performance on similar IT services contracts would indicate a lower performance risk for this new award.

How did the 'full and open competition' impact the final price and service quality?

Full and open competition generally has a positive impact on both price and service quality. By allowing any qualified vendor to bid, the government maximizes the pool of potential offerors, increasing the likelihood of receiving competitive proposals. This competitive pressure typically drives down prices as vendors strive to offer the most attractive terms. Furthermore, a wider range of bidders can bring diverse technical solutions and expertise, potentially leading to higher quality services and innovative approaches. The fact that six bidders participated suggests a healthy level of competition that likely benefited the Department of the Interior in securing a favorable outcome.

What is the significance of the contract being a 'Delivery Order' (awarded under a larger IDIQ or similar vehicle)?

The 'AW' field indicating 'DELIVERY ORDER' suggests that this contract was not a standalone award but rather a task order issued under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award vehicle. This is a common procurement method for IT services, allowing agencies to procure services incrementally as needed. The significance is that the underlying IDIQ contract likely underwent a broader competition, and this delivery order represents a specific call for services within the scope of that pre-competed vehicle. This can streamline the procurement process for individual task orders but means the competition for the overall vehicle happened earlier.

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

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

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: $81,483,173

Exercised Options: $81,483,173

Current Obligation: $38,646,178

Actual Outlays: $43,377

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200017W

IDV Type: GWAC

Timeline