DoD's $39.3M Engineering Services Contract Awarded to NTT DATA Services Federal Government, LLC
Contract Overview
Contract Amount: $39,343,269 ($39.3M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Defense
Start Date: 2008-07-31
End Date: 2013-07-30
Contract Duration: 1,825 days
Daily Burn Rate: $21.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SERVICES
Place of Performance
Location: PORTSMOUTH, ROCKINGHAM County, NEW HAMPSHIRE, 03804
Plain-Language Summary
Department of Defense obligated $39.3 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of 1825 days (5 years) indicates a long-term need for these engineering services. 4. The award was a delivery order, implying it's part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract was awarded by the Department of the Navy, a major component of the DoD. 7. The base value of $21.5M suggests significant but not the maximum potential value of the contract.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and comparisons to similar engineering service contracts within the DoD. The Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable and the fixed fee is appropriate for the scope of work. Without data on the final cost versus the estimated cost, a definitive value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection process and potentially better pricing. The presence of two bidders (no: 2) suggests a moderate level of competition for this specific award, which is generally positive for price discovery.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among offerors.
Public Impact
The Department of the Navy benefits from specialized engineering expertise to support its operations and projects. This contract likely supports critical naval infrastructure, systems, or research and development initiatives. The services provided could have implications for national defense readiness and technological advancement. The geographic impact is likely concentrated around naval facilities or project sites, potentially involving personnel in New Hampshire.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- Limited competition (2 bidders) might not represent the absolute best value achievable.
- The specific engineering services are not detailed, making it hard to assess the criticality and potential risks.
- Long contract duration could lead to scope creep or evolving requirements not fully captured in the initial award.
Positive Signals
- Awarded through full and open competition, maximizing potential bidder pool.
- NTT DATA Services Federal Government, LLC is an established entity with federal contracting experience.
- The contract has a defined duration, providing a clear timeline for service delivery.
- The base value is specified, offering some transparency into the initial financial commitment.
Sector Analysis
Engineering services are a critical component of the defense sector, encompassing design, development, testing, and maintenance of complex systems and infrastructure. The market for these services within the federal government is substantial, with significant spending allocated annually across various agencies, particularly the Department of Defense. This contract fits within the broader landscape of defense support services, where specialized technical expertise is paramount for maintaining operational readiness and technological superiority.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of specialized engineering services and the prime contractor's likely size, the direct impact on small businesses may be limited unless subcontracting opportunities are actively pursued and awarded.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract terms and conditions, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be less accessible to the public.
Related Government Programs
- Department of Defense Engineering Services
- Naval Sea Systems Command Contracts
- Federal IT and Engineering Support Services
- Cost Plus Fixed Fee Contracts
- Defense Infrastructure Support
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Limited number of bidders (2) may indicate potential for improved competition.
- Specific engineering services are not detailed, hindering a full scope and risk assessment.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, professional-services, federal-contract, ntt-data-services-federal-government-llc, new-hampshire
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.3 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. 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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $39.3 million.
What is the period of performance?
Start: 2008-07-31. End: 2013-07-30.
What is the track record of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC in delivering similar engineering services to the Department of Defense?
NTT DATA SERVICES FEDERAL GOVERNMENT, LLC has a significant history of performing various IT and professional services for the federal government, including the Department of Defense. While specific details on their performance for engineering services under Cost Plus Fixed Fee contracts would require deeper analysis of past performance reviews and contract close-outs, their established presence suggests a capacity to handle complex federal requirements. A review of their contract history would reveal the types and scale of engineering projects they have undertaken, their on-time and on-budget delivery rates, and any documented performance issues or commendations. This context is crucial for assessing their reliability and expertise for the current contract.
How does the awarded amount compare to typical engineering service contracts of similar scope and duration within the DoD?
Comparing the $39.3 million ceiling to similar contracts requires access to a broader dataset of DoD engineering service awards with comparable scope, duration (5 years), and service type (NAICS 541330). However, for a 5-year contract, this value suggests a moderate to significant investment. Contracts for specialized engineering can vary widely based on complexity, required expertise, and deliverables. Without specific benchmarks for 'engineering services' under a CPFF structure for the Navy, it's difficult to definitively state if this represents high or low value. Further analysis would involve identifying comparable contracts, their total awarded values, and the specific services rendered to establish a more precise benchmark.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this engineering service?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than necessary if the contractor's costs are not well-managed or if the fixed fee is disproportionately high relative to the effort. For engineering services, this could manifest as inefficiencies in design processes, extended testing phases, or scope creep that inflates direct costs. The contractor has an incentive to control costs to protect their fixed fee profit margin, but the government bears the risk of cost overruns. Robust oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure value for taxpayer money.
What specific engineering services are being procured under this contract, and how do they align with the Department of the Navy's strategic objectives?
The provided data indicates the NAICS code is 541330 (Engineering Services), but the specific nature of these services is not detailed. To assess alignment with strategic objectives, one would need to know if these services pertain to naval platform design, maintenance engineering, infrastructure development, cybersecurity engineering for naval systems, or research and development. Understanding the precise deliverables would allow for an evaluation of how they contribute to the Navy's modernization efforts, operational readiness, or technological advancements. Without this specificity, the alignment remains speculative, though engineering services are fundamental to almost all major defense programs.
What is the historical spending trend for engineering services by the Department of the Navy, and how does this contract fit into that pattern?
The Department of the Navy consistently spends billions of dollars annually on engineering services, reflecting the complexity and scale of its operations, research, and development activities. This $39.3 million contract, awarded as a delivery order, likely represents a portion of the Navy's broader engineering support budget. To understand its place in the pattern, one would need to examine historical spending data for similar NAICS codes (541330) and contract types (CPFF) awarded by the Navy over the past several years. This analysis would reveal whether this award is consistent with typical annual outlays, or if it represents a significant increase or decrease in spending for this category of services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002408R3036
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
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
Financial Breakdown
Contract Ceiling: $40,772,450
Exercised Options: $40,772,450
Current Obligation: $39,343,269
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4102
IDV Type: IDC
Timeline
Start Date: 2008-07-31
Current End Date: 2013-07-30
Potential End Date: 2013-07-30 00:00:00
Last Modified: 2016-04-01
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