DoD's $38M IMCOM On-Line Requirement contract to NTT DATA SERVICES awarded under full and open competition

Contract Overview

Contract Amount: $37,961,411 ($38.0M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2011-05-27

Contract Duration: 1,337 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IMCOM ON-LINE REQUIREMENT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.0 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: IMCOM ON-LINE REQUIREMENT Key points: 1. The contract value of $38M over its period of performance suggests a significant investment in IT infrastructure. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The fixed-price contract type may offer cost certainty for the government, shifting some risk to the contractor. 4. The duration of the contract (1337 days) indicates a long-term need for the services provided. 5. The North American Industry Classification System (NAICS) code 518210 points to services related to computing infrastructure and data processing. 6. The contract was awarded to a single vendor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. 7. The contract was issued as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this $38M contract is challenging without specific details on the services rendered and comparable market rates for IT infrastructure and data processing. The firm fixed-price structure suggests an attempt to control costs, but the overall value for money depends on the quality and efficiency of the services delivered by NTT DATA SERVICES. Without more granular data on performance metrics and service level agreements, a definitive assessment of value 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 due to market forces. The fact that it was a delivery order suggests it might have been placed against an existing IDIQ contract, which itself would have undergone a competitive process.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better use of public funds.

Public Impact

The primary beneficiaries are likely Department of the Army personnel and potentially other Department of Defense entities relying on the IMCOM (Installation Management Command) online infrastructure. The services delivered are related to computing infrastructure, data processing, and web hosting, crucial for the operational efficiency of military installations. The geographic impact is likely widespread, supporting Army installations across various locations managed by IMCOM. Workforce implications could include the need for IT support staff within IMCOM and potentially for the contractor, NTT DATA SERVICES, to manage and maintain the online requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness and efficiency.
The duration of the contract (over 3 years) could lead to vendor lock-in if not managed carefully.
Limited transparency on the specific services provided under the 'on-line requirement' umbrella.
The fixed-price nature might disincentivize cost-saving innovations by the contractor if not structured with performance incentives.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type provides cost certainty for the government.
The contract supports a critical function for the Army's Installation Management Command.
The vendor, NTT DATA SERVICES, is a known entity in the federal IT services space.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. The market for these services is highly competitive, with numerous large and small businesses offering solutions to government agencies. Spending in this area is substantial across the federal government as agencies modernize their IT systems and rely more heavily on cloud and data services. Comparable spending benchmarks would typically involve analyzing other large-scale IT infrastructure contracts awarded by the Department of Defense or other federal agencies for similar services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through this award. The primary focus appears to be on large-scale IT service provision. However, the prime contractor, NTT DATA SERVICES, may engage small businesses as subcontractors based on their own business practices and the specific needs of the contract, but this is not a requirement of the award itself.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army IT Modernization Programs
DoD Cloud Computing Strategy
Installation Management Command (IMCOM) Operations
Federal Data Center Consolidation Initiative
IT Infrastructure Services Contracts

Risk Flags

Potential for cost overruns if scope changes significantly under FFP.
Risk of service quality degradation if contractor focuses solely on profit maximization.
Dependency on a single vendor for critical IT infrastructure.
Limited visibility into specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.0 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. IMCOM ON-LINE REQUIREMENT

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 Army).

What is the total obligated amount?

The obligated amount is $38.0 million.

What is the period of performance?

Start: 2007-09-28. End: 2011-05-27.

What specific IT services were included under the 'IMCOM ON-LINE REQUIREMENT'?

The provided data indicates the NAICS code 518210, which covers 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services.' This suggests the contract encompassed services such as server hosting, data storage, network management, cloud services, and potentially application hosting or support for online platforms used by the Installation Management Command (IMCOM). Without the full contract statement of work, the precise scope remains general, but it clearly points to foundational IT infrastructure and operational support for IMCOM's digital presence and data management needs.

How does the $38M contract value compare to similar IT infrastructure contracts within the Department of Defense?

The $38 million contract value for IT infrastructure services over approximately 3.6 years (1337 days) is a substantial but not extraordinary amount for a Department of Defense (DoD) contract of this nature. DoD IT spending is in the tens of billions annually. Contracts for computing infrastructure, data processing, and web hosting can range from a few million to hundreds of millions of dollars, depending on the scope, duration, and specific technologies involved. This particular contract appears to be a significant investment for IMCOM but falls within the typical range for large-scale IT service delivery to a major command within the DoD.

What are the potential risks associated with a firm fixed-price contract for IT services of this duration?

A firm fixed-price (FFP) contract for IT services, especially over a multi-year period like this one (1337 days), carries specific risks. For the government, the primary risk is that the contractor may cut corners on quality or service levels to maximize profit if the initial price was set too high or if market conditions change unfavorably for the contractor. Conversely, if the scope of work expands significantly beyond what was anticipated, the contractor bears the risk of cost overruns, which could lead to performance issues or requests for contract modifications. There's also a risk of vendor lock-in, where the government becomes heavily reliant on the contractor's specific systems and expertise, making future transitions difficult and potentially costly.

What is the track record of NTT DATA SERVICES FEDERAL GOVERNMENT, LLC in delivering similar IT services to the federal government?

NTT DATA SERVICES FEDERAL GOVERNMENT, LLC is a well-established provider of IT services to the federal government, with a history of holding numerous contracts across various agencies, including the Department of Defense. Their portfolio typically includes areas like cloud computing, data analytics, cybersecurity, and IT infrastructure management. While specific performance details for every contract are not publicly available, their continued success in winning and performing on government contracts suggests a generally reliable track record. However, as with any large contractor, individual contract performance can vary, and a deeper dive into specific past performance reviews would be necessary for a comprehensive assessment.

How does the competition level ('full and open') impact the value and innovation for this contract?

Awarding this contract under 'full and open competition' is generally positive for value and potentially innovation. It means that a wide range of qualified vendors could bid, fostering a competitive environment that typically drives down prices and encourages bidders to offer their best solutions. This process allows the government to select from the most capable and cost-effective offers. While FFP contracts can sometimes limit the incentive for contractors to propose radical innovations (as they are paid a fixed price regardless of efficiency gains), the initial competitive selection process itself is a key mechanism for ensuring the government receives good value and is exposed to a broad spectrum of available technologies and service models.

What are the implications of this contract being a 'delivery order'?

The fact that this award is a 'delivery order' implies it was issued under a larger contract vehicle, such as an indefinite-delivery/indefinite-quantity (IDIQ) contract, a blanket purchase agreement (BPA), or a government-wide acquisition contract (GWAC). This means the underlying contract vehicle itself likely underwent a competitive procurement process. Delivery orders specify the actual goods or services to be acquired, quantities, and delivery schedules. For taxpayers, this structure can streamline procurement by having pre-competed vehicles available, allowing agencies to quickly obtain needed services. However, it also means the overall value and competition of the underlying vehicle are critical factors.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $37,961,412

Exercised Options: $37,961,411

Current Obligation: $37,961,411

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00F0049M

IDV Type: FSS

Timeline