DOJ awards $4.28M contract for administrative management consulting to NTT DATA FEDERAL SERVICES, INC

Contract Overview

Contract Amount: $4,280,301 ($4.3M)

Contractor: NTT Data Federal Services, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-01-01

End Date: 2025-09-30

Contract Duration: 272 days

Daily Burn Rate: $15.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ISSAAS BRIDGE CONTRACT_DEA TC

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $4.3 million to NTT DATA FEDERAL SERVICES, INC. for work described as: ISSAAS BRIDGE CONTRACT_DEA TC Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Focus on administrative management and general management consulting services. 3. Contract duration is 272 days, indicating a short-term need. 4. The contract is a definitive contract type. 5. The contract is not set aside for small businesses. 6. The contract is for labor hours, which can be subject to scope creep.

Value Assessment

Rating: fair

The contract value of $4.28M for approximately 9 months of administrative management consulting services appears to be within a reasonable range for specialized services. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for administrative management consulting within the Department of Justice or other federal agencies would provide a clearer picture of pricing efficiency. The labor hours pricing model necessitates careful monitoring to ensure efficient resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific contractor possesses unique capabilities or when urgency precludes a competitive process. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could have resulted from a competitive bidding process. This raises questions about whether the most cost-effective solution was secured.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. Sole-source awards can sometimes lead to higher costs compared to competitively sourced contracts.

Public Impact

The Drug Enforcement Administration (DEA) is the primary beneficiary of these consulting services. Services are expected to support administrative and general management functions within the DEA. The contract is geographically located in Virginia. The contract will likely impact a team of consultants from NTT DATA FEDERAL SERVICES, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially value for money.
Labor hours contract type requires diligent oversight to manage costs and scope.
Lack of small business set-aside may limit opportunities for smaller firms in this contract.

Positive Signals

NTT DATA FEDERAL SERVICES, INC. is an established federal contractor.
The contract is for administrative management, a core government function.
The contract has a defined period of performance, limiting long-term financial commitment.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant area of federal spending, supporting a wide range of agency operations. The market for these services is competitive, but sole-source awards can bypass this dynamic. Comparable spending benchmarks for management consulting services within federal agencies are often in the millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This means that opportunities for small businesses to participate in this specific contract are limited. While NTT DATA FEDERAL SERVICES, INC. may engage small businesses in their broader operations, this particular award does not directly contribute to the federal small business contracting goals.

Oversight & Accountability

Oversight for this contract will likely be managed by the Drug Enforcement Administration's contracting officers and program managers. Accountability measures will be tied to the performance metrics and deliverables outlined in the contract statement of work. Transparency is generally maintained through federal procurement databases, but the specifics of the sole-source justification and performance details may have limited public visibility.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Justice Contracts
Drug Enforcement Administration Support Services

Risk Flags

Sole-source award may limit cost savings.
Labor hours contract requires careful monitoring to control costs.
Lack of competition could impact price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $4.3 million to NTT DATA FEDERAL SERVICES, INC.. ISSAAS BRIDGE CONTRACT_DEA TC

Who is the contractor on this award?

The obligated recipient is NTT DATA FEDERAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2025-01-01. End: 2025-09-30.

What is the specific scope of work for these administrative management consulting services?

The provided data indicates the contract is for 'Administrative Management and General Management Consulting Services' (NAICS code 541611) awarded to NTT DATA FEDERAL SERVICES, INC. by the Department of Justice for the Drug Enforcement Administration. However, the specific tasks, objectives, and deliverables are not detailed in the summary data. Typically, such services could include process improvement, organizational analysis, strategic planning support, operational efficiency assessments, or management policy development. A detailed statement of work (SOW) would be necessary to understand the precise nature of the consulting engagement and its intended outcomes.

Why was this contract awarded on a sole-source basis?

The data explicitly states the contract was 'NOT COMPETED' and is a 'SOLE-SOURCE' award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supply or service, or when there is a compelling urgency. Without further justification documentation (often found in a Justification and Approval document), the precise reason for the sole-source award to NTT DATA FEDERAL SERVICES, INC. for the DEA's administrative management consulting needs remains unclear. This could be due to unique expertise, proprietary technology, or a critical, time-sensitive requirement.

What is NTT DATA FEDERAL SERVICES, INC.'s track record with the federal government, particularly the DOJ and DEA?

NTT DATA FEDERAL SERVICES, INC. is a known entity in the federal contracting space. While specific performance details for this particular contract are not yet available as it starts in 2025, the company has a history of performing various IT and professional services contracts across multiple federal agencies, including the Department of Justice. Analyzing their past performance ratings, contract history, and any reported issues or successes with similar agencies would provide insight into their reliability and capability for this administrative management consulting role.

How does the $4.28M contract value compare to similar administrative management consulting contracts?

The $4.28 million contract value for approximately 9 months (272 days) of administrative management and general management consulting services is a significant, but not extraordinary, sum for federal contracts of this nature. To benchmark effectively, one would need to compare it against contracts with similar scopes of work, durations, and agency types. For instance, consulting engagements focused on large-scale organizational restructuring or strategic modernization within major agencies can easily run into tens of millions. Conversely, smaller, more focused consulting tasks would be valued lower. The sole-source nature also complicates direct value comparisons, as competitive bids might have yielded different pricing.

What are the potential risks associated with a labor-hours contract for consulting services?

Labor-hours contracts, like this one, are common for services where the exact amount of effort is difficult to predict. The primary risk is cost overrun if the contractor's labor hours exceed estimates or if the hourly rates are higher than anticipated. Scope creep is another significant risk, where the project's objectives expand beyond the original intent without a corresponding adjustment in price or time, leading to increased costs. Effective oversight, clear task definitions, and diligent monitoring of hours worked are crucial to mitigate these risks and ensure the government receives good value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nippon Telegraph and Telephone Corporation

Address: 2551 DULLES VIEW DRIVE STE 400, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $6,849,235

Exercised Options: $5,081,153

Current Obligation: $4,280,301

Actual Outlays: $3,665,410

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline