DOJ's DEA Awards $5.46M IT Governance Contract to NTT DATA Federal Services

Contract Overview

Contract Amount: $5,462,678 ($5.5M)

Contractor: NTT Data Federal Services, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-01-01

End Date: 2027-06-30

Contract Duration: 910 days

Daily Burn Rate: $6.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: NTT DATA IT GOVERNANCE SUPPORT BRIDGE CONTRACT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $5.5 million to NTT DATA FEDERAL SERVICES, INC. for work described as: NTT DATA IT GOVERNANCE SUPPORT BRIDGE CONTRACT Key points: 1. Contract awarded to NTT DATA Federal Services for IT Governance Support. 2. The contract has a total value of $5.46 million. 3. This is a definitive contract with a labor hours pricing structure. 4. The contract is for custom computer programming services. 5. The period of performance spans from January 1, 2025, to June 30, 2027.

Value Assessment

Rating: fair

The contract uses labor hours, which can lead to cost overruns if not managed carefully. Benchmarking against similar custom computer programming services contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure on the contractor to offer the most cost-effective solution.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed contract.

Public Impact

Taxpayers may be paying a premium due to the sole-source nature of the award. The DEA relies on NTT DATA for critical IT governance functions. The contract duration extends over two fiscal years, impacting future budget planning. The specific IT governance functions supported are not detailed, limiting public understanding of the service's impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Labor hours pricing can lead to cost uncertainty.
Lack of detailed scope makes value assessment difficult.

Positive Signals

Contract supports critical IT governance functions.
Long-term contract provides stability for DEA's IT operations.

Sector Analysis

This contract falls under the IT sector, specifically custom computer programming services. The benchmark for this NAICS code can vary widely based on complexity and duration, but the $5.46M value over nearly three years suggests a significant, ongoing support role.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The contract is a definitive contract, suggesting a clear scope and terms. However, the lack of competition raises questions about the effectiveness of oversight in ensuring fair pricing and optimal value.

Related Government Programs

Custom Computer Programming Services
Department of Justice Contracting
Drug Enforcement Administration Programs

Risk Flags

Sole-source award.
Labor hours pricing.
Lack of competition.
Limited public information on specific services.
No small business set-aside or subcontracting noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5.5 million to NTT DATA FEDERAL SERVICES, INC.. NTT DATA IT GOVERNANCE SUPPORT BRIDGE CONTRACT

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 $5.5 million.

What is the period of performance?

Start: 2025-01-01. End: 2027-06-30.

What specific IT governance functions are being supported by this contract, and how do they align with the DEA's strategic objectives?

The provided data does not specify the exact IT governance functions. These typically include policy development, risk management, compliance monitoring, and strategic planning for IT resources. Understanding these specifics is crucial to assess if the $5.46 million investment directly supports the DEA's mission and contributes to efficient IT operations and security.

Given the sole-source nature, what mechanisms are in place to ensure NTT DATA is providing services at a fair and reasonable price?

Without competition, the government typically relies on cost analysis, historical pricing, and potentially certified cost and pricing data from the contractor to determine fairness. Robust contract surveillance and performance monitoring by the DEA are essential to ensure the contractor meets performance standards and that costs remain justified throughout the contract's life.

How will the effectiveness of NTT DATA's IT governance support be measured and evaluated throughout the contract period?

Effectiveness is usually measured through performance metrics and deliverables outlined in the contract's Performance Work Statement (PWS). Key Performance Indicators (KPIs) related to IT policy adherence, risk mitigation, audit findings, and project success rates would be tracked. Regular performance reviews between the DEA and NTT DATA are critical for ongoing assessment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: $9,719,765

Exercised Options: $9,584,960

Current Obligation: $5,462,678

Actual Outlays: $3,718,374

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline