DHS Awards $36.8M for IV&V Services to NTT Data Federal Services, Inc

Contract Overview

Contract Amount: $36,857,181 ($36.9M)

Contractor: NTT Data Federal Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-23

End Date: 2022-04-29

Contract Duration: 583 days

Daily Burn Rate: $63.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IV&V SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $36.9 million to NTT DATA FEDERAL SERVICES, INC. for work described as: IV&V SERVICES Key points: 1. The contract value represents a significant investment in independent verification and validation services. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this award to similar IT service contracts. 5. The sector positioning highlights the importance of IV&V in federal IT modernization. 6. The contract duration of 583 days suggests a substantial scope of work.

Value Assessment

Rating: good

The contract value of $36.8 million for IV&V services appears reasonable when benchmarked against similar IT support contracts awarded by federal agencies. The 'Cost Plus Fixed Fee' (CPFF) contract type allows for cost reimbursement with a fixed fee, which can be advantageous for complex projects where scope may evolve. However, careful monitoring of costs is essential to ensure value for money. Without specific per-unit cost data, a precise benchmark is difficult, but the overall award size is within expected ranges for comprehensive IV&V support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive environment is generally expected to drive better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition was sought, which is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a marketplace where contractors are incentivized to offer their best pricing and innovative solutions to win the contract.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), receiving critical IV&V services. The services delivered are essential for ensuring the quality, security, and effectiveness of IT systems and programs. The geographic impact is centered in the District of Columbia, where the contract is managed. Workforce implications include the employment of skilled professionals in IT, quality assurance, and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type requires diligent oversight to manage costs effectively.
The duration of the contract (583 days) necessitates sustained performance monitoring.
Dependence on a single contractor for critical IV&V services could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a competitive selection process.
NTT DATA FEDERAL SERVICES, INC. is an established IT services provider with federal experience.
The contract aims to ensure the integrity and success of vital DHS IT initiatives.

Sector Analysis

The Information Technology sector, specifically Computer Systems Design Services, is a critical component of federal operations. This contract falls under the broader category of IT support services, which includes crucial functions like independent verification and validation (IV&V). Federal spending in this area is substantial, driven by the need to modernize legacy systems, enhance cybersecurity, and implement new digital solutions. Comparable spending benchmarks for IV&V services vary widely based on scope, but contracts in the tens of millions are common for large federal agencies like DHS.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small businesses through this prime contract is likely minimal. However, the prime contractor, NTT DATA FEDERAL SERVICES, INC., may engage small businesses for subcontracting opportunities to fulfill specific requirements, contributing indirectly to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the U.S. Customs and Border Protection (CBP) contracting officer and program managers within DHS. Accountability measures are embedded within the CPFF contract structure, requiring the contractor to justify costs and demonstrate progress towards fixed-fee milestones. Transparency is facilitated through contract award databases and reporting requirements. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Services
Independent Verification and Validation (IV&V)
Department of Homeland Security IT Modernization
Federal IT Consulting Services
Computer Systems Design Services

Risk Flags

Cost Management Risk (CPFF)
Performance Monitoring Intensity
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $36.9 million to NTT DATA FEDERAL SERVICES, INC.. IV&V SERVICES

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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $36.9 million.

What is the period of performance?

Start: 2020-09-23. End: 2022-04-29.

What is the track record of NTT DATA FEDERAL SERVICES, INC. with federal IV&V contracts?

NTT DATA FEDERAL SERVICES, INC. has a significant track record in providing IT services to the federal government, including areas relevant to independent verification and validation. Their experience spans various agencies and contract types, demonstrating a capacity to handle complex federal IT projects. While specific IV&V contract performance data requires deeper analysis of past performance reviews and award histories, their presence as a large federal IT contractor suggests a familiarity with government requirements, procurement processes, and performance expectations. It is advisable to review past performance evaluations and any debriefings associated with their previous federal awards to gain a comprehensive understanding of their reliability and effectiveness in similar roles.

How does the $36.8 million award compare to other federal IV&V contracts?

The $36.8 million award for IV&V services to NTT DATA FEDERAL SERVICES, INC. by DHS is a substantial but not uncommon figure for large federal IT support contracts. Federal agencies, particularly those with complex missions like Homeland Security, often invest significant amounts in ensuring the integrity and success of their IT systems through independent verification and validation. Comparable contracts for similar services can range from a few million dollars for specific system validations to tens or even hundreds of millions for comprehensive, multi-year IV&V support across an agency's portfolio. The value of this contract is consistent with the scale of operations and IT investments typical for a major federal entity like CBP.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IV&V services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to NTT DATA FEDERAL SERVICES, INC., is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. If costs escalate significantly beyond initial estimates due to scope creep, inefficiencies, or unforeseen challenges, the government bears the burden of these increased costs. For IV&V services, this risk is managed through robust oversight, clear definition of tasks, and diligent monitoring of contractor expenditures and performance against milestones. The government must ensure that the contractor is performing efficiently and that all costs incurred are reasonable and allocable to the contract's objectives.

How effective are IV&V services in ensuring the success of federal IT projects?

Independent Verification and Validation (IV&V) services are widely recognized as a critical component for ensuring the success of federal IT projects. By providing an objective, third-party assessment of project processes, deliverables, and outcomes, IV&V helps identify risks, defects, and deviations from requirements early in the lifecycle. This proactive approach allows for timely corrective actions, reducing the likelihood of project failure, budget overruns, and schedule delays. For complex and high-stakes federal IT initiatives, such as those managed by DHS, IV&V plays a crucial role in assuring stakeholders that systems are being developed and implemented correctly, securely, and in alignment with mission objectives, ultimately contributing to better program outcomes and return on investment.

What is the historical spending trend for IV&V services within DHS or CBP?

Analyzing historical spending trends for IV&V services within DHS or CBP requires access to detailed procurement data over multiple fiscal years. Generally, federal agencies have shown a consistent or increasing investment in IV&V services, driven by the growing complexity of IT systems, heightened cybersecurity threats, and the push for digital transformation. Agencies like CBP, responsible for critical national security functions, are likely to maintain or increase their IV&V spending to ensure the reliability and security of their vast IT infrastructure. Without specific historical data for this contract or category within CBP, it's difficult to pinpoint precise trends, but the overall federal IT spending landscape suggests a sustained demand for such services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nippon Telegraph and Telephone Corporation

Address: 1660 INTERNATIONAL DR STE 300, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $43,003,990

Exercised Options: $36,857,181

Current Obligation: $36,857,181

Actual Outlays: $292,575

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC13DE2014

IDV Type: IDC

Timeline