DHS awards $34.8M for IT services to NTT DATA FEDERAL SERVICES, INC. under full and open competition

Contract Overview

Contract Amount: $34,798,310 ($34.8M)

Contractor: NTT Data Federal Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-25

End Date: 2021-05-31

Contract Duration: 979 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DELIVERY - QUALITY ASSURANCE TECHNICAL SERVICES IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20529

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.8 million to NTT DATA FEDERAL SERVICES, INC. for work described as: DELIVERY - QUALITY ASSURANCE TECHNICAL SERVICES IGF::OT::IGF Key points: 1. The contract value of $34.8 million over approximately 3 years represents a significant investment in IT infrastructure. 2. Competition dynamics indicate a potentially favorable pricing environment due to full and open bidding. 3. Performance risk appears moderate, given the Time and Materials contract type which can incentivize efficiency. 4. The contract is positioned within the IT services sector, specifically focusing on computer systems design. 5. The geographic location of service delivery is concentrated in the District of Columbia. 6. The award was made as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract's total value of $34.8 million over 979 days suggests an average annual spend of approximately $11.9 million. Benchmarking this against similar IT services contracts requires detailed analysis of scope and duration. However, the Time and Materials pricing structure, while flexible, can sometimes lead to higher costs if not managed closely. Without specific comparable contract data, a precise value-for-money assessment is challenging, but the competitive award process provides a baseline for fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition suggests that the agency sought the best value from a wide range of potential contractors.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring that the government receives a wide array of innovative solutions at competitive rates.

Public Impact

The primary beneficiaries are U.S. Citizenship and Immigration Services (USCIS) within the Department of Homeland Security, receiving essential IT support. The services delivered include computer systems design, crucial for the operational efficiency of immigration services. The geographic impact is primarily within the District of Columbia, where the services are likely performed. Workforce implications may include the creation or sustainment of IT professional jobs within NTT DATA FEDERAL SERVICES, INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for efficiency and scope creep.
Lack of specific bidder count makes it difficult to fully assess the intensity of competition and its impact on price.
The contract's duration and value warrant ongoing scrutiny to ensure continued alignment with agency needs and budget.
Dependence on a single delivery order under a potential IDIQ vehicle means future task orders will be critical for overall program success.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
NTT DATA FEDERAL SERVICES, INC. is an established IT services provider, implying a degree of contractor experience and capability.
The contract is for essential IT services, indicating a clear and ongoing need within USCIS.
The delivery order structure allows for phased implementation and management of IT support.

Sector Analysis

This contract falls within the broader IT services sector, a large and dynamic market driven by government and commercial demand for digital transformation, cloud computing, cybersecurity, and data analytics. The specific focus on computer systems design services is a core component of IT modernization efforts. Comparable spending benchmarks for IT services contracts of this size and scope vary widely based on complexity, duration, and specific technological requirements. The government's overall IT spending is in the hundreds of billions annually, with significant portions allocated to system design, integration, and maintenance.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The prime contractor, NTT DATA FEDERAL SERVICES, INC., is a large business. While not required by this specific award, large federal contractors often have subcontracting plans that may include opportunities for small businesses on other contracts or as part of their broader business strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Citizenship and Immigration Services (USCIS) contracting officer and contract specialists. The Time and Materials pricing structure necessitates diligent oversight to ensure labor hours and material costs are reasonable and allocable to the contract's objectives. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Services
Computer Systems Design
Department of Homeland Security Contracts
USCIS IT Modernization
Federal IT Procurement

Risk Flags

Potential for cost overruns due to T&M contract type.
Lack of specific bidder count limits assessment of competition intensity.
Need for robust government oversight to manage T&M contract effectively.
Dependence on delivery orders under a potential IDIQ requires careful future tasking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.8 million to NTT DATA FEDERAL SERVICES, INC.. DELIVERY - QUALITY ASSURANCE TECHNICAL SERVICES IGF::OT::IGF

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. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $34.8 million.

What is the period of performance?

Start: 2018-09-25. End: 2021-05-31.

What is the track record of NTT DATA FEDERAL SERVICES, INC. in delivering similar IT services to federal agencies?

NTT DATA FEDERAL SERVICES, INC. has a significant track record of performing IT services for various federal agencies. As a large, established contractor, they have experience across a wide range of IT disciplines, including systems design, integration, and support. Analyzing their past performance on similar contracts, particularly those with the Department of Homeland Security or agencies with comparable missions, would provide insight into their ability to meet technical requirements, manage project timelines, and adhere to budgetary constraints. Past performance evaluations and contract close-out data, where available, are crucial for assessing their reliability and effectiveness in delivering complex IT solutions within the federal landscape.

How does the $34.8 million contract value compare to other IT services contracts awarded by USCIS or DHS?

The $34.8 million contract value for computer systems design services over approximately three years places this award within a significant, but not exceptionally large, tier of federal IT contracts. USCIS and DHS, as major components of the federal government, frequently award IT contracts ranging from a few million to hundreds of millions of dollars. To benchmark effectively, one would compare this contract's total value, duration, and specific scope (e.g., cloud migration, legacy system modernization, cybersecurity enhancements) against other similar awards. Contracts for enterprise-wide system overhauls or major infrastructure upgrades typically command higher values. This particular award appears to support ongoing operational needs or specific system enhancements rather than a complete agency-wide IT overhaul.

What are the primary risks associated with a Time and Materials (T&M) contract for computer systems design?

The primary risk associated with a Time and Materials (T&M) contract for computer systems design is the potential for cost overruns due to a lack of a fixed ceiling on labor hours and material costs. Unlike fixed-price contracts, T&M agreements incentivize the contractor to bill for all hours worked and materials used, which can lead to scope creep and inefficient performance if not rigorously managed. For the government, this necessitates strong oversight, detailed monitoring of labor categories and rates, and clear definition of work requirements to prevent unnecessary billing. The risk is that the final cost could significantly exceed initial estimates if the project's complexity or duration is underestimated or if contractor efficiency is low.

What is the historical spending pattern for computer systems design services at USCIS?

Historical spending patterns for computer systems design services at USCIS reveal a consistent need for IT support to manage and modernize its complex immigration systems. Over the past several fiscal years, USCIS has allocated substantial funds towards IT modernization, including system design, software development, and infrastructure upgrades. This spending is driven by the agency's mission-critical functions, the need to adapt to evolving technological landscapes, and legislative or policy changes impacting immigration processes. Analyzing historical data would show fluctuations based on specific project initiatives, budget appropriations, and the contracting vehicles used (e.g., IDIQs, direct awards). This $34.8 million award represents a continuation of this trend, addressing ongoing requirements for system design and enhancement.

How does the 'full and open competition' award mechanism impact the value received by taxpayers?

The 'full and open competition' award mechanism is designed to maximize value for taxpayers by fostering a competitive marketplace. By allowing all responsible sources to bid, the government increases the likelihood of receiving proposals that offer the best combination of technical merit and price. This competitive pressure encourages contractors to offer lower prices, more innovative solutions, and higher quality services to win the contract. Furthermore, it provides transparency and ensures that the government is not limited to a single provider, which could lead to inflated costs. Taxpayers benefit from this process through potentially lower overall contract costs and access to a wider range of efficient and effective IT solutions.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR18R00000013

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $42,030,932

Exercised Options: $34,798,310

Current Obligation: $34,798,310

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC13DE2014

IDV Type: IDC

Timeline