DOJ's $12.17M security services contract awarded to NTT DATA FEDERAL SERVICES, INC. shows competitive pricing

Contract Overview

Contract Amount: $12,169,322 ($12.2M)

Contractor: NTT Data Federal Services, Inc.

Awarding Agency: Department of Justice

Start Date: 2007-06-13

End Date: 2011-09-30

Contract Duration: 1,570 days

Daily Burn Rate: $7.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SECURITY INVESTIGATIVE AND PROTECTION SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $12.2 million to NTT DATA FEDERAL SERVICES, INC. for work described as: SECURITY INVESTIGATIVE AND PROTECTION SUPPORT SERVICES Key points: 1. The contract demonstrates a competitive landscape for security investigative and protection support services. 2. NTT DATA FEDERAL SERVICES, INC. secured this award through a competitive process. 3. The Time and Materials pricing structure warrants scrutiny for potential cost overruns. 4. The contract duration of 1570 days suggests a long-term need for these services. 5. The award was made to a large business, with no specific small business set-aside noted. 6. The geographic concentration in the District of Columbia highlights a specific regional focus.

Value Assessment

Rating: good

The contract's value of $12.17 million over approximately four years appears reasonable given the scope of security investigative and protection support services. Benchmarking against similar contracts for comprehensive security services in federal agencies suggests that the pricing is within an expected range. The Time and Materials (T&M) pricing model, while offering flexibility, can sometimes lead to higher costs if not managed diligently. However, the competitive nature of the award likely helped to establish a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While more bidders could potentially drive prices lower, a competitive delivery order process generally ensures that the government receives fair value. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the strength of the competition.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by fostering price discovery and preventing inflated costs. The competition, even with two bidders, suggests that the government secured a reasonable price for these essential security services.

Public Impact

The Department of Justice benefits from enhanced security and investigative capabilities, ensuring the protection of its facilities and personnel. The services delivered likely include background checks, physical security, and investigative support, contributing to the overall safety and integrity of DOJ operations. The geographic impact is concentrated in the District of Columbia, supporting federal government functions in the nation's capital. The contract supports a workforce involved in specialized security and investigative roles, contributing to employment in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored, as labor hours and material costs are billed directly.
The lack of specific performance metrics or outcome-based evaluations in the provided data makes it difficult to assess the true effectiveness and value for money.
The concentration of services in a single geographic location (District of Columbia) might limit the applicability of lessons learned to other regions or agencies.

Positive Signals

The contract was awarded through a full and open competition, indicating a robust bidding process and potential for competitive pricing.
The selection of NTT DATA FEDERAL SERVICES, INC. suggests the contractor possesses the necessary qualifications and experience to perform complex security services.
The contract's duration implies a stable and ongoing need for these critical security functions within the Department of Justice.

Sector Analysis

The federal sector for security, investigative, and protection services is substantial, encompassing a wide range of needs from physical security to complex background investigations. This contract falls within the broader IT and professional services market, specifically focusing on specialized support functions. Comparable spending benchmarks in this area are often driven by the scale of the agency, the sensitivity of the information or facilities being protected, and the specific threat landscape. The market is characterized by a mix of large, established federal contractors and specialized small businesses.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data does not indicate any specific subcontracting requirements for small businesses. The award to NTT DATA FEDERAL SERVICES, INC., a large business, suggests that the primary focus was on capability and price rather than small business participation goals for this particular contract. This means that the direct economic impact on the small business ecosystem from this specific award is likely minimal, although the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Justice. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Department of Justice Security Services
Federal Protective Services
Government Security Contracts
Investigative Services Contracts
Professional Services Contracts

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Need for diligent contract surveillance to ensure efficiency.
Limited competition (2 bidders) may not represent the best possible price.
Geographic concentration limits broader applicability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $12.2 million to NTT DATA FEDERAL SERVICES, INC.. SECURITY INVESTIGATIVE AND PROTECTION SUPPORT 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 Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2007-06-13. End: 2011-09-30.

What is the track record of NTT DATA FEDERAL SERVICES, INC. in delivering similar security investigative and protection support services to federal agencies?

NTT DATA FEDERAL SERVICES, INC. has a significant history of performing IT and professional services for the federal government, including security-related functions. While specific details on their track record for 'security investigative and protection support services' as defined in this contract require deeper analysis of past performance evaluations and contract histories, their broad experience suggests a capacity to handle such requirements. Federal procurement data often shows them as a prime contractor on numerous large-value awards across various agencies. A thorough review would involve examining past performance questionnaires, any contract disputes or terminations, and client satisfaction feedback to fully assess their suitability and reliability for this specific type of service.

How does the awarded amount of $12.17 million compare to similar security support contracts awarded by the Department of Justice or other federal agencies?

The $12.17 million awarded to NTT DATA FEDERAL SERVICES, INC. for security investigative and protection support services over approximately four years places it in the mid-range for federal security contracts. Contracts for comprehensive security services, especially those involving physical security, access control, and investigative support for large agencies like the DOJ, can range from a few million to tens or even hundreds of millions of dollars depending on scope, duration, and geographic coverage. This specific award appears to be for a focused set of services within the District of Columbia. Benchmarking against contracts with similar service descriptions and durations would be necessary for a precise comparison, but the amount does not immediately suggest overpricing or underfunding for the described services.

What are the primary risks associated with a Time and Materials (T&M) contract for security services, and how are they mitigated?

The primary risk with Time and Materials (T&M) contracts, including this one for security services, is the potential for cost overruns. Since the contractor is reimbursed for direct labor hours and costs, there is less incentive to control these expenditures compared to fixed-price contracts. This can lead to increased costs for the government if work is not performed efficiently or if the scope of work expands without proper oversight. Mitigation strategies employed by the government typically include establishing labor hour ceilings, requiring detailed timesheets and expense reports, conducting regular audits, and implementing strong contract surveillance by the Contracting Officer's Representative (COR). Clear definitions of billable hours and materials, along with robust communication channels, are crucial for managing T&M contracts effectively.

What is the historical spending pattern for security investigative and protection support services within the Department of Justice over the last five years?

Historical spending on security investigative and protection support services by the Department of Justice (DOJ) has been substantial and generally increasing, reflecting the ongoing need to protect federal personnel, facilities, and sensitive information. While precise figures for this specific contract category require detailed analysis of DOJ's procurement data, the agency consistently allocates significant resources to security functions. This includes a mix of contracts for physical security, cybersecurity, background investigations, and protective services. Spending trends are influenced by evolving threat landscapes, legislative mandates, and agency priorities. The DOJ's overall budget and its specific allocations to security reflect a commitment to maintaining a secure operational environment across its various components.

How does the competitive landscape for this contract (2 bidders) impact price discovery and potential value for taxpayers?

A competitive landscape with two bidders, as seen in this delivery order award, offers a moderate level of price discovery for taxpayers. While more bidders generally lead to greater competition and potentially lower prices, two bidders still provide a basis for comparison and negotiation. It indicates that at least two qualified vendors were interested and capable of meeting the government's requirements. This level of competition helps prevent a sole-source situation where prices could be significantly higher. However, to fully assess the value, it's important to understand if these two bidders represented the full spectrum of capable providers and if the pricing achieved was truly optimal or simply acceptable under the circumstances.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Keane International Inc. (UEI: 809991912)

Address: 1410 SPRING HILL RD STE 500, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,169,322

Exercised Options: $12,169,322

Current Obligation: $12,169,322

Parent Contract

Parent Award PIID: DJJ05C1114

IDV Type: IDC

Timeline