DOJ's $42.6M IT Support Contract with NTT DATA Raises Questions on Value and Competition
Contract Overview
Contract Amount: $42,659,410 ($42.7M)
Contractor: NTT Data Federal Services, Inc.
Awarding Agency: Department of Justice
Start Date: 2007-11-29
End Date: 2011-09-30
Contract Duration: 1,401 days
Daily Burn Rate: $30.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IT SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530
Plain-Language Summary
Department of Justice obligated $42.7 million to NTT DATA FEDERAL SERVICES, INC. for work described as: IT SUPPORT SERVICES Key points: 1. Significant spending on IT support services highlights the critical role of technology in government operations. 2. NTT DATA FEDERAL SERVICES, INC. secured this contract, indicating a competitive landscape for IT solutions. 3. The contract's duration and cost warrant scrutiny for potential inefficiencies and taxpayer impact. 4. Focus on Computer Systems Design Services suggests a need for specialized technical expertise within the agency.
Value Assessment
Rating: questionable
The contract value of $42.6M over 1401 days suggests a substantial investment. Benchmarking against similar IT support contracts is crucial to determine if this pricing reflects fair market value or potential overspending.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a 'COMPETITIVE DELIVERY ORDER', this indicates that multiple vendors likely competed. However, the specific details of the bidding process and the number of competitors are not provided, impacting a full assessment of price discovery.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, suggesting efforts to secure reasonable pricing. However, the overall value and efficiency of the services rendered remain key factors in the final taxpayer impact.
Public Impact
Citizens rely on efficient IT infrastructure for access to government services. The Department of Justice's spending on IT impacts the operational capacity of various offices and boards. Transparency in IT procurement builds public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition metrics
- Time and Materials pricing model can lead to cost overruns
- No indication of small business participation
Positive Signals
- Competitive award process
- Long-term contract provides stability
Sector Analysis
The Department of Justice's IT support spending falls within the broader IT services sector. Benchmarks for similar government contracts for computer systems design services are essential for evaluating cost-effectiveness and performance.
Small Business Impact
The data indicates that small business participation was not a factor in this contract ('sb': false). Further analysis would be needed to understand if opportunities for small businesses were overlooked or if the nature of the services did not lend itself to SMB involvement.
Oversight & Accountability
While awarded competitively, the 'Time and Materials' pricing structure necessitates robust oversight to prevent scope creep and ensure efficient resource utilization. Regular performance reviews and cost audits are vital for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing
- Lack of transparency on specific competition details
- No apparent small business participation
- Need for robust oversight to ensure value for money
Tags
computer-systems-design-services, department-of-justice, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $42.7 million to NTT DATA FEDERAL SERVICES, INC.. IT 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 $42.7 million.
What is the period of performance?
Start: 2007-11-29. End: 2011-09-30.
What was the specific competitive landscape and the number of bids received for this contract to ensure optimal price discovery?
The provided data indicates a 'COMPETITIVE DELIVERY ORDER' but lacks specifics on the number of bids or the nature of the competition. Understanding the full competitive landscape, including the number of proposals received and the evaluation criteria, is crucial for confirming that the government achieved the best possible pricing and value for these IT support services.
How does the 'Time and Materials' pricing model for this $42.6M contract mitigate risks of cost overruns and ensure efficient service delivery?
The 'Time and Materials' (T&M) pricing model inherently carries a risk of cost overruns if not managed with stringent oversight. For this $42.6M contract, effective mitigation requires detailed tracking of labor hours and material costs, clear task definitions, and regular performance reviews to prevent scope creep and ensure that the final cost aligns with the value delivered.
What is the measurable impact of these IT support services on the Department of Justice's operational effectiveness and mission accomplishment?
The provided data focuses on contract specifics rather than performance outcomes. To assess effectiveness, one would need to examine metrics related to system uptime, response times for IT issues, successful project implementations, and overall user satisfaction within the Department of Justice's offices, boards, and divisions.
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: $42,659,410
Exercised Options: $42,659,410
Current Obligation: $42,659,410
Parent Contract
Parent Award PIID: DJJ05C1114
IDV Type: IDC
Timeline
Start Date: 2007-11-29
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2009-08-22
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