DoD's $345M PEO Subs Support Services Contract Awarded to NTT DATA Raises Oversight Questions
Contract Overview
Contract Amount: $344,838,246 ($344.8M)
Contractor: NTT Data Services Federal Government, LLC
Awarding Agency: Department of Defense
Start Date: 2012-06-13
End Date: 2023-03-31
Contract Duration: 3,943 days
Daily Burn Rate: $87.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: SUPPORT SERVICES FOR PEO SUBS
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376
Plain-Language Summary
Department of Defense obligated $344.8 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: SUPPORT SERVICES FOR PEO SUBS Key points: 1. Significant contract value of $345M over 11 years. 2. NTT DATA SERVICES FEDERAL GOVERNMENT, LLC holds the contract. 3. The contract falls under Engineering Services (NAICS 541330). 4. Full and Open Competition was used, but oversight needs scrutiny. 5. The contract type is Cost Plus Incentive Fee.
Value Assessment
Rating: fair
The contract value of $345M over nearly 11 years suggests a substantial investment. Benchmarking against similar engineering services contracts is difficult without more granular data on the specific services provided and their unit costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under Full and Open Competition, which is generally positive for price discovery. However, the long duration and cost-plus nature of the contract warrant close monitoring to ensure competitive pricing is maintained throughout its life.
Taxpayer Impact: With a total value of $345M, taxpayers are funding extensive engineering support services. Ensuring efficient and effective service delivery is crucial to maximizing taxpayer value.
Public Impact
Taxpayers are funding over $345 million for engineering support services. The long contract duration (2012-2023) indicates a sustained need for these services. The contract supports the Program Executive Office (PEO) for Submarines. The use of Cost Plus Incentive Fee suggests performance-based incentives are in place.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may reduce flexibility.
- Cost-plus contracts can lead to cost overruns if not managed tightly.
- Lack of specific service details makes value assessment challenging.
Positive Signals
- Awarded under Full and Open Competition.
- Incentive fee structure encourages performance.
- Supports critical submarine programs.
Sector Analysis
Engineering services are critical for defense acquisition programs, particularly for complex platforms like submarines. The $345M spend over 11 years is significant but may be in line with the scale of PEO Submarine's needs.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The long duration and cost-plus nature of this contract necessitate robust oversight from the Department of the Navy to ensure cost control, performance, and adherence to contract terms. Tracking delivery orders and performance metrics is key.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPIF structure.
- Lack of detailed service scope hinders value assessment.
- Long contract duration may indicate a lack of market research for alternatives.
- No indication of small business participation.
- Significant taxpayer investment requires strong oversight.
Tags
engineering-services, department-of-defense, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $344.8 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. SUPPORT SERVICES FOR PEO SUBS
Who is the contractor on this award?
The obligated recipient is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $344.8 million.
What is the period of performance?
Start: 2012-06-13. End: 2023-03-31.
What specific engineering services were provided under this contract, and how did their scope evolve over the 11-year period?
The provided data lacks specifics on the exact engineering services rendered. Typically, such contracts support program management, systems engineering, technical analysis, and acquisition support for complex defense systems like submarines. The scope likely evolved to address changing technological requirements, program milestones, and emergent needs within the PEO Submarine portfolio over the contract's extensive lifespan.
How effectively did the Cost Plus Incentive Fee structure incentivize NTT DATA to control costs and meet performance targets for PEO Subs?
The effectiveness of the Cost Plus Incentive Fee (CPIF) structure hinges on the clarity and attainability of the defined cost and performance targets. Without access to the specific incentive metrics and outcomes, it's difficult to definitively assess its success. A well-structured CPIF should align contractor and government interests, driving efficiency and quality, but requires diligent monitoring to prevent unintended consequences or gaming of the system.
Given the $345M total value, what was the overall return on investment or value for money achieved by the Department of the Navy for these engineering support services?
Assessing the precise return on investment for $345M in engineering support services is challenging without detailed performance metrics and comparisons to alternative solutions or in-house capabilities. Value for money would be demonstrated through successful program execution, timely delivery of submarine systems, cost savings achieved through contractor expertise, and innovation. The long duration suggests a perceived value, but a formal post-award review would be needed for a definitive assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002412R3251
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 13880 DULLES CORNER LN STE 200, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $631,512,389
Exercised Options: $583,990,701
Current Obligation: $344,838,246
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $621,797
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4102
IDV Type: IDC
Timeline
Start Date: 2012-06-13
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2024-06-25
More Contracts from NTT Data Services Federal Government, LLC
- (information Technology Infrastructure Support Services (itiss)) — $208.2M (Nuclear Regulatory Commission)
- Ames Consolidated Information Technology Services 2 (acits 2) Contract for IT Support AT Ames Research Center Includes the Following IT Systems and Facility Support, Network Communications System Support, Business Systems Support, Scientific Computing Systems Support and Outreach. Performance Period for the Base IS Sept 1, 2008 Through Sept 30, 2009 — $205.2M (National Aeronautics and Space Administration)
- 200210!025327!1700!BZ005 !naval SEA Systems Command !N0002401D7010 !A!N! !N!0011 !20020703!20030702!175344753!175344753!191692813!n!adi Technology Corporation !1800 N Beauregard ST !alexandria !va!22311!50000!001!11!washington !district of Columbia !D.C. !+000001139368!n!n!000000000000!r499!other Professional Services !S1 !services !2000!NOT Discernable or Classified !541330!E! !5!B!M! !A!D!20060331!B! ! !A! !a!n!u!2!021!b! !Z!N!Z! ! !n!b!n!n! ! !C! !a!a!000!a!b!n! ! ! ! ! ! !0001! — $199.4M (Department of Defense)
- Support to the Niaid Office of CIO Cyber Technologies Support Program — $157.3M (Department of the Interior)
- Information Technology Infrastructure Support Services — $141.8M (Department of Health and Human Services)
View all NTT Data Services Federal Government, LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)