CBP Spends $77M on IV&V Services for Border Security Systems, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $77,204,330 ($77.2M)

Contractor: NTT Data Federal Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2016-08-05

End Date: 2021-08-04

Contract Duration: 1,825 days

Daily Burn Rate: $42.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF CONTRACTOR WILL PROVIDE INDEPENDENT VERIFICATION AND VALIDATION (IV&V) SERVICES FOR VARIOUS CBP OFFICES TO VERIFY AND VALIDATE THAT ALL PRODUCTS AND SYSTEMS DEVELOPED FOR BORDER CONTROL AND SECURITY COMPLY WITH THE CBP REQUIREMENT AND THAT PROGRAM MANAGEMENT IS PERFORMED IN AN EFFECTIVE AND EFFICIENT MANNER AS CONGRESSIONALLY MANDATED.

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $77.2 million to NTT DATA FEDERAL SERVICES, INC. for work described as: IGF::OT::IGF CONTRACTOR WILL PROVIDE INDEPENDENT VERIFICATION AND VALIDATION (IV&V) SERVICES FOR VARIOUS CBP OFFICES TO VERIFY AND VALIDATE THAT ALL PRODUCTS AND SYSTEMS DEVELOPED FOR BORDER CONTROL AND SECURITY COMPLY WITH THE CBP REQUIREMENT AND THAT PROGRAM MANAGEMENT IS PERFO… Key points: 1. The contract focuses on ensuring Border Control and Security systems meet CBP requirements and are managed efficiently. 2. NTT DATA FEDERAL SERVICES, INC. is the contractor, indicating a significant player in the IT services sector. 3. The contract's duration of 5 years suggests a long-term need for these critical verification services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may lead to cost overruns if not carefully managed.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can be less predictable in final cost compared to fixed-price contracts. Without specific benchmarks for IV&V services of this complexity, assessing value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the CPFF structure requires diligent oversight to ensure cost efficiency.

Taxpayer Impact: While competition is positive for price discovery, the CPFF structure necessitates strong oversight to prevent taxpayer funds from being spent inefficiently.

Public Impact

Ensures the integrity and compliance of critical border security technology systems. Supports efficient and effective program management for congressionally mandated functions. Impacts the operational readiness and security of U.S. Customs and Border Protection. Provides assurance that taxpayer investments in technology are meeting their intended purpose.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost uncertainty.
Lack of specific performance metrics makes value assessment difficult.
Long contract duration requires ongoing monitoring for relevance and efficiency.

Positive Signals

Awarded through full and open competition.
Services are critical for national security and border control.
Contractor is a known entity in federal IT services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a crucial area for government IT modernization and security. Spending benchmarks for IV&V services can vary widely based on system complexity and scope.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). There is no information provided on subcontracting opportunities for small businesses.

Oversight & Accountability

The CPFF contract type requires robust oversight from DHS to ensure costs are reasonable and allocable. Regular audits and performance reviews are essential to maintain accountability and prevent waste.

Related Government Programs

Computer Systems Design Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing model.
Long contract duration (5 years).
Lack of specific performance metrics in summary data.
No indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $77.2 million to NTT DATA FEDERAL SERVICES, INC.. IGF::OT::IGF CONTRACTOR WILL PROVIDE INDEPENDENT VERIFICATION AND VALIDATION (IV&V) SERVICES FOR VARIOUS CBP OFFICES TO VERIFY AND VALIDATE THAT ALL PRODUCTS AND SYSTEMS DEVELOPED FOR BORDER CONTROL AND SECURITY COMPLY WITH THE CBP REQUIREMENT AND THAT PROGRAM MANAGEMENT IS PERFORMED IN AN EFFECTIVE AND EFFICIENT MANNER AS CONGRESSIONALLY MANDATED.

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 $77.2 million.

What is the period of performance?

Start: 2016-08-05. End: 2021-08-04.

What specific metrics are used to evaluate the effectiveness of the IV&V services provided by NTT DATA FEDERAL SERVICES, INC. under this contract?

The provided data does not specify the exact metrics used to evaluate the effectiveness of the IV&V services. Typically, such metrics would include the number of critical defects identified, the accuracy of validation reports, the timeliness of issue resolution, and the overall impact on system quality and compliance. A thorough review of the contract's Statement of Work (SOW) and performance reports would be necessary to ascertain these details.

How does the CPFF structure impact the government's ability to control costs for these IV&V services, and what oversight mechanisms are in place?

The CPFF structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. This can incentivize cost overruns if not managed tightly. CBP's oversight mechanisms likely include detailed cost reviews, audits of contractor expenditures, negotiation of indirect cost rates, and strict adherence to the contract's scope to ensure costs remain reasonable and allocable to the contract's objectives.

What is the potential risk of vendor lock-in or reduced innovation given the long duration and specialized nature of IV&V services?

There is a moderate risk of vendor lock-in and potential for reduced innovation with long-term, specialized service contracts. The government mitigates this by ensuring clear contract terms, encouraging knowledge transfer, and periodically re-evaluating the market for competitive alternatives. Regular performance reviews and the possibility of re-competing the contract can also incentivize the incumbent to maintain high service levels and explore innovative solutions.

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

Solicitation ID: HSBP1015R0013

Offers Received: 2

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: $99,901,807

Exercised Options: $77,205,330

Current Obligation: $77,204,330

Actual Outlays: $1,188,412

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $16,632,743

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