NTT DATA Services awarded $208M for IT infrastructure support, with a significant portion spent in the final year

Contract Overview

Contract Amount: $208,221,911 ($208.2M)

Contractor: NTT Data Services Federal Government, LLC

Awarding Agency: Nuclear Regulatory Commission

Start Date: 2014-06-17

End Date: 2019-08-31

Contract Duration: 1,901 days

Daily Burn Rate: $109.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF (INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS))

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20555

State: District of Columbia Government Spending

Plain-Language Summary

Nuclear Regulatory Commission obligated $208.2 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC for work described as: IGF::OT::IGF (INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS)) Key points: 1. Contract value of $208M over 5 years indicates substantial IT support needs. 2. Full and open competition suggests a potentially competitive bidding process. 3. A large portion of the contract value was likely utilized in the later years, warranting a review of spending patterns. 4. The contract's duration of 1901 days (approx. 5.2 years) aligns with typical IT infrastructure support lifecycles. 5. Fixed-price contract type offers cost certainty but may limit flexibility for evolving IT needs. 6. The contract was awarded to a single entity, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC.

Value Assessment

Rating: good

The total award of $208.2 million for ITISS over approximately 5.2 years averages to about $40 million annually. This figure appears reasonable for comprehensive IT infrastructure support services for a federal agency like the Nuclear Regulatory Commission. Without specific benchmarks for comparable ITISS contracts at the NRC or similar agencies, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The data does not specify the number of bids received, but the 'full and open' designation suggests a robust competition was intended.

Taxpayer Impact: A competitive bidding process typically benefits taxpayers by driving down costs and encouraging innovation from multiple vendors, leading to a more efficient use of public funds.

Public Impact

The primary beneficiary is the Nuclear Regulatory Commission (NRC), which receives essential IT infrastructure support. Services delivered include computer facilities management, ensuring the operational continuity of the NRC's IT systems. The geographic impact is concentrated in the District of Columbia, where the NRC's primary operations are located. The contract supports a workforce within NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, contributing to employment in the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for unforeseen technical challenges or scope creep.
Risk of vendor lock-in if the agency becomes heavily reliant on NTT DATA's specific infrastructure management approach.
Ensuring continued service quality and performance throughout the contract's duration, especially in the later years.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Fixed-price contract type provides cost predictability for the government.
Long-term contract (over 5 years) allows for stability and continuity in critical IT support services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT infrastructure support services. The market for federal IT services is substantial, with agencies increasingly relying on external contractors for specialized expertise in areas like data center management, network operations, and cybersecurity. Comparable spending benchmarks for IT infrastructure support at federal agencies of similar size and mission complexity would provide further context for evaluating the value of this award.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, NTT DATA SERVICES FEDERAL GOVERNMENT, LLC, is likely a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the Nuclear Regulatory Commission's contracting officers and program managers. Performance reviews, regular reporting requirements, and adherence to the contract's terms and conditions would form the basis of oversight. Transparency is generally maintained through contract award databases and public reporting mechanisms. The Inspector General's office for the NRC would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Infrastructure Modernization Programs
Cloud Computing Services Contracts
Cybersecurity Support Services
Enterprise Resource Planning (ERP) System Support
Data Center Operations and Maintenance

Risk Flags

Potential for cost overruns if fixed-price estimates were inaccurate.
Risk of service quality degradation if contractor faces financial pressure.
Lack of flexibility for evolving technological needs within a fixed-price structure.

Frequently Asked Questions

What is this federal contract paying for?

Nuclear Regulatory Commission awarded $208.2 million to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC. IGF::OT::IGF (INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS))

Who is the contractor on this award?

The obligated recipient is NTT DATA SERVICES FEDERAL GOVERNMENT, LLC.

Which agency awarded this contract?

Awarding agency: Nuclear Regulatory Commission (Nuclear Regulatory Commission).

What is the total obligated amount?

The obligated amount is $208.2 million.

What is the period of performance?

Start: 2014-06-17. End: 2019-08-31.

What was the specific breakdown of services provided under the IGF::OT::IGF (INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS)) contract?

The contract, identified as INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES (ITISS), was awarded to NTT DATA SERVICES FEDERAL GOVERNMENT, LLC by the Nuclear Regulatory Commission. The primary service category is NA 541513, which corresponds to Computer Facilities Management Services. This typically encompasses a range of activities necessary for the operation and maintenance of an organization's IT infrastructure. These services often include managing data centers, ensuring network uptime, providing technical support for hardware and software, implementing security measures for IT systems, and potentially managing cloud resources. The contract's duration of over five years suggests a comprehensive and ongoing need for these foundational IT support functions within the NRC.

How does the total contract value of $208.2 million compare to typical IT infrastructure support spending for federal agencies of similar size?

The total contract value of $208.2 million over approximately 5.2 years equates to an average annual spend of roughly $40 million for IT infrastructure support services. Comparing this to similar federal agencies requires access to a comprehensive database of IT spending benchmarks. However, for an agency like the Nuclear Regulatory Commission, which relies heavily on secure and robust IT systems for its regulatory functions, this level of investment is not unusual. Large federal agencies often spend tens to hundreds of millions annually on IT infrastructure, encompassing hardware, software, maintenance, and support services. The 'full and open competition' aspect suggests the NRC sought competitive pricing, which should theoretically align this expenditure with market rates for comparable services.

What are the potential risks associated with a fixed-price contract of this magnitude and duration?

A significant risk with a fixed-price contract of this magnitude ($208.2 million over 5+ years) is the potential for the contractor to underbid or for unforeseen circumstances to arise that make the fixed price unsustainable for the contractor, leading to quality compromises. Conversely, if the contractor significantly overestimates costs, the government may overpay. For the government, the risk lies in scope creep; if the requirements expand beyond the original scope without a corresponding price adjustment (which is difficult under fixed-price), the contractor may cut corners on service quality. Furthermore, a long-term fixed-price contract can reduce flexibility if the agency's technological needs evolve rapidly, potentially locking them into outdated solutions or requiring costly modifications.

What does the contract award date (2014-06-17) and end date (2019-08-31) suggest about the agency's IT planning and procurement cycle?

The contract award date of June 17, 2014, and an end date of August 31, 2019, indicate a contract duration of just over five years. This timeframe suggests a strategic approach to IT infrastructure support, recognizing that such services require long-term planning and stable vendor relationships. Federal agencies typically engage in lengthy procurement processes, often taking a year or more from requirement definition to award. The five-year duration is common for major IT service contracts, allowing for implementation, stabilization, and operational phases. It also implies that the Nuclear Regulatory Commission likely had a clear understanding of its IT infrastructure needs for that period and planned its budget accordingly, aligning with federal procurement regulations that often favor longer-term contracts for stability and efficiency.

Were there any performance issues or contract modifications noted during the life of this contract?

The provided data does not include specific details on performance issues or contract modifications for this particular award. Typically, such information would be found in contract performance reports, modification logs, or agency oversight documentation. A contract of this size and duration ($208.2 million over 5 years) would likely have undergone some modifications to address evolving requirements, technological changes, or adjustments in scope. Without access to these detailed records, it's impossible to assess whether there were significant performance issues that necessitated changes or if the modifications were routine administrative adjustments. Further investigation into the contract's official file would be required.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nippon Telegraph and Telephone Corporation (UEI: 690626718)

Address: 13880 DULLES CORNER LN STE 200, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $223,414,610

Exercised Options: $223,414,610

Current Obligation: $208,221,911

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $49,929,956

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NRC3311325

IDV Type: IDC

Timeline