PBGC's $16M system engineering contract with NTT DATA awarded via full and open competition

Contract Overview

Contract Amount: $16,039,025 ($16.0M)

Contractor: NTT Data Federal Services, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2004-12-08

End Date: 2009-10-31

Contract Duration: 1,788 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CIO - OIT PBGC SYSTEM ENGINEERING SERVICES CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $16.0 million to NTT DATA FEDERAL SERVICES, INC. for work described as: CIO - OIT PBGC SYSTEM ENGINEERING SERVICES CONTRACT Key points: 1. Contract awarded for system engineering services to support PBGC's IT infrastructure. 2. NTT DATA FEDERAL SERVICES, INC. is the prime contractor for this effort. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. Services were delivered over a period of approximately 5 years. 5. The contract type was labor hours, indicating payment based on hours worked. 6. The contract was awarded by the Pension Benefit Guaranty Corporation (PBGC).

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The total award amount of approximately $16 million over nearly five years suggests a moderate annual spend. Comparing this to similar IT system engineering contracts requires access to more granular data on scope, complexity, and labor rates. The 'labor hours' contract type can sometimes lead to cost overruns if not managed tightly, but it also offers flexibility. Without further details on deliverables and outcomes, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this requirement. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the solicitation and evaluation process would provide further insight into the effectiveness of the competition.

Taxpayer Impact: A competitive award process generally benefits taxpayers by encouraging contractors to offer competitive pricing. Full and open competition aims to ensure the government receives the best value by considering all qualified vendors.

Public Impact

The primary beneficiary of this contract is the Pension Benefit Guaranty Corporation (PBGC), which received system engineering support. The services delivered likely contributed to the stability and efficiency of PBGC's IT systems, which are crucial for managing pension plans. The geographic impact is centered around the PBGC's operational locations, primarily in Washington D.C. The contract supported IT professionals and system engineers, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The 'labor hours' contract type carries inherent risks of cost escalation if not meticulously managed and monitored.
Limited information on the specific system engineering challenges addressed and the solutions implemented.

Positive Signals

Awarded through full and open competition, indicating an effort to secure competitive pricing and a wide range of potential contractors.
The contract duration of nearly five years suggests a stable, long-term need for these system engineering services.
The contractor, NTT DATA FEDERAL SERVICES, INC., is a known entity in the federal IT services space.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on system engineering. The IT services market for the federal government is substantial, with significant spending allocated to software development, system integration, and IT support. Contracts like this are essential for maintaining and modernizing the complex IT infrastructures of government agencies. Comparable spending benchmarks would involve analyzing other system engineering or IT support contracts awarded by agencies of similar size and mission to the PBGC.

Small Business Impact

There is no indication that this contract included a small business set-aside. The prime contractor, NTT DATA FEDERAL SERVICES, INC., is a large business. Therefore, the direct impact on small businesses through prime contracting is likely minimal. However, the potential for subcontracting opportunities for small businesses exists, depending on the prime contractor's subcontracting plan and the specific technical requirements of the system engineering services.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Pension Benefit Guaranty Corporation (PBGC) contracting officers and program managers. Accountability measures would typically include performance reviews, adherence to contract terms, and delivery of specified services. Transparency is generally facilitated through contract award databases like FPDS, which provide basic information on contract value, contractor, and award date. Specific Inspector General (IG) jurisdiction would depend on whether the PBGC has its own IG or falls under a broader oversight body.

Related Government Programs

PBGC IT Modernization Efforts
Federal IT System Engineering Support
Cloud Migration Services (if applicable)
Cybersecurity Support Services (if applicable)

Risk Flags

Labor Hours Contract Type Risk
Limited Competition Data
Lack of Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $16.0 million to NTT DATA FEDERAL SERVICES, INC.. CIO - OIT PBGC SYSTEM ENGINEERING SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is NTT DATA FEDERAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).

What is the total obligated amount?

The obligated amount is $16.0 million.

What is the period of performance?

Start: 2004-12-08. End: 2009-10-31.

What specific system engineering challenges did PBGC face that led to this contract?

The provided data does not detail the specific system engineering challenges faced by the Pension Benefit Guaranty Corporation (PBGC) that necessitated this contract. Typically, such contracts are awarded to address needs related to maintaining, upgrading, or developing IT systems that support an agency's core mission. For PBGC, this could involve ensuring the reliability and security of systems managing pension data, processing benefits, or supporting administrative functions. Without access to the original contract statement of work or related documentation, the precise technical or operational problems this contract aimed to solve remain unspecified.

How does the $16 million award compare to other PBGC IT spending over the same period?

Comparing this $16 million contract to other PBGC IT spending requires access to historical PBGC budget and expenditure data for the period between December 2004 and October 2009. This contract represents a significant investment in system engineering services over its nearly five-year duration. To provide a comparative analysis, one would need to aggregate all IT-related expenditures by PBGC during that timeframe, including hardware, software, other IT services, and personnel costs. This would allow for an assessment of the proportion of PBGC's IT budget allocated to system engineering and whether this contract represented a major or minor component of their overall IT investment.

What was the track record of NTT DATA FEDERAL SERVICES, INC. with PBGC or similar agencies prior to this award?

The provided data indicates that NTT DATA FEDERAL SERVICES, INC. was the awardee for this contract. To assess their track record, one would need to examine prior contract awards to NTT DATA FEDERAL SERVICES, INC. by the Pension Benefit Guaranty Corporation (PBGC) and other federal agencies, particularly for similar IT system engineering services. Information on past performance, including successful project completion, adherence to schedules and budgets, and client satisfaction, would be crucial. A review of federal procurement databases and past performance evaluations, if publicly available, would shed light on their experience and reliability in serving government clients before and during this contract.

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

The provided summary data does not contain information regarding performance issues or contract modifications for this specific contract. Such details are typically found in contract line item details, performance reports, or modification logs, which are not included here. Investigating potential performance issues or modifications would require accessing the full contract file or relevant agency records. Contract modifications can occur for various reasons, including changes in scope, adjustments to timelines, or resolution of unforeseen challenges, and their nature and frequency can offer insights into contract management and execution.

What was the estimated cost savings or efficiency gains achieved through this system engineering contract?

The provided data does not include information on estimated cost savings or efficiency gains resulting from this system engineering contract. Assessing such outcomes would necessitate a review of the contract's objectives, performance metrics, and post-award evaluations. System engineering contracts aim to improve IT infrastructure, which can indirectly lead to cost savings through enhanced performance, reduced downtime, or better resource utilization. However, quantifying these benefits often requires specific metrics defined in the contract and subsequent analysis of operational improvements achieved by the PBGC.

Industry Classification

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

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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

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

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

Financial Breakdown

Contract Ceiling: $16,039,025

Exercised Options: $16,039,025

Current Obligation: $16,039,025

Timeline