We open the year with a new competitor highlight on an less known, but significant GOVCON competitor – NTT DATA. The company is among the likes of BAE Systems and Deloitte as an internationally headquartered business with a separate U.S. business.
NTT DATA is an IT services provider and systems integrator headquartered in Tokyo, Japan. The company has business operations in 88 countries and has over 300,000 employees worldwide. NTT DATA Services, the U.S. division of the company headquartered in Plano, Texas, is the largest division of NTT DATA Corporation.
Who and what is NTT DATA?
Relevant to the GOVCON space, we are interested in the company’s North American public sector business, NTT DATA Services. Specifically, we will be looking at NTT DATA Services Public Sector, led by Tim Conway, which is focused on federal, state and local governments in the U.S., Canada and Australia.
While the company is major competitor in commercial and international IT services, you may not know them as well in the GOVCON space. However, you may be more familiar with the legacy entities that make up the core of the NTT DATA U.S. public sector business.
Born from the legacy Perot Systems business, the NTT DATA U.S. Federal portfolio still resembles that of its predecessor. The company’s core federal services have historically been centered around data center support and hosting, and IT infrastructure related services.
NTT DATA’s U.S. Federal Portfolio
NTT DATA’s portfolio is centered around federal civilian and homeland security customers. Note figure 2 below with a high level summary of their customer portfolio as a prime contractor.
The company has a string of large enterprise IT infrastructure contracts inherited from the Dell Perot Systems entity that have recently reached the conclusion, accounting for much of the company’s U.S. Department of Education work. Examples of the legacy which has largely come to an end includes:
- U.S. Department of Education, Education Department Utility for Communications, Application and Technology Environment (EDUCATE) was a 12-year, $627 million contract awarded to Perot Systems in 2007. During its period of performance, the contract supported enterprise information technology infrastructure services across the U.S. Department of Education. The contract was extended through 2019 to support the follow-on transition.
The EDUCATE program was recompeted under the PIVOT contract series and NTT DATA has not won any of the currently awarded PIVOT iterations. The company protested the award of PIVOT-H to IBM and was denied, and also protested the award of PIVOT-I to legacy SRA International (now GDIT). While the protest of PIVOT-I was sustained, the contract was still re-awarded to GDIT.
- U.S. Department of Education, Federal Student Aid (FSA) Virtual Data Center (VDC) was an 11-year, $476 million contract originally awarded to Perot Systems in 2006. This provided comprehensive hosting and maintenance services for the Federal Student Aid Virtual Data Center. The contract was extended through August 2020 to accommodate for the transition to a new contractor. The follow-on contract was awarded to legacy HP Enterprise Services (now Perspecta). NTT DATA protested the award but was denied by the GAO in January 2016.
Despite the setbacks illustrated above, the company has maintained a consistent footprint with its other customers at the U.S. Navy, the U.S. Department of Justice, and U.S. Customs and Border Protection (CBP).
- In 2019, NTT DATA was awarded a 2-year extension to continue its Enterprise-Wide Contractor Support Services (EWCSS) contract in support of the U.S. Department of the Navy, Team Submarine – a combination of the Program Executive Officer, Submarines (PEO SUB), the Deputy Commander, Undersea Warfare (NAVSEA 07) and the Undersea Technology Officer (NAVSEA). The company has been obligated $483 million on this Seaport-e task order since 2016.
- At the U.S. Department of Justice, NTT DATA was awarded a $35 million contract to support the Executive Office for Immigration Review (EOIR) IT support system modernization, including agile implementation and applications development work.
- NTT has maintained a steady presence with CBP since 2008 under its CBP Office of Acquisition Independent Verification & Validation Services (IV&V) contract. NTT DATA continues to support this program under the current $85 million contract iteration awarded in 2016.
FedSavvy Strategies Takeaways
- NTT DATA has historically been defined by 10+ year U.S. Department of Education contracts inherited through its Perot Systems predecessor. Despite the loss of these major recompetes, the company’s customer base outside of the U.S. Department of Education has remained fairly steady.
- NTT DATA has also been making pushes to win work outside of its traditional customer base. They have seen recent successes at the Centers for Disease Control and Prevention, winning a $114 million IT infrastructure contract in 2019.
- While the company’s federal portfolio does not have significant cloud or large scale agile development past performance, the overall corporate entity has extensive capabilities in these areas. Keep an eye out for NTT DATA as a possible competitor or subcontracting presence in these domains as the company looks to grow further in the federal civilian space.
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