DoD's DTRA Spends $84.4M on Lockheed Martin IT Services via Full & Open Competition
Contract Overview
Contract Amount: $84,428,454 ($84.4M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-18
End Date: 2013-09-17
Contract Duration: 1,825 days
Daily Burn Rate: $46.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DTRA IT SVCS & SPT COST-PLUS-FIXED-FEE
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $84.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: DTRA IT SVCS & SPT COST-PLUS-FIXED-FEE Key points: 1. Significant contract value of $84.4M for IT services. 2. Awarded to a major defense contractor, Lockheed Martin. 3. Utilized full and open competition, suggesting a competitive bidding process. 4. Contract duration of 5 years indicates a long-term need for these services.
Value Assessment
Rating: fair
The Cost-Plus-Fixed-Fee (CPFF) contract type can lead to cost overruns if not managed carefully. The benchmark of $4,626.20 per month for IT services is difficult to assess without knowing the specific services provided.
Cost Per Unit: $4,626.20
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the CPFF structure requires diligent oversight to ensure cost efficiency.
Taxpayer Impact: Taxpayer funds were used in a competitive process, aiming for value, but the CPFF structure necessitates vigilance against potential cost creep.
Public Impact
Supports critical defense missions by providing essential IT infrastructure and management. Ensures operational continuity for the Defense Threat Reduction Agency (DTRA). The use of a large, established contractor may offer stability and expertise. Long-term IT support can be crucial for national security operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type risk
- Lack of specific service details for per-unit cost analysis
Positive Signals
- Full and open competition
- Awarded to a reputable contractor
Sector Analysis
This contract falls within the IT services sector, specifically Computer Facilities Management Services. Spending benchmarks for this category vary widely based on complexity and scope, but $84.4M over five years for a defense agency suggests a substantial and critical IT operation.
Small Business Impact
The contract was awarded to Lockheed Martin Integrated Systems, LLC, a large business. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award.
Oversight & Accountability
The CPFF contract type requires robust oversight from the Defense Threat Reduction Agency to ensure costs are reasonable and allocable. Regular audits and performance reviews are essential for accountability.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Cost-Plus-Fixed-Fee (CPFF) contract type can lead to cost overruns.
- Lack of detailed service scope makes per-unit cost benchmarking difficult.
- Potential for contractor to influence costs due to CPFF structure.
- No explicit mention of small business participation.
Tags
computer-facilities-management-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $84.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. DTRA IT SVCS & SPT COST-PLUS-FIXED-FEE
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $84.4 million.
What is the period of performance?
Start: 2008-09-18. End: 2013-09-17.
What specific IT facilities management services were included in this contract to justify the $84.4M cost over five years?
The contract details for "Computer Facilities Management Services" (NAICS 541513) are not fully elaborated in the provided data. Typically, this could encompass network management, server maintenance, data center operations, cybersecurity support, and IT help desk services. A comprehensive understanding of the scope is needed to fully assess value.
What mechanisms were in place to control costs under the Cost-Plus-Fixed-Fee structure, given the potential for contractor-driven cost increases?
While the contract utilized full and open competition, the CPFF structure inherently carries risk. Effective oversight would involve detailed cost audits, clear performance metrics tied to fee determination, and strict adherence to allowable cost principles. The agency's program management team would be responsible for rigorous monitoring.
How did the competitive bidding process ensure the most effective and efficient IT solutions were selected for DTRA's mission needs?
Full and open competition allows multiple qualified vendors to submit proposals, theoretically driving innovation and competitive pricing. The evaluation criteria used by DTRA during the bidding process would determine the effectiveness of this competition in selecting the best technical solution and value for their specific requirements.
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
Solicitation ID: HDTRA108R0001
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $89,625,194
Exercised Options: $89,421,353
Current Obligation: $84,428,454
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA108D0016
IDV Type: IDC
Timeline
Start Date: 2008-09-18
Current End Date: 2013-09-17
Potential End Date: 2013-10-17 00:00:00
Last Modified: 2025-01-31
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