DoD's $134M contract for computer facilities management services awarded to Lockheed Martin
Contract Overview
Contract Amount: $134,057,351 ($134.1M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2007-11-15
End Date: 2008-09-30
Contract Duration: 320 days
Daily Burn Rate: $418.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: IT
Official Description: R0I0400 PHASE-IN PERIOD SECOND 6 MONTHS
Place of Performance
Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180
Plain-Language Summary
Department of Defense obligated $134.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: R0I0400 PHASE-IN PERIOD SECOND 6 MONTHS Key points: 1. Contract awarded on a cost-no-fee basis, indicating potential for cost overruns if not managed effectively. 2. The contract was not competed, raising questions about potential price discovery and value for money. 3. A short performance period of 320 days suggests a specific, potentially time-sensitive need. 4. The contract falls under Computer Facilities Management Services, a critical but often complex IT support area. 5. Awarded to a single, large defense contractor, potentially limiting opportunities for smaller, specialized firms.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the lack of competitive bidding and the specific nature of 'Computer Facilities Management Services'. The cost-no-fee pricing structure requires close monitoring to ensure costs remain reasonable and do not exceed expectations. Without comparable contract data or a competitive process, it's difficult to definitively assess if the government received optimal value. The raw dollar amount of $134 million for a 320-day period warrants scrutiny regarding the scope and efficiency of the services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in urgent situations. The lack of competition means there was no opportunity for price negotiation or comparison against market rates through a bidding process, which could potentially lead to higher costs for the government.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of a competitive bidding process. Without competing offers, there's less assurance that the price reflects the best possible value.
Public Impact
The Department of Defense benefits from specialized computer facilities management services, ensuring operational continuity. Services likely include maintenance, support, and management of IT infrastructure critical to military operations. The geographic impact is tied to the specific military installation or command served by Lockheed Martin in Mississippi. Workforce implications include direct employment by Lockheed Martin and potential indirect impacts on IT support roles within the Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potentially increases costs.
- Cost-no-fee contract requires diligent oversight to control expenditures.
- Short performance period may indicate a stop-gap measure or a highly specific, time-bound need.
Positive Signals
- Award to a large, established contractor like Lockheed Martin suggests a high level of trust and capability.
- Focus on critical IT infrastructure management is essential for defense operations.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. This sector is characterized by a mix of large established players and specialized niche providers. The market size for IT services supporting the federal government is substantial, with significant spending allocated to maintaining and upgrading complex IT infrastructures. This contract represents a portion of that broader spending, aimed at ensuring the operational readiness of defense computing environments.
Small Business Impact
The contract was not competed and there is no indication of small business set-asides or subcontracting requirements. This suggests that small businesses were not directly involved in this specific award, and opportunities for them would likely depend on Lockheed Martin's subcontracting decisions, which are not detailed here. The absence of set-asides means this large contract did not directly contribute to the government's small business contracting goals.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army, a component of the Department of Defense. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature and the lack of public detail beyond the award itself. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense-wide IT Services
- Army IT Infrastructure Support
- Computer Facilities Management Contracts
- Sole-Source IT Awards
Risk Flags
- Sole-source award
- Cost-no-fee pricing structure
- Lack of transparency on justification for sole-source
Tags
it-services, computer-facilities-management, department-of-defense, department-of-the-army, lockheed-martin, sole-source, cost-no-fee, mississippi, delivery-order, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $134.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. R0I0400 PHASE-IN PERIOD SECOND 6 MONTHS
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $134.1 million.
What is the period of performance?
Start: 2007-11-15. End: 2008-09-30.
What specific computer facilities management services were included in this $134 million contract?
The provided data indicates the contract is for 'Computer Facilities Management Services' (NAICS code 541513) awarded to Lockheed Martin Integrated Systems, LLC. While the exact scope is not detailed, these services typically encompass the management, operation, and maintenance of computer systems and related infrastructure. This can include server administration, network management, data center operations, hardware and software support, system monitoring, and ensuring the availability and performance of IT facilities. Given the $134 million value and the 320-day performance period, the services likely involved a significant scale of operations, potentially supporting critical defense computing infrastructure at a specific Army installation or command.
Why was this contract awarded on a sole-source basis instead of being competed?
The data explicitly states the contract was 'NOT COMPETED' and awarded as a 'sole-source' delivery order. While the specific justification for this sole-source award is not provided in the abbreviated data, common reasons include urgent and compelling needs where only one vendor can meet the requirement, situations where a specific contractor possesses unique capabilities or proprietary technology essential for the service, or if the contract is a follow-on to a previously competed effort where the original contractor is the only viable option. Without further documentation, the precise rationale remains unclear, but it implies that a competitive process was deemed impractical or impossible at the time of award.
What is the significance of the 'Cost No Fee' (Cost-Plus-Fixed-Fee or similar) contract type for this service?
The contract type is listed as 'COST NO FEE' (PT: COST NO FEE). This typically refers to a cost-reimbursement contract where the contractor is reimbursed for allowable costs incurred, but receives no fee or profit. This structure is often used when the scope of work is uncertain or difficult to define precisely, making fixed-price contracts unsuitable. For the government, it means the contractor has little financial incentive to control costs beyond what is necessary to perform the contract, as their profit is not tied to cost savings. This necessitates robust government oversight to monitor expenditures and ensure that costs are reasonable, allocable, and allowable.
How does the $134 million value compare to typical spending on computer facilities management services within the Department of the Army?
Comparing this $134 million contract to overall Department of the Army spending on computer facilities management is difficult without broader spending data. However, for a 320-day period (approximately 10.5 months), this represents a significant monthly expenditure of roughly $12.7 million. This suggests a substantial scope of services, likely supporting a large number of users, critical systems, or a major data center. Federal IT spending is generally in the tens of billions annually, and while this contract is a notable sum, it needs to be contextualized within the Army's total IT budget and the specific criticality of the facilities managed.
What are the potential risks associated with awarding a large IT services contract like this to a single vendor without competition?
The primary risks of a sole-source award for a large IT services contract include: 1) Higher Costs: Without competition, the government may pay more than it would in a competitive environment. 2) Reduced Innovation: A single vendor may have less incentive to innovate or improve services compared to a competitive market. 3) Vendor Lock-in: The government can become dependent on the incumbent vendor, making future transitions difficult and potentially costly. 4) Lack of Agility: The government might be less able to adapt quickly to changing technological needs if the sole-source vendor cannot or will not provide new solutions. 5) Performance Issues: If the vendor underperforms, the government has limited immediate alternatives.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 2001 JEFFERSON DAVIS HWY, STE 900, ARLINGTON, VA, 22202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $134,057,351
Exercised Options: $134,057,351
Current Obligation: $134,057,351
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91WMC07D0001
IDV Type: IDC
Timeline
Start Date: 2007-11-15
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2020-05-29
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