DoD's $49.4M IT contract to Lockheed Martin for computer systems design services awarded in 2005
Contract Overview
Contract Amount: $49,368,300 ($49.4M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2005-06-15
End Date: 2012-03-16
Contract Duration: 2,466 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $49.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: Key points: 1. Contract awarded for computer systems design services, indicating a need for specialized IT support. 2. The contractor, Lockheed Martin, is a major defense contractor with extensive experience. 3. A long contract duration of 2466 days suggests a significant, ongoing requirement. 4. The contract was awarded under full and open competition, implying a broad search for qualified bidders. 5. The contract type is Time and Materials, which can pose cost control challenges if not managed carefully. 6. The contract was awarded by the Defense Information Systems Agency (DISA), a key IT provider for the DoD. 7. The contract's value of approximately $49.4 million over its life represents a substantial investment in IT infrastructure.
Value Assessment
Rating: fair
The contract's value of $49.4 million over nearly seven years averages to roughly $7 million annually. Without specific performance metrics or comparable contract data, it's difficult to definitively benchmark value. However, for complex IT systems design services, this annual figure may fall within a reasonable range, especially considering the contractor's scale. The Time and Materials pricing structure, while flexible, introduces a risk of cost overruns if not meticulously monitored, potentially impacting overall value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, theoretically leading to better pricing and service offerings. The fact that it was competed broadly indicates that the agency sought the best available solution in the market. The number of bidders is not specified, which limits a deeper analysis of the competitive intensity.
Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of offers, which can drive down costs and improve the quality of services received.
Public Impact
The primary beneficiaries are the Department of Defense and its various branches, which receive enhanced computer systems design and support. Services delivered likely include the design, development, integration, and maintenance of complex IT systems crucial for military operations. The geographic impact is likely focused on defense installations and operational centers, primarily within Virginia where the contractor is located. Workforce implications include employment opportunities for IT professionals, engineers, and support staff within Lockheed Martin and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost escalation if not closely managed.
- Lack of specific performance metrics makes it difficult to assess the full value delivered.
- Long contract duration may indicate a lack of flexibility to adapt to rapidly changing IT needs.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Contractor is a large, established entity with significant experience in defense IT.
- Contract supports critical Department of Defense IT infrastructure.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology industry. This sector involves providing expertise in designing, developing, and implementing computer systems and related hardware and software. The IT market, particularly for defense applications, is characterized by high demand for specialized skills, innovation, and robust security. Spending in this area is substantial, driven by the need for advanced technological capabilities to maintain military superiority and operational efficiency. Comparable spending benchmarks would typically involve analyzing other large-scale IT service contracts awarded by government agencies for similar design and integration work.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The primary contractor is Lockheed Martin, a large corporation. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless Lockheed Martin actively engages small businesses as subcontractors, which is not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officers and program managers within the Defense Information Systems Agency (DISA). Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Defense Information Technology Contracting
- IT Services for National Security
- Computer Systems Design and Related Services
- Department of Defense IT Modernization Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of specific performance metrics makes value assessment difficult.
- Long contract duration may limit adaptability to evolving technology.
Tags
it-services, computer-systems-design, department-of-defense, defense-information-systems-agency, lockheed-martin, time-and-materials, full-and-open-competition, virginia, large-contract, it-modernization, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. See the official description on USAspending.
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 Information Systems Agency).
What is the total obligated amount?
The obligated amount is $49.4 million.
What is the period of performance?
Start: 2005-06-15. End: 2012-03-16.
What was Lockheed Martin's track record with the government prior to this award?
Prior to this specific award in 2005, Lockheed Martin Integrated Systems, LLC, had a long and extensive history of contracting with the U.S. government, particularly the Department of Defense. As a major defense contractor, the company has consistently secured large-value contracts across various domains, including IT, aerospace, and defense systems. Its track record typically involves complex system integration, development, and sustainment services. While specific performance details for individual contracts prior to 2005 are not detailed in this data snippet, Lockheed Martin's sustained presence and significant contract awards suggest a generally positive performance history in meeting government requirements, albeit with the inherent complexities and scrutiny associated with large-scale defense contracts.
How does the $49.4 million value compare to similar IT systems design contracts?
The $49.4 million total value over approximately 6.75 years (2466 days) equates to an average annual value of roughly $7.3 million. Comparing this to similar IT systems design contracts requires access to a broader dataset of government procurements. However, for large-scale, complex IT systems design and integration services, particularly for a major agency like DISA within the Department of Defense, this annual figure is not exceptionally high. Many large enterprise IT contracts, especially those involving system modernization or new platform development, can range from tens to hundreds of millions of dollars annually. The 'fair' rating reflects the difficulty in precise benchmarking without more granular data on scope, complexity, and specific deliverables, but it suggests the contract value is within a plausible range for its category.
What are the primary risks associated with this Time and Materials contract?
The primary risk associated with a Time and Materials (T&M) contract, like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or profit margin. If the scope of work is not well-defined, or if project management is weak on either the government or contractor side, the contractor may spend more hours or resources than initially anticipated, leading to a higher final cost. This necessitates rigorous government oversight to monitor labor hours, ensure efficiency, and validate the necessity of all expenditures. Without such oversight, T&M contracts can become less cost-effective than other contract types.
How effective was the full and open competition in ensuring value for taxpayers?
Full and open competition is generally considered the most effective method for ensuring value for taxpayers, as it maximizes the pool of potential offerors and encourages competitive pricing. By allowing any responsible source to submit a bid, the government increases the likelihood of receiving proposals that offer the best combination of price, technical capability, and performance. While the data indicates this contract was competed fully and openly, the actual value realized depends on the number of bids received, the rigor of the evaluation process, and the subsequent contract management. Without knowing the number of bidders or the specific evaluation criteria, it's challenging to definitively state the degree of value achieved, but the process itself is designed to promote competitive fairness and cost efficiency for the government.
What does the long contract duration (2466 days) imply about the nature of the services?
A contract duration of 2466 days, which is approximately 6.75 years, implies that the services procured were intended to be long-term and ongoing. For computer systems design services, this suggests a need for sustained support, maintenance, development, or modernization of critical IT infrastructure. Such extended periods are common for projects involving complex systems integration, lifecycle management, or the provision of essential operational IT functions that require continuity. It may also indicate a strategic decision by the agency to establish a stable, long-term relationship with a trusted provider for these essential services, potentially reducing the frequency and cost associated with repeated re-competition.
How does this contract fit into the Defense Information Systems Agency's (DISA) overall mission?
This contract directly supports the Defense Information Systems Agency's (DISA) core mission of providing, operating, and defending U.S. Department of Defense (DoD) information systems. DISA is responsible for delivering enterprise IT services and capabilities to the DoD, including command and control, intelligence, and business systems. Contracts for computer systems design services are essential for developing, integrating, and maintaining the complex IT infrastructure that underpins these capabilities. By procuring these services, DISA ensures that its systems are robust, secure, and capable of meeting the evolving operational and strategic needs of the military, thereby playing a crucial role in enabling DoD's global operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 08
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DCA20002D5009
IDV Type: IDC
Timeline
Start Date: 2005-06-15
Current End Date: 2012-03-16
Potential End Date: 2012-03-16 00:00:00
Last Modified: 2012-03-19
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