HHS Awards $486M IT Infrastructure Contract to Lockheed Martin Services, LLC
Contract Overview
Contract Amount: $485,880,689 ($485.9M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2002-05-15
End Date: 2009-06-30
Contract Duration: 2,603 days
Daily Burn Rate: $186.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CONSOLIDATED INFORMATION TECHNOLOGY INFRASTRUCTURE CONTRACT
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $485.9 million to LOCKHEED MARTIN SERVICES, LLC for work described as: CONSOLIDATED INFORMATION TECHNOLOGY INFRASTRUCTURE CONTRACT Key points: 1. Contract value of $485.9M over 7 years. 2. Awarded via competitive delivery order, indicating some price discovery. 3. Focus on IT infrastructure suggests potential for broad impact. 4. No small business participation noted.
Value Assessment
Rating: fair
The contract value of $485.9M over 7 years is substantial. Benchmarking against similar large-scale IT infrastructure contracts is difficult without more granular data on services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, suggesting multiple vendors were considered. The pricing mechanism is firm fixed price, which can provide cost certainty but may limit flexibility.
Taxpayer Impact: The significant value of this contract means taxpayer funds are being utilized for essential IT infrastructure.
Public Impact
Impacts the operational efficiency of the Centers for Medicare and Medicaid Services. Ensures the availability and reliability of critical IT systems for healthcare. Potential for ripple effects on healthcare providers and beneficiaries due to system performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to scope creep or outdated technology.
Positive Signals
- Competitive award process.
- Firm fixed price contract provides cost predictability.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending in this area is crucial for government operations, with benchmarks varying widely based on scope and complexity.
Small Business Impact
The contract data indicates no small business participation. This is a missed opportunity to support small businesses and could indicate a lack of outreach or specific requirements that favored larger entities.
Oversight & Accountability
Oversight would focus on contract performance, adherence to the firm fixed price, and ensuring the IT infrastructure meets CMS's evolving needs throughout the contract term.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Lack of small business participation.
- Potential for technology obsolescence over the contract duration.
- Limited insight into the competitive landscape and price discovery.
- Contract duration of over 7 years.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $485.9 million to LOCKHEED MARTIN SERVICES, LLC. CONSOLIDATED INFORMATION TECHNOLOGY INFRASTRUCTURE CONTRACT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $485.9 million.
What is the period of performance?
Start: 2002-05-15. End: 2009-06-30.
What specific IT infrastructure services were included in this $486M contract, and how do they align with CMS's strategic goals?
The contract is for Computer Systems Design Services (NAICS 541512). While the exact services are not detailed, they likely encompass design, integration, and maintenance of IT infrastructure supporting CMS operations. Alignment with strategic goals would require examining CMS's IT modernization and operational support objectives during the contract period (2002-2009).
Given the competitive delivery order award, what was the range of bids, and how did Lockheed Martin's price compare to establish benchmarks for similar IT infrastructure projects?
The provided data does not include bid ranges or specific benchmark comparisons. A competitive delivery order implies multiple proposals were evaluated, but the extent of price competition and its impact on the final negotiated price are not detailed. Further analysis would require access to the bid data and relevant market research.
How effectively did this contract support the Centers for Medicare and Medicaid Services' mission, and were there any significant performance issues or cost overruns?
Effectiveness is difficult to assess solely from this data. The contract supported critical IT infrastructure for CMS, a vital agency. Without performance reports or audit findings, it's impossible to determine if the contract met its objectives efficiently or if there were issues. The firm fixed price suggests cost control was a priority.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 2339 ROUTE 70 W, CHERRY HILL, NJ, 01
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $197,226,412
Exercised Options: $427,125,923
Current Obligation: $485,880,689
Parent Contract
Parent Award PIID: 26301D0054
IDV Type: IDC
Timeline
Start Date: 2002-05-15
Current End Date: 2009-06-30
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2011-01-13
More Contracts from Lockheed Martin Services, LLC
- Management and Operation of Y-12 Plant and Other Programs — $20.6B (Department of Energy)
- Dafis UDO Reconstruct W/O Advance — $3.8B (Department of Transportation)
- TAS::75 0511::TAS — $990.7M (Department of Health and Human Services)
- Seat/Science Engineering,Analysis, and Test — $983.9M (National Aeronautics and Space Administration)
- THE Goal of the Decennial Response Integration System (dris) Contract IS to Obtain a Practical Solution to Providing Respondent Assistance and Data Capture for the 2010 Census — $930.7M (Department of Commerce)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →