DoD's $48.9M Lockheed Martin Contract for Computer Facilities Management Services Lacked Competition

Contract Overview

Contract Amount: $48,875,156 ($48.9M)

Contractor: Lockheed Martin Integrated Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2011-10-31

Contract Duration: 1,125 days

Daily Burn Rate: $43.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: R0I0040 CONSOLIDATED TECHNICAL & ENGINEERING SERVICES

Place of Performance

Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $48.9 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: R0I0040 CONSOLIDATED TECHNICAL & ENGINEERING SERVICES Key points: 1. Significant spending on IT services for facility management. 2. Sole-source award to a major defense contractor. 3. Potential for higher costs due to lack of competition. 4. Contract duration of 3 years, ending in 2011.

Value Assessment

Rating: questionable

The contract's total value of $48.9M over three years for IT facilities management services appears high given the lack of competition. Benchmarking against similar contracts is difficult without more data on the specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition likely resulted in a higher price than if the contract had been competitively bid, impacting taxpayer value.

Public Impact

Taxpayers may have overpaid for IT facilities management services. Limited transparency into the justification for a sole-source award. Missed opportunity for small businesses to compete for this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT sector, specifically Computer Facilities Management Services. Spending in this area is common across government agencies, but competitive bidding is crucial for cost-effectiveness.

Small Business Impact

The contract explicitly states no small business participation (sb: false). This represents a missed opportunity to engage small businesses in providing these essential IT services.

Oversight & Accountability

The sole-source nature of this award raises questions about the oversight process and whether alternatives were adequately explored. Further review is needed to understand the justification for not competing.

Related Government Programs

Risk Flags

Tags

computer-facilities-management-services, department-of-defense, ms, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.9 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. R0I0040 CONSOLIDATED TECHNICAL & ENGINEERING SERVICES

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 $48.9 million.

What is the period of performance?

Start: 2008-10-01. End: 2011-10-31.

What was the specific justification for awarding this contract on a sole-source basis instead of competing it?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. Without this documentation, it's impossible to assess the validity of the sole-source decision and its impact on value.

How does the $48.9M cost compare to similar IT facilities management contracts awarded competitively?

Direct comparison is challenging without detailed service scope and performance metrics. However, the absence of competition suggests this $48.9M figure may be higher than what could have been achieved through a competitive bidding process. Government-wide IT spending benchmarks could offer a rough comparison, but a true assessment requires apples-to-apples data.

What was the impact of this sole-source award on the effectiveness of IT facilities management for the Department of the Army?

The data does not directly indicate the effectiveness of the services provided by Lockheed Martin. While the contract was awarded, the lack of competition means there was no market-driven incentive for superior performance or innovation. Effectiveness would need to be assessed through performance reviews and user feedback, independent of the procurement method.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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: $48,875,156

Exercised Options: $48,875,156

Current Obligation: $48,875,156

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: 2008-10-01

Current End Date: 2011-10-31

Potential End Date: 2011-10-31 00:00:00

Last Modified: 2020-05-29

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