DoD's $37M Lockheed Martin Contract for Computer Facilities Management Services Lacked Competition
Contract Overview
Contract Amount: $37,037,497 ($37.0M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2008-11-14
End Date: 2013-09-30
Contract Duration: 1,781 days
Daily Burn Rate: $20.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: R0I0020 FUNDING FOR CLIN 0006
Place of Performance
Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180
Plain-Language Summary
Department of Defense obligated $37.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: R0I0020 FUNDING FOR CLIN 0006 Key points: 1. Significant contract value of $37 million over 5 years. 2. Sole provider, Lockheed Martin, raises concerns about price discovery. 3. Lack of competition poses a risk to achieving best value. 4. IT services sector, specifically computer facilities management.
Value Assessment
Rating: questionable
The contract's value of $37 million over nearly 5 years, awarded without competition, makes a direct pricing assessment difficult. Without benchmarks from competing bids, it's hard to determine if the firm fixed price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source action, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition likely resulted in taxpayers paying more than they would have if multiple vendors had vied for the contract.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The Department of the Army relied on a single vendor for critical IT infrastructure management. Long-term reliance on one provider can stifle innovation and service improvements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration without re-competition
Positive Signals
- Firm fixed price contract type can provide cost certainty
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. Spending in this area is substantial across government agencies, with competition often driving innovation and cost savings.
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 partners in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for not seeking competitive proposals. Oversight should ensure that such awards are exceptions and properly documented.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for overpayment by taxpayers.
- Limited opportunity for small business participation.
- Risk of vendor lock-in and reduced innovation.
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 $37.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. R0I0020 FUNDING FOR CLIN 0006
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 $37.0 million.
What is the period of performance?
Start: 2008-11-14. End: 2013-09-30.
What was the justification for awarding this contract on a sole-source basis?
The provided data does not specify 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 and compelling need. Further investigation into the contract file would be necessary to determine the specific rationale.
What is the risk associated with a sole-source contract for IT facilities management?
The primary risk of a sole-source contract for IT facilities management is the potential for inflated costs due to the lack of competitive pressure. It can also lead to vendor lock-in, reduced innovation, and a lack of flexibility if the agency's needs change over the contract's duration.
How effective was this contract in delivering computer facilities management services?
The provided data does not offer information on the effectiveness of the services delivered under this contract. Effectiveness would typically be assessed through performance metrics, user satisfaction, and the achievement of mission objectives, none of which are included in the dataset.
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: FIRM FIXED PRICE (J)
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: $37,037,497
Exercised Options: $37,037,497
Current Obligation: $37,037,497
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: 2008-11-14
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2021-02-26
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