DoD awards $19.4M for Computer Facilities Management Services to Lockheed Martin, a sole-source contract
Contract Overview
Contract Amount: $19,376,055 ($19.4M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2012-11-01
End Date: 2013-09-30
Contract Duration: 333 days
Daily Burn Rate: $58.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: R000000, S13-0011
Place of Performance
Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180
Plain-Language Summary
Department of Defense obligated $19.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: R000000, S13-0011 Key points: 1. Significant award to a single large contractor. 2. Focus on IT infrastructure management. 3. Potential for cost overruns due to Time and Materials pricing. 4. Limited competition raises concerns about value for money.
Value Assessment
Rating: questionable
The Time and Materials pricing structure, without a ceiling, can lead to unpredictable costs. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition could lead to taxpayers paying more than necessary for these services.
Public Impact
Ensures continued IT support for Army operations. Reliance on a single vendor may impact future flexibility. Potential for cost escalation impacts budget predictability.
Waste & Efficiency Indicators
Waste Risk Score: 58 / 10
Warning Flags
- Sole-source award
- Time and Materials pricing
- Lack of competition
Positive Signals
- Award to established contractor
- Addresses critical IT needs
Sector Analysis
This contract falls within the IT sector, specifically computer facilities management. Spending in this area is crucial for operational efficiency but requires careful oversight to ensure competitive pricing.
Small Business Impact
The awardee is a large business, and there is no indication of small business participation in this specific contract.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services efficiently and at a reasonable cost. Tracking performance against the contract's objectives is essential.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Time and Materials pricing
- Lack of competition
- Potential for cost overruns
- No small business participation noted
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 $19.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. R000000, S13-0011
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 $19.4 million.
What is the period of performance?
Start: 2012-11-01. End: 2013-09-30.
What is the estimated cost per hour or per service unit under this Time and Materials contract?
The provided data does not specify an hourly rate or per-unit cost for this Time and Materials contract. This information is critical for assessing the value and potential cost overruns, as it allows for direct comparison with industry benchmarks and other government contracts for similar services.
What justification was provided for awarding this contract on a sole-source basis?
The data indicates the contract was 'NOT COMPETED,' suggesting a sole-source justification was made. However, the specific reason for this determination (e.g., urgency, unique capability, lack of other sources) is not provided and is crucial for understanding the necessity of bypassing the competitive process.
How will the Department of the Army ensure cost-effectiveness and prevent scope creep with a Time and Materials contract?
The Department of the Army should implement robust oversight mechanisms, including detailed monitoring of labor hours and material costs, regular performance reviews, and clear definition of deliverables. Establishing a ceiling price or requiring competitive bidding for future task orders could also mitigate risks associated with T&M contracts.
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: TIME AND MATERIALS (Y)
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: $19,376,055
Exercised Options: $19,376,055
Current Obligation: $19,376,055
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: 2012-11-01
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2020-05-29
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