Lockheed Martin awarded $16.4M for ROSS Application Upgrades and Enhancements Technical Support by USDA Forest Service

Contract Overview

Contract Amount: $16,399,008 ($16.4M)

Contractor: Lockheed Martin Services Inc

Awarding Agency: Department of Agriculture

Start Date: 2004-03-02

End Date: 2012-12-31

Contract Duration: 3,226 days

Daily Burn Rate: $5.1K/day

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ROSS APPLICATION UPGRADES AND ENHANCEMENTS TECHNICAL SUPPORT

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $16.4 million to LOCKHEED MARTIN SERVICES INC for work described as: ROSS APPLICATION UPGRADES AND ENHANCEMENTS TECHNICAL SUPPORT Key points: 1. Contract awarded for IT systems design and support services. 2. Significant duration of over 8 years suggests a long-term need for these services. 3. The contract type (Time and Materials) can lead to cost overruns if not managed carefully. 4. The award was a Delivery Order under a larger contract, indicating potential for further task orders. 5. The specific NAICS code (541512) points to a specialized area of IT services. 6. The contract was awarded to a large, established defense contractor, Lockheed Martin. 7. The geographic location of the award is Colorado.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services rendered and the comparable market rates for such specialized technical support. The $16.4 million over an 8-year period averages to approximately $2 million per year, which for complex IT systems support, may be within a reasonable range. However, the Time and Materials pricing structure introduces a risk of costs exceeding initial estimates if not rigorously monitored against defined project milestones and deliverables. Without data on the specific deliverables and their market value, a definitive assessment of value-for-money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this particular delivery order. It is unclear whether this was a competitive bid, a sole-source award, or if it was competed under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. The nature of the competition significantly impacts price discovery and the potential for obtaining the best value for the government. If it was a full and open competition, multiple bidders would likely have vied for the contract, driving down prices. If it was sole-source or limited, the government may have had less leverage in negotiating the final price.

Taxpayer Impact: The level of competition directly impacts taxpayer dollars. Robust competition generally leads to lower prices and better service offerings, maximizing the value of federal spending. Limited or sole-source awards may result in higher costs for taxpayers if adequate justification for the lack of competition is not present.

Public Impact

The primary beneficiaries are the IT systems supporting the Forest Service's operations, ensuring their continued functionality and enhancement. The services delivered include technical support, upgrades, and enhancements to the ROSS application, which likely supports critical agency functions. The geographic impact is primarily within the Department of Agriculture, specifically the Forest Service, with potential implications for its nationwide operations. The contract supports a workforce skilled in computer systems design and technical support, likely within Lockheed Martin's employee base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation without strict oversight.
Long contract duration (over 8 years) may indicate a lack of agile procurement or potential for vendor lock-in.
Limited information on competition makes it difficult to assess if best value was achieved.
The specific nature of 'enhancements' could be subject to scope creep if not clearly defined.

Positive Signals

Award to a large, established contractor like Lockheed Martin suggests a level of reliability and experience.
The contract addresses a specific need for technical support and upgrades, indicating proactive system maintenance.
The duration suggests a stable, ongoing requirement for critical IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related technical support services. The market for such services is highly competitive, with numerous large and small businesses offering specialized expertise. Federal IT spending is a significant portion of the overall budget, with agencies constantly seeking to upgrade and maintain their systems. Comparable spending benchmarks would typically involve analyzing IT support contracts for similar-sized agencies or specific application suites, considering factors like complexity and user base.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as Lockheed Martin is a large corporation and the contract was not set aside for small businesses. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary contract value likely flowed to the large prime contractor, with potential limited opportunities for small businesses unless they were engaged as subcontractors by Lockheed Martin. Further investigation into subcontracting reports would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the designated contract specialist within the Department of Agriculture's Forest Service. Accountability measures would be tied to the performance work statement and the terms of the Time and Materials contract, requiring detailed reporting of hours and costs against approved tasks. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design
Software Development and Maintenance
Technical Support Services
Department of Agriculture IT Contracts
Forest Service Technology Modernization

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of transparency regarding the competition level for this delivery order.
Long contract duration may indicate potential for vendor lock-in or lack of competitive re-evaluation.
Scope creep risk inherent in 'enhancements' without clear definition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $16.4 million to LOCKHEED MARTIN SERVICES INC. ROSS APPLICATION UPGRADES AND ENHANCEMENTS TECHNICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2004-03-02. End: 2012-12-31.

What specific functionalities does the ROSS application support for the Forest Service, and how critical are these upgrades and enhancements to the agency's mission?

The ROSS (Resource Order and Status System) application is a critical financial management system used by the Forest Service for managing orders, obligations, and financial reporting. Upgrades and enhancements are crucial for maintaining the system's integrity, security, and efficiency, ensuring accurate financial tracking and compliance with federal regulations. The system supports a wide range of activities, from procurement to budget execution, making its reliable operation essential for the agency's day-to-day functions and long-term planning. Without robust support, the Forest Service could face significant disruptions in its financial operations, impacting its ability to manage resources effectively and fulfill its environmental stewardship responsibilities.

How does the Time and Materials (T&M) pricing structure for this contract compare to other IT support contracts of similar scope and duration awarded by the federal government?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, allowing for flexibility. However, they carry a higher risk of cost overruns compared to fixed-price contracts. For IT support contracts of similar scope and duration (over 8 years, $16.4M), federal agencies often prefer firm-fixed-price or cost-plus-fixed-fee structures to ensure better cost control and predictability. While T&M can be appropriate for certain types of technical support or research and development where the exact effort is unknown, its use for a long-term, potentially well-defined upgrade and enhancement project like this warrants scrutiny. Benchmarking against other T&M IT contracts would reveal if the labor rates and estimated hours are competitive, but the inherent risk of T&M remains a key differentiator.

What is Lockheed Martin Services Inc.'s track record with the Department of Agriculture and specifically the Forest Service for IT-related services?

Lockheed Martin Services Inc., as a major defense and technology contractor, has a broad history of performing IT and technical services for various government agencies, including the Department of Agriculture. While specific details on their performance with the Forest Service for the ROSS application are not provided in this data, their extensive experience in complex systems integration, software development, and technical support suggests a capability to handle such requirements. Federal procurement databases would typically show a history of awards, performance ratings (if available), and the types of services rendered. A review of past performance evaluations and contract history would provide a more definitive assessment of their track record with this specific agency and for similar types of IT support.

Given the 8-year duration, what mechanisms were in place to ensure the ROSS application remained current with evolving technology and security standards?

The long duration of this contract (2004-2012) necessitates robust mechanisms for ensuring the ROSS application stayed current. This would typically involve contract clauses requiring the contractor to proactively identify and recommend necessary upgrades to address technological obsolescence, emerging security vulnerabilities, and changes in federal IT mandates (e.g., FISMA compliance). The Time and Materials structure, while risky for cost, could allow for agile incorporation of updates as needed. Performance reviews and technical refresh cycles, likely stipulated in the contract's Statement of Work, would be critical oversight tools. The Forest Service's own IT strategy and roadmap would also guide the direction of these upgrades, ensuring alignment with broader agency goals and industry best practices.

How does the $16.4 million total award amount compare to historical spending on the ROSS application or similar financial management systems within the Forest Service or USDA?

Comparing the $16.4 million total award to historical spending requires access to detailed historical financial data for the ROSS application and similar systems within the Forest Service and USDA. Without such data, it's difficult to definitively state whether this amount represents an increase, decrease, or is in line with previous investments. However, considering the 8-year period, the average annual spend of approximately $2 million for a critical financial management system's upgrades and support is not inherently excessive, especially for a system supporting a large agency like the Forest Service. Factors such as the complexity of the system, the number of users, and the scope of enhancements would influence this figure. A comprehensive analysis would involve trend analysis of IT spending within the agency over several budget cycles.

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

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 5203 LSBURG PIKE STE 1500, FALLS CHURCH, VA, 22041

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,399,008

Exercised Options: $16,399,008

Current Obligation: $16,399,008

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4863G

IDV Type: FSS

Timeline