Over $54.7 million awarded to Lockheed Martin Services Inc. for software development, spanning nearly a decade

Contract Overview

Contract Amount: $54,723,203 ($54.7M)

Contractor: Lockheed Martin Services Inc

Awarding Agency: Department of Agriculture

Start Date: 2005-04-22

End Date: 2014-03-15

Contract Duration: 3,249 days

Daily Burn Rate: $16.8K/day

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SOFTWARE DEVELOPMENT FOR ROSS

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $54.7 million to LOCKHEED MARTIN SERVICES INC for work described as: SOFTWARE DEVELOPMENT FOR ROSS Key points: 1. The contract's long duration suggests a sustained need for software development services. 2. Performance context is crucial given the extended period of service delivery. 3. The award was made under a contract vehicle, indicating potential for pre-negotiated terms. 4. The specific nature of the software development is key to assessing its value. 5. Sector positioning within Computer Systems Design Services is broad, requiring further detail on the specific application.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific software developed and its complexity. The total award of over $54.7 million across nearly nine years averages to approximately $6 million per year. This figure needs to be compared against the cost of similar, specialized software development projects within the federal government or private sector to determine if it represents good value. The pricing structure (labor hours) also requires scrutiny to ensure efficiency and cost-effectiveness over the contract's lifespan.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly stated in the provided data. If this was a competitive bid, the number of bidders and the evaluation process would be critical to understanding the price discovery. If it was a sole-source award or competed under a limited scope, it could imply less competitive pricing. Further investigation into the contracting vehicle and the specific circumstances of the award is needed.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to better use of public funds. Limited competition may result in higher costs for the government.

Public Impact

The Forest Service benefits from the development of specialized software, likely to support its operational or administrative functions. The services delivered are software development, which could range from new application creation to system enhancements. The geographic impact is likely concentrated where the Forest Service utilizes the developed software, potentially nationwide. Workforce implications could include the need for specialized IT personnel within the Forest Service to manage and utilize the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration without clear performance metrics can obscure value for money.
Lack of transparency on competition level makes it difficult to assess pricing fairness.
The broad category of 'Computer Systems Design Services' may hide inefficiencies if the specific software development was not mission-critical or cost-effective.

Positive Signals

Sustained award indicates a consistent need and likely satisfactory performance over time.
Award to a large, established contractor like Lockheed Martin suggests a capacity to handle complex software development projects.

Sector Analysis

This contract falls within the Information Technology sector, specifically under Computer Systems Design Services. The federal IT market is vast, with significant spending on software development, system integration, and maintenance. Comparable spending benchmarks would involve analyzing other federal contracts for similar software development efforts, considering factors like complexity, duration, and contractor expertise. The market size for federal IT services is in the hundreds of billions annually.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, Lockheed Martin Services Inc., is a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, program managers, and potentially Inspector General offices within the Department of Agriculture. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is assessed by the availability of contract data, such as through public databases like FPDS. The extent of IG jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified.

Related Government Programs

Federal IT Services
Software Development Contracts
Department of Agriculture IT Spending
Forest Service Technology Modernization

Risk Flags

Lack of detailed performance metrics.
Unclear competition level.
Broad service category obscures specific deliverables.
Extended contract duration without clear justification for length.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $54.7 million to LOCKHEED MARTIN SERVICES INC. SOFTWARE DEVELOPMENT FOR ROSS

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 $54.7 million.

What is the period of performance?

Start: 2005-04-22. End: 2014-03-15.

What specific software was developed under this contract, and what was its primary function for the Forest Service?

The provided data does not specify the exact software developed. However, given the agency (Forest Service) and the broad category of 'Computer Systems Design Services,' the software likely supported operational needs such as resource management, data analysis, geographic information systems (GIS) applications, or administrative functions. Understanding the specific application is crucial for assessing its impact, necessity, and the value derived from the $54.7 million investment. Without this detail, it's difficult to gauge the true benefit to the Forest Service's mission.

How does the average annual cost of approximately $6 million compare to similar federal software development projects?

Comparing the average annual cost of $6 million requires benchmarking against similar federal software development contracts. Factors such as project complexity, the level of customization required, the number of users, and the criticality of the software to agency operations significantly influence cost. For instance, developing a large-scale enterprise resource planning (ERP) system or a complex simulation model would naturally incur higher costs than developing a specialized data analysis tool. A comprehensive analysis would involve reviewing contracts with similar scope, duration, and contractor size within agencies like the Department of Agriculture or other land management agencies.

What were the key performance indicators (KPIs) for this contract, and how was Lockheed Martin Services Inc. evaluated?

The provided data does not detail the specific Key Performance Indicators (KPIs) or evaluation criteria for this contract. Typically, software development contracts include metrics related to on-time delivery, adherence to budget, software quality (e.g., bug rates, performance benchmarks), user satisfaction, and successful integration with existing systems. The evaluation of Lockheed Martin Services Inc. would have been based on their performance against these defined KPIs throughout the contract's nearly nine-year duration. The absence of this information hinders a thorough assessment of performance and value.

What is the track record of Lockheed Martin Services Inc. in delivering complex software development projects for federal agencies?

Lockheed Martin Services Inc., as a subsidiary of Lockheed Martin Corporation, has a long history of delivering complex technological solutions and services to various U.S. federal agencies, including defense, intelligence, and civilian sectors. Their track record generally includes large-scale system integration, software development, and IT support. While specific project details for this Forest Service contract are limited, the company's overall experience suggests a capability to handle substantial and intricate software development efforts. However, a detailed review of past performance on similar contracts, including any past performance issues or successes, would provide a more precise understanding of their reliability for this specific project.

Were there any significant cost overruns or schedule delays associated with this contract over its lifespan?

The provided data does not contain information regarding cost overruns or schedule delays for this contract. The total award amount of $54,723,203.28 represents the ceiling or total obligated amount, and actual spending could be less. Assessing cost and schedule performance would require access to contract modification history, funding reports, and performance reviews. Without this granular data, it is impossible to determine if the project stayed within its planned budget and timeline or if there were significant deviations that might impact the overall value proposition.

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: $54,723,203

Exercised Options: $54,723,203

Current Obligation: $54,723,203

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4863G

IDV Type: FSS

Timeline