EPA's $68.4M contract with Lockheed Martin for environmental services awarded under full and open competition

Contract Overview

Contract Amount: $68,416,884 ($68.4M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 1999-11-15

End Date: 2004-05-31

Contract Duration: 1,659 days

Daily Burn Rate: $41.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08002

State: New Jersey Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $68.4 million to LOCKHEED MARTIN SERVICES, LLC for work described as: Key points: 1. Contract awarded for environmental services, indicating a need for specialized technical support. 2. The contract's cost-plus award fee structure allows for performance-based incentives. 3. Awarded in 1999 and ending in 2004, this contract reflects historical spending patterns. 4. The significant duration of 1659 days suggests a long-term need for these services. 5. The contract was not set aside for small businesses, suggesting a focus on large prime contractors. 6. The geographic location of the awardee in New Jersey may indicate regional service delivery.

Value Assessment

Rating: fair

The contract's value of $68.4 million over approximately 4.5 years averages to about $15.2 million annually. Without specific deliverables or performance metrics, it's challenging to benchmark this against similar contracts. The cost-plus award fee structure implies that the final cost could vary based on performance, making a direct price comparison difficult. However, the total award amount suggests a substantial investment in environmental services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield fair market prices and encourage innovation. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and ensures that the government receives the best value for its investment.

Public Impact

The Environmental Protection Agency (EPA) benefits from this contract by securing essential environmental services. Services likely include technical support, analysis, and potentially remediation or monitoring related to environmental protection. The contract's impact is likely concentrated in the geographic region where Lockheed Martin Services, LLC operates or where EPA projects are located, potentially New Jersey. The contract supports a workforce skilled in environmental science, engineering, and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess true value for money.
Cost-plus award fee contracts can sometimes lead to cost overruns if not managed tightly.
The duration of the contract might indicate a lack of flexibility in adapting to changing environmental needs.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract's value indicates a significant commitment to environmental protection by the EPA.
Lockheed Martin's established presence suggests a capable contractor for complex environmental tasks.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on environmental consulting and support. The market for environmental services is substantial, driven by regulatory compliance, remediation efforts, and sustainability initiatives. This contract represents a significant portion of spending for a specific environmental service need within the EPA, likely contributing to broader national environmental goals.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Lockheed Martin Services, LLC, was expected to perform the majority of the work, potentially limiting opportunities for smaller firms in this specific procurement.

Oversight & Accountability

Oversight for this contract would have been managed by the Environmental Protection Agency. As a cost-plus award fee contract, performance monitoring and evaluation would be critical to ensure value for money and contractor accountability. Transparency would depend on EPA's reporting practices regarding contract performance and expenditures.

Related Government Programs

Environmental Consulting Services
Technical Support Services
Environmental Remediation
Regulatory Compliance Support

Risk Flags

Contract duration is lengthy, potentially indicating a need for performance reassessment.
Cost-plus award fee structure requires diligent oversight to ensure value.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $68.4 million to LOCKHEED MARTIN SERVICES, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $68.4 million.

What is the period of performance?

Start: 1999-11-15. End: 2004-05-31.

What specific environmental services were provided under this contract?

The provided data does not detail the specific environmental services rendered. However, given the contractor (Lockheed Martin Services, LLC) and the awarding agency (Environmental Protection Agency), the services likely encompassed a broad range of technical and scientific support. This could include environmental assessments, data analysis, regulatory compliance assistance, pollution control strategy development, site investigations, and potentially support for remediation activities. The 'Cost Plus Award Fee' structure suggests that performance metrics were established, and the contractor's success in meeting or exceeding these metrics would influence the final payment, implying a focus on quality and effectiveness of the delivered services.

How does the $68.4 million award compare to similar EPA contracts for environmental services?

Comparing the $68.4 million award requires context on the contract's duration and scope. Awarded in 1999 and ending in 2004 (approximately 4.5 years), the average annual value was around $15.2 million. This figure needs to be benchmarked against other EPA contracts of similar duration and complexity. For instance, contracts for large-scale environmental remediation or comprehensive regulatory program support might exceed this amount, while contracts for more specialized, shorter-term technical assistance might be lower. Without specific details on deliverables and performance, a precise comparison is difficult, but the amount suggests a significant, multi-year engagement for critical environmental services.

What are the key risks associated with a Cost Plus Award Fee (CPAF) contract structure for environmental services?

The primary risk with a CPAF structure is the potential for cost overruns if the award fee criteria are not tightly defined or if the government's oversight is insufficient. While CPAF aims to incentivize performance, it can sometimes lead to contractors focusing on achieving award fee targets rather than the most cost-effective solutions. For environmental services, risks also include the inherent uncertainties in environmental projects (e.g., unforeseen site conditions, evolving regulatory requirements) which can impact costs and timelines. Effective management and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

What was Lockheed Martin Services, LLC's track record with the EPA prior to or during this contract?

The provided data does not include information on Lockheed Martin Services, LLC's prior or concurrent track record with the EPA. However, as a major defense and aerospace contractor with a significant services division, Lockheed Martin has historically held numerous government contracts across various agencies, including the EPA. Their ability to secure a $68.4 million contract awarded through full and open competition suggests they met the agency's requirements for capability, experience, and financial stability at the time of award. A deeper analysis would require examining past performance evaluations and other contracts held by the company.

How did the 'full and open competition' impact the pricing and quality of services for this EPA contract?

Awarding the contract through 'full and open competition' theoretically should have led to competitive pricing and encouraged the contractor to offer high-quality services to win the bid. This process allows any qualified vendor to submit a proposal, fostering a market-driven environment. The EPA likely received multiple bids, enabling them to select the offer that presented the best overall value, considering both cost and technical merit. While the specific number of bidders isn't provided, the competitive nature suggests that Lockheed Martin Services, LLC had to present a compelling offer to be selected, which should translate to favorable terms for the government.

What is the significance of this contract ending in May 2004 in terms of historical EPA spending on environmental services?

The contract's conclusion in May 2004 places it within a period of significant federal spending on environmental programs. The EPA's budget and contracting activities during the early 2000s were influenced by ongoing environmental regulations, Superfund site cleanups, and national environmental initiatives. A $68.4 million contract for environmental services awarded during this time reflects the agency's sustained commitment and resource allocation to addressing environmental challenges. Its completion marks the end of a specific service engagement, and subsequent spending patterns would reflect evolving priorities, technological advancements, and budget allocations within the EPA.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 2339 ROUTE 70 W, CHERRY HILL, NJ, 01

Business Categories: Category Business, Not Designated a Small Business

Timeline