FBI Spends $52.6M on Lockheed Martin Hardware Maintenance for Computer Systems Design Services
Contract Overview
Contract Amount: $52,622,394 ($52.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Justice
Start Date: 2013-05-07
End Date: 2014-05-06
Contract Duration: 364 days
Daily Burn Rate: $144.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: CLIN 0004 FFP HARDWARE MAINTENANCE; IGF::OT::IGF
Place of Performance
Location: CLARKSBURG, HARRISON County, WEST VIRGINIA, 26306
Plain-Language Summary
Department of Justice obligated $52.6 million to LOCKHEED MARTIN CORPORATION for work described as: CLIN 0004 FFP HARDWARE MAINTENANCE; IGF::OT::IGF Key points: 1. Significant contract value of $52.6M for hardware maintenance. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The contract falls under Computer Systems Design Services (NAICS 541512). 4. Awarded to Lockheed Martin Corporation, a major defense contractor.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. Benchmarking against similar hardware maintenance contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which is generally positive for price discovery. However, the Cost Plus Award Fee structure may limit the full benefit of competition on final price.
Taxpayer Impact: Taxpayer funds are used for this contract. The effectiveness of the competition and contract type in controlling costs will determine the ultimate taxpayer impact.
Public Impact
Supports critical FBI operations through hardware maintenance. Contract duration of 364 days with potential for modifications. Funds allocated to Lockheed Martin Corporation for essential IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type
- Potential for cost overruns if not managed closely
Positive Signals
- Full and open competition utilized
- Awarded to a reputable contractor
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending benchmarks for similar hardware maintenance contracts with federal agencies are crucial for evaluating cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
Oversight by the Department of Justice, specifically the Federal Bureau of Investigation, is in place. The effectiveness of this oversight in managing the Cost Plus Award Fee structure is key.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Cost Plus Award Fee contract type
- Potential for cost creep
- Lack of specific performance metrics in data
- Limited visibility into subcontractor participation
Tags
computer-systems-design-services, department-of-justice, wv, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $52.6 million to LOCKHEED MARTIN CORPORATION. CLIN 0004 FFP HARDWARE MAINTENANCE; IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $52.6 million.
What is the period of performance?
Start: 2013-05-07. End: 2014-05-06.
What is the typical profit margin for Cost Plus Award Fee contracts in the IT hardware maintenance sector?
Cost Plus Award Fee (CPAF) contracts typically allow for a base fee plus an award fee tied to performance metrics. Profit margins can vary significantly based on the specific contract, agency, and contractor. For IT hardware maintenance, margins might range from 10-20% total, with the award fee component incentivizing efficiency and exceeding performance targets. Detailed benchmarking against similar CPAF contracts is essential for accurate assessment.
How does the 'full and open competition' impact the final price given the Cost Plus Award Fee structure?
While 'full and open competition' ensures a broad range of potential bidders, the Cost Plus Award Fee (CPAF) structure itself can influence the final price. CPAF allows costs to be reimbursed plus a fee that is adjusted based on performance. This means the initial competitive bids might focus on the base fee and projected costs, but the final price can fluctuate based on performance outcomes and the awarded fee, potentially mitigating some of the direct price competition benefits.
What are the key performance indicators (KPIs) used to determine the award fee for this contract?
The provided data does not specify the key performance indicators (KPIs) used for the award fee. Typically, for hardware maintenance contracts, KPIs might include system uptime, response times for repairs, adherence to service level agreements (SLAs), customer satisfaction ratings, and timely completion of maintenance tasks. The FBI would have established these metrics in the contract's Statement of Work to incentivize optimal performance from Lockheed Martin.
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
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $52,622,394
Exercised Options: $52,622,394
Current Obligation: $52,622,394
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DJFJFBI08041
IDV Type: IDC
Timeline
Start Date: 2013-05-07
Current End Date: 2014-05-06
Potential End Date: 2014-05-06 00:00:00
Last Modified: 2015-02-06
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