DOJ's FBI awards $96.7M contract to Lockheed Martin for Next Generation Identification system development

Contract Overview

Contract Amount: $96,771,261 ($96.8M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Justice

Start Date: 2010-04-26

End Date: 2011-05-06

Contract Duration: 375 days

Daily Burn Rate: $258.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: EXERCISE OF OPTION YEAR 2 FOR THE DEVELOPMENT OF THE NEXT GENERATION IDENTIFICATION.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $96.8 million to LOCKHEED MARTIN SERVICES, LLC for work described as: EXERCISE OF OPTION YEAR 2 FOR THE DEVELOPMENT OF THE NEXT GENERATION IDENTIFICATION. Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract type, Cost Plus Award Fee, incentivizes performance but requires careful oversight to manage costs. 3. The Next Generation Identification system is critical for national security and law enforcement operations. 4. The duration of 375 days indicates a focused effort on a specific development phase. 5. The award to a large, established contractor like Lockheed Martin suggests a need for significant technical expertise and capacity.

Value Assessment

Rating: fair

The contract value of $96.7 million for a 375-day development phase for a complex system like Next Generation Identification appears substantial. Without specific benchmarks for similar system development phases or detailed cost breakdowns, it is difficult to definitively assess value for money. The Cost Plus Award Fee structure allows for flexibility but necessitates rigorous monitoring of costs against performance metrics to ensure fair pricing and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of 3 bids suggests a competitive environment, which generally aids in price discovery and can lead to more favorable terms for the government. However, the specific number of bidders (3) is on the lower side for a full and open competition, which could warrant further investigation into potential barriers to entry or market concentration.

Taxpayer Impact: A competitive award process is generally beneficial for taxpayers as it encourages vendors to offer competitive pricing and innovative solutions to win the contract.

Public Impact

The primary beneficiaries are the Federal Bureau of Investigation (FBI) and other law enforcement agencies relying on the Next Generation Identification system for critical identification and investigative capabilities. The services delivered involve the development and enhancement of a sophisticated biometric identification system, crucial for national security and criminal justice. The geographic impact is national, as the system supports federal law enforcement operations across the United States. Workforce implications include the need for highly skilled IT professionals, software developers, and biometric specialists within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost management risks associated with Cost Plus Award Fee contracts require diligent oversight to ensure funds are used efficiently and effectively.
The complexity of the Next Generation Identification system development may introduce technical risks that could impact project timelines and outcomes.

Positive Signals

Awarding to a large, experienced contractor like Lockheed Martin suggests a high likelihood of technical capability and successful project execution.
The use of full and open competition indicates a commitment to leveraging the broader market for the best possible solution.

Sector Analysis

The contract falls within the Computer Systems Design Services sector, a critical component of the broader IT industry. This sector is characterized by rapid innovation and significant government spending on systems integration, software development, and IT support. The Next Generation Identification system development is a high-stakes endeavor within this sector, requiring specialized expertise in areas like biometrics, data management, and secure system architecture. Comparable spending benchmarks would typically involve other large-scale government IT development projects, particularly those related to national security or critical infrastructure.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small businesses through this specific award is likely minimal unless Lockheed Martin engages them as subcontractors. The subcontracting opportunities would depend on Lockheed Martin's strategy and the specific needs of the system development, but there is no explicit requirement for small business participation noted.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Federal Bureau of Investigation (FBI). The Cost Plus Award Fee structure necessitates performance monitoring against defined award criteria. Transparency would be enhanced through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or the Department of Justice's Office of the Inspector General (OIG), particularly if cost efficiencies or performance issues arise.

Related Government Programs

Biometric Identification Systems
Criminal Justice Information Systems
Law Enforcement Technology
Next Generation Identification (NGI) Program
Federal IT Modernization Projects

Risk Flags

Cost Overrun Risk
Technical Complexity
Performance Measurement Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $96.8 million to LOCKHEED MARTIN SERVICES, LLC. EXERCISE OF OPTION YEAR 2 FOR THE DEVELOPMENT OF THE NEXT GENERATION IDENTIFICATION.

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $96.8 million.

What is the period of performance?

Start: 2010-04-26. End: 2011-05-06.

What is the historical spending trend for the Next Generation Identification (NGI) program and how does this award fit within that context?

The provided data focuses on a single contract award of $96.7 million for an option year exercise. To understand the historical spending trend for the NGI program, one would need to examine the total contract obligations over several fiscal years, including the base contract and any subsequent modifications or option periods. This specific award represents a portion of the overall investment in the NGI system's development. Without access to the full contract history and related awards, it's challenging to place this $96.7 million in the broader context of the NGI program's lifecycle costs and total investment. Typically, large-scale IT development programs like NGI involve multi-year funding and numerous contract actions, making a single award data point insufficient for trend analysis.

How does the pricing structure (Cost Plus Award Fee) compare to other large-scale federal IT development contracts, and what are the associated risks?

Cost Plus Award Fee (CPAF) contracts are common for complex research, development, and system integration efforts where the scope may evolve or performance outcomes are difficult to predefine precisely. Compared to fixed-price contracts, CPAF offers flexibility by reimbursing allowable costs plus a fee that is composed of a base fee and an award amount tied to performance metrics. This structure incentivizes contractor performance and quality. However, CPAF contracts carry inherent risks for the government, primarily related to cost control. Without stringent oversight and well-defined performance metrics, costs can escalate. The government must actively manage the contract, ensuring that costs are reasonable and allocable, and that award fees are justified based on objective performance evaluations. This contrasts with fixed-price contracts, which shift cost risk to the contractor but may limit flexibility.

What is Lockheed Martin's track record with similar large-scale federal IT development projects, particularly in biometrics or national security systems?

Lockheed Martin is a major defense contractor with extensive experience in large-scale federal IT development projects, including those related to national security and intelligence. They have a significant portfolio of work involving complex systems integration, software development, and cybersecurity across various government agencies. While specific details on their involvement with the Next Generation Identification (NGI) system beyond this award are not provided, their general capabilities suggest they are well-equipped for such endeavors. Their track record often includes developing and managing mission-critical systems for defense and civilian agencies. A thorough assessment would involve reviewing past performance evaluations, contract awards, and any reported issues or successes on comparable projects to gauge their reliability and expertise in this specific domain.

What are the key performance indicators (KPIs) used to determine the 'award fee' in this Cost Plus Award Fee contract, and how are they measured?

The provided data does not specify the key performance indicators (KPIs) used for the award fee determination in this particular Cost Plus Award Fee (CPAF) contract. In CPAF contracts, these KPIs are typically outlined in the contract's Performance Work Statement (PWS) or a separate Award Fee Plan. They are designed to measure the contractor's success in meeting specific technical, schedule, cost, and quality objectives. Examples of KPIs for a system development contract could include meeting development milestones on time, achieving specific system performance benchmarks (e.g., processing speed, accuracy rates), adhering to budget constraints, and maintaining high levels of system reliability and security. The measurement process usually involves regular evaluations by the government contracting officer or a designated representative, who assesses the contractor's performance against these pre-defined criteria to determine the amount of award fee earned.

How does the $96.7 million award compare to the total estimated cost or budget for the Next Generation Identification (NGI) program?

The provided data indicates a single award of $96.7 million for an option year exercise for the development of the Next Generation Identification (NGI) system. This figure represents a specific funding action for a defined period (375 days) and does not represent the total cost or budget for the entire NGI program. Large-scale IT programs like NGI are typically multi-year, multi-billion dollar initiatives. To compare this award to the total program cost, one would need access to the program's overall budget, including the initial development, subsequent phases, sustainment, and any other related contract actions. Without that comprehensive program financial data, it is impossible to determine if $96.7 million is a significant portion or a relatively small component of the total NGI investment.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 9211 CORPORATE BLVD, ROCKVILLE, MD, 08

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $96,771,261

Exercised Options: $96,771,261

Current Obligation: $96,771,261

Timeline