DOJ's $21.4M contract for peer review support awarded to Lockheed Martin, raising value-for-money questions

Contract Overview

Contract Amount: $21,426,542 ($21.4M)

Contractor: Leidos Aspen Systems Corp

Awarding Agency: Department of Justice

Start Date: 2010-09-30

End Date: 2015-03-15

Contract Duration: 1,627 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OJP STRATEGIC SOURCING INITIATIVE FOR PEER REVIEW SUPPORT FOR 4.5 YEARS TO LOCKHEED MARTIN.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $21.4 million to LEIDOS ASPEN SYSTEMS CORP for work described as: OJP STRATEGIC SOURCING INITIATIVE FOR PEER REVIEW SUPPORT FOR 4.5 YEARS TO LOCKHEED MARTIN. Key points: 1. The contract's value of over $21 million for peer review support over 4.5 years warrants scrutiny for cost-effectiveness. 2. Competition dynamics appear robust with 5 bidders, suggesting potential for competitive pricing, though final price is key. 3. Risk indicators are moderate, with the primary concern being the value proposition of administrative management consulting services at this scale. 4. Performance context is limited, focusing on administrative support rather than direct program outcomes. 5. Sector positioning is within professional services, a common area for government contracting. 6. The contract's duration of over 4 years suggests a long-term need for these services.

Value Assessment

Rating: fair

The contract's total value of $21.4 million over 4.5 years for administrative management and general management consulting services is substantial. Benchmarking this against similar peer review support contracts is challenging without more specific service details. However, the per-unit cost, if calculable, would need to be compared to industry standards for consulting services. The absence of a clear value-for-money assessment in the provided data necessitates a fair rating, leaning towards questionable if cost-effectiveness cannot be demonstrated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five bidders participating. This level of competition is generally positive, indicating that multiple firms had the opportunity to bid, which can drive down prices and encourage innovation. The presence of five bidders suggests a healthy market for these services. However, the ultimate price achieved and the specific terms of the award are crucial to fully assess the effectiveness of this competition in securing the best value for the government.

Taxpayer Impact: Full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and better service quality. It prevents sole-source situations where prices might be inflated due to a lack of alternatives.

Public Impact

The Office of Justice Programs (OJP) benefits from this contract by receiving support for its peer review processes. Services delivered include administrative management and general management consulting, crucial for program evaluation and efficiency. The geographic impact is primarily national, supporting federal agency operations. Workforce implications are indirect, supporting the administrative functions of the OJP rather than direct program delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on contractor for core administrative functions.
Ensuring continued cost-effectiveness over the 4.5-year period.
Defining clear performance metrics for peer review support.

Positive Signals

Awarded through full and open competition, indicating market engagement.
Multiple bidders participated, suggesting a competitive environment.
Contract supports essential administrative functions for a federal agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a broad category encompassing a wide range of services government agencies procure to support operations, policy development, and program management. The market for such services is large and competitive, with numerous firms capable of providing these specialized skills. Comparable spending benchmarks would depend heavily on the specific nature of the peer review support and the scale of the OJP's operations.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Given the prime contractor is Lockheed Martin, a large defense and aerospace company, the focus is likely on prime contract performance. Further investigation would be needed to determine if any small business subcontracting plans were part of the award or are being executed.

Oversight & Accountability

Oversight of this contract would typically fall under the Office of Justice Programs (OJP) within the Department of Justice. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases, but detailed performance reports and Inspector General reviews would provide deeper insights into accountability and effectiveness.

Related Government Programs

Department of Justice Administrative Support Contracts
Office of Justice Programs Grant Management Support
Federal Consulting Services Procurement
Peer Review and Program Evaluation Services

Risk Flags

Potential for cost overruns
Contract duration may exceed actual need
Performance metrics unclear
Value for money assessment needed

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $21.4 million to LEIDOS ASPEN SYSTEMS CORP. OJP STRATEGIC SOURCING INITIATIVE FOR PEER REVIEW SUPPORT FOR 4.5 YEARS TO LOCKHEED MARTIN.

Who is the contractor on this award?

The obligated recipient is LEIDOS ASPEN SYSTEMS CORP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2010-09-30. End: 2015-03-15.

What specific peer review processes does this contract support for the Office of Justice Programs?

The contract supports the OJP's Strategic Sourcing Initiative for Peer Review Support. While the exact nature of the peer review processes is not detailed, it is understood to involve the administrative and management functions necessary to facilitate expert evaluations of grant proposals, research applications, or program outcomes. This could include tasks such as identifying and vetting potential peer reviewers, managing reviewer assignments, processing reviewer feedback, and ensuring compliance with OJP's review protocols. The 'Administrative Management and General Management Consulting Services' NAICS code (541611) suggests a focus on the operational and organizational aspects of these reviews rather than the substantive scientific or policy content.

How does the $21.4 million cost compare to similar peer review support contracts within the federal government?

Directly comparing the $21.4 million cost to similar peer review support contracts is challenging without access to a comprehensive database of all such contracts and their specific scopes of work. However, for a 4.5-year duration, this figure represents a significant investment in administrative support. Agencies often procure such services to manage large volumes of applications or research initiatives. To assess value, one would need to benchmark against contracts for similar administrative support functions within other justice or research-focused agencies, considering the number of reviews managed, the complexity of the review process, and the level of support provided. The 'fair' value assessment suggests this comparison is not straightforward and may reveal cost efficiencies or inefficiencies.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for administrative management and general management consulting services related to peer review, typical KPIs might include timeliness of reviewer identification and assignment, accuracy and completeness of reviewer documentation, efficiency in processing review feedback, adherence to budget, and overall satisfaction of OJP program managers with the support provided. The contract's performance would likely be evaluated against a defined statement of work and service level agreements, with penalties or incentives tied to meeting or exceeding these metrics.

What is Lockheed Martin's track record in providing similar administrative support services to federal agencies?

Lockheed Martin is a major defense contractor with extensive experience in providing a wide array of services to federal agencies, including complex program management, IT support, and administrative services. While their primary reputation is in defense and aerospace, they do engage in broader government contracting. Their track record in administrative support is generally considered robust, given their scale and experience managing large, complex projects. However, the specific success and cost-effectiveness of their performance on this particular OJP contract would depend on detailed performance reviews and client feedback, which are not provided in the summary data.

What is the potential impact of this contract on the efficiency and effectiveness of the OJP's grant and research review processes?

This contract is intended to enhance the efficiency and effectiveness of the OJP's grant and research review processes by providing dedicated administrative and management support. By outsourcing these functions to a contractor like Lockheed Martin, the OJP can potentially streamline operations, ensure timely processing of applications and reviews, and leverage specialized expertise in managing complex administrative workflows. The effectiveness hinges on the contractor's ability to execute the statement of work diligently and the OJP's capacity to oversee the contractor's performance, ensuring that the support directly contributes to the quality and timeliness of OJP's decision-making regarding grants and research funding.

Are there any specific risks associated with awarding a 4.5-year contract for administrative support services?

Yes, there are several risks associated with awarding a long-term contract for administrative support services. One primary risk is scope creep, where the services required may expand beyond the original intent, leading to increased costs. Another risk is vendor lock-in, making it difficult and costly to switch providers if performance declines or needs change. Furthermore, over a 4.5-year period, there's a risk that the contractor's expertise or technology may become outdated if not continuously managed. Ensuring continued cost-effectiveness and adapting to evolving agency needs are critical challenges that require proactive contract management and oversight.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,258,821

Exercised Options: $46,258,821

Current Obligation: $21,426,542

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0070J

IDV Type: FSS

Timeline