Over $930 million awarded for Census Bureau's Decennial Response Integration System, a complex IT system

Contract Overview

Contract Amount: $930,736,558 ($930.7M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Commerce

Start Date: 2005-09-23

End Date: 2011-09-30

Contract Duration: 2,198 days

Daily Burn Rate: $423.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE GOAL OF THE DECENNIAL RESPONSE INTEGRATION SYSTEM (DRIS) CONTRACT IS TO OBTAIN A PRACTICAL SOLUTION TO PROVIDING RESPONDENT ASSISTANCE AND DATA CAPTURE FOR THE 2010 CENSUS.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $930.7 million to LOCKHEED MARTIN SERVICES, LLC for work described as: THE GOAL OF THE DECENNIAL RESPONSE INTEGRATION SYSTEM (DRIS) CONTRACT IS TO OBTAIN A PRACTICAL SOLUTION TO PROVIDING RESPONDENT ASSISTANCE AND DATA CAPTURE FOR THE 2010 CENSUS. Key points: 1. The contract aimed to provide respondent assistance and data capture for the 2010 Census. 2. A Cost Plus Award Fee contract type suggests performance incentives were a key component. 3. The duration of the contract (2198 days) indicates a long-term, significant undertaking. 4. The award was made under full and open competition, implying a broad search for qualified vendors. 5. The primary service category is Computer Systems Design Services, highlighting the IT focus. 6. The contract value of over $930 million positions it as a major federal IT investment.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed cost breakdowns and performance metrics. The Cost Plus Award Fee structure can lead to cost overruns if not managed tightly, but also incentivizes performance. The raw dollar amount is substantial, reflecting the complexity and scale of a decennial census operation. However, without comparable systems or detailed performance data, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Census Bureau sought proposals from all responsible sources. This approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the open competition suggests a robust process was intended to identify the best value.

Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower prices and higher quality services as contractors vie for the award. It ensures that the government is not limited to a single provider, promoting efficiency and cost-effectiveness.

Public Impact

The primary beneficiaries are the U.S. Census Bureau and the nation's population, who rely on accurate census data for representation and resource allocation. The contract delivered critical IT infrastructure and services for respondent assistance and data capture during the 2010 Census. The geographic impact is nationwide, as the census covers all U.S. residents. Workforce implications include jobs in IT development, system integration, and potentially customer support roles related to census operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can incentivize contractors to increase costs to achieve higher award fees if not carefully monitored.
The long contract duration (2198 days) increases the risk of scope creep and potential for cost escalation over time.
The complexity of integrating response and data capture systems for a national census presents significant technical and operational risks.

Positive Signals

Awarded under full and open competition, suggesting a thorough vetting of potential solutions and providers.
The contract's focus on a critical national function (the Census) implies a high level of importance and likely robust oversight.
The use of an award fee structure indicates a focus on achieving specific performance objectives.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and integration services. The market for large-scale government IT systems is characterized by a few major players capable of handling such complex and high-value projects. Comparable spending benchmarks would involve other large federal IT procurements for critical infrastructure or data management systems, often running into hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Large federal IT contracts of this magnitude are typically awarded to prime contractors with extensive resources and capabilities, often leading to subcontracting opportunities for smaller firms. However, the primary awardee is a large corporation, suggesting limited direct benefit to small businesses as prime contractors on this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Census Bureau's contracting officers and program managers. Given the scale and importance of the decennial census, it is likely subject to rigorous oversight, including regular performance reviews, audits, and potentially oversight from the Government Accountability Office (GAO) or the Department of Commerce's Inspector General. Transparency would be expected through contract award notices and performance reporting.

Related Government Programs

Decennial Census Operations
Federal IT Modernization Programs
Census Bureau Data Collection Systems
Large-Scale IT System Integration Contracts

Risk Flags

Potential for cost overruns due to CPAF structure
Risk of schedule slippage in complex IT integration
Data security and integrity concerns for sensitive census information
Dependence on a single large contractor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $930.7 million to LOCKHEED MARTIN SERVICES, LLC. THE GOAL OF THE DECENNIAL RESPONSE INTEGRATION SYSTEM (DRIS) CONTRACT IS TO OBTAIN A PRACTICAL SOLUTION TO PROVIDING RESPONDENT ASSISTANCE AND DATA CAPTURE FOR THE 2010 CENSUS.

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $930.7 million.

What is the period of performance?

Start: 2005-09-23. End: 2011-09-30.

What was the specific performance of Lockheed Martin Services, LLC on this contract?

Performance details for Lockheed Martin Services, LLC on the DRIS contract are not fully detailed in the provided data. As a Cost Plus Award Fee (CPAF) contract, payments were composed of a base cost plus an award fee determined by the government based on performance against defined criteria. The 'award fee' component suggests that the contractor could earn additional profit by exceeding performance expectations. Without access to the award fee determinations or specific performance metrics (e.g., system uptime, data accuracy rates, respondent satisfaction scores), a precise assessment of their performance is not possible from this summary data. However, the contract's completion within its defined period (ending 2011-09-30) suggests a level of successful execution.

How does the $930 million cost compare to similar large-scale federal IT system deployments?

The $930 million cost for the Decennial Response Integration System (DRIS) contract is substantial and aligns with the upper range of major federal IT system procurements. Large-scale systems for critical national functions, such as defense systems, healthcare IT infrastructure, or large data management platforms, often require investments in the hundreds of millions to billions of dollars. For instance, the development of new electronic health record systems for the VA or the modernization of air traffic control systems have incurred similar or greater costs. The Census Bureau's need for a robust, scalable, and secure system to handle massive data volumes and public interaction during the decennial census justifies a significant investment, making this cost comparable to other high-stakes federal technology projects.

What were the primary risks associated with the DRIS contract, and how were they managed?

The primary risks associated with the DRIS contract likely included technical complexity, schedule delays, cost overruns, and data security/integrity issues. Developing and integrating systems for respondent assistance and data capture for a national census is inherently complex, involving large user bases and vast amounts of sensitive data. Schedule delays could jeopardize the census timeline, while cost overruns are a concern with CPAF contracts. Data security is paramount given the personal information collected. Management strategies would have involved rigorous project management, phased development and testing, clear performance metrics tied to award fees, strong cybersecurity protocols, and regular government oversight and reporting requirements.

How effective was the DRIS system in supporting the 2010 Census data collection and respondent assistance?

The effectiveness of the DRIS system in supporting the 2010 Census data collection and respondent assistance can be inferred from the successful completion of the census itself. The Census Bureau reported that the 2010 Census achieved a 74% self-response rate, a slight increase from 2000, indicating that systems facilitating response were functioning. The DRIS contract's goal was to provide practical solutions for respondent assistance and data capture, which are crucial for managing the influx of information and ensuring accuracy. While specific metrics on the DRIS system's direct contribution to these outcomes are not provided, its role in processing responses and providing support was integral to the overall census operation's success.

What is the historical spending pattern for the Census Bureau's IT systems, and how does DRIS fit in?

The Census Bureau consistently requires significant IT investments, particularly leading up to and during decennial census years. Historical spending patterns show substantial allocations for data collection, processing, and dissemination systems. The DRIS contract, valued at over $930 million, represents a major expenditure focused on the critical data capture and respondent interaction aspects of the 2010 Census. It fits within a pattern of large, complex IT procurements necessary for the decennial census, which occurs every ten years. Other significant IT spending would include systems for address canvassing, survey management, and data analysis, often spanning multiple years and involving substantial budgets.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 9211 CORPORATE BLVD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $1,016,410,149

Exercised Options: $1,016,410,149

Current Obligation: $930,736,558

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline