Labor's $11.1M Data Processing Contract Awarded to Lockheed Martin Services, LLC Under SAP

Contract Overview

Contract Amount: $11,135,684 ($11.1M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Labor

Start Date: 2007-01-01

End Date: 2012-12-31

Contract Duration: 2,191 days

Daily Burn Rate: $5.1K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: NOT REPORTED

Sector: IT

Official Description: DATA PROCESSING AND MAILROOM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $11.1 million to LOCKHEED MARTIN SERVICES, LLC for work described as: DATA PROCESSING AND MAILROOM Key points: 1. Contract value of $11.1 million over 5 years. 2. Awarded under Simplified Acquisition Procedures (SAP), suggesting a less competitive process. 3. No small business participation reported. 4. Sector is IT services, specifically data processing and hosting.

Value Assessment

Rating: fair

The contract value of $11.1 million over five years averages $2.2 million annually. Benchmarking against similar IT infrastructure contracts is difficult without more specific service details, but this appears to be a moderate expenditure for the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, which typically involves fewer vendors and potentially less price discovery than full and open competition. The award to Lockheed Martin Services, LLC suggests they were the selected vendor through this limited process.

Taxpayer Impact: The use of SAP may limit competitive pressure, potentially leading to higher costs for taxpayers compared to a fully competed contract. However, the overall value is moderate.

Public Impact

Essential data processing and mailroom services for the Department of Labor are maintained. The contract supports a major defense contractor, Lockheed Martin, in the IT services sector. Lack of small business involvement may limit opportunities for smaller, specialized IT firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on data processing, web hosting, and related services. Annual spending in this broad category can range widely, but this contract's $2.2 million annual value is within a typical range for specialized IT support services.

Small Business Impact

The contract data indicates no small business participation (sb: false). This suggests that opportunities for small businesses were either not sought or not realized in this procurement, which could be a missed opportunity for economic development.

Oversight & Accountability

The use of SAP and a BPA award mechanism warrants oversight to ensure fair pricing and adequate performance. Tracking contract modifications and performance metrics would be key to accountability.

Related Government Programs

Risk Flags

Tags

computing-infrastructure-providers-data-, department-of-labor, dc, bpa, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $11.1 million to LOCKHEED MARTIN SERVICES, LLC. DATA PROCESSING AND MAILROOM

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2007-01-01. End: 2012-12-31.

What specific data processing and mailroom services are included, and how do they align with the agency's core mission needs?

The contract covers essential data processing and mailroom functions for the Department of Labor, likely supporting administrative and operational workflows. Understanding the criticality and scope of these services is key to assessing their value. Without detailed service descriptions, it's difficult to definitively link them to specific mission outcomes, but they are fundamental to agency operations.

What was the rationale for using Simplified Acquisition Procedures (SAP) for an $11.1 million contract, and what was the estimated cost savings compared to full and open competition?

The rationale for using SAP, which typically applies to procurements under $250,000, for an $11.1 million contract is unclear and potentially problematic. It suggests either a misunderstanding of SAP thresholds or a specific justification not evident in the data. This deviation raises concerns about potential missed savings and reduced competition, warranting further investigation into the procurement process.

How effectively did the limited competition under SAP ensure fair and reasonable pricing for these IT services over the five-year period?

The limited competition inherent in SAP procedures raises questions about the effectiveness of price discovery. While Lockheed Martin Services, LLC was awarded the contract, the lack of broader competition makes it difficult to ascertain if the pricing was truly the most competitive available. A thorough review of the pricing structure against market rates and similar contracts would be necessary to assess fairness and reasonableness.

Industry Classification

NAICS: InformationComputing Infrastructure Providers, Data Processing, Web Hosting, and Related ServicesComputing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: NOT REPORTED (NO)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 2339 ROUTE 70 WEST, FLOOR 3W, CHERRY HILL, NJ, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $59,291,070

Exercised Options: $11,838,186

Current Obligation: $11,135,684

Parent Contract

Parent Award PIID: DOLQ079E24738

IDV Type: BPA

Timeline

Start Date: 2007-01-01

Current End Date: 2012-12-31

Potential End Date: 2012-12-31 00:00:00

Last Modified: 2012-10-23

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