Lockheed Martin awarded $20.1M for LCSS Program computer software support by FAA

Contract Overview

Contract Amount: $20,209,987 ($20.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Transportation

Start Date: 2010-05-17

End Date: 2015-05-31

Contract Duration: 1,840 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMPUTER SOFTWARE TO SUPPORT LCSS PROGRAM TAS::69 4562::TAS

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $20.2 million to LOCKHEED MARTIN CORPORATION for work described as: COMPUTER SOFTWARE TO SUPPORT LCSS PROGRAM TAS::69 4562::TAS Key points: 1. Contract value represents a significant investment in IT systems for the FAA. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of the contract (over 5 years) indicates a long-term need for these services. 5. The specific NAICS code (541512) points to a focus on computer systems design services.

Value Assessment

Rating: good

The contract value of $20.1 million over approximately five years for computer systems design services appears reasonable given the scope of supporting a program like LCSS. Benchmarking against similar IT support contracts for large federal programs would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage costs effectively, but without detailed performance metrics, a definitive value assessment is challenging. The contractor, Lockheed Martin, is a major defense and aerospace company with extensive experience in complex IT systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 5 bids suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by driving down prices through market forces. It provides assurance that the government is receiving competitive offers for the services required.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced computer systems to support its LCSS program. Services delivered include computer systems design and support, crucial for operational efficiency. The primary geographic impact is likely within the FAA's operational centers and potentially across its national network. Workforce implications include the need for skilled IT professionals to develop, implement, and maintain these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Dependence on a single large contractor for critical IT infrastructure.
Risk of vendor lock-in if proprietary solutions are developed.

Positive Signals

Award to a reputable contractor with a strong track record in complex systems.
Firm fixed-price contract type provides cost certainty.
Full and open competition suggests a well-defined requirement and competitive pricing.

Sector Analysis

The contract falls within the Information Technology sector, specifically Computer Systems Design Services. This is a critical area for government operations, enabling efficiency and modernization. The market for such services is large and competitive, with many established players. This contract represents a portion of the FAA's broader IT spending, which is essential for maintaining and upgrading its complex air traffic management systems.

Small Business Impact

The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of a small business set-aside for this specific award. Subcontracting opportunities for small businesses may exist, but this would depend on Lockheed Martin's subcontracting plan, which is not detailed in the provided data. The overall impact on the small business ecosystem for IT services would be indirect, primarily through potential subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Federal Aviation Administration. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified services. Transparency is facilitated by contract award databases, though detailed performance reviews are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FAA IT Modernization Programs
Air Traffic Control Systems Modernization
Department of Transportation IT Services
Large-Scale IT System Development Contracts

Risk Flags

Potential for scope creep despite fixed-price contract.
Contract duration exceeds 5 years, requiring ongoing monitoring.
Reliance on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $20.2 million to LOCKHEED MARTIN CORPORATION. COMPUTER SOFTWARE TO SUPPORT LCSS PROGRAM TAS::69 4562::TAS

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2010-05-17. End: 2015-05-31.

What is the specific nature of the LCSS program that this contract supports?

The provided data does not specify the full details of the LCSS (Logistics Command and Support System) program. However, given the contractor (Lockheed Martin) and the agency (FAA), it is highly probable that LCSS relates to the logistical support, maintenance, and operational management of FAA's critical aviation infrastructure and systems. This could encompass inventory management, supply chain logistics, maintenance scheduling, and overall operational readiness for the agency's vast technological assets, including air traffic control equipment and IT infrastructure. The computer systems design services would be crucial for developing, integrating, and maintaining the software platforms that manage these complex logistical operations.

How does the $20.1 million contract value compare to similar IT support contracts within the FAA or other transportation agencies?

Without access to a comprehensive database of comparable FAA or Department of Transportation IT contracts, a precise benchmark is difficult. However, $20.1 million over approximately five years for specialized computer systems design and support for a major program like LCSS is within the expected range for large federal IT procurements. Contracts for enterprise resource planning (ERP) systems, air traffic management software, or cybersecurity solutions for agencies of similar size often fall into the tens to hundreds of millions of dollars. The value appears reasonable for a firm fixed-price contract awarded competitively, suggesting that the pricing was scrutinized against market rates and competitor bids.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract supporting a critical program like LCSS within the FAA, typical KPIs would likely focus on system uptime and availability, response times for technical support, successful software updates and deployments, data integrity, and adherence to security protocols. SLAs would define the acceptable performance thresholds for these metrics, with potential penalties or incentives tied to meeting or exceeding them. These details are usually outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

What is Lockheed Martin's track record with the FAA and similar government IT contracts?

Lockheed Martin Corporation is a major defense contractor with extensive experience in providing IT services and developing complex systems for various government agencies, including the FAA. They have a long history of supporting large-scale programs involving aviation, logistics, and command and control systems. Their track record with the FAA likely includes numerous contracts for IT modernization, software development, and systems integration. While specific performance details for this LCSS contract are not provided, Lockheed Martin's general reputation is that of a capable, albeit expensive, provider of high-end technological solutions for demanding government requirements.

What is the historical spending trend for computer systems design services by the FAA?

The provided data only includes a single contract award. To assess historical spending trends for computer systems design services by the FAA, a broader dataset encompassing multiple years and various contracts would be necessary. Generally, federal agencies like the FAA have seen increasing IT spending over the years due to the need for modernization, cybersecurity, and data analytics. Spending on computer systems design services is a significant component of this, driven by the complexity of managing air traffic control, flight information, and internal operational systems. Trends would likely show a shift towards cloud computing, agile development, and data-driven solutions.

What are the potential risks associated with a firm fixed-price contract for complex IT development?

While firm fixed-price (FFP) contracts are designed to provide cost certainty, they carry specific risks, especially for complex IT development. One primary risk is that the contractor may cut corners on quality or scope to maintain profitability if initial cost estimates were too low or unforeseen technical challenges arise. Conversely, if the government's requirements are not perfectly defined upfront, scope creep can lead to disputes and potentially costly change orders, negating the FFP benefit. There's also a risk that the contractor may not invest sufficiently in innovation if it's not explicitly required and paid for, potentially leading to a system that becomes outdated faster. The government bears the risk of inadequate performance if the contractor underbids or mismanages the project.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 9500 GODWIN DR, MANASSAS, VA, 20110

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

Financial Breakdown

Contract Ceiling: $43,476,612

Exercised Options: $36,623,415

Current Obligation: $20,209,987

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAAC10D00067

IDV Type: IDC

Timeline