DOT's FAA awards $20.18M for Computer Systems Design Services to Lockheed Martin
Contract Overview
Contract Amount: $20,177,348 ($20.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Transportation
Start Date: 2012-03-01
End Date: 2016-05-02
Contract Duration: 1,523 days
Daily Burn Rate: $13.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LCSS SEGMENT II TAS::69 4562::TAS IGF::CL::IGF
Place of Performance
Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08002
Plain-Language Summary
Department of Transportation obligated $20.2 million to LOCKHEED MARTIN CORPORATION for work described as: LCSS SEGMENT II TAS::69 4562::TAS IGF::CL::IGF Key points: 1. Contract awarded to a single large business, Lockheed Martin. 2. The contract spans over 4 years, indicating a significant project. 3. Fixed-price contract type may limit cost overruns but could impact flexibility. 4. The NAICS code 541512 suggests a focus on IT infrastructure and support.
Value Assessment
Rating: fair
The contract value of $20.18M over 4 years averages to approximately $5.05M annually. Benchmarking against similar large-scale IT system design contracts is difficult without more specific service details, but this appears to be a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award was a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could have implications for the initial price discovery.
Taxpayer Impact: Taxpayer funds are being used for IT system design services. The full and open competition aims to ensure fair pricing, but the final cost depends on the specific services rendered and the competitive landscape at the time of bidding.
Public Impact
Impacts the Federal Aviation Administration's IT infrastructure and operational capabilities. Supports critical government functions related to air traffic control or aviation management. Potential for technological advancements in aviation systems. Ensures continued operation and modernization of essential FAA systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the services provided.
- Potential for scope creep in long-term IT projects.
- Reliance on a single large contractor for critical systems.
Positive Signals
- Awarded through full and open competition.
- Fixed-price contract type can provide cost certainty.
- Long contract duration allows for sustained development and support.
Sector Analysis
The IT services sector is highly competitive, with a wide range of providers from small businesses to large corporations. Spending on computer systems design services by federal agencies is substantial, often supporting modernization efforts and operational needs. This contract falls within typical spending for significant IT projects.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award, suggesting limited direct impact on the small business sector for this particular contract.
Oversight & Accountability
Oversight would typically involve program management reviews, performance monitoring, and financial audits by the FAA to ensure contract compliance and effective use of funds. The fixed-price nature might simplify some aspects of financial oversight.
Related Government Programs
- Computer Systems Design Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Lack of detailed service description.
- Potential for vendor lock-in.
- Limited visibility into subcontractor participation.
- Long contract duration increases risk of obsolescence.
Tags
computer-systems-design-services, department-of-transportation, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $20.2 million to LOCKHEED MARTIN CORPORATION. LCSS SEGMENT II TAS::69 4562::TAS IGF::CL::IGF
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: 2012-03-01. End: 2016-05-02.
What specific computer systems design services were procured, and how do they align with the FAA's strategic IT goals?
The provided data lacks specifics on the exact services. However, given the agency (FAA) and the NAICS code (541512), it likely pertains to the design, development, integration, or maintenance of complex IT systems supporting air traffic management, safety, or operational efficiency. Alignment with strategic goals would require reviewing FAA's IT modernization plans and procurement justifications.
What was the competitive landscape like for this specific IT system design service, and did the full and open competition yield a fair market price?
While the contract states 'full and open competition,' the effectiveness of price discovery depends on the number and quality of bids received. Without bid data, it's impossible to definitively assess if a fair market price was achieved. The duration and complexity of the project could also influence the number of competitive bids.
What is the potential long-term risk associated with awarding a significant IT contract to a single large vendor like Lockheed Martin?
The primary risk is vendor lock-in, making it difficult and costly to switch providers or integrate new technologies. There's also a potential for reduced innovation if the vendor's solutions become outdated. However, a large vendor can offer stability, extensive resources, and deep expertise, which can be beneficial for complex, long-term projects.
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: $20,177,348
Exercised Options: $20,177,348
Current Obligation: $20,177,348
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTFAAC10D00067
IDV Type: IDC
Timeline
Start Date: 2012-03-01
Current End Date: 2016-05-02
Potential End Date: 2016-05-02 00:00:00
Last Modified: 2016-06-30
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