EPA's $10.8M contract for SDMS system support awarded to Lockheed Martin International

Contract Overview

Contract Amount: $10,859,823 ($10.9M)

Contractor: Lockheed Martin International

Awarding Agency: Environmental Protection Agency

Start Date: 2006-06-19

End Date: 2011-01-07

Contract Duration: 1,663 days

Daily Burn Rate: $6.5K/day

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SDMS - SYSTEMS SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $10.9 million to LOCKHEED MARTIN INTERNATIONAL for work described as: SDMS - SYSTEMS SUPPORT Key points: 1. Contract value of $10.8M over 5 years suggests a significant investment in system maintenance and development. 2. Awarded to a large, established defense contractor, indicating a focus on reliability and extensive experience. 3. The 'Custom Computer Programming Services' NAICS code points to specialized IT support rather than general IT services. 4. A Cost Plus Fixed Fee contract type can present cost control challenges if not closely monitored. 5. The contract duration of 1663 days (approx. 4.5 years) indicates a long-term need for these services. 6. The contract was awarded by the Environmental Protection Agency, highlighting its importance for environmental data management.

Value Assessment

Rating: fair

The contract value of $10.8 million over approximately 4.5 years averages to about $2.4 million annually. Without specific benchmarks for SDMS system support or comparable custom programming services for environmental agencies, a precise value-for-money assessment is difficult. However, given the specialized nature of custom programming and the long-term support required, the pricing appears within a reasonable range for a large contractor. Further analysis would require benchmarking against similar custom software development and maintenance contracts within the federal government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly detailed in the provided data. The presence of '5' as the number of offers suggests some level of competition, but the specific solicitation method (e.g., full and open, limited competition) is not stated. A higher number of offers generally indicates broader market engagement and potentially better price discovery.

Taxpayer Impact: The level of competition directly impacts taxpayer value. More competitive solicitations tend to drive down prices, ensuring that federal funds are used more efficiently. If this contract was competed broadly, it likely resulted in a more favorable price for the government.

Public Impact

The primary beneficiary is the Environmental Protection Agency, which receives critical IT support for its Systems Data Management System. This contract ensures the continued operation, maintenance, and potential enhancement of a system vital for managing environmental data. The services delivered likely support various EPA programs that rely on accurate and accessible environmental data for decision-making and regulatory enforcement. Geographic impact is national, as the EPA operates across the United States, and the SDMS likely supports data collection and analysis nationwide. Workforce implications include the employment of IT professionals by Lockheed Martin International to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed diligently.
Lack of detailed competition information makes it difficult to ascertain if the best possible price was achieved.
The long contract duration might reduce flexibility to adopt newer technologies or more cost-effective solutions if they emerge.

Positive Signals

Award to a large, experienced contractor like Lockheed Martin suggests a high likelihood of successful service delivery.
The significant investment indicates the strategic importance of the SDMS to the EPA's mission.
The contract's duration implies a stable and predictable IT support environment for the agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically Custom Computer Programming Services. The federal IT market is substantial, with significant spending on software development, maintenance, and support. Contracts like this are crucial for agencies to manage complex data systems essential for their operations. Benchmarking would involve comparing the annual cost of this contract against similar custom programming and system support contracts awarded to large IT firms by other federal agencies.

Small Business Impact

The provided data indicates that small business participation was not a primary focus for this contract, as 'sb' is false. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the prime contract was likely awarded to a large business, and opportunities for small businesses would depend on Lockheed Martin's subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. They are responsible for monitoring performance, approving costs, and ensuring compliance with the contract terms. The contract type (Cost Plus Fixed Fee) necessitates close financial oversight to manage allowable costs. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

EPA IT Modernization Programs
Federal Custom Software Development Contracts
Environmental Data Management Systems
Large Prime Contractor IT Support Services
Cost-Plus Contract Management

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited information on competition level may impact assessment of price reasonableness.
Long contract duration could limit adoption of newer technologies.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $10.9 million to LOCKHEED MARTIN INTERNATIONAL. SDMS - SYSTEMS SUPPORT

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN INTERNATIONAL.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2006-06-19. End: 2011-01-07.

What is the historical spending trend for SDMS system support at the EPA?

The provided data reflects a single contract award for SDMS system support to Lockheed Martin International from June 2006 to January 2011, totaling $10.8 million. To understand historical spending trends, one would need to examine prior contracts for SDMS support, potentially from different vendors or with different contract types, as well as subsequent contracts awarded after January 2011. Analyzing a longer time series of spending on this specific system or similar data management systems within the EPA would reveal patterns of investment, potential increases or decreases in funding, and the evolution of support strategies over time. Without this broader historical context, it's challenging to assess if the $10.8 million represents a typical or anomalous level of expenditure for this function.

How does the annual cost of this contract compare to similar custom programming services for environmental agencies?

The annual cost for this contract averages approximately $2.4 million ($10.8M / ~4.5 years). Benchmarking this against similar custom programming services for environmental agencies requires access to detailed contract data for comparable systems. Factors such as system complexity, scope of services (maintenance, development, integration), and the specific agency's IT environment influence pricing. Generally, custom programming for specialized government systems can be costly due to unique requirements and security protocols. Without specific comparable contract data, it's difficult to definitively state if $2.4 million annually is high or low. However, for a large, established contractor supporting a critical agency system, this figure is plausible, though a thorough value assessment would necessitate a detailed market analysis of similar federal IT service contracts.

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

The provided data does not specify the Key Performance Indicators (KPIs) used to measure the success of this contract. Typically, for custom computer programming and system support contracts, KPIs would focus on aspects like system uptime and availability, response times for issue resolution, successful completion of development milestones, adherence to security protocols, and user satisfaction. For a Cost Plus Fixed Fee contract, monitoring the contractor's ability to manage costs within the fixed fee component while delivering the required services effectively is also crucial. The EPA's contracting officer and program managers would be responsible for defining and tracking these KPIs throughout the contract's lifecycle to ensure performance standards are met and the system remains operational and effective.

What is Lockheed Martin International's track record with the EPA on similar IT contracts?

The provided data identifies Lockheed Martin International as the contractor for this specific SDMS system support contract with the EPA. To assess their track record, one would need to investigate other contracts awarded to Lockheed Martin International by the EPA, particularly those involving custom computer programming, system maintenance, or data management. A review of their past performance evaluations, any documented issues or successes, and the overall value and duration of previous engagements would provide insight into their reliability and effectiveness. Without access to a broader contract history and performance data, it's difficult to provide a comprehensive assessment of their specific track record with the EPA beyond this single contract.

What risks are associated with a Cost Plus Fixed Fee (CPFF) contract for custom programming?

Cost Plus Fixed Fee (CPFF) contracts present specific risks, primarily related to cost control and contractor incentive. For the government, the main risk is that the contractor may have less incentive to control costs once the 'cost' portion is covered, as their profit is fixed. This can lead to scope creep or less efficient resource allocation if not rigorously managed. Contractors, on the other hand, bear the risk of cost overruns if their estimated costs are too low, potentially impacting their profitability. For custom programming, where requirements can evolve, managing the scope and ensuring efficient development within the fixed fee framework requires strong government oversight, clear definition of work, and proactive change management to mitigate potential cost increases and ensure value for taxpayer money.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 2339 ROUTE 70 WEST, FLOOR 3W, CHERRY HILL, NJ, 08002

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,859,823

Exercised Options: $10,859,823

Current Obligation: $10,859,823

Parent Contract

Parent Award PIID: EPW04005

IDV Type: IDC

Timeline