EPA awards $19.7M to Lockheed Martin for NVFEL compliance system development and maintenance

Contract Overview

Contract Amount: $19,741,817 ($19.7M)

Contractor: Lockheed Martin International

Awarding Agency: Environmental Protection Agency

Start Date: 2005-05-02

End Date: 2012-02-06

Contract Duration: 2,471 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DESIGN, DEVELOPMENT, AUTOMATION AND MAINTENANCE OF NVFEL COMPLIANCE INSTRUMENTATION INFORMATION SYSTEMS.

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $19.7 million to LOCKHEED MARTIN INTERNATIONAL for work described as: DESIGN, DEVELOPMENT, AUTOMATION AND MAINTENANCE OF NVFEL COMPLIANCE INSTRUMENTATION INFORMATION SYSTEMS. Key points: 1. Contract awarded to a large, established defense contractor. 2. Custom computer programming services sector. 3. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 4. No small business participation noted.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure suggests potential for costs to exceed initial estimates, especially given the long duration. Benchmarking against similar custom programming contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the Cost Plus Fixed Fee pricing structure may not always yield the most cost-effective outcome for taxpayers.

Taxpayer Impact: The use of a Cost Plus Fixed Fee contract introduces risk of higher-than-expected costs for taxpayers, though full and open competition aims to mitigate this.

Public Impact

Ensures continued operation of critical environmental compliance systems. Supports EPA's mission to protect human health and the environment. Long-term contract may impact agency's ability to adopt newer technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Long contract duration
No small business participation

Positive Signals

Full and open competition
Established contractor with relevant experience

Sector Analysis

This contract falls within the Custom Computer Programming Services sector, which is a significant area of government IT spending. Benchmarks for similar services vary widely based on complexity and duration.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of small business subcontracting. This represents a missed opportunity for small business engagement in this IT services contract.

Oversight & Accountability

The contract's duration and cost-plus nature warrant close oversight to ensure funds are used efficiently and effectively. Regular performance reviews and cost audits are crucial.

Related Government Programs

Custom Computer Programming Services
Environmental Protection Agency Contracting
Environmental Protection Agency Programs

Risk Flags

Cost overruns due to Cost Plus Fixed Fee structure
Lack of small business participation
Potential for vendor lock-in with long-term contract
System obsolescence risk over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $19.7 million to LOCKHEED MARTIN INTERNATIONAL. DESIGN, DEVELOPMENT, AUTOMATION AND MAINTENANCE OF NVFEL COMPLIANCE INSTRUMENTATION INFORMATION SYSTEMS.

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 $19.7 million.

What is the period of performance?

Start: 2005-05-02. End: 2012-02-06.

What specific performance metrics were used to evaluate Lockheed Martin's services throughout the contract's lifecycle?

Performance metrics would typically include system uptime, bug resolution times, successful implementation of new features, and adherence to security protocols. The EPA likely established specific KPIs tied to the NVFEL system's operational requirements and compliance mandates. Detailed performance reports would be essential for assessing value and contractor accountability over the contract's eight-year span.

How did the Cost Plus Fixed Fee structure impact the final cost compared to a fixed-price contract for similar custom programming services?

Cost Plus Fixed Fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. This structure can lead to higher final costs than fixed-price contracts if costs escalate beyond initial projections. While it offers flexibility for evolving requirements, it places a greater burden on the government to monitor costs and can reduce the contractor's incentive for cost efficiency.

What was the rationale for awarding a long-term contract (nearly 7 years) for custom computer programming services?

Long-term contracts for complex IT systems like the NVFEL compliance instrumentation are often awarded to ensure continuity of operations, leverage contractor expertise for ongoing maintenance and development, and avoid the costs and risks associated with frequent re-competition. This approach can foster a deeper understanding of the system's intricacies by the contractor, potentially leading to more effective long-term support.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

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: $20,404,464

Exercised Options: $20,404,464

Current Obligation: $19,741,817

Parent Contract

Parent Award PIID: EPW04005

IDV Type: IDC

Timeline