Lockheed Martin received $12M for EPA's Enterprise Content Management System support over 6 years

Contract Overview

Contract Amount: $11,996,385 ($12.0M)

Contractor: Lockheed Martin International

Awarding Agency: Environmental Protection Agency

Start Date: 2005-03-17

End Date: 2011-11-11

Contract Duration: 2,430 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SYSTEM DESIGN, INTEGRATION, DEPLOYMENT, AND PROJECT MANAGEMENT OFFICE SUPPORT OF EPA'S ENTERPRISE CONTENT MANAGEMENT SYSTEM (ECMS)

Place of Performance

Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08002, UNITED STATES OF AMERICA

State: New Jersey Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $12.0 million to LOCKHEED MARTIN INTERNATIONAL for work described as: SYSTEM DESIGN, INTEGRATION, DEPLOYMENT, AND PROJECT MANAGEMENT OFFICE SUPPORT OF EPA'S ENTERPRISE CONTENT MANAGEMENT SYSTEM (ECMS) Key points: 1. Contract value appears reasonable given the 6-year duration and scope of system support. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for potential cost overruns. 4. Performance context is limited without specific metrics on system uptime, user satisfaction, or efficiency gains. 5. This contract falls within the IT services sector, specifically custom computer programming. 6. The contract was awarded to Lockheed Martin, a large, established federal contractor. 7. The contract was awarded under a full and open competition, indicating a robust bidding process.

Value Assessment

Rating: fair

The contract's total value of approximately $12 million over six years averages to about $2 million per year. This figure needs to be benchmarked against similar IT system support contracts for federal agencies. The cost-plus-fixed-fee (CPFF) pricing structure can sometimes lead to higher costs if not managed tightly, as contractor costs are reimbursed plus a fixed fee. Without detailed breakdowns of labor hours, rates, and specific deliverables, a precise value-for-money assessment is challenging. However, the duration suggests a long-term need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically involves a formal solicitation process, such as a Request for Proposal (RFP), where multiple companies can compete. The presence of 5 bids suggests a healthy level of interest and competition for this contract, which is generally favorable for price discovery and innovation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage the submission of the most cost-effective solutions.

Public Impact

The primary beneficiaries are the Environmental Protection Agency (EPA) employees who rely on the Enterprise Content Management System (ECMS) for daily operations. The services delivered include system design, integration, deployment, and project management support, ensuring the ECMS functions effectively. The geographic impact is likely nationwide, as EPA operations are distributed across the country, and the ECMS supports these operations. Workforce implications include the need for skilled IT professionals to manage and maintain the ECMS, both within the contractor's team and potentially within the EPA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, as they are reimbursed, potentially leading to budget overruns if not closely monitored.
The long duration of the contract (over 6 years) increases the risk of scope creep or the need for significant modifications, which could impact the final cost.
Lack of specific performance metrics in the provided data makes it difficult to assess if the contractor is meeting key performance indicators or delivering optimal value.
The 'Custom Computer Programming Services' NAICS code can encompass a wide range of activities, making it hard to pinpoint specific cost drivers without more detail.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely resulted in a fair market price.
The contract was awarded to Lockheed Martin, a large and experienced federal contractor with a significant track record in IT services.
The contract has a defined end date, providing a clear timeframe for the services and associated costs.
The presence of 5 bids indicates that multiple companies were interested and capable of performing the work, fostering competition.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on custom computer programming and system integration. The market for IT support services for government agencies is substantial, with agencies increasingly relying on robust content management systems to handle vast amounts of data and documentation. Comparable spending benchmarks would involve looking at other federal contracts for similar enterprise content management solutions, system integration, and IT project management support across various agencies. The size of this contract, approximately $12 million over six years, positions it as a mid-sized IT services contract within the federal landscape.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this particular award. The prime contractor, Lockheed Martin, is a large corporation. While large contractors often utilize small businesses for subcontracting, the absence of a small business set-aside means there's no mandated requirement for subcontracting targets related to this specific contract. The impact on the small business ecosystem is indirect; it represents a significant portion of federal IT spending that is not directly flowing to small businesses through this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Environmental Protection Agency (EPA). Accountability measures would be defined in the contract's statement of work, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS-NG, which provide public access to award details. Inspector General (IG) jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise, prompting an investigation by the EPA's Office of Inspector General.

Related Government Programs

EPA Enterprise Content Management System (ECMS)
Custom Computer Programming Services
IT System Integration and Deployment
Federal IT Project Management Support
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of scope creep over the long contract duration.
Dependence on contractor performance for critical system functionality.
Need for robust government oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $12.0 million to LOCKHEED MARTIN INTERNATIONAL. SYSTEM DESIGN, INTEGRATION, DEPLOYMENT, AND PROJECT MANAGEMENT OFFICE SUPPORT OF EPA'S ENTERPRISE CONTENT MANAGEMENT SYSTEM (ECMS)

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 $12.0 million.

What is the period of performance?

Start: 2005-03-17. End: 2011-11-11.

What was Lockheed Martin's performance history with the EPA prior to this contract?

Assessing Lockheed Martin's performance history with the EPA prior to this contract would require a deeper dive into historical contract data and performance evaluations. Generally, large contractors like Lockheed Martin have a broad portfolio of work with various federal agencies. For this specific contract, performance reviews, past performance questionnaires submitted during the bidding process, and any documented issues or commendations would provide insight. Without access to these specific records, it's difficult to provide a detailed assessment. However, the fact that they were awarded this significant contract suggests they met the EPA's criteria for capability and past performance at the time of award.

How does the average annual cost of this contract compare to similar EPA IT support contracts?

The average annual cost for this contract is approximately $2 million ($12 million / 6 years). To compare this effectively, one would need to identify similar EPA contracts for enterprise content management, system integration, or custom programming services awarded around the same period (2005-2011). Key comparison points would include the scope of work, duration, number of users supported, and complexity of the systems involved. Benchmarking against contracts with similar NAICS codes (e.g., 541511) and contract types (CPFF) would be crucial. Without specific comparable contract data, it's challenging to definitively state if $2 million annually represents a competitive rate for the EPA's needs during that timeframe.

What were the primary risks identified during the solicitation and award of this contract?

The primary risks associated with a contract of this nature, especially a CPFF type over a long duration, typically include cost overruns, schedule delays, scope creep, and potential performance issues. For a system like an Enterprise Content Management System (ECMS), risks might also involve data migration challenges, integration complexities with existing EPA systems, user adoption hurdles, and cybersecurity vulnerabilities. The solicitation process would have aimed to mitigate these by clearly defining requirements, performance standards, and evaluation criteria. The number of bidders (5) suggests that potential bidders assessed these risks and found the opportunity viable. Post-award, risk management would be an ongoing process managed by the EPA.

How effective was the ECMS system supported by this contract in improving EPA's operations?

The effectiveness of the ECMS system, and by extension the support provided under this contract, can be measured through various metrics. These could include improvements in document retrieval times, reduction in paper usage, enhanced collaboration capabilities, better compliance with record-keeping regulations, and overall user satisfaction. Without specific performance reports or post-implementation reviews related to this contract, it's difficult to quantify the system's effectiveness. The continued need for support over six years suggests the system provided ongoing value, but the degree of improvement would ideally be documented in EPA's internal program assessments or Inspector General reports.

What was the total federal spending on custom computer programming services (NAICS 541511) during the contract period (2005-2011)?

During the contract period of March 2005 to November 2011, federal spending on Custom Computer Programming Services (NAICS 541511) was substantial. While precise aggregate figures for the entire government require specific database queries (e.g., from FPDS), this NAICS code consistently represents a significant portion of federal IT procurement. Agencies across the government rely heavily on custom software development for unique mission requirements. This contract, valued at $12 million, represents a small fraction of the overall federal expenditure in this category, highlighting the broad demand for such services across numerous departments and agencies.

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)

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: $12,021,667

Exercised Options: $12,021,667

Current Obligation: $11,996,385

Parent Contract

Parent Award PIID: EPW04005

IDV Type: IDC

Timeline