EPA awards $140M for environmental consulting, with Lockheed Martin securing the largest share

Contract Overview

Contract Amount: $139,903,834 ($139.9M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Environmental Protection Agency

Start Date: 2009-09-23

End Date: 2021-06-28

Contract Duration: 4,296 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ENVIRONMENTAL CONSULTING SERVICES

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879

State: Maryland Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $139.9 million to LOCKHEED MARTIN SERVICES, LLC for work described as: ENVIRONMENTAL CONSULTING SERVICES Key points: 1. The contract value of $140 million over its lifecycle suggests a significant need for ongoing environmental consulting services. 2. Lockheed Martin Services, LLC, as the primary awardee, indicates a concentration of services with a major defense and technology contractor. 3. The 'Cost Plus Fixed Fee' contract type can sometimes lead to cost overruns if not closely monitored, presenting a potential risk. 4. Awarded in 2009 and ending in 2021, this contract spans a considerable period, allowing for long-term project engagement and relationship building. 5. The absence of small business set-asides means opportunities for smaller firms may have been limited in this specific procurement. 6. The contract's focus on environmental consulting aligns with the EPA's core mission of protecting human health and the environment.

Value Assessment

Rating: fair

The total award of $140 million over approximately 12 years represents a substantial investment in environmental consulting. Benchmarking this against similar large-scale environmental services contracts is challenging without more specific service details. However, the 'Cost Plus Fixed Fee' (CPFF) structure, while providing flexibility, can be less cost-efficient than fixed-price contracts if not managed rigorously. The fixed fee component aims to control contractor profit, but the cost-reimbursement aspect requires diligent oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The data does not specify the number of bidders, but full and open competition suggests multiple entities likely vied for this significant contract.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, driving down costs through market forces and increasing the likelihood of selecting the best value proposal.

Public Impact

The Environmental Protection Agency (EPA) benefits from comprehensive environmental consulting services to support its regulatory and operational functions. Services likely include technical assistance, research, data analysis, and program support related to environmental protection and compliance. The contract's duration and scope suggest a broad geographic impact, potentially supporting EPA initiatives nationwide. The engagement of a large contractor like Lockheed Martin may have implications for the broader environmental services workforce, including potential subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize cost growth if not managed with strict oversight.
Lack of specific small business participation noted, potentially limiting opportunities for smaller, specialized environmental firms.
The long contract duration (over 10 years) could lead to vendor lock-in or reduced agility if needs change significantly.

Positive Signals

Full and open competition suggests a robust selection process, likely yielding competitive pricing and quality.
The significant award value indicates a critical and sustained need for these environmental consulting services by the EPA.
Awarding to a major contractor like Lockheed Martin may ensure access to extensive resources and expertise.

Sector Analysis

The environmental consulting sector is a vital part of the broader professional services industry, supporting government agencies and private companies in navigating complex environmental regulations and challenges. This contract falls within the 'Environmental Consulting Services' category (NAICS 541620). The market is characterized by a mix of large, diversified firms and smaller, specialized consultancies. Government spending in this area is driven by regulatory mandates and the need for scientific and technical expertise to manage environmental risks and projects.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. The primary awardee, Lockheed Martin Services, LLC, is a large corporation. This means that direct subcontracting opportunities for small businesses under this specific contract may be limited unless proactively pursued by the main contractor. The absence of a small business set-aside in such a large procurement could represent a missed opportunity to foster growth within the small business segment of the environmental consulting industry.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA) contracting officers and program managers. Given the 'Cost Plus Fixed Fee' structure, rigorous financial oversight and performance monitoring are crucial to ensure that costs are reasonable and allocable, and that the fixed fee is earned appropriately. Transparency is typically managed through contract reporting requirements and potential audits by the EPA's Office of Inspector General (OIG) or the Government Accountability Office (GAO) if specific concerns arise.

Related Government Programs

EPA Environmental Services Contracts
Environmental Remediation Services
Environmental Planning and Assessment
Scientific and Technical Consulting Services

Risk Flags

Potential for cost overruns due to CPFF structure
Limited small business participation opportunities
Long contract duration may reduce flexibility

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $139.9 million to LOCKHEED MARTIN SERVICES, LLC. ENVIRONMENTAL CONSULTING SERVICES

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $139.9 million.

What is the period of performance?

Start: 2009-09-23. End: 2021-06-28.

What specific types of environmental consulting services were provided under this contract?

While the data identifies the contract as being for 'Environmental Consulting Services' (NAICS 541620), the specific deliverables are not detailed. Typically, such contracts can encompass a wide range of services including environmental impact assessments, regulatory compliance support, hazardous waste management consulting, site investigation and remediation planning, air and water quality analysis, ecological studies, and policy development assistance. The substantial value and long duration suggest a broad scope, likely supporting multiple EPA programs and initiatives across various environmental domains.

How does the 'Cost Plus Fixed Fee' (CPFF) structure compare to other contract types for similar services?

CPFF contracts are often used when the scope of work is not precisely defined or when there is significant uncertainty in the cost of performance, which can be common in complex consulting or R&D projects. Unlike fixed-price contracts, where the contractor bears most of the cost risk, CPFF shifts some of that risk to the government. The 'fixed fee' represents the contractor's negotiated profit. While offering flexibility, CPFF requires robust government oversight to manage costs effectively and prevent potential overruns. For services where scope is well-defined, fixed-price contracts are generally preferred for better cost control.

What is the track record of Lockheed Martin Services, LLC in performing large federal environmental consulting contracts?

Lockheed Martin Services, LLC, as a subsidiary of Lockheed Martin Corporation, has a long history of performing large, complex contracts across various federal agencies, including significant work in logistics, IT, and technical services. While primarily known for defense and aerospace, their services division often engages in areas like environmental management, base operations support, and scientific services. Their extensive experience with government contracts suggests a capacity to manage large programs, though specific performance metrics for environmental consulting would require deeper analysis of past performance reviews and contract close-outs.

What was the total spending trend for environmental consulting services by the EPA in the years this contract was active?

Analyzing the EPA's total spending trend for environmental consulting during the 2009-2021 period would provide context for this $140 million award. Without access to historical EPA budget data broken down by service category, it's difficult to provide precise figures. However, this contract represents a significant portion of the EPA's potential outsourcing for such services. General trends in environmental regulation and policy during this era, including responses to climate change and pollution control initiatives, likely influenced the demand and overall federal spending on environmental consulting.

Are there any known performance issues or disputes associated with this contract?

The provided data does not include information on performance issues, disputes, or contract modifications. A comprehensive review would necessitate examining contract performance reports, any official complaints filed, or litigation records related to this specific award. Generally, large, long-term contracts can encounter challenges related to scope creep, unforeseen technical difficulties, or disagreements over contract terms, but the absence of readily available negative information suggests the contract may have proceeded without major public disputes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PRHQ0813330

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $157,322,175

Exercised Options: $157,322,175

Current Obligation: $139,903,834

Actual Outlays: $-417,339

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline