GSA's $36.4M IT Infrastructure Contract with Lockheed Martin Raises Questions on Value and Competition
Contract Overview
Contract Amount: $36,409,891 ($36.4M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: General Services Administration
Start Date: 2010-03-25
End Date: 2013-11-30
Contract Duration: 1,346 days
Daily Burn Rate: $27.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IT INFRASTRUCTURE
Place of Performance
Location: LORTON, FAIRFAX County, VIRGINIA, 22079
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $36.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: IT INFRASTRUCTURE Key points: 1. Contract awarded via full and open competition, suggesting potential for competitive pricing. 2. Cost Plus Award Fee (CPA) contract type can incentivize performance but may lead to higher costs. 3. Lack of small business participation noted, potentially limiting broader economic impact. 4. The contract spans over three years, indicating a significant, long-term IT infrastructure investment.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure, while incentivizing, can lead to less predictable final costs compared to fixed-price contracts. Benchmarking against similar IT infrastructure contracts is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which theoretically allows for the widest range of potential bidders and promotes price discovery. However, the specific award fee structure might influence the final negotiated price.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. However, the CPA structure warrants scrutiny to ensure costs remain reasonable.
Public Impact
Taxpayers may not be receiving the most cost-effective solution due to the CPA contract type. Limited small business involvement means fewer opportunities for smaller, potentially innovative companies. The long duration of the contract suggests a substantial commitment of federal IT resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- No small business participation
Positive Signals
- Full and open competition utilized
Sector Analysis
This contract falls within the Information Technology sector, specifically IT infrastructure. Spending benchmarks in this area vary widely based on scope, but large, multi-year contracts are common for foundational systems.
Small Business Impact
The contract explicitly states no small business participation. This is a missed opportunity to leverage the agility and innovation of smaller businesses within the federal IT landscape.
Oversight & Accountability
The General Services Administration (GSA) is responsible for this contract. Oversight would focus on ensuring Lockheed Martin meets performance metrics to earn award fees and that costs remain within reasonable bounds.
Related Government Programs
- Computer and Software Stores
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to CPA structure
- Lack of small business participation
- Limited transparency on award fee criteria
- Long contract duration may not reflect evolving IT needs
Tags
computer-and-software-stores, general-services-administration, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $36.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. IT INFRASTRUCTURE
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $36.4 million.
What is the period of performance?
Start: 2010-03-25. End: 2013-11-30.
What specific IT infrastructure services were procured under this contract, and how do they align with current federal IT modernization goals?
The data indicates 'IT INFRASTRUCTURE' broadly. Without specific service details, it's challenging to assess alignment with modernization goals. Federal IT infrastructure contracts often cover hardware, software, network services, and integration. Understanding the precise scope is crucial for evaluating its relevance and potential for future upgrades or replacements.
How were the award fee criteria defined, and what mechanisms were in place to prevent cost overruns under the Cost Plus Award Fee structure?
The award fee criteria are not detailed in the provided data. Effective oversight of a CPA contract requires clearly defined, measurable performance metrics tied to the award fee. Robust cost tracking and regular audits are essential to ensure that the contractor's costs are reasonable and allocable, preventing potential overruns driven by the fee incentive.
What was the rationale for not including small businesses in this procurement, and were alternative strategies considered to ensure their participation?
The data indicates 'sb: false', meaning no small business participation was planned or achieved. Agencies typically aim to include small businesses through set-asides or subcontracting plans. The rationale for excluding them here is unclear and warrants investigation to ensure compliance with federal small business goals and to foster a competitive market.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: AFRLCLIN2A
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,418,004
Exercised Options: $36,409,891
Current Obligation: $36,409,891
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-03-25
Current End Date: 2013-11-30
Potential End Date: 2013-11-30 00:00:00
Last Modified: 2021-06-25
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