GSA's $35.7M IT Infrastructure contract awarded to Lockheed Martin shows fair value with 3 bidders
Contract Overview
Contract Amount: $35,738,893 ($35.7M)
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: $26.6K/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 $35.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: IT INFRASTRUCTURE Key points: 1. The contract achieved a reasonable price point given the scope of IT infrastructure services. 2. Competition was robust, indicating a healthy market for these types of services. 3. Performance risk appears manageable, with clear award fee criteria. 4. The contract duration of over three years suggests a need for sustained IT support. 5. This contract falls within the broader IT infrastructure sector, a critical area for government operations. 6. The use of a Cost Plus Award Fee (CPA F) structure incentivizes contractor performance.
Value Assessment
Rating: good
The contract's total value of $35.7 million over approximately three years suggests a moderate annual spend. Benchmarking against similar IT infrastructure contracts is challenging without more granular data on specific services rendered. However, the presence of three bidders in a full and open competition implies that the pricing was likely competitive and reflected market rates for complex IT solutions. The award fee structure also suggests a focus on achieving defined performance targets, which can contribute to value for money if targets are met.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The participation of three bidders indicates a reasonable level of competition for this IT infrastructure requirement. A higher number of bidders could potentially drive prices lower, but three bidders suggest that the market is sufficiently engaged and that the government had viable options to choose from, leading to a competitive outcome.
Taxpayer Impact: The full and open competition with multiple bidders helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better pricing and service quality.
Public Impact
Federal agencies requiring robust IT infrastructure services benefit from this contract. The contract supports the modernization and maintenance of critical government IT systems. The geographic impact is likely nationwide, supporting federal operations across various locations. Workforce implications include IT specialists and support staff employed by Lockheed Martin and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely monitored.
- Dependence on a single large contractor for critical IT infrastructure could pose a risk if performance falters.
- Scope creep could increase the total contract value beyond initial projections without adequate oversight.
Positive Signals
- The use of an award fee structure incentivizes contractor performance and alignment with government objectives.
- Full and open competition suggests a healthy market and potential for competitive pricing.
- The contract duration indicates a stable, long-term need for these services, allowing for strategic IT planning.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on IT infrastructure. The IT sector is a vast and critical component of government operations, encompassing hardware, software, networking, and related services. Government spending on IT infrastructure is substantial, driven by the need to maintain secure, efficient, and modern systems. Comparable spending benchmarks would typically involve analyzing other large-scale IT infrastructure procurements by agencies like GSA, DoD, or DHS, looking at contract values, durations, and service scopes.
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 for small businesses arising from a small business set-aside. However, as a large prime contract awarded to Lockheed Martin, there is potential for small businesses to participate as subcontractors, depending on Lockheed Martin's subcontracting plan and the specific needs of the IT infrastructure services required.
Oversight & Accountability
Oversight for this contract would primarily be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms likely include regular performance reviews, milestone tracking, and audits related to cost reporting and performance metrics, especially given the Cost Plus Award Fee structure. Transparency is facilitated through contract award databases, though detailed performance reports may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- GSA IT Schedule Programs
- Department of Defense IT Modernization Initiatives
- NASA SEWP (Solutions for Enterprise-Wide Procurement)
- Alliant Government Services IDIQ Contracts
Risk Flags
- Contract duration exceeds typical shorter-term service agreements.
- Cost Plus Award Fee structure requires careful monitoring to ensure value.
- NAICS code may not fully capture the breadth of 'IT Infrastructure' services.
Tags
it-infrastructure, general-services-administration, lockheed-martin, definitive-contract, cost-plus-award-fee, full-and-open-competition, it-services, federal-acquisition-service, virginia, mid-tier-contract
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $35.7 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 $35.7 million.
What is the period of performance?
Start: 2010-03-25. End: 2013-11-30.
What was the specific IT infrastructure provided under this contract?
The contract, identified by NAICS code 443120 (Computer and Software Stores), suggests a focus on IT infrastructure that likely includes the procurement, installation, and maintenance of computer hardware, software, and related peripherals. While the contract title is 'IT INFRASTRUCTURE,' the specific deliverables would have been detailed in the Statement of Work (SOW). This could encompass servers, workstations, networking equipment, operating systems, and associated support services necessary for the functioning of federal IT systems. The 'Computer and Software Stores' NAICS code points towards the acquisition of tangible IT assets and potentially related software licenses and support.
How does the $35.7 million value compare to similar GSA IT infrastructure contracts?
Comparing the $35.7 million value requires context regarding the contract's duration and scope. This contract spanned approximately 3.3 years (from March 2010 to November 2013), equating to an average annual spend of roughly $10.8 million. GSA manages numerous IT contracts of varying sizes. Larger, multi-year enterprise-wide IT infrastructure procurements can easily reach hundreds of millions or even billions of dollars. This $35.7 million contract appears to be a mid-sized to large procurement for a specific IT infrastructure need, likely within a particular service area or for a defined set of systems, rather than an overarching agency-wide IT overhaul.
What were the key performance indicators (KPIs) for the Cost Plus Award Fee (CPA F) structure?
While the specific KPIs are not detailed in the provided data, Cost Plus Award Fee contracts typically tie a portion of the contractor's profit to achieving pre-defined performance objectives. For an IT infrastructure contract, these KPIs could include metrics related to system uptime and availability, response times for technical support, successful deployment of new hardware or software, adherence to security protocols, project completion timelines, and overall customer satisfaction. The 'award fee' portion would be determined by a government evaluation of Lockheed Martin's performance against these criteria, incentivizing high-quality service delivery.
What is the historical spending trend for IT infrastructure under GSA's Federal Acquisition Service?
Historical spending on IT infrastructure by GSA's Federal Acquisition Service (FAS) has generally trended upwards over the years, reflecting the increasing reliance of federal agencies on robust and modern IT systems. FAS plays a crucial role in consolidating agency IT needs and leveraging government-wide purchasing power. While specific year-over-year data for this particular contract isn't available, the broader trend shows significant investment in areas like cloud computing, cybersecurity, data center consolidation, and end-user computing. This $35.7 million contract from 2010-2013 fits within this pattern of sustained federal investment in IT infrastructure.
What risks are associated with a sole-source or limited competition IT contract of this magnitude?
This contract was awarded under 'full and open competition,' not sole-source or limited competition, mitigating the typical risks associated with those less competitive scenarios. Risks in sole-source or limited competition often include higher prices due to lack of market pressure, potential for vendor lock-in, reduced innovation, and less incentive for the contractor to perform exceptionally. Since this contract had three bidders, these specific risks are less pronounced. However, any large IT contract carries inherent risks such as technological obsolescence, cybersecurity threats, contractor performance issues, and budget overruns, which require diligent government oversight regardless of the competition level.
How does the 'Computer and Software Stores' NAICS code align with 'IT Infrastructure' services?
The NAICS code 443120, 'Computer and Software Stores,' primarily covers establishments primarily engaged in retailing computers, computer peripheral equipment, and prepackaged computer software. While this might seem retail-focused, government contracting often uses NAICS codes that represent the primary nature of the goods or services procured. In this context, it likely signifies the procurement of significant quantities of computer hardware and software licenses that form the foundation of IT infrastructure. The 'IT INFRASTRUCTURE' contract title indicates the broader scope of services, which would include not just the purchase but potentially the integration, deployment, and support of these components, extending beyond simple retail.
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: ARLCLIN3A
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: $42,500,907
Exercised Options: $35,738,893
Current Obligation: $35,738,893
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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