GSA's $26M IT Infrastructure contract awarded to Lockheed Martin, spanning over 3 years
Contract Overview
Contract Amount: $26,116,246 ($26.1M)
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: $19.4K/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 $26.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: IT INFRASTRUCTURE Key points: 1. The contract's cost-plus-award-fee structure allows for performance-based incentives. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of 1346 days indicates a long-term need for IT infrastructure services. 4. The contract falls under the IT Infrastructure category, a critical area for government operations. 5. The specific Product Service Code (PSC) is not detailed, limiting granular analysis. 6. The contract was awarded by the General Services Administration (GSA), a key procurement agency.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The cost-plus-award-fee (CPAF) structure can lead to cost overruns if not managed tightly, but also incentivizes performance. The total award value of approximately $26 million over three years suggests a moderate investment in IT infrastructure. Further analysis would require understanding the scope of services delivered and comparing unit costs to industry benchmarks for similar IT infrastructure solutions.
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 bids. This typically fosters a competitive environment, potentially leading to better pricing and service offerings. The presence of 3 bids suggests a reasonable level of competition for this IT infrastructure requirement. However, the specific details of the bidding process and the evaluation criteria are not provided, which would offer deeper insights into the effectiveness of the competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting market-driven pricing and encouraging contractors to offer their best value. This approach helps ensure that government funds are used efficiently by selecting the most cost-effective and capable solution.
Public Impact
Federal agencies utilizing the General Services Administration's IT infrastructure services benefit from modernized and potentially more efficient technology. The contract supports the delivery of essential IT services, underpinning various government functions and operations. The geographic impact is likely nationwide, as GSA services support federal agencies across the country. Workforce implications may include IT specialists and support staff employed by Lockheed Martin and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-award-fee contracts require diligent oversight to prevent scope creep and ensure cost control.
- Lack of detailed performance metrics makes it difficult to assess the true value for money achieved.
- The specific IT infrastructure components and services procured are not fully detailed, limiting transparency.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- The contract's duration suggests a stable, long-term commitment to essential IT services.
- Lockheed Martin is a large, established contractor with significant experience in government IT solutions.
Sector Analysis
This contract falls within the Information Technology 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 for secure, reliable, and modern systems to support agency missions. Comparable spending benchmarks would typically involve analyzing other large-scale IT infrastructure procurements by federal agencies, looking at contract values, durations, and service scopes.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. This suggests that the primary award went to a large business, Lockheed Martin. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of specific set-aside provisions or reported subcontracting plans means the direct impact on the small business ecosystem for this particular award is likely limited. Further investigation into subcontracting reports would be needed for a definitive assessment.
Oversight & Accountability
Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA). As a cost-plus-award-fee contract, robust financial and performance monitoring mechanisms are crucial. This includes regular reviews of incurred costs, performance against award fee criteria, and adherence to contract terms. Transparency would be enhanced by public reporting of performance evaluations and cost breakdowns. The Inspector General of the GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- GSA IT Schedule Contracts
- Department of Defense IT Procurement
- Federal Civilian Agency IT Modernization Programs
- Cloud Computing Services Contracts
- Cybersecurity Infrastructure Contracts
Risk Flags
- Cost-plus-award-fee contracts require robust oversight to ensure value for money.
- Limited detail on specific services and components procured hinders full transparency.
- Performance metrics and evaluation criteria for the award fee are not publicly detailed.
Tags
it-infrastructure, general-services-administration, lockheed-martin, cost-plus-award-fee, definitive-contract, full-and-open-competition, it-services, federal-acquisition-service, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $26.1 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 $26.1 million.
What is the period of performance?
Start: 2010-03-25. End: 2013-11-30.
What specific IT infrastructure components and services were included in this $26 million contract?
The provided data indicates the contract is for 'IT INFRASTRUCTURE' and was awarded to Lockheed Martin Integrated Systems, LLC by the General Services Administration (GSA). However, the specific components and services are not detailed. Typically, IT infrastructure contracts of this magnitude can encompass a wide range of elements, including hardware procurement (servers, storage, networking equipment), software licensing and deployment, network design and implementation, data center operations, cloud integration services, and ongoing maintenance and support. Without more granular information, it's impossible to specify the exact nature of the IT infrastructure procured under this particular award.
How does the cost-plus-award-fee (CPAF) structure compare to other contract types for IT infrastructure, and what are its implications for cost control?
The Cost-Plus-Award-Fee (CPAF) structure is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs plus a fixed fee that is adjusted based on performance against pre-determined criteria. Compared to Firm-Fixed-Price (FFP) contracts, CPAF offers more flexibility for complex projects where the scope may evolve or is not fully defined at the outset, which is common in IT infrastructure. However, it places a greater burden on the government to meticulously define award criteria and monitor performance to ensure value. For cost control, CPAF incentivizes the contractor to meet performance targets to earn the award fee, but it also requires vigilant oversight to prevent cost overruns and ensure that the 'cost' portion remains reasonable. If not managed effectively, CPAF can lead to higher overall costs than FFP contracts.
What was the historical spending pattern for IT infrastructure under GSA prior to and following this contract award?
The provided data focuses solely on this specific $26.1 million contract awarded in March 2010 and ending in November 2013. It does not offer insights into GSA's broader historical spending patterns for IT infrastructure. To analyze historical trends, one would need access to GSA's procurement databases or reports covering multiple years and various contracts within the IT infrastructure category. Such an analysis would reveal whether spending has increased or decreased, shifts in contract types utilized, and changes in major awardees over time, providing context for the significance and scale of this particular Lockheed Martin contract within the agency's overall IT investment strategy.
What is Lockheed Martin's track record with similar large-scale IT infrastructure contracts awarded by federal agencies?
Lockheed Martin is a major defense contractor with extensive experience in providing IT services and infrastructure solutions to various government agencies. While specific details for this $26 million GSA contract are limited, the company has a history of managing large, complex IT programs. Their track record typically involves system integration, network management, cybersecurity, and enterprise IT support. Performance on such contracts can vary, influenced by factors like contract type, agency oversight, and program complexity. Assessing their overall track record would involve reviewing past performance evaluations, contract award histories, and any reported issues or successes on comparable large-scale IT infrastructure procurements across different federal entities.
How did the three bids received for this contract compare in terms of price and technical approach?
The provided data confirms that this contract was awarded under 'FULL AND OPEN COMPETITION' and that there were '3' bids received. However, it does not contain information regarding the specifics of these bids, such as their pricing structures, technical proposals, or the evaluation process used by the GSA. To understand how the bids compared, one would need access to the source selection decision document or other procurement records that detail the evaluation criteria, the scores or rankings of each bidder, and the rationale behind selecting Lockheed Martin. Without this information, it's impossible to assess the competitiveness beyond the number of bidders.
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: ARLCLIN3C
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: $26,145,967
Exercised Options: $26,116,246
Current Obligation: $26,116,246
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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