GSA's $32M IT Infrastructure Contract with Lockheed Martin: Full & Open Competition, Cost Plus Award Fee
Contract Overview
Contract Amount: $32,073,403 ($32.1M)
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: $23.8K/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 $32.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: IT INFRASTRUCTURE Key points: 1. Contract awarded to a single large business, raising questions about small business participation. 2. Cost Plus Award Fee structure incentivizes performance but requires robust oversight to manage costs. 3. The contract spans over three years, indicating a significant IT infrastructure investment. 4. The Federal Acquisition Service awarded this contract, suggesting a focus on shared government IT services.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) structure can lead to higher costs if not managed tightly. Without specific benchmarks for similar IT infrastructure contracts, it's difficult to definitively assess if the $32M price tag is optimal. The award fee component requires careful monitoring of performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing discovery mechanisms within the Cost Plus Award Fee structure need to be scrutinized to ensure value for money.
Taxpayer Impact: While full and open competition is positive for taxpayer value, the CPAF structure necessitates diligent oversight to prevent cost overruns and ensure funds are used efficiently.
Public Impact
This contract supports essential IT infrastructure, impacting government operations and potentially citizen services. The use of a large, established contractor like Lockheed Martin suggests a focus on reliability and scale. The duration and value indicate a substantial commitment to maintaining and upgrading federal IT systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Cost Plus Award Fee structure requires strong oversight
- Limited transparency on specific performance metrics and award fee triggers
Positive Signals
- Awarded under full and open competition
- Contractor has significant experience in IT infrastructure
- Potential for performance-based incentives through award fee
Sector Analysis
This contract falls within the IT infrastructure sector, a critical area for government operations. Spending benchmarks in this sector vary widely based on scope, but large-scale infrastructure projects often represent significant investments. The General Services Administration (GSA) typically manages such contracts to achieve economies of scale.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting goals. This suggests a missed opportunity to support small businesses and potentially leverage specialized capabilities they offer within the IT infrastructure domain.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates robust oversight from the General Services Administration to ensure performance targets are met and costs are controlled. Regular reviews of performance metrics and award fee determinations are crucial for accountability.
Related Government Programs
- Computer and Software Stores
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to CPAF structure
- Lack of small business participation
- Limited transparency on performance metrics and award fee justification
- Contract duration may not align with rapidly 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 $32.1 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 $32.1 million.
What is the period of performance?
Start: 2010-03-25. End: 2013-11-30.
What specific IT infrastructure services are covered under this contract, and how do they align with current government needs?
The contract data indicates 'IT INFRASTRUCTURE' as the service area. Without further details, it's presumed to cover hardware, software, networking, and potentially related services. Alignment with current needs would depend on the specific deliverables outlined in the contract's statement of work, which is not provided. A review of the SOW would clarify if it addresses modernization, cybersecurity, or other critical IT infrastructure requirements.
How effectively were costs managed under the Cost Plus Award Fee structure, and what was the final award fee paid?
The provided data does not include information on cost management effectiveness or the final award fee paid. To assess this, one would need access to contract performance reports, audit findings, and the final determination of the award fee. The 'br' field (23829) might represent a budget or baseline, but its relation to actual costs and award fees is unclear without further context.
What was the competitive landscape like for this specific IT infrastructure requirement, and did full and open competition yield the best value?
The contract states 'FULL AND OPEN COMPETITION,' indicating multiple bidders were theoretically allowed. However, the data doesn't reveal the number of bids received or the evaluation process. To determine if best value was achieved, a comparison of the winning bid against other proposals and market research on similar IT infrastructure contracts would be necessary. The sole award to Lockheed Martin warrants scrutiny of the competition's thoroughness.
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: NAVYCLIN5A
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: $32,469,645
Exercised Options: $32,073,403
Current Obligation: $32,073,403
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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