GSA's $71M Lockheed Martin contract for IT systems design saw no small business participation

Contract Overview

Contract Amount: $70,959,335 ($71.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: General Services Administration

Start Date: 2012-10-01

End Date: 2013-09-30

Contract Duration: 364 days

Daily Burn Rate: $194.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::OT::IGF BASE AWARD FOR CALL ORDER 18

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $71.0 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF BASE AWARD FOR CALL ORDER 18 Key points: 1. The contract was awarded under full and open competition, suggesting a broad market approach. 2. The primary service category is Computer Systems Design, a common IT support function. 3. The contract duration was one year, indicating a focused scope of work. 4. The award was a BPA Call, a type of task order under an existing contract. 5. No small business participation was noted, which could be a missed opportunity for smaller firms. 6. The contractor, Lockheed Martin, is a large, established defense and aerospace company.

Value Assessment

Rating: fair

Benchmarking the value of this specific BPA Call is challenging without more detailed service descriptions and comparable task orders. However, the total award amount of approximately $71 million for a one-year period for computer systems design services falls within a typical range for large-scale IT support contracts. Without specific performance metrics or comparisons to similar GSA schedules, a definitive value-for-money assessment is difficult. The pricing structure, likely based on labor hours, would need further scrutiny to ensure it aligns with market rates for the skill sets involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the General Services Administration (GSA) sought bids from all responsible sources. The specific mechanism was a BPA Call, which is a task order issued against an existing Blanket Purchase Agreement (BPA). The level of competition for the underlying BPA would be the primary determinant of price discovery. For this specific call order, the number of bidders is not specified, but the 'full and open' designation implies a robust initial competition for the BPA itself.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider range of innovative solutions. It ensures that the government is not limited to a select few contractors, potentially driving down costs through market forces.

Public Impact

The primary beneficiary is the agency utilizing the computer systems design services, likely within the GSA or a supported agency. The services delivered are focused on the design and potentially implementation of computer systems. The geographic impact is likely concentrated where the supported agency operates, primarily within the United States. Workforce implications would involve skilled IT professionals employed by Lockheed Martin.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation may indicate a missed opportunity to leverage specialized capabilities of smaller firms.
The large contract value could concentrate significant IT resources within a single large contractor, potentially limiting broader market engagement.

Positive Signals

Award to a well-established contractor like Lockheed Martin suggests a focus on reliability and proven performance.
Full and open competition provides a broad base for selecting the best value solution.

Sector Analysis

The IT services sector is vast and highly competitive, encompassing a wide range of services from software development to systems integration and cybersecurity. Contracts for computer systems design services, like this one, are fundamental to maintaining and upgrading government IT infrastructure. The market size for federal IT services is in the tens of billions of dollars annually. This contract fits within the broader category of IT support and professional services, often procured through GSA schedules or other competitive vehicles to ensure fair pricing and access to a diverse range of vendors.

Small Business Impact

This contract did not include a small business set-aside, and the data indicates no small business participation. For a contract of this magnitude awarded to a large prime contractor, subcontracting opportunities for small businesses are a key consideration. The absence of explicit small business involvement in the provided data suggests that either no small businesses were involved in the subcontracting chain or that this information was not captured. This could represent a missed opportunity to foster growth within the small business IT ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Federal Acquisition Service. As a BPA Call, the underlying BPA likely has established oversight mechanisms. Accountability measures would be tied to the performance work statement and delivery schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA Schedules Program
IT Professional Services
Computer Systems Design and Related Services
Blanket Purchase Agreements (BPAs)

Risk Flags

No Small Business Participation
Large Prime Contractor Dominance

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $71.0 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF BASE AWARD FOR CALL ORDER 18

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $71.0 million.

What is the period of performance?

Start: 2012-10-01. End: 2013-09-30.

What was the specific nature of the 'Computer Systems Design Services' provided under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code 541512 for 'Computer Systems Design Services'. This typically encompasses a broad range of activities including analyzing and designing clients' information technology (IT) systems, integrating hardware and software, and providing consulting services related to IT infrastructure. Without access to the specific Statement of Work (SOW) or task order details for this BPA Call, the precise services rendered remain unspecified. However, it generally involves the planning and design phase of IT system development, potentially including requirements analysis, system architecture, and technical consulting to meet specific client needs.

How does the $71 million award compare to other similar IT services contracts awarded by GSA during the same period?

Comparing this $71 million award to other similar IT services contracts by GSA requires access to historical contract data and filtering by relevant NAICS codes (like 541512) and contract types (BPA Calls) within the 2012-2013 timeframe. Generally, IT services contracts of this magnitude awarded to large prime contractors like Lockheed Martin are substantial investments. GSA's Federal Acquisition Service manages a vast portfolio of IT contracts, and while $71 million is a significant amount for a single-year task order, it is not uncommon for large-scale IT design and integration projects supporting federal agencies. A detailed benchmark would necessitate analyzing the average award value, number of bidders, and contract duration for comparable services procured through GSA Schedules or other vehicles during that period.

What were the key performance indicators (KPIs) or metrics used to evaluate Lockheed Martin's performance on this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or performance metrics for this contract. Typically, for IT services contracts, performance is evaluated against criteria outlined in the Statement of Work (SOW) or Performance Work Statement (PWS). These might include metrics related to system uptime, response times for design consultations, adherence to project timelines, quality of design documentation, and successful integration of proposed solutions. The contract type (BPA Call) suggests it was a task order under a larger agreement, and performance would be assessed against the specific requirements of that task order. Without the SOW/PWS, these specific KPIs cannot be determined.

What is the historical spending pattern for Computer Systems Design Services (NAICS 541512) by the General Services Administration?

The General Services Administration (GSA) is a significant procurer of IT services, including Computer Systems Design Services (NAICS 541512). Historical spending patterns reveal a consistent and substantial investment in this category over many years, driven by the need to modernize and maintain federal IT infrastructure. GSA utilizes various contracting vehicles, including GSA Schedules (particularly Schedule 70, now IT Schedule 70) and Blanket Purchase Agreements (BPAs), to procure these services. Spending fluctuates based on agency needs, technological advancements, and budget allocations. The total federal spending on IT services, including systems design, often runs into the tens of billions of dollars annually, with GSA playing a crucial role in facilitating these procurements.

Were there any identified risks or challenges associated with this contract, and how were they mitigated?

The provided data does not explicitly detail risks or mitigation strategies for this specific contract. However, general risks associated with large IT design contracts include scope creep, technical challenges, integration issues, contractor performance, and cybersecurity vulnerabilities. Given the contractor is Lockheed Martin, a major defense and aerospace company, risks related to financial stability or capacity are likely low. Potential risks might have included ensuring the proposed designs met evolving technological standards or agency requirements, and managing the complexity of large-scale system design. Mitigation would typically involve robust contract management, clear SOWs, regular progress reviews, and adherence to security protocols.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 19406

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $147,309,472

Exercised Options: $144,291,870

Current Obligation: $70,959,335

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GSTFMGBPA090001

IDV Type: BPA

Timeline