GSA Awards $30.5M for IT Services to Lockheed Martin via BPA, Raising Value Concerns
Contract Overview
Contract Amount: $30,476,914 ($30.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: General Services Administration
Start Date: 2010-09-24
End Date: 2011-09-30
Contract Duration: 371 days
Daily Burn Rate: $82.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: PROVIDE CONTINUED IT SERVICES SUPPORT.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $30.5 million to LOCKHEED MARTIN CORPORATION for work described as: PROVIDE CONTINUED IT SERVICES SUPPORT. Key points: 1. The contract value of $30.5M for IT services is substantial, warranting scrutiny for efficiency. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The use of a BPA indicates a pre-negotiated framework, which can streamline procurement but may limit price discovery. 4. The sector is IT services, a common area for significant federal spending.
Value Assessment
Rating: questionable
The contract value of $30.5M for 371 labor hours is high. Without specific labor rates or task details, it's difficult to benchmark against similar IT support contracts. The average award value for this NAICS code is significantly lower, suggesting this contract may be priced above market.
Cost Per Unit: $82,148 per labor hour
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the use of a Blanket Purchase Agreement (BPA) might mean that the specific pricing was established at a higher level, potentially limiting the competitive pressure on this individual task order.
Taxpayer Impact: While competition was utilized, the high per-unit cost raises concerns about whether taxpayers received the best possible value for the funds expended.
Public Impact
Citizens expect efficient use of taxpayer dollars, and high per-unit costs for IT services can erode public trust. Transparency in IT service contracts is crucial for accountability and ensuring fair pricing. The use of established contract vehicles like BPAs should be balanced with ensuring competitive pricing for individual orders.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost
- Potential for price inflation within BPA framework
- Lack of detailed task breakdown for value assessment
Positive Signals
- Awarded under full and open competition
- Utilized a pre-negotiated BPA for efficiency
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design Services. Federal spending in this area is consistently high, with agencies relying heavily on contractors for specialized expertise. Benchmarks for similar services vary widely based on complexity and labor categories.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved in this specific award, which is a missed opportunity for small business participation.
Oversight & Accountability
The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service. While BPAs are intended to streamline procurement, ongoing oversight is necessary to ensure that task orders remain competitive and cost-effective.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- High per-unit cost
- Potential for uncompetitive pricing within BPA
- Lack of detailed service description
- No small business participation noted
- Limited transparency on performance metrics
Tags
computer-systems-design-services, general-services-administration, va, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $30.5 million to LOCKHEED MARTIN CORPORATION. PROVIDE CONTINUED IT SERVICES SUPPORT.
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 $30.5 million.
What is the period of performance?
Start: 2010-09-24. End: 2011-09-30.
What specific IT services were provided under this contract, and how do they justify the high per-unit cost compared to industry standards?
The provided data lacks the specific details of the IT services rendered. To justify the $82,148 per labor hour cost, a detailed breakdown of tasks, required skill sets, and the complexity of the support would be necessary. Without this, it's challenging to ascertain if the pricing aligns with market rates for comparable specialized IT support.
Given the full and open competition, why did the per-unit cost remain so high, and could a more competitive bidding process for this specific task order have yielded better pricing?
While the initial award was under full and open competition, the use of a BPA might have led to less aggressive pricing on this specific task order. Agencies should ensure that even within BPA frameworks, task orders are competed vigorously or that pre-negotiated rates are demonstrably competitive. The high cost suggests potential for better price discovery.
What measures were in place to ensure the effectiveness and efficiency of the IT services provided by Lockheed Martin, and how was performance monitored?
The provided data does not detail performance monitoring or effectiveness measures. Standard government contracting includes performance metrics and quality assurance surveillance plans. For a contract of this value, robust oversight would be expected to ensure the services met requirements and delivered value, though specific details are absent here.
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
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,476,914
Exercised Options: $30,476,914
Current Obligation: $30,476,914
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GSTFMGBPA090001
IDV Type: BPA
Timeline
Start Date: 2010-09-24
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2014-05-14
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