HHS awarded $79M TAS Staffing Contract in Region A Phase I to Lockheed Martin Services, LLC

Contract Overview

Contract Amount: $79,180,615 ($79.2M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2008-08-11

End Date: 2014-03-31

Contract Duration: 2,058 days

Daily Burn Rate: $38.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: TAS::75 4552 001::TAS STAFFING CONTRACT IN REGION A PHASE I

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $79.2 million to LOCKHEED MARTIN SERVICES, LLC for work described as: TAS::75 4552 001::TAS STAFFING CONTRACT IN REGION A PHASE I Key points: 1. The contract's value of $79.2 million over its period of performance suggests a significant investment in staffing services. 2. Competition dynamics for this contract are not detailed, but the award value indicates a substantial procurement. 3. The duration of the contract (2058 days) implies a long-term need for the services provided. 4. The contract type (Time and Materials) can present cost control challenges if not managed diligently. 5. The procurement was conducted under full and open competition, suggesting a broad market solicitation. 6. The specific services procured under NAICS code 621999 (All Other Miscellaneous Ambulatory Health Care Services) warrant further investigation into their nature and necessity.

Value Assessment

Rating: fair

Benchmarking the value of this $79.2 million contract is challenging without specific details on the services rendered and the number of personnel involved. However, the duration of nearly six years suggests a substantial, ongoing need. The Time and Materials pricing structure, while flexible, carries inherent risks of cost overruns if not closely monitored against established labor rates and estimated effort. Comparing this to similar large-scale staffing contracts within the federal government would provide better context for value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the solicitation was made available to all responsible sources. The fact that there were 12 bidders suggests a competitive environment, which typically aids in price discovery and can lead to more favorable pricing for the government. The number of bidders is a positive indicator of market interest and the potential for achieving a fair market price.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs through market forces. With 12 bidders, the government likely secured a more competitive price than it might have in a less contested procurement.

Public Impact

The primary beneficiaries are likely the Department of Health and Human Services (HHS) and its various operating divisions requiring administrative and potentially clinical support staff. The services delivered are related to staffing support within Region A, crucial for maintaining operational capacity and program delivery. The geographic impact is focused on Region A, though the specific states or territories included are not detailed. Workforce implications include the creation of jobs for individuals employed by Lockheed Martin Services, LLC, to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not managed with strict oversight and clear task definitions.
The long duration of the contract (nearly 6 years) necessitates ongoing vigilance to ensure continued relevance and cost-effectiveness.
The specific nature of 'All Other Miscellaneous Ambulatory Health Care Services' staffing is broad and could encompass a wide range of support functions, making performance assessment potentially complex.

Positive Signals

Awarded under full and open competition with 12 bidders, indicating a robust and competitive process.
The contract was awarded to a large, established contractor (Lockheed Martin Services, LLC) with significant experience in government contracting.
The contract duration suggests a stable, long-term need that the contractor is expected to fulfill reliably.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to healthcare support services. The federal government is a major consumer of such services, with significant spending allocated annually to staffing, administrative, and specialized support functions across various agencies. Comparable spending benchmarks would typically involve analyzing other large-scale staffing contracts awarded by HHS or similar health-focused agencies, considering the scope of services and labor categories.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary award was not targeted towards small businesses. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific prime contract award appears limited, though subcontracting opportunities may exist depending on Lockheed Martin's sourcing strategies.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Administration. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases, but detailed operational oversight and Inspector General jurisdiction would depend on the specific nature of the services and any potential for fraud, waste, or abuse.

Related Government Programs

HHS Staffing Contracts
Region A Federal Procurements
Lockheed Martin Government Services
Ambulatory Health Care Services Support
Time and Materials Contracts
Full and Open Competition Procurements

Risk Flags

Time and Materials Pricing Risk
Long Contract Duration Oversight
Broad Service Category Definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $79.2 million to LOCKHEED MARTIN SERVICES, LLC. TAS::75 4552 001::TAS STAFFING CONTRACT IN REGION A PHASE I

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $79.2 million.

What is the period of performance?

Start: 2008-08-11. End: 2014-03-31.

What specific staffing services were procured under this contract, and how do they align with HHS's mission in Region A?

The contract falls under NAICS code 621999, 'All Other Miscellaneous Ambulatory Health Care Services.' While the specific details are not provided in the summary data, this code typically encompasses a broad range of non-physician services supporting ambulatory care settings. For HHS in Region A, these services could range from administrative support (scheduling, patient registration, billing) to specialized non-clinical roles within health centers or clinics. The exact alignment with HHS's mission would depend on whether these roles directly support public health programs, patient services, or the operational efficiency of HHS facilities in the region. Further analysis of the contract's Statement of Work (SOW) would be necessary to determine the precise services and their strategic importance.

How does the awarded amount of $79.2 million compare to similar staffing contracts for federal health agencies?

Comparing the $79.2 million award for this contract requires context regarding the duration and scope of services. Awarded in 2008 and ending in 2014 (a period of approximately 5.75 years), the average annual value is roughly $13.8 million. This figure is substantial but not extraordinary for large federal staffing contracts, especially those supporting major agencies like HHS. For instance, other large agencies such as the Department of Defense or Veterans Affairs often award multi-year staffing contracts in the tens or hundreds of millions of dollars, depending on the number of personnel, skill sets required, and geographic coverage. Benchmarking against contracts with similar NAICS codes and service levels within HHS or other health-focused agencies would provide a more precise comparison of value for money.

What are the primary risks associated with the Time and Materials (T&M) contract type for this procurement?

The primary risk with a Time and Materials (T&M) contract, like the one awarded to Lockheed Martin Services, LLC, is the potential for cost escalation without a fixed ceiling on the total effort. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If the scope of work is not clearly defined, or if project duration extends beyond initial estimates, costs can increase significantly. For HHS, this means diligent oversight is crucial to ensure that labor hours are reasonable, rates are fair, and that the work performed directly aligns with the contract's objectives. Without robust monitoring and controls, T&M contracts can become more expensive than anticipated, potentially impacting the overall value for taxpayers.

Given the full and open competition with 12 bidders, what does this suggest about the contractor's performance and the government's ability to secure competitive pricing?

The fact that this contract was awarded under full and open competition with 12 bidders is a strong positive signal. It indicates that the market for these staffing services is robust and that multiple companies were capable and interested in fulfilling HHS's requirements. A high number of bidders typically fosters a competitive environment, pressuring offerors to submit competitive pricing and strong technical proposals to win the contract. For the government, this suggests a greater likelihood of achieving fair market value. For Lockheed Martin Services, LLC, winning in such a competitive landscape implies their proposal met or exceeded the government's evaluation criteria, including price, technical approach, and past performance, relative to their 11 competitors.

How has federal spending on staffing and administrative support services, particularly within healthcare, evolved since this contract was awarded in 2008?

Federal spending on staffing and administrative support services, especially within healthcare, has generally trended upwards since 2008, driven by increasing healthcare demands, an aging population, and the expansion of federal health programs. The Affordable Care Act (ACA), enacted in 2010, significantly increased the need for administrative and support personnel within HHS and related entities to manage new insurance marketplaces, subsidies, and regulatory functions. While specific data for NAICS 621999 is granular, overall federal spending on professional, scientific, and technical services, which includes staffing, has seen consistent growth. This trend suggests that the need for services procured under contracts like this one remains high, although the specific mix of services and contracting vehicles may evolve based on agency priorities and technological advancements.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › All Other Miscellaneous Ambulatory Health Care Services

Product/Service Code: MEDICAL SERVICES › GENERAL HEALTH CARE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

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

Financial Breakdown

Contract Ceiling: $79,180,615

Exercised Options: $79,180,615

Current Obligation: $79,180,615

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline