HHS Awards $83.5M for IT Operations and Maintenance to Lockheed Martin Services
Contract Overview
Contract Amount: $83,536,351 ($83.5M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2011-08-20
End Date: 2016-08-19
Contract Duration: 1,826 days
Daily Burn Rate: $45.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: O M AND CSI OF FPLS AND OCSE SYSTEMS
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $83.5 million to LOCKHEED MARTIN SERVICES, LLC for work described as: O M AND CSI OF FPLS AND OCSE SYSTEMS Key points: 1. Significant contract value for IT operations and maintenance services. 2. Lockheed Martin Services, a large incumbent, secured this delivery order. 3. Potential risk associated with reliance on a single large vendor for critical systems. 4. Spending falls within the IT sector, specifically computer systems design.
Value Assessment
Rating: fair
The contract value of $83.5M over five years suggests a substantial investment. Benchmarking against similar IT operations and maintenance contracts would be necessary to fully assess pricing fairness, but the fixed-price nature provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a competitive delivery order, indicating some level of competition. However, the specific details of the competition and the number of bidders are not provided, which limits the assessment of price discovery effectiveness.
Taxpayer Impact: Taxpayer funds are being used for essential IT system operations. The competitive nature, even if limited, aims to secure reasonable pricing, but the full impact depends on the rigor of the competition.
Public Impact
Ensures continued operation of critical Federal Parent Locator and OCSE systems. Supports the Department of Health and Human Services' administrative functions. Impacts users and beneficiaries of HHS programs reliant on these systems. Contract duration of five years provides stability for service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with a large incumbent.
- Limited transparency on the competitive process for this delivery order.
- Reliance on a single vendor for critical system maintenance.
Positive Signals
- Firm Fixed Price contract type helps control costs.
- Delivery order issued under a potentially larger contract vehicle.
- Long-term contract provides service continuity.
Sector Analysis
This contract falls under the Information Technology sector, specifically Computer Systems Design Services. The value is significant for this type of service, suggesting complex and critical system support.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Services, LLC, a large business. There is no indication of small business participation in this specific delivery order.
Oversight & Accountability
Oversight would typically involve contract management by the Office of the Assistant Secretary for Administration within HHS. Monitoring performance, adherence to SLAs, and cost controls are key accountability measures.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Potential for vendor lock-in.
- Limited information on competitive process.
- Reliance on a single large vendor.
- Lack of specific performance metrics in provided data.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $83.5 million to LOCKHEED MARTIN SERVICES, LLC. O M AND CSI OF FPLS AND OCSE SYSTEMS
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 $83.5 million.
What is the period of performance?
Start: 2011-08-20. End: 2016-08-19.
What was the competitive landscape for this specific delivery order, and how many bids were received?
The data states this was a 'COMPETITIVE DELIVERY ORDER' but does not specify the number of bids or the participating companies beyond the awardee. Understanding the level of competition is crucial to assessing if the government received the best possible value and if the pricing reflects a robust price discovery process.
What are the key performance indicators (KPIs) for this contract, and how has Lockheed Martin Services performed against them?
Specific KPIs are not detailed in the provided data. Effective oversight requires clearly defined performance metrics for system uptime, response times, and issue resolution. Performance data against these KPIs would be essential for evaluating the contractor's effectiveness and the overall value delivered.
Are there plans to re-compete this requirement in the future, and what is the strategy to ensure continued competition?
The data does not provide information on future re-competition strategies. Ensuring future competition is vital to avoid vendor lock-in and to leverage market dynamics for better pricing and innovation. A proactive strategy for market research and future solicitation planning is important.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 2339 ROUTE 70 W, CHERRY HILL, NJ, 08002
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $83,536,351
Exercised Options: $83,536,351
Current Obligation: $83,536,351
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 26301D0054
IDV Type: IDC
Timeline
Start Date: 2011-08-20
Current End Date: 2016-08-19
Potential End Date: 2016-08-19 00:00:00
Last Modified: 2016-06-09
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