HHS awards $225.7M for ADP Facility Management to Lockheed Martin Services, LLC over 8 years
Contract Overview
Contract Amount: $225,708,943 ($225.7M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2009-10-01
End Date: 2017-09-30
Contract Duration: 2,921 days
Daily Burn Rate: $77.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ADP FACILITY MANAGEMENT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201
Plain-Language Summary
Department of Health and Human Services obligated $225.7 million to LOCKHEED MARTIN SERVICES, LLC for work described as: ADP FACILITY MANAGEMENT Key points: 1. Significant contract value ($225.7M) for ADP Facility Management services. 2. Lockheed Martin Services, LLC is the incumbent contractor. 3. Contract awarded via competitive delivery order, suggesting some price discovery. 4. Services provided to the Department of Health and Human Services in Washington D.C.
Value Assessment
Rating: good
The contract's total value of $225.7M over 8 years suggests a substantial investment. Benchmarking against similar large-scale IT facility management contracts would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, indicating that multiple vendors likely competed. This method generally promotes better price discovery and value compared to sole-source awards.
Taxpayer Impact: Taxpayer funds are being utilized for essential IT infrastructure management, with competition aiming to ensure reasonable pricing.
Public Impact
Ensures continuity of critical IT infrastructure for the Department of Health and Human Services. Supports government operations by maintaining essential computing facilities. Potential for job creation and economic activity through the contractor's operations.
Waste & Efficiency Indicators
Waste Risk Score: 77 / 10
Warning Flags
- Long contract duration (8 years) may limit flexibility for adopting new technologies.
- Reliance on a single large contractor for critical IT facilities.
Positive Signals
- Competitive award process.
- Firm Fixed Price contract type provides cost certainty.
- Long-term stability for essential IT services.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. Spending benchmarks for similar large-scale IT infrastructure support contracts are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract was awarded via a competitive delivery order, suggesting a structured procurement process. Further oversight would involve monitoring performance metrics and ensuring adherence to contract terms.
Related Government Programs
- Computer Facilities Management Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Long contract duration potentially leading to technology obsolescence.
- Lack of small business participation noted.
- Concentration of critical IT infrastructure management with one large provider.
- Potential for cost overruns if scope creep occurs despite fixed price.
Tags
computer-facilities-management-services, department-of-health-and-human-services, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $225.7 million to LOCKHEED MARTIN SERVICES, LLC. ADP FACILITY MANAGEMENT
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 $225.7 million.
What is the period of performance?
Start: 2009-10-01. End: 2017-09-30.
What specific IT facility management services are included in this contract, and how do they align with HHS's current and future needs?
The contract covers Computer Facilities Management Services (NAICS 541513). This typically includes managing data centers, server rooms, network infrastructure, and related hardware. Alignment with HHS needs would require reviewing the specific statement of work, service level agreements, and any technology refresh clauses within the contract.
What was the competitive landscape for this delivery order, and how did the pricing compare to other bids?
As a competitive delivery order, multiple vendors likely submitted proposals. While the specific pricing of competing bids isn't provided, the award to Lockheed Martin suggests their offer was deemed the best value. Analysis of the bid protest history, if any, could offer further insights into the competitive dynamics and pricing.
What are the key performance indicators (KPIs) for this contract, and how has Lockheed Martin performed against them?
Key performance indicators would likely include uptime percentages for critical systems, response times for hardware failures, adherence to security protocols, and project completion rates for any infrastructure upgrades. Performance data is typically tracked through contract management systems and performance reports, which are crucial for assessing the effectiveness of the contractor's services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $225,708,943
Exercised Options: $225,708,943
Current Obligation: $225,708,943
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSP23320095401JI
IDV Type: IDC
Timeline
Start Date: 2009-10-01
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2018-04-04
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