Homeland Security awards $11.1M task order to Lockheed Martin for IT services

Contract Overview

Contract Amount: $11,156,801 ($11.2M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-28

End Date: 2008-06-05

Contract Duration: 251 days

Daily Burn Rate: $44.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TASK ORDER AWARD TO LOCKHEED MARTIN

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.2 million to LOCKHEED MARTIN SERVICES, LLC for work described as: TASK ORDER AWARD TO LOCKHEED MARTIN Key points: 1. Contract awarded using a competitive delivery order, suggesting multiple bids were considered. 2. The task order was for 'Other Computer Related Services', a broad IT category. 3. The contract duration was 251 days, indicating a short-term need. 4. The award was a Time and Materials type, which can carry cost risks if not managed closely. 5. The contract was awarded to Lockheed Martin Services, LLC, a large federal contractor. 6. The contract was awarded by the Office of Procurement Operations within DHS.

Value Assessment

Rating: fair

The total award amount of $11.1 million for a 251-day duration suggests a significant daily burn rate. Without specific deliverables or a breakdown of labor categories and rates, it's difficult to benchmark the value for money. Time and Materials contracts inherently carry a higher risk of cost overruns compared to fixed-price contracts, as the government pays for actual labor hours and material costs incurred. Further analysis would require comparing the labor rates and proposed hours against industry standards and similar government contracts for 'Other Computer Related Services'.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract. The 'full-and-open' competition level suggests that all responsible sources were permitted to submit an offer. The presence of 4 bids (no: 4) indicates a reasonable level of competition for this specific task order, which is generally positive for price discovery.

Taxpayer Impact: A competitive award process, even for a task order, generally leads to better pricing for taxpayers by encouraging multiple vendors to offer their best terms and pricing to win the business.

Public Impact

The primary beneficiary of this contract is the Department of Homeland Security, which receives IT support services. The services delivered fall under the broad category of 'Other Computer Related Services', likely supporting various IT infrastructure or operational needs. The contract was awarded to a vendor with a presence in the District of Columbia, suggesting potential local or national operational scope. The contract supports the government's IT infrastructure and operational capabilities, indirectly benefiting national security and public safety missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not closely monitored.
The broad 'Other Computer Related Services' category lacks specificity, making it harder to assess the exact nature and value of work performed.
Short contract duration (251 days) might indicate a need for rapid deployment, potentially leading to premium pricing or rushed execution.

Positive Signals

Awarded through a competitive process, indicating multiple vendors had the opportunity to bid.
The contractor, Lockheed Martin Services, LLC, is a large and experienced federal IT service provider.
The task order was awarded to meet a specific need within the Department of Homeland Security.

Sector Analysis

The IT services sector for the federal government is vast, encompassing a wide range of support, development, and maintenance activities. This contract falls under the 'Other Computer Related Services' NAICS code (541519), which is a catch-all for IT services not classified elsewhere, including IT consulting, system integration, and data processing services. Federal spending in this category is substantial, with agencies constantly seeking to modernize and maintain their IT infrastructure. Benchmarking this contract's value would require comparing its specific service components and labor rates against similar IT support contracts awarded across various federal agencies.

Small Business Impact

This contract was not set aside for small businesses (ss: false, sb: false). Lockheed Martin Services, LLC is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. As a task order under a larger IDIQ vehicle, the initial contract vehicle likely had its own oversight mechanisms. The Time and Materials nature of the award necessitates diligent monitoring of labor hours and costs to ensure compliance and prevent overspending. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Homeland Security IT Modernization Programs
Federal Civilian IT Services Contracts
IT Support Services for Law Enforcement Agencies
Cloud Computing Services Contracts
Cybersecurity Services Contracts

Risk Flags

Time and Materials Contract Type
Broad Service Category
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.2 million to LOCKHEED MARTIN SERVICES, LLC. TASK ORDER AWARD TO LOCKHEED MARTIN

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2007-09-28. End: 2008-06-05.

What specific IT services were performed under this task order, and how do they align with DHS's mission objectives?

The task order was broadly classified under NAICS code 541519, 'Other Computer Related Services'. This category can encompass a wide array of IT functions, including but not limited to IT consulting, system integration, network management, data processing, and IT support. Without a more detailed statement of work (SOW) or task description, it is impossible to ascertain the precise services rendered. However, given the awarding agency (Department of Homeland Security), these services likely supported critical infrastructure, operational systems, or administrative functions essential to the agency's mission of protecting the nation from threats. The $11.1 million award suggests a significant scope of work, potentially involving complex IT projects or sustained support operations.

How does the $11.1 million award compare to other similar 'Other Computer Related Services' task orders awarded by DHS or other agencies?

Benchmarking this $11.1 million task order requires comparing it against similar awards within the 'Other Computer Related Services' (NAICS 541519) category. Federal procurement data indicates that task orders in this category can range significantly in value, from tens of thousands to tens of millions of dollars, depending on the duration, scope, and complexity of services. For a duration of 251 days (approximately 8.5 months), $11.1 million represents a substantial investment, averaging over $1.3 million per month. To provide a precise comparison, one would need to analyze the specific labor categories, rates, and deliverables associated with this task order and contrast them with contemporaneous awards for comparable services, considering factors like contractor experience, geographic location, and the specific agency's needs.

What are the potential risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk associated with a Time and Materials (T&M) contract type is the potential for cost overruns. Unlike fixed-price contracts, where the contractor agrees to a set price regardless of the effort expended, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure places a greater burden on the government to closely monitor contractor performance, labor hours, and material costs to ensure that the work is performed efficiently and that costs remain reasonable. Without robust oversight and clear performance metrics, T&M contracts can become significantly more expensive than initially anticipated, especially if the scope of work is not well-defined or if the contractor's efficiency is low.

Given the award to Lockheed Martin Services, LLC, what is their track record with similar IT service contracts within the federal government?

Lockheed Martin Services, LLC, as a subsidiary of Lockheed Martin Corporation, has a substantial track record of performing a wide range of IT and professional services contracts for the federal government across various agencies. They are a major federal contractor with extensive experience in areas such as systems integration, software development, cybersecurity, and IT infrastructure support. Analyzing their past performance on similar 'Other Computer Related Services' contracts would involve reviewing contract databases for awards of comparable size, duration, and scope, as well as examining past performance evaluations and any reported issues or successes. Their established presence suggests they possess the resources and expertise to handle complex IT requirements, but also highlights the importance of competitive bidding to ensure fair pricing.

How does the competition level (4 bidders) for this task order impact the overall value and taxpayer cost?

The fact that this task order received 4 bids indicates a moderate level of competition. While more bidders generally lead to greater price pressure and potentially better value, 4 bidders suggest that the opportunity was attractive enough for multiple firms to invest resources in preparing proposals. This level of competition is often sufficient to drive competitive pricing, preventing a situation where a sole source or very limited competition might lead to inflated costs. The specific pricing outcomes would depend on the nature of the services required and the capabilities of the bidding firms. A thorough analysis would compare the winning bid against the bids of the other three competitors to understand the range of pricing offered.

What is the historical spending pattern for 'Other Computer Related Services' at the Department of Homeland Security?

The Department of Homeland Security (DHS) is a significant consumer of IT services, including those categorized under 'Other Computer Related Services' (NAICS 541519). Historical spending data reveals a consistent and substantial investment by DHS in this area, driven by the need to manage vast amounts of data, secure critical infrastructure, and support diverse operational components. Spending in this category often fluctuates based on modernization initiatives, cybersecurity threats, and the lifecycle of existing IT systems. Analyzing DHS's historical spending on NAICS 541519 would provide context for the $11.1 million award, showing whether it represents a typical expenditure, an increase, or a decrease compared to previous periods. This context is crucial for understanding the agency's ongoing IT needs and budget allocation.

Industry Classification

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

Solicitation ID: HSHQDC-07-R-00094

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 2339 ROUTE 70 WEST, FLOOR 3W, CHERRY HILL, NJ, 08002

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,156,801

Exercised Options: $11,156,801

Current Obligation: $11,156,801

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: HSHQDC06D00017

IDV Type: IDC

Timeline