DHS awards $288.5M IT services contract to Lockheed Martin, raising competition concerns

Contract Overview

Contract Amount: $288,502,465 ($288.5M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2008-06-02

End Date: 2014-07-31

Contract Duration: 2,250 days

Daily Burn Rate: $128.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: BASE YEAR TASK ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $288.5 million to LOCKHEED MARTIN SERVICES, LLC for work described as: BASE YEAR TASK ORDER Key points: 1. Significant contract value of $288.5 million over its base year. 2. Sole provider Lockheed Martin Services, LLC dominates the contract. 3. Potential for inflated costs due to limited competition. 4. IT services sector sees substantial government spending.

Value Assessment

Rating: questionable

The contract's pricing is difficult to assess without comparable benchmarks. Given the limited competition, there's a risk of above-market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This was a competitive delivery order, but the award to a single, dominant contractor suggests limited options. The pricing discovery may have been constrained.

Taxpayer Impact: Taxpayer funds may be at risk of being overspent due to the lack of robust competition.

Public Impact

Citizens rely on DHS for critical services, making IT support essential. The large sum allocated could fund numerous public programs. Transparency in IT spending ensures public trust in government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for cost overruns
Lack of small business participation

Positive Signals

Contract awarded to a known entity
Services support critical government functions

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Government IT spending is a significant portion of the federal budget, with benchmarks varying widely by service type.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and foster innovation.

Oversight & Accountability

Oversight is crucial for contracts of this magnitude. Regular performance reviews and cost audits are necessary to ensure value for taxpayer money.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Limited competition
Potential for cost overruns
Lack of small business participation
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $288.5 million to LOCKHEED MARTIN SERVICES, LLC. BASE YEAR TASK ORDER

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 $288.5 million.

What is the period of performance?

Start: 2008-06-02. End: 2014-07-31.

What specific IT services are covered under this 'Other Computer Related Services' contract, and how do they align with DHS's mission objectives?

The contract likely encompasses a broad range of IT support, including system maintenance, network operations, software development, and potentially cybersecurity. These services are fundamental to the Department of Homeland Security's ability to manage its vast data, secure its infrastructure, and execute its diverse operational mandates effectively.

Given the limited competition, what mechanisms are in place to ensure Lockheed Martin Services, LLC is providing services at a fair and reasonable price?

While the contract type is Time and Materials, the agency should employ rigorous oversight. This includes detailed review of labor rates, material costs, and direct expenses. Regular performance evaluations and comparison with industry standards for similar services are essential to mitigate potential overpricing.

How does the duration and value of this contract impact the government's ability to adapt to evolving technological needs in the IT sector?

A long-term contract, even with a base year, can create inertia. The government might be locked into specific technologies or service providers, potentially hindering the adoption of newer, more efficient solutions. Flexibility clauses or regular re-competition cycles are vital to maintain technological relevance.

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

Offers Received: 2

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: $340,717,324

Exercised Options: $290,467,909

Current Obligation: $288,502,465

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00017

IDV Type: IDC

Timeline