DHS awards $120M contract for TSA human capital operations to Lockheed Martin
Contract Overview
Contract Amount: $120,396,584 ($120.4M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2008-12-31
End Date: 2010-01-01
Contract Duration: 366 days
Daily Burn Rate: $329.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE
Sector: Other
Official Description: FULL RANGE OF HUMAN CAPITAL OPERATIONS FOR ALL TSA EMPLOYEES.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $120.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: FULL RANGE OF HUMAN CAPITAL OPERATIONS FOR ALL TSA EMPLOYEES. Key points: 1. Contract value represents a significant investment in human resources support for the TSA. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of 366 days indicates a need for ongoing, sustained services. 4. Fixed Price Award Fee contract type aims to balance cost control with performance incentives. 5. The North American Industry Classification System (NAICS) code 541612 points to management consulting services. 6. The award was made to a single contractor, Lockheed Martin Integrated Systems, LLC. 7. The contract was awarded by the Department of Homeland Security for the Transportation Security Administration. 8. The base year duration is 366 days, with potential for extensions.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The total award amount of over $120 million for a one-year duration suggests a substantial scope of work. However, without detailed breakdowns of services provided or comparisons to similar HR consulting contracts across government agencies, it's difficult to definitively assess value for money. The fixed-price award fee structure implies that a portion of the payment is tied to performance, which could incentivize efficiency, but the overall cost-effectiveness remains to be seen.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this significant contract. While three bidders is better than a sole-source award, a higher number of competitors could potentially drive prices down further and foster greater innovation. The specific details of the bidding process and evaluation criteria would be needed for a more in-depth analysis of the competitive dynamics.
Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides taxpayers with a better opportunity for competitive pricing compared to sole-source or limited solicitations.
Public Impact
The primary beneficiaries are TSA employees who will receive human capital support services. Services delivered include a full range of human capital operations. The geographic impact is likely nationwide, covering all TSA employees. Workforce implications include support for TSA's HR functions and potentially the contractor's workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if performance incentives are not effectively managed.
- Risk of vendor lock-in if transition to a new vendor is complex.
- Dependence on a single contractor for critical human capital functions.
- Ensuring consistent service quality across all TSA employees nationwide.
Positive Signals
- Awarded through full and open competition, suggesting a fair process.
- Fixed Price Award Fee structure can incentivize contractor performance.
- Contractor (Lockheed Martin) has extensive experience in large-scale government contracts.
- Focus on comprehensive human capital operations aims to improve employee support.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on human resources consulting. The federal government is a major consumer of such services to manage its vast workforce. Comparable spending benchmarks would involve looking at other large federal contracts for HR support, particularly those awarded by agencies with similar employee numbers and operational complexities. The market for HR consulting services is competitive, with many large and small firms offering specialized expertise.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and the prime contractor is Lockheed Martin Integrated Systems, LLC, a large corporation. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities are pursued by the prime contractor. Further investigation into subcontracting goals would be necessary to assess the full impact.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Accountability measures are embedded in the Fixed Price Award Fee structure, linking payment to performance. Transparency regarding the specific performance metrics and evaluation results would be crucial for assessing accountability. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Federal Human Resources Management
- Government Consulting Services
- Department of Homeland Security Contracts
- Transportation Security Administration Operations
- Large-Scale IT and Professional Services Contracts
Risk Flags
- Potential for performance issues impacting critical HR functions.
- Risk of cost growth if award fee criteria are not tightly managed.
- Dependence on contractor expertise could lead to knowledge gaps within TSA.
- Limited competition in future contract renewals could impact long-term value.
Tags
dhs, tsa, human-resources, consulting-services, professional-services, large-contract, fixed-price-award-fee, full-and-open-competition, lockheed-martin, transportation-security, virginia, federal-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $120.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. FULL RANGE OF HUMAN CAPITAL OPERATIONS FOR ALL TSA EMPLOYEES.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $120.4 million.
What is the period of performance?
Start: 2008-12-31. End: 2010-01-01.
What specific human capital services are encompassed by this contract?
The contract broadly covers 'FULL RANGE OF HUMAN CAPITAL OPERATIONS FOR ALL TSA EMPLOYEES.' This typically includes services such as personnel management, recruitment and retention strategies, training and development programs, compensation and benefits administration, employee relations, performance management systems, and HR policy development and implementation. The exact scope would be detailed in the contract's statement of work, outlining specific deliverables, service level agreements, and reporting requirements. Given the scale, it likely involves supporting a significant portion of the TSA's HR functions, aiming to enhance efficiency and effectiveness in managing its workforce.
How does the $120 million award compare to historical spending on similar TSA HR services?
To accurately compare, one would need historical data on TSA's spending for human capital operations, specifically for contracts with similar scopes and durations. Without access to that specific historical data, a direct comparison is difficult. However, $120 million for a one-year contract for comprehensive HR operations for a large agency like the TSA suggests a significant investment. It's important to consider if this represents an increase or decrease in spending compared to previous arrangements, and whether the scope of services has changed. Analyzing trends in federal HR consulting spending could provide broader context.
What are the key performance indicators (KPIs) tied to the 'Award Fee' component of this contract?
The 'Award Fee' component implies that the contractor, Lockheed Martin, can earn additional fees based on achieving specific performance objectives defined in the contract. These KPIs are crucial for assessing value for money. While not detailed in the provided data, typical KPIs for HR consulting contracts might include metrics related to recruitment timelines, employee retention rates, training completion rates, employee satisfaction scores, HR process efficiency improvements, and compliance with labor laws. The government agency (TSA) would evaluate the contractor's performance against these pre-defined metrics to determine the award fee amount.
What is Lockheed Martin's track record with similar large-scale federal HR contracts?
Lockheed Martin Integrated Systems, LLC, as part of the larger Lockheed Martin corporation, has a substantial track record of managing complex, large-scale contracts for various U.S. federal agencies across defense, intelligence, and civilian sectors. While their primary reputation is often associated with defense and aerospace, they possess significant capabilities in IT, logistics, and professional services, which often include human capital management components. Their experience typically involves managing large workforces, implementing HR systems, and providing strategic HR support. Specific details on their past performance in direct HR consulting for civilian agencies like DHS/TSA would require a deeper dive into contract databases and performance reports.
What are the potential risks associated with a single contractor managing the full range of TSA's human capital operations?
A significant risk associated with a single contractor managing the full spectrum of an agency's human capital operations is over-reliance and potential vendor lock-in. If the contractor underperforms or faces financial instability, it could severely disrupt essential HR functions for the TSA. There's also a risk of institutional knowledge loss within the government if the contractor's personnel become the primary holders of HR operational expertise. Furthermore, a lack of competition for follow-on contracts could lead to reduced innovation and potentially higher costs over time. Ensuring robust oversight and contingency planning is critical to mitigate these risks.
How does the Fixed Price Award Fee structure aim to balance cost and performance for this contract?
The Fixed Price Award Fee (FPAF) structure is designed to provide cost certainty for the government while incentivizing the contractor to exceed minimum performance standards. The 'Fixed Price' portion establishes a ceiling cost for the services. The 'Award Fee' portion allows the government to grant additional payment (the award fee) based on the contractor's performance, as judged against pre-determined criteria. This structure encourages the contractor to deliver high-quality services and achieve specific objectives to maximize their earnings, going beyond basic contract fulfillment. It aims to achieve a balance where the government gets predictable costs and the contractor is motivated to perform exceptionally well.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE (M)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1800 S BELL ST STE. 1200, ARLINGTON, VA, 22202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $153,633,010
Exercised Options: $153,633,010
Current Obligation: $120,396,584
Parent Contract
Parent Award PIID: HSTS0108DHRM010
IDV Type: IDC
Timeline
Start Date: 2008-12-31
Current End Date: 2010-01-01
Potential End Date: 2010-01-01 00:00:00
Last Modified: 2015-03-31
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