DHS Awards $61.4M for TWIC Card Services to Lockheed Martin, Ending in 2025

Contract Overview

Contract Amount: $61,434,054 ($61.4M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2007-01-29

End Date: 2025-04-04

Contract Duration: 6,640 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE AWARD FEE

Sector: Transportation

Official Description: TWIC PHASE IV - O&M SUPPORT AND ENROLLMENT/ISSUANCE OF TWIC CARDS FOR THE MARTITIME WORKERS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $61.4 million to LOCKHEED MARTIN SERVICES, LLC for work described as: TWIC PHASE IV - O&M SUPPORT AND ENROLLMENT/ISSUANCE OF TWIC CARDS FOR THE MARTITIME WORKERS Key points: 1. The Transportation Security Administration (TSA) is spending $61.4 million on operational and maintenance support for the TWIC program. 2. Lockheed Martin Services, LLC is the sole contractor for this Delivery Order, awarded under a full and open competition. 3. The contract spans nearly 18 years, raising questions about long-term value and potential for price escalation. 4. The primary sector is Transportation, with a focus on administrative and management consulting services.

Value Assessment

Rating: fair

The contract's fixed-price award fee structure aims to control costs, but the extended duration and the nature of O&M support suggest potential for cost increases over time. Benchmarking against similar long-term O&M contracts for large-scale identification systems would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, this specific delivery order is with a single contractor, Lockheed Martin Services, LLC. The initial competition likely established a competitive price, but the long-term nature of this order warrants scrutiny for price adjustments.

Taxpayer Impact: Taxpayer funds are being used for a critical security program. While competition was employed, the extended duration necessitates ongoing oversight to ensure cost-effectiveness and prevent overspending.

Public Impact

Ensures secure identification for maritime workers, enhancing port security. Supports the operational integrity of the TWIC card system nationwide. Facilitates the enrollment and issuance process for thousands of workers. Contributes to compliance with federal security mandates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 18 years) may lead to cost inefficiencies.
Reliance on a single awardee for an extended period.
Potential for scope creep or unaddressed maintenance needs over time.

Positive Signals

Awarded under full and open competition.
Fixed-price award fee structure provides some cost control.
Essential service for national security and maritime commerce.

Sector Analysis

This contract falls within the Transportation sector, specifically supporting the Transportation Security Administration's efforts to secure maritime facilities. The NAICS code 541611 (Administrative Management and General Management Consulting Services) suggests a broad scope of support beyond just IT, encompassing operational management and process consulting for the TWIC program.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this delivery order. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

The contract's long duration necessitates robust oversight from the TSA to ensure performance standards are met and costs remain within reasonable bounds. Regular performance reviews and audits are crucial for accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Long-term contract duration.
Potential for cost overruns due to extended period.
Reliance on a single contractor for critical infrastructure support.
Lack of detailed performance metrics in the provided data.
Uncertainty regarding adaptation to future technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $61.4 million to LOCKHEED MARTIN SERVICES, LLC. TWIC PHASE IV - O&M SUPPORT AND ENROLLMENT/ISSUANCE OF TWIC CARDS FOR THE MARTITIME WORKERS

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $61.4 million.

What is the period of performance?

Start: 2007-01-29. End: 2025-04-04.

What is the projected cost per TWIC card issued and maintained over the contract's lifespan, and how does this compare to industry benchmarks?

The provided data does not allow for a precise per-card cost calculation as it aggregates O&M and enrollment/issuance costs over a long period. To assess value, a detailed breakdown of costs associated with each function (O&M, enrollment, issuance) would be needed. Comparing this to industry benchmarks for similar identification systems would reveal potential inefficiencies or cost savings.

Given the nearly 18-year duration, what mechanisms are in place to mitigate the risk of technological obsolescence or changing security requirements impacting the TWIC system?

The contract's fixed-price award fee structure, while offering some cost control, may not adequately address the risks of technological obsolescence over an 18-year period. The contract likely includes provisions for contract modifications or change orders to adapt to evolving requirements, but the process and associated costs need careful management and oversight by the TSA to ensure the system remains effective and secure.

How effectively has Lockheed Martin Services, LLC managed the TWIC program's operational and enrollment aspects to date, and what is the anticipated impact on overall maritime security?

The effectiveness of Lockheed Martin's management is reflected in the award fee structure, but specific performance metrics are not detailed here. Continued operational efficiency and successful enrollment are critical for maintaining the integrity of the TWIC program, which directly impacts maritime security by ensuring only authorized personnel have access to secure areas. Consistent performance is vital for national security.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management 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: 5

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 9211 CORPORATE BLVD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $61,434,054

Exercised Options: $61,434,054

Current Obligation: $61,434,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSTS0207DTTC366

IDV Type: IDC

Timeline