DHS Awards $47.8M System Integration Contract to Lockheed Martin for PSP Equipment Installation

Contract Overview

Contract Amount: $47,836,760 ($47.8M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2011-07-21

End Date: 2015-09-30

Contract Duration: 1,532 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SUGGESTED VENDORS - LOCKHEED MARTIN, BOEING, RAYTHEON AND SAIC CONTRACT NO.: TBD SI - SYSTEM INTEGRATION CONTRACT SYSTEM INTEGRATION WORK IN ORDER TO INSTALL PSP EQUIPMENT TO THE CENTRAL REGION NOTE: THIS NEW REQUEST REPLACED 2111201CT2050 THAT WAS CANCELLED TO CORRECT LOA

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $47.8 million to LOCKHEED MARTIN SERVICES, LLC for work described as: SUGGESTED VENDORS - LOCKHEED MARTIN, BOEING, RAYTHEON AND SAIC CONTRACT NO.: TBD SI - SYSTEM INTEGRATION CONTRACT SYSTEM INTEGRATION WORK IN ORDER TO INSTALL PSP EQUIPMENT TO THE CENTRAL REGION NOTE: THIS NEW REQUEST REPLACED 2111201CT2050 THAT WAS CANCELLED TO CORRECT LOA Key points: 1. The contract focuses on system integration for PSP equipment installation in the Central Region. 2. Key vendors like Lockheed Martin, Boeing, and Raytheon are suggested, indicating a competitive landscape. 3. The contract's value is substantial at $47.8 million, requiring careful oversight. 4. The sector is IT/System Integration within the Transportation Security Administration.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar system integration contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the cancellation of a previous solicitation (2111201CT2050) to correct LOA raises questions about initial price discovery and procurement efficiency.

Taxpayer Impact: Taxpayer funds are being used for essential security equipment installation. The cost-plus nature of the contract necessitates vigilant oversight to ensure value for money.

Public Impact

Enhances security infrastructure at airports through PSP equipment installation. Supports the Transportation Security Administration's mission to ensure safe and secure travel. Potential for improved operational efficiency and passenger screening capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor overspending.
Previous solicitation cancellation indicates potential procurement process issues.
Limited information on specific PSP equipment and integration complexity.

Positive Signals

Awarded under full and open competition.
Addresses critical security infrastructure needs.
Involves major defense and technology contractors.

Sector Analysis

This contract falls within the IT and System Integration sector, specifically supporting aviation security. Spending benchmarks for similar system integration projects can vary widely based on scope and technology, but $47.8M for a regional installation is significant.

Small Business Impact

The data does not indicate any specific provisions or awards to small businesses for this contract. The suggested vendors are large corporations, suggesting limited direct opportunities for SMBs in this prime contract.

Oversight & Accountability

The cancellation of a prior solicitation to correct LOA suggests a need for improved initial procurement planning and documentation. Ongoing oversight will be crucial for the Cost Plus Fixed Fee contract to manage costs effectively.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Cost Plus Fixed Fee contract risk.
Potential for scope creep.
Past procurement issue (cancellation).
Lack of detailed technical scope in data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $47.8 million to LOCKHEED MARTIN SERVICES, LLC. SUGGESTED VENDORS - LOCKHEED MARTIN, BOEING, RAYTHEON AND SAIC CONTRACT NO.: TBD SI - SYSTEM INTEGRATION CONTRACT SYSTEM INTEGRATION WORK IN ORDER TO INSTALL PSP EQUIPMENT TO THE CENTRAL REGION NOTE: THIS NEW REQUEST REPLACED 2111201CT2050 THAT WAS CANCELLED TO CORRECT LOA

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 $47.8 million.

What is the period of performance?

Start: 2011-07-21. End: 2015-09-30.

What specific PSP equipment is being installed, and what are the key integration challenges that justify the $47.8M cost?

The specific PSP equipment is not detailed in the provided data. However, system integration typically involves complex tasks such as hardware and software compatibility, network configuration, data migration, and testing. The cost likely reflects the labor, project management, and potential customization required to seamlessly integrate new systems with existing infrastructure across the Central Region.

How will the agency ensure cost control and prevent overruns given the Cost Plus Fixed Fee contract structure?

The agency will likely implement rigorous oversight mechanisms, including detailed cost tracking, regular performance reviews, and independent audits. Establishing clear milestones and deliverables, along with strict change control processes, will be essential. Independent government cost estimators may also be employed to validate contractor expenditures and ensure fair pricing throughout the contract lifecycle.

What lessons were learned from the cancellation of the previous solicitation to prevent similar issues in future procurements?

The cancellation due to 'LOA' (likely Level of Agreement or similar procurement term) suggests a need for more thorough pre-solicitation planning and clearer definition of requirements and scope. Agencies should invest more in market research, stakeholder engagement, and internal review processes to ensure solicitations are accurate and complete from the outset, minimizing the need for costly and time-consuming amendments or cancellations.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 9211 CORPORATE BLVD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $47,836,760

Exercised Options: $47,836,760

Current Obligation: $47,836,760

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSTS0409DST2234

IDV Type: IDC

Timeline