DHS awards $44.2M for threat mitigation and engineering services to Lockheed Martin

Contract Overview

Contract Amount: $44,172,715 ($44.2M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2013-03-28

End Date: 2015-08-16

Contract Duration: 871 days

Daily Burn Rate: $50.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO 23, THREAT MITIGATION, ENGINEERING,&IMAGE. "IGF::CT::IGF "

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $44.2 million to LOCKHEED MARTIN SERVICES, LLC for work described as: TO 23, THREAT MITIGATION, ENGINEERING,&IMAGE. "IGF::CT::IGF " Key points: 1. Contract awarded for threat mitigation, engineering, and imagery services. 2. Significant portion of contract value allocated to specialized technical support. 3. Performance period spans over two years, indicating a medium-term need. 4. Contract type is Firm Fixed Price, providing cost certainty. 5. Awarded by the Department of Homeland Security, highlighting national security relevance. 6. Services are categorized under Educational Support Services, suggesting a training or development component. 7. Geographic location of performance is Virginia.

Value Assessment

Rating: fair

The contract value of $44.2 million for a period of approximately two years appears to be within a reasonable range for specialized engineering and threat mitigation services. Benchmarking against similar contracts for large-scale defense or security engineering support would be necessary for a definitive value assessment. However, given the broad scope encompassing threat mitigation, engineering, and imagery, the pricing is likely competitive for the expertise required. The firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, leading to better pricing and innovation. This method ensures that the government receives the best value by considering a wide range of potential contractors. The absence of restrictions suggests a robust market for these specialized services.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for cost savings through a broad bidding process and ensures that public funds are used efficiently.

Public Impact

Benefits the Department of Homeland Security by enhancing threat mitigation and engineering capabilities. Services delivered likely contribute to national security and infrastructure protection. Geographic impact is primarily within Virginia, where the services are performed. Workforce implications include employment for engineers, technical specialists, and support staff. Imagery services may support surveillance, analysis, or documentation efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Scope of 'Educational Support Services' for threat mitigation is somewhat ambiguous and could lead to scope creep.
Lack of specific performance metrics makes it difficult to assess the effectiveness of threat mitigation efforts.
Potential for cost overruns if unforeseen technical challenges arise in engineering or threat mitigation.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm Fixed Price contract structure shifts cost risk to the contractor.
Contractor, Lockheed Martin Services, LLC, is a large, established entity with significant resources.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on specialized engineering, threat mitigation, and imagery services. The market for such services is characterized by high barriers to entry due to technical expertise requirements and security clearances. Spending in this area is driven by national security needs, technological advancements, and evolving threat landscapes. Comparable spending benchmarks would typically be found within defense and homeland security agency budgets for similar technical support and system integration contracts.

Small Business Impact

The contract was awarded to Lockheed Martin Services, LLC, a large prime contractor. There is no indication of a small business set-aside for this specific award. While the prime contractor may utilize small businesses for subcontracting, the primary award does not directly benefit small businesses through a set-aside. Further analysis of subcontracting plans would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The firm fixed-price nature provides some level of cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Homeland Security Contracts
Engineering Services
Threat Analysis
Technical Support Services
Imagery Analysis
Defense Contracting

Risk Flags

Ambiguity in service description ('Educational Support Services' for threat mitigation/engineering)
Lack of specific performance metrics in provided data
Potential for scope creep in complex engineering and mitigation tasks

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $44.2 million to LOCKHEED MARTIN SERVICES, LLC. TO 23, THREAT MITIGATION, ENGINEERING,&IMAGE. "IGF::CT::IGF "

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 $44.2 million.

What is the period of performance?

Start: 2013-03-28. End: 2015-08-16.

What is the specific nature of the 'threat mitigation' and 'engineering' services provided under this contract?

The contract details are broad, encompassing 'TO 23, THREAT MITIGATION, ENGINEERING,&IMAGE.' The classification under 'Educational Support Services' (NAICS 611710) suggests that the services might involve training, simulation, or development of educational materials related to threat mitigation and engineering principles. However, without more specific task order details, it's difficult to ascertain the exact nature of the engineering work (e.g., systems engineering, structural engineering, cybersecurity engineering) or the specific threats being mitigated. It could range from developing training programs for security personnel to designing physical security enhancements or analyzing potential vulnerabilities in critical infrastructure.

How does the $44.2 million award compare to historical spending by DHS for similar services?

Comparing the $44.2 million award to historical DHS spending requires access to detailed historical contract data. However, as a general benchmark, DHS consistently allocates significant funds towards security, engineering, and technical support services. Large prime contractors like Lockheed Martin often secure multi-year, multi-million dollar contracts for complex requirements. This award appears to be a substantial, but not necessarily outlier, investment for specialized capabilities. To provide a precise comparison, one would need to analyze DHS's spending trends in the 'Other' sector, specifically for engineering and threat mitigation services, over the past several fiscal years, looking at both prime contract awards and task orders issued under larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the key performance indicators (KPIs) for this contract. For a contract focused on threat mitigation, engineering, and imagery, potential KPIs could include the successful identification and neutralization of threats, the timely completion of engineering projects, the accuracy and utility of imagery analysis, and the effectiveness of any associated training or educational components. The firm fixed-price nature implies that meeting defined deliverables and timelines is crucial. Without access to the contract's statement of work (SOW) or performance work statement (PWS), specific KPIs remain unknown, making objective assessment of contractor performance challenging.

What is Lockheed Martin Services, LLC's track record with the Department of Homeland Security?

Lockheed Martin Services, LLC, as a subsidiary of the larger Lockheed Martin Corporation, has a significant and extensive track record of performing contracts for various U.S. government agencies, including the Department of Homeland Security (DHS). They are a major defense contractor with broad capabilities in areas such as systems integration, technology development, cybersecurity, and support services. DHS has awarded numerous contracts to Lockheed Martin over the years for a wide range of requirements, from border security technology to intelligence analysis and IT infrastructure support. Their history with DHS suggests a capacity to handle complex, large-scale projects, though specific performance on individual contracts would require detailed review.

Are there any identified risks associated with this contract, such as cost overruns or performance failures?

While the firm fixed-price (FFP) contract structure mitigates cost overrun risk for the government, potential risks remain. These include scope creep if the 'threat mitigation' and 'engineering' requirements are not precisely defined, leading to disputes or change orders. Performance failures could arise if the contractor lacks the necessary expertise or resources to meet the complex technical demands, potentially impacting DHS's operational capabilities. Given the nature of threat mitigation, unforeseen challenges or evolving threat landscapes could also introduce performance risks. The 'Educational Support Services' classification adds a layer of ambiguity that could contribute to performance uncertainty if the educational component is not clearly delineated from the technical engineering and mitigation aspects.

Industry Classification

NAICS: Educational Services › Educational Support Services › Educational Support Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

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

Financial Breakdown

Contract Ceiling: $50,220,471

Exercised Options: $44,172,715

Current Obligation: $44,172,715

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSTS0109DOSO900

IDV Type: IDC

Timeline