National Archives awards $263.7M for electronic record archive development, build, deployment, and maintenance

Contract Overview

Contract Amount: $263,675,472 ($263.7M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: National Archives and Records Administration

Start Date: 2004-08-03

End Date: 2021-12-29

Contract Duration: 6,357 days

Daily Burn Rate: $41.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: DEVELPMENT, BUILD, DEPLOYMENT, AND MAINTENANCE OF ELECTRONIC RECORD ARCHIVE

Place of Performance

Location: COLLEGE PARK, PRINCE GEORGES County, MARYLAND, 20740

State: Maryland Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $263.7 million to LOCKHEED MARTIN SERVICES, LLC for work described as: DEVELPMENT, BUILD, DEPLOYMENT, AND MAINTENANCE OF ELECTRONIC RECORD ARCHIVE Key points: 1. Contract value of $263.7M over its duration suggests significant investment in long-term data management. 2. The contract was awarded via full and open competition, indicating a broad market search. 3. A Cost Plus Award Fee (CPAF) contract type allows for flexibility but requires careful oversight of costs and performance. 4. The duration of the contract (6357 days) points to a long-term strategic need for electronic record archiving. 5. The North American Industry Classification System (NAICS) code 541512 categorizes this as Computer Systems Design Services. 6. The contractor, Lockheed Martin Services, LLC, is a major player in government contracting, suggesting established capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. The Cost Plus Award Fee structure means the final cost could vary based on performance. However, the total obligated amount of $263.7M over nearly 18 years indicates a substantial, long-term investment in a critical government function. Comparing this to similar large-scale IT infrastructure and data management projects within the federal government would provide better context for value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 3 bidders indicates a competitive landscape for this type of service. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and encouraging innovation among bidders.

Public Impact

Citizens and government agencies benefit from the secure and accessible archiving of electronic records. The contract ensures the long-term preservation and management of vital government information. Services delivered include development, build, deployment, and ongoing maintenance of the electronic record archive system. The primary geographic impact is national, supporting federal agencies across the United States. The contract likely supports a workforce skilled in IT systems design, development, deployment, and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to cost overruns if not managed diligently, as contractor profit is tied to performance metrics that may be subjective or difficult to measure.
The long duration of the contract (nearly 18 years) presents risks related to technological obsolescence and the need for continuous adaptation to evolving data management standards and security threats.
Reliance on a single contractor for such a critical, long-term system could create vendor lock-in and limit future flexibility.

Positive Signals

Awarding to Lockheed Martin Services, LLC, a well-established government contractor, suggests a high likelihood of technical capability and experience in delivering complex IT solutions.
The use of full and open competition indicates that the National Archives and Records Administration sought the best possible solution from the market, potentially leading to a more robust and cost-effective outcome.
The contract's focus on development, build, deployment, and maintenance implies a comprehensive approach to establishing and sustaining a critical electronic records archive.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and data management. The federal IT services market is vast, with significant spending allocated to system development, integration, and maintenance. This contract represents a substantial investment in a core government function – the long-term preservation of electronic records. Comparable spending benchmarks would involve looking at other large-scale federal data center consolidation, cloud migration, or digital archive initiatives.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a large prime contractor. There is no explicit information on subcontracting plans for small businesses within the provided data, which could be a missed opportunity for engaging the small business ecosystem in supporting this critical federal function.

Oversight & Accountability

The Cost Plus Award Fee (CPAF) contract type necessitates robust oversight mechanisms to ensure that costs are reasonable and that award fees are justified by performance. The National Archives and Records Administration (NARA) would be responsible for monitoring contractor performance against established metrics. Transparency would be assessed through contract reporting and potential audits by NARA's Inspector General or the Government Accountability Office (GAO).

Related Government Programs

Federal Records Management
Digital Preservation Initiatives
Government IT Infrastructure Modernization
Electronic Records Management Systems
National Archives and Records Administration IT Spending

Risk Flags

Long contract duration may lead to technological obsolescence.
Cost Plus Award Fee structure requires diligent cost oversight.
Potential for vendor lock-in due to long-term single-source management.
Cybersecurity risks inherent in long-term data archiving systems.

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $263.7 million to LOCKHEED MARTIN SERVICES, LLC. DEVELPMENT, BUILD, DEPLOYMENT, AND MAINTENANCE OF ELECTRONIC RECORD ARCHIVE

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: National Archives and Records Administration (National Archives and Records Administration).

What is the total obligated amount?

The obligated amount is $263.7 million.

What is the period of performance?

Start: 2004-08-03. End: 2021-12-29.

What is the historical spending trend for electronic record archiving services by the National Archives and Records Administration?

Historical spending data for electronic record archiving services by NARA is not directly available in the provided snippet. However, the award of a $263.7 million contract for development, build, deployment, and maintenance from 2004 to 2021 indicates a significant and sustained investment in this area. To understand the trend, one would need to analyze NARA's budget allocations and contract awards for similar services over a longer period, looking for increases or decreases in spending that might correlate with changes in technology, policy, or the volume of electronic records generated by federal agencies.

How does the per-unit cost of this contract compare to industry benchmarks for similar IT system development and maintenance?

A direct per-unit cost comparison is not feasible with the provided data, as 'per-unit' is not defined (e.g., per record archived, per user, per terabyte stored). The contract is a Cost Plus Award Fee (CPAF), which means the total cost is variable and depends on actual costs incurred plus an award fee based on performance. To benchmark, one would need to identify specific cost drivers (e.g., labor hours, infrastructure costs) and compare them to industry averages for similar large-scale IT projects. Given the complexity and long-term nature of establishing and maintaining a national electronic record archive, the costs are likely to be substantial, but whether they represent good value requires detailed cost analysis and performance data.

What are the key performance indicators (KPIs) used to determine the award fee for Lockheed Martin Services, LLC under this contract?

The specific Key Performance Indicators (KPIs) used to determine the award fee for Lockheed Martin Services, LLC are not detailed in the provided contract summary. Under a Cost Plus Award Fee (CPAF) contract, these KPIs are typically defined in the contract's Statement of Work (SOW) and performance requirements. They would likely relate to system availability, data integrity, security compliance, successful deployment of new features, efficiency of maintenance operations, and adherence to project timelines. NARA's contracting officers would evaluate the contractor's performance against these pre-defined metrics to determine the amount of the award fee, which is intended to incentivize high performance.

What is the track record of Lockheed Martin Services, LLC in managing large-scale federal IT infrastructure and data archiving projects?

Lockheed Martin Services, LLC, as a subsidiary of Lockheed Martin Corporation, has a significant track record in managing large-scale federal IT infrastructure and complex systems integration projects across various government agencies. They are known for their work in defense, aerospace, and civilian agency IT modernization. While specific details of their past performance on electronic record archiving projects are not in this snippet, their general experience suggests a strong capability to handle the technical, security, and logistical demands of such a critical undertaking. A thorough review would involve examining past performance evaluations and contract histories for similar projects.

What are the potential risks associated with the long duration (nearly 18 years) of this contract for electronic record archiving?

The long duration of this contract presents several potential risks. Technological obsolescence is a primary concern; systems and software developed today may be outdated or unsupported by the time the contract concludes. Evolving cybersecurity threats require continuous adaptation, which can be challenging and costly over such an extended period. Furthermore, changes in federal regulations, data management best practices, or agency needs could necessitate significant contract modifications. There's also the risk of vendor lock-in, making it difficult and expensive to switch providers if performance declines or better solutions emerge. Finally, maintaining consistent performance and innovation from the contractor over nearly two decades requires diligent oversight and contract management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 9221 CORPORATE BLVD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $512,893,546

Exercised Options: $295,670,751

Current Obligation: $263,675,472

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline