NASA's $182M Lockheed Martin Desktop Outsourcing Contract Lacked Competition, Raising Cost Concerns
Contract Overview
Contract Amount: $181,994,517 ($182.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2007-12-01
End Date: 2016-02-29
Contract Duration: 3,012 days
Daily Burn Rate: $60.4K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OUTSOURCING DESKTOP INITIATIVE-CONTRACTOR WILL PROVIDE ALL SEAT AND OTHER SERVICES
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $182.0 million to LOCKHEED MARTIN CORPORATION for work described as: OUTSOURCING DESKTOP INITIATIVE-CONTRACTOR WILL PROVIDE ALL SEAT AND OTHER SERVICES Key points: 1. Significant contract value of $181.99 million over 8 years. 2. Sole-source award to Lockheed Martin suggests limited competition. 3. Potential for inflated costs due to lack of competitive bidding. 4. IT services sector, specifically custom computer programming.
Value Assessment
Rating: questionable
The contract's total value of $181.99 million over 8 years is substantial. Without competitive benchmarking, it's difficult to assess if this price represents good value for the desktop outsourcing and related services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was awarded as a non-competitive delivery order, indicating a sole-source procurement. This method bypasses competitive bidding, potentially leading to higher prices and reduced innovation as there's no market pressure to offer the best value.
Taxpayer Impact: The lack of competition in this large contract may result in taxpayers paying more than necessary for IT services.
Public Impact
Taxpayers may be overpaying for essential IT services due to a lack of competitive pressure. Government reliance on a single contractor for critical infrastructure can create vendor lock-in. The long duration of the contract limits opportunities for agencies to reassess needs or seek better solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation
Positive Signals
- Firm Fixed Price contract type
- Clear service delivery period
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Benchmarks for similar large-scale desktop outsourcing contracts are difficult to ascertain without competitive data, but the value suggests a significant undertaking.
Small Business Impact
The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This represents a missed opportunity to support small business growth and leverage their specialized capabilities within the IT services sector.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny. Further oversight is needed to ensure NASA received fair pricing and adequate service delivery despite the absence of a competitive process.
Related Government Programs
- Custom Computer Programming Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Sole-source award lacks competition
- Potential for overpayment
- No small business participation
- Long contract duration may lead to outdated services
- Limited transparency in pricing
Tags
custom-computer-programming-services, national-aeronautics-and-space-administr, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $182.0 million to LOCKHEED MARTIN CORPORATION. OUTSOURCING DESKTOP INITIATIVE-CONTRACTOR WILL PROVIDE ALL SEAT AND OTHER SERVICES
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $182.0 million.
What is the period of performance?
Start: 2007-12-01. End: 2016-02-29.
What was the justification for awarding this significant IT contract on a sole-source basis?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. However, for a broad service like desktop outsourcing, a competitive process is generally expected to ensure best value.
How can NASA ensure cost-effectiveness and value for money in this sole-source contract?
NASA can implement robust contract management and oversight. This includes detailed performance monitoring, regular price reasonableness reviews, and potentially negotiating cost-saving measures or incentives. Engaging independent cost estimators could also help validate pricing against industry standards.
What are the long-term risks associated with a sole-source, multi-year IT outsourcing contract?
Long-term risks include potential price escalation as the contractor faces no competitive pressure, vendor lock-in making it difficult to switch providers, and a decline in service quality or innovation over time. There's also the risk that the technology or service needs of NASA may evolve beyond what the contractor can efficiently provide.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 700 N FREDERICK AVE LOC B, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $182,003,009
Exercised Options: $182,003,009
Current Obligation: $181,994,517
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NAS598144
IDV Type: IDC
Timeline
Start Date: 2007-12-01
Current End Date: 2016-02-29
Potential End Date: 2016-02-29 00:00:00
Last Modified: 2017-07-07
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →