NASA's ODIN contract awarded to Lockheed Martin for $66M, facing non-competitive renewal
Contract Overview
Contract Amount: $65,978,651 ($66.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2007-12-01
End Date: 2011-10-31
Contract Duration: 1,430 days
Daily Burn Rate: $46.1K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OUTSOURCING DESKTOP INITIATIVE FOR NASA (ODIN) - DO4 ODIN DESKTOP, SERVER, TELEPHONE AND REMOTE COMMUNICATION SERVICES - FOLLOW-ON TO NNK05OA14D/NNK07EA14D
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $66.0 million to LOCKHEED MARTIN CORPORATION for work described as: OUTSOURCING DESKTOP INITIATIVE FOR NASA (ODIN) - DO4 ODIN DESKTOP, SERVER, TELEPHONE AND REMOTE COMMUNICATION SERVICES - FOLLOW-ON TO NNK05OA14D/NNK07EA14D Key points: 1. High contract value of $66M for IT services. 2. Lockheed Martin is the sole awardee, raising competition concerns. 3. Risk of overpayment due to non-competitive award. 4. IT sector spending benchmark analysis needed for fair pricing.
Value Assessment
Rating: questionable
The contract's value of $66M for desktop, server, and communication services appears high given the non-competitive nature. Without competitive bids, it's difficult to assess if the pricing reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a non-competitive delivery order, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.
Public Impact
NASA's reliance on a single vendor for critical IT infrastructure. Potential for service disruptions if the vendor fails to perform. Taxpayer funds are being spent without a competitive market check.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- High contract value
- Lack of transparency in pricing
Positive Signals
- Established vendor relationship
- Potential for consistent service delivery
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming and related services. Benchmarking against similar NASA IT contracts would be crucial to assess value for money.
Small Business Impact
The data indicates no specific set-aside for small businesses in this contract, suggesting a missed opportunity to support smaller IT firms.
Oversight & Accountability
Oversight is crucial for non-competitive contracts to ensure NASA is receiving fair value and that performance meets requirements. Regular performance reviews and cost audits are recommended.
Related Government Programs
- Custom Computer Programming Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Non-competitive award limits price discovery.
- High contract value warrants close scrutiny.
- Potential for cost overruns without market pressure.
- Lack of small business participation.
Tags
custom-computer-programming-services, national-aeronautics-and-space-administr, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $66.0 million to LOCKHEED MARTIN CORPORATION. OUTSOURCING DESKTOP INITIATIVE FOR NASA (ODIN) - DO4 ODIN DESKTOP, SERVER, TELEPHONE AND REMOTE COMMUNICATION SERVICES - FOLLOW-ON TO NNK05OA14D/NNK07EA14D
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 $66.0 million.
What is the period of performance?
Start: 2007-12-01. End: 2011-10-31.
What is the benchmark cost for similar IT outsourcing services within NASA or other federal agencies?
Benchmarking similar IT outsourcing services within NASA or other federal agencies is essential. Without this, it's challenging to determine if the $66M price tag for ODIN is reasonable. A comparative analysis of contracts for desktop, server, and communication services, considering scope, duration, and vendor performance, would provide a clearer picture of fair market value.
What are the risks associated with a sole-source IT contract for critical infrastructure?
Sole-source contracts for critical IT infrastructure pose significant risks, including potential overpricing due to lack of competition, vendor lock-in, and reduced incentive for innovation. If the sole provider experiences performance issues or financial instability, NASA could face service disruptions with limited alternatives. This also limits opportunities for emerging technologies and smaller businesses.
How effectively has Lockheed Martin delivered on the ODIN contract's objectives, and is the current pricing justified by performance?
Assessing the effectiveness of Lockheed Martin's delivery under the ODIN contract is vital, especially given its non-competitive nature. Performance metrics, user satisfaction, and adherence to service level agreements should be rigorously evaluated. If performance has been consistently excellent and met all objectives, it might partially justify the cost, but a competitive benchmark remains the best indicator of true value.
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: NEGOTIATED PROPOSAL/QUOTE
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
Financial Breakdown
Contract Ceiling: $68,349,640
Exercised Options: $68,349,640
Current Obligation: $65,978,651
Parent Contract
Parent Award PIID: NAS598144
IDV Type: IDC
Timeline
Start Date: 2007-12-01
Current End Date: 2011-10-31
Potential End Date: 2011-10-31 00:00:00
Last Modified: 2017-07-07
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