DoD's $284M contract for ADP Systems Analysis Services awarded to Lockheed Martin Integrated Systems
Contract Overview
Contract Amount: $28,410,375 ($28.4M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2005-05-04
End Date: 2008-06-28
Contract Duration: 1,151 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: IT
Official Description: 200508!000133!5700!FA8726!ESC/NIK !FA877104D0008 !A!N! !N!RS02 ! !20050504!20070315!168916836!168916836!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!9500 GODWIN DRIVE !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000005800000!N!N!000000000000!D306!ADP SYSTEMS ANALYSIS SERVICES !S1 !SERVICES !000 !* !541511!E! !5!B!M! !A! !20200930!B!E!N!N!Z!A!N!Z!2!002!B! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $28.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200508!000133!5700!FA8726!ESC/NIK !FA877104D0008 !A!N! !N!RS02 ! !20050504!20070315!168916836!168916836!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!9500 GODWIN DRIVE !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANA… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1151 days indicates a significant, long-term need for these services. 3. The award to a large, established defense contractor like Lockheed Martin suggests a focus on proven capabilities. 4. The primary service category is ADP Systems Analysis, crucial for modern defense operations. 5. The contract's value of over $284 million signifies a substantial investment in IT infrastructure and support. 6. The contract was awarded under the 'Labor Hours' type, which can sometimes lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The contract value of $284,103,752.29 for ADP Systems Analysis Services over approximately three years appears substantial. Benchmarking this against similar large-scale IT services contracts within the Department of Defense is challenging without more specific service details. However, the 'Labor Hours' contract type can present risks for cost control compared to fixed-price contracts, potentially impacting overall value for money if not meticulously managed and monitored for efficiency.
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 a bid. The data shows two bids were received. While two bidders suggest some level of competition, it is a relatively low number for a contract of this magnitude, which could potentially limit price discovery and the range of innovative solutions considered.
Taxpayer Impact: A competitive process, even with a limited number of bidders, is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing and terms to secure the contract.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Air Force, which receives critical ADP Systems Analysis services. These services likely support the development, maintenance, and enhancement of complex defense information systems. The geographic impact is centered around the contractor's location in Manassas, Virginia, and the DoD facilities utilizing these services. The contract supports a workforce skilled in IT analysis, systems engineering, and potentially cybersecurity within Lockheed Martin.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor Hours contract type can lead to cost uncertainty if not closely managed.
- Limited number of bidders (2) may indicate potential barriers to entry or a concentrated market for these specialized services.
- The contract's significant value could attract scrutiny regarding cost-effectiveness over its lifespan.
Positive Signals
- Awarded through Full and Open Competition, ensuring a broad initial opportunity for bidders.
- Contract awarded to a major defense contractor with a known track record in systems integration.
- The contract addresses a critical need for ADP Systems Analysis within the Department of Defense.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on IT services and systems analysis. The market for defense IT services is vast and highly competitive, with major players like Lockheed Martin dominating large-scale contracts. Spending in this area is driven by the need for sophisticated command, control, communication, and intelligence (C3I) systems, as well as enterprise resource planning and data management solutions essential for modern military operations. Comparable spending benchmarks would typically involve other large IT services contracts awarded by DoD agencies for system development, integration, and support.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the large contract value and the nature of ADP Systems Analysis, it is likely that prime contractor Lockheed Martin may engage small businesses as subcontractors to fulfill specific needs or meet subcontracting goals. However, the primary award does not directly benefit small businesses through a set-aside mechanism.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures would include performance metrics, delivery schedules, and quality standards outlined in the contract. Transparency is facilitated through contract databases like FPDS, although detailed performance reports are often internal. The Inspector General's office within the DoD may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.
Related Government Programs
- Defense Information Systems Agency (DISA) IT Services
- Air Force Command and Control Systems
- Lockheed Martin Defense Contracts
- IT Services for Department of Defense
- ADP Systems Modernization
Risk Flags
- Labor Hours contract type requires close monitoring to control costs.
- Limited competition (2 bidders) may impact price competitiveness.
- Contract duration and value warrant scrutiny for long-term cost-effectiveness.
Tags
it-services, department-of-defense, department-of-the-air-force, lockheed-martin, systems-analysis, labor-hours, full-and-open-competition, large-contract, defense-contracting, virginia, manassas
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.4 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200508!000133!5700!FA8726!ESC/NIK !FA877104D0008 !A!N! !N!RS02 ! !20050504!20070315!168916836!168916836!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!9500 GODWIN DRIVE !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000005800000!N!N!000000000000!D306!ADP SYSTEMS ANALYSIS SERVICES !S1 !SERVICES !000 !* !541511!E! !5!B!M! !A! !202
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $28.4 million.
What is the period of performance?
Start: 2005-05-04. End: 2008-06-28.
What is the specific nature of the 'ADP Systems Analysis Services' provided under this contract?
The provided data identifies the service as 'ADP SYSTEMS ANALYSIS SERVICES' under the PSC code 'D306'. While the specific tasks are not detailed, this typically encompasses a range of activities related to analyzing, designing, developing, and maintaining automated data processing (ADP) systems. This could include requirements gathering, system architecture design, software analysis, performance tuning, integration studies, and feasibility assessments for complex defense information systems. Given the contractor and agency, these services are likely critical for supporting the operational and strategic IT needs of the U.S. Air Force.
How does the 'Labor Hours' contract type compare to other contract types in terms of risk and value for the government?
Labor Hours (LH) contracts, like the one awarded here, are time and material contracts where the government pays a fixed hourly rate for labor. This type is often used when the scope of work is not clearly defined or is expected to change. While flexible, LH contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the total cost is directly tied to the hours worked. Effective management, close monitoring of labor hours, and clear task definitions are crucial to ensure value for money and prevent excessive spending. For a contract of this size and duration, robust oversight is essential.
What is Lockheed Martin's track record with similar large-scale IT services contracts for the Department of Defense?
Lockheed Martin is a major defense contractor with extensive experience in providing IT services and systems integration for the Department of Defense. They have a long history of managing large, complex contracts across various military branches, including significant work with the Air Force. Their portfolio includes areas like C4ISR systems, enterprise IT, cybersecurity, and software development. While specific performance details for this particular contract are not provided, Lockheed Martin's established presence and scale suggest they possess the resources and expertise typically required for such substantial IT service agreements.
How does the $284 million contract value compare to overall DoD spending on IT services?
The $284 million awarded to Lockheed Martin for ADP Systems Analysis Services represents a significant, but not exceptionally large, portion of the Department of Defense's overall IT spending. The DoD is one of the largest government consumers of IT services, with annual budgets often running into the tens of billions of dollars for hardware, software, and services. This contract, while substantial for a single award, is one of many contributing to the DoD's vast technological infrastructure. Its value should be assessed within the context of specific Air Force IT modernization efforts or sustainment programs it supports.
What are the potential risks associated with a contract awarded to a single large prime contractor like Lockheed Martin?
Awarding a large contract to a single prime contractor like Lockheed Martin can present several risks. One is potential complacency, where the contractor may face less pressure to innovate or optimize costs once the contract is secured. Another risk is vendor lock-in, making it difficult and costly to switch providers or integrate other solutions. Furthermore, if the prime contractor underperforms or faces financial difficulties, it can significantly disrupt the program. However, large contractors also bring stability, extensive resources, and established processes, which can be advantageous for complex, long-term projects.
Were there any specific performance metrics or key performance indicators (KPIs) associated with this contract?
The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such details are outlined within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For an ADP Systems Analysis Services contract, common KPIs might include system uptime, response times, successful completion of analysis tasks, adherence to project timelines, defect rates in delivered solutions, and user satisfaction. The absence of this information in the summary data means a detailed assessment of the contractor's performance quality is not possible from this dataset alone.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: FIBER OPTIC
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 08
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA877104D0008
IDV Type: IDC
Timeline
Start Date: 2005-05-04
Current End Date: 2008-06-28
Potential End Date: 2008-06-28 00:00:00
Last Modified: 2013-02-14
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