SEC's $58.3M IT support contract to Lockheed Martin shows long-term vendor relationships in government IT

Contract Overview

Contract Amount: $58,301,948 ($58.3M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2008-08-24

End Date: 2011-04-27

Contract Duration: 976 days

Daily Burn Rate: $59.7K/day

Number of Offers Received: 3

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: INFRASTRUCTURE SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22312

State: Virginia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $58.3 million to LOCKHEED MARTIN SERVICES, LLC for work described as: INFRASTRUCTURE SUPPORT SERVICES Key points: 1. Contract awarded to a single, large defense contractor suggests a focus on established capabilities over broad market engagement. 2. The duration of the contract (nearly 3 years) indicates a need for sustained IT support services. 3. Award type as a 'Delivery Order' implies this was part of a larger, pre-existing contract vehicle. 4. The North American Industry Classification System (NAICS) code 541512 points to a standard IT systems design and integration service. 5. The contract's value, while significant, needs to be benchmarked against similar long-term IT support contracts for a full value assessment. 6. The absence of small business set-aside flags indicates this was not specifically targeted to smaller enterprises.

Value Assessment

Rating: fair

The contract value of approximately $58.3 million over nearly three years averages to about $19.4 million annually. Benchmarking this against similar IT support contracts for federal agencies of the SEC's size and scope is crucial. Without direct comparisons, it's difficult to definitively assess value for money. However, long-term contracts with established providers can sometimes offer cost efficiencies through economies of scale and reduced transition costs, but also risk price stagnation if not actively managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this specific delivery order is not detailed in the provided data. As a 'Delivery Order,' it was likely placed against an existing contract vehicle. The original competition for that vehicle would determine the initial level of market engagement. If the original vehicle was competed broadly, this order benefits from that initial competition. However, if the original vehicle itself had limited competition, that limitation would carry through.

Taxpayer Impact: The level of competition for the underlying contract vehicle directly impacts taxpayer value. Robust competition generally leads to better pricing and service innovation. Limited or sole-source awards, conversely, can result in higher costs and less incentive for the contractor to optimize performance.

Public Impact

Federal employees at the Securities and Exchange Commission benefit from reliable IT infrastructure and support, enabling their core mission. The contract ensures the continuity of essential IT services, including computer systems design and integration. The primary geographic impact is within the SEC's operational locations, likely concentrated in Washington D.C. and potentially other regional offices. The contract supports a workforce of IT professionals, both within the contractor organization and potentially within the SEC's IT department.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature and specific IT systems involved.
Risk of cost overruns if scope creep occurs or if pricing is not regularly benchmarked against market rates.
Dependence on a single large contractor may limit flexibility in adopting new technologies or approaches.

Positive Signals

Award to a well-established contractor like Lockheed Martin suggests a high likelihood of meeting performance requirements.
The sustained nature of the contract indicates a recognized need and successful prior performance.
Delivery orders against existing contract vehicles can streamline procurement and reduce administrative burden.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design and related services. This is a large and competitive market, with significant government spending allocated to IT modernization and support. The SEC, as a regulatory agency, relies heavily on robust IT infrastructure to manage vast amounts of data, facilitate market oversight, and ensure operational efficiency. Comparable spending benchmarks would involve looking at other agencies' IT support contracts, particularly those for system design, integration, and maintenance.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Lockheed Martin Services, LLC is a large prime contractor. This means that opportunities for small businesses would likely be through subcontracting. The extent to which Lockheed Martin engages small businesses as subcontractors is not detailed here, but it is a key factor in assessing the broader impact on the small business IT ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Securities and Exchange Commission's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The contract's duration and value suggest regular reporting and review processes would be in place. Transparency is generally facilitated through contract databases like FPDS-NG, where award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Infrastructure Support Services
Computer Systems Design Services
Information Technology Professional Services
Contract Vehicles (e.g., GWACs, IDIQs)
Large Prime Contractor IT Support

Risk Flags

Long-term contract with a single large vendor
Potential for vendor lock-in
Lack of specific performance metrics in summary data

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $58.3 million to LOCKHEED MARTIN SERVICES, LLC. INFRASTRUCTURE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $58.3 million.

What is the period of performance?

Start: 2008-08-24. End: 2011-04-27.

What was the original contract vehicle under which this delivery order was placed, and what was its competition level?

The provided data indicates this is a 'Delivery Order' (aw: DELIVERY ORDER), suggesting it was issued against a pre-existing contract vehicle. Without knowing the specific vehicle (e.g., a GSA Schedule, an IDIQ contract, or a BPA), it's impossible to definitively assess the original competition. Delivery orders are typically used to procure specific services or items under an established master contract. The competition level of the original vehicle is critical because it sets the stage for the pricing and terms available for subsequent delivery orders. If the original vehicle was competed broadly and openly, it suggests a better foundation for value. Conversely, if the original vehicle had limited competition, the pricing and terms for this delivery order might be less advantageous for the government.

How does the annual cost of this contract compare to similar IT support contracts for agencies of the SEC's size?

The contract's total value is $58,301,948.31 over a period of 976 days (approximately 2.67 years), equating to an average annual cost of roughly $21.8 million ($58.3M / 2.67 years). To assess value for money, this figure needs to be benchmarked against IT support contracts awarded to similarly sized federal agencies for comparable services (NAICS 541512 - Computer Systems Design Services). Factors such as the scope of services, specific technologies supported, security requirements, and geographic locations of service delivery would need to be considered in any direct comparison. Without access to a comprehensive database of comparable contracts and their specific performance metrics, a precise value-for-money assessment is challenging. However, this annual spend provides a starting point for further detailed analysis.

What is Lockheed Martin Services, LLC's track record with the SEC and other federal agencies for IT support services?

Lockheed Martin Services, LLC, as a subsidiary of the larger Lockheed Martin Corporation, is a major defense and technology contractor with extensive experience serving various U.S. federal agencies. Their track record typically involves large-scale IT services, systems integration, and support across complex environments. For the SEC specifically, this contract represents a significant engagement for IT support. A deeper dive into FPDS or other contract databases would reveal the full scope of their work with the SEC, including other contracts, their performance history (if available through past performance evaluations), and any notable issues or successes. Generally, large contractors like Lockheed Martin are awarded contracts based on demonstrated capabilities, past performance, and competitive bidding processes, suggesting a baseline level of reliability.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are critical components that define the expected performance standards and metrics for the IT support services being provided by Lockheed Martin. Typically, such contracts would include SLAs related to system uptime, response times for technical support, issue resolution times, cybersecurity compliance, and project delivery timelines. The SEC's contracting officers would be responsible for monitoring Lockheed Martin's adherence to these KPIs/SLAs. Performance against these metrics directly impacts the perceived value and effectiveness of the contract and informs future contracting decisions. Without these details, a thorough assessment of service quality and contractor performance is limited.

How has the SEC's spending on IT support services evolved over time, and does this contract represent a trend?

The provided data point is for a single contract awarded in 2008 and ending in 2011. To understand the SEC's spending evolution on IT support, a longitudinal analysis of their IT procurement data over several years would be necessary. This would involve examining total IT spending, the number and value of IT support contracts, the types of services procured (e.g., infrastructure, software development, cybersecurity), and the primary contractors utilized. This specific $58.3 million contract, while substantial for its time, represents only one data point. It suggests a reliance on established, large IT service providers for critical infrastructure support. Trends could be identified by comparing this contract's value and duration to subsequent or preceding contracts, looking for shifts towards cloud services, increased cybersecurity focus, or a greater emphasis on small business participation.

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

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $58,301,948

Exercised Options: $58,301,948

Current Obligation: $58,301,948

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0205

IDV Type: GWAC

Timeline