Lockheed Martin awarded $65.6M task order for IT support services to the Social Security Administration

Contract Overview

Contract Amount: $65,645,099 ($65.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Social Security Administration

Start Date: 2013-09-29

End Date: 2014-09-28

Contract Duration: 364 days

Daily Burn Rate: $180.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TASK ORDER AGAINST THE INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60108, LM, FOR CONTRACTOR SUPPORT IN TECHNICAL AREAS 2 (APPLICATION DESIGN, DEVELOPMENT, TESTING, AND MAINTENANCE) AND 4 (DATABASE ADMINISTRATION AND IMAGING AND DOCUMENT MANAGEMENT). IGF::OT::IGF OTHER FUNCTIONS

Place of Performance

Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $65.6 million to LOCKHEED MARTIN CORPORATION for work described as: TASK ORDER AGAINST THE INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60108, LM, FOR CONTRACTOR SUPPORT IN TECHNICAL AREAS 2 (APPLICATION DESIGN, DEVELOPMENT, TESTING, AND MAINTENANCE) AND 4 (DATABASE ADMINISTRATION AND IMAGING AND DOCUMENT MANA… Key points: 1. This task order represents a significant investment in technical IT support, focusing on application development and database administration. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the task order is one year, indicating a need for ongoing, specific IT support. 4. The contract type is Time and Materials, which can pose cost control challenges if not closely managed. 5. The primary agency is the Social Security Administration, highlighting the critical nature of IT infrastructure for its operations. 6. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services.

Value Assessment

Rating: fair

The awarded amount of $65.6 million for a one-year task order for IT support services appears substantial. Without specific benchmarks for similar technical support services within the SSA or comparable agencies, it is difficult to definitively assess value for money. The Time and Materials (T&M) contract type, while offering flexibility, can lead to higher costs if not managed with strict oversight to prevent scope creep and ensure efficient labor utilization. Benchmarking against industry standards for application development and database administration would be necessary for a more precise evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the nature of full and open competition generally fosters price discovery and encourages multiple vendors to compete, potentially leading to more favorable pricing for the government. This approach is designed to ensure the government receives the best value by leveraging the widest possible pool of qualified contractors.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of competitive pricing and allows for the selection of the most capable and cost-effective solution, thereby maximizing the return on public funds invested in IT support.

Public Impact

The Social Security Administration (SSA) benefits directly through enhanced IT support for critical applications and database management. Citizens who rely on SSA services will experience improved system performance and reliability. The contract supports technical roles in application design, development, testing, maintenance, and database administration. The primary geographic impact is within Maryland, where the SSA is headquartered and likely where much of the work will be performed or managed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not meticulously monitored for labor hours and material costs.
Lack of specific details on the number of bidders in the full and open competition makes it hard to gauge the true level of competition and its impact on pricing.
The duration of one year for a task order of this magnitude might indicate a short-term need or a gap-filling measure, potentially leading to future contract instability.
The broad NAICS code (541519) could encompass a wide range of services, making it challenging to pinpoint the exact value proposition without further breakdown.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The contractor, Lockheed Martin Corporation, is a large and established entity with significant experience in government contracting.
The task order addresses critical IT functions (application development, database administration) essential for the SSA's mission.
The contract specifies technical areas, implying a focused scope of work within IT support.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design and related services (NAICS 541519). The IT services market for federal agencies is substantial, with significant spending allocated to software development, maintenance, and database management. Comparable spending benchmarks would typically involve analyzing other large IT support contracts awarded by agencies like the SSA, Department of Defense, or other civilian agencies for similar services. The market is characterized by a mix of large prime contractors and specialized subcontractors.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular task order. As a large contract awarded to a major corporation, the primary focus is likely on the prime contractor's capabilities. However, large prime contractors often utilize small businesses for subcontracting opportunities to meet broader federal goals. The extent to which Lockheed Martin will engage small businesses as subcontractors for this task order is not detailed here but is a common practice in the federal contracting ecosystem.

Oversight & Accountability

Oversight for this task order would primarily reside with the Social Security Administration's contracting officers and program managers. As a task order under a larger contract (ITSSC), the underlying contract likely has established oversight mechanisms. The Time and Materials (T&M) nature of the contract necessitates close monitoring of labor hours, rates, and any direct costs incurred to ensure compliance and prevent overspending. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the SSA's Office of Inspector General (OIG) if specific concerns arise.

Related Government Programs

Information Technology Support Services Contract (ITSSC)
Social Security Administration IT Modernization Efforts
Federal Civilian Agency IT Services Procurement
Application Development and Maintenance Contracts
Database Administration Services Contracts

Risk Flags

Cost Overrun Risk (Time and Materials contract)
Scope Creep Potential
Performance Monitoring Challenges
Dependency on Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $65.6 million to LOCKHEED MARTIN CORPORATION. TASK ORDER AGAINST THE INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60108, LM, FOR CONTRACTOR SUPPORT IN TECHNICAL AREAS 2 (APPLICATION DESIGN, DEVELOPMENT, TESTING, AND MAINTENANCE) AND 4 (DATABASE ADMINISTRATION AND IMAGING AND DOCUMENT MANAGEMENT). IGF::OT::IGF OTHER FUNCTIONS

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $65.6 million.

What is the period of performance?

Start: 2013-09-29. End: 2014-09-28.

What is Lockheed Martin Corporation's track record with the Social Security Administration, particularly concerning IT support services?

Lockheed Martin Corporation has a history of contracting with the Social Security Administration (SSA) for various services, including IT support. Analyzing past performance data, such as contract awards, task orders, and any associated performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), would provide insight into their reliability, quality of service, and adherence to schedules and budgets. Given their status as a major defense and aerospace contractor, they possess extensive experience in managing large-scale government IT projects. However, specific details on their performance on prior SSA ITSSC task orders would be crucial for a comprehensive assessment.

How does the $65.6 million cost for this one-year task order compare to similar IT support contracts awarded by the SSA or other federal agencies?

Benchmarking this $65.6 million task order requires comparing it against similar IT support contracts, specifically those involving application design, development, testing, maintenance, and database administration, awarded by the SSA or comparable federal agencies over a similar timeframe. Factors such as contract duration (one year), contract type (Time and Materials), and the specific scope of work are critical for a fair comparison. Without access to a comprehensive database of federal contract spending with detailed service breakdowns and pricing, a precise comparison is challenging. However, for a one-year duration, $65.6 million suggests a significant level of effort, potentially involving a large team of specialized IT professionals.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude for IT services?

The primary risk with a Time and Materials (T&M) contract of this magnitude is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours expended and the cost of materials used. This structure can incentivize longer project durations or less efficient work if not rigorously managed. For the SSA, risks include exceeding the $65.6 million ceiling without a commensurate increase in delivered value, scope creep where the work expands beyond the original intent without proper modification, and difficulties in accurately forecasting final costs. Effective oversight, detailed tracking of hours and costs, and clear definition of work requirements are essential to mitigate these risks.

How effective is the 'full and open competition' process in ensuring the SSA receives optimal value for its IT support investments?

The 'full and open competition' process is generally considered the most effective method for the SSA, or any federal agency, to ensure optimal value for IT support investments. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This process increases the likelihood that the SSA will receive proposals that are not only technically sound but also competitively priced. The success of this process hinges on the clarity of the solicitation requirements and the rigor of the evaluation criteria used to select the winning proposal, ensuring the best overall value is achieved.

What are the potential implications of this contract on the SSA's long-term IT strategy and infrastructure?

This task order, focused on application development and database administration, suggests the SSA is maintaining or enhancing its existing IT infrastructure and application portfolio. The one-year duration might indicate a need for specific, time-bound support rather than a long-term strategic overhaul. Its implications on the SSA's long-term strategy depend on whether these services are supporting legacy systems, enabling modernization efforts, or addressing immediate operational needs. If this task order is part of a larger, ongoing IT modernization initiative, it could be crucial for delivering key components. Conversely, if it primarily supports aging systems, it might represent a continued investment in maintaining the status quo rather than a strategic shift.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 700 N FREDERICK AVE LOC B, GAITHERSBURG, MD, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,645,099

Exercised Options: $65,645,099

Current Obligation: $65,645,099

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,322,373

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SS001060108

IDV Type: IDC

Timeline