SSA awards $89M ITSSC Task Order to Lockheed Martin for contractor support and management

Contract Overview

Contract Amount: $89,011,460 ($89.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Social Security Administration

Start Date: 2014-09-29

End Date: 2015-09-28

Contract Duration: 364 days

Daily Burn Rate: $244.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF TASK ORDER 6 AGAINST INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60108, WITH LOCKHEED MARTIN, FOR CONTRACTOR SUPPORT. THIS WILL FUND TECHNICAL AREAS 2 AND 4 T&M TASK ORDERS AND TASK 5.00-001 CONTRACT MANAGEMENT TASK.

Place of Performance

Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21235, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $89.0 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::CT::IGF TASK ORDER 6 AGAINST INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60108, WITH LOCKHEED MARTIN, FOR CONTRACTOR SUPPORT. THIS WILL FUND TECHNICAL AREAS 2 AND 4 T&M TASK ORDERS AND TASK 5.00-001 CONTRACT MANAGEMENT TASK. Key points: 1. The award represents a significant investment in IT support services for the Social Security Administration. 2. Lockheed Martin, a major defense contractor, is the sole awardee, indicating a specific capability requirement. 3. The contract is structured as Time and Materials, which can pose cost control risks if not managed closely. 4. The sector is IT Services, specifically 'Other Computer Related Services', a broad category.

Value Assessment

Rating: fair

The $89 million award for a 364-day period suggests a substantial per-day cost. Benchmarking against similar IT support contracts is difficult without more granular data on services provided, but the duration and total value indicate a significant expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific task order details and the nature of the services may have led to a limited number of competitive bids.

Taxpayer Impact: Taxpayer funds are being used for essential IT support services. The competitive award process aims to ensure reasonable pricing, but the Time and Materials structure requires diligent oversight to prevent cost overruns.

Public Impact

Ensures continued IT infrastructure and support for critical Social Security Administration functions. Supports Lockheed Martin's operations and workforce in Maryland. Potential for follow-on work or similar contracts in the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Time and Materials contract type can lead to cost overruns without strict oversight.
  • Lack of specific performance metrics makes it hard to assess value for money.
  • Sole awardee for this specific task order may limit future competition.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical IT functions for a major government agency.
  • Established contractor with a track record.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is crucial for government operations, but benchmarks vary widely based on the specific services rendered. The $89 million for a year-long task order is substantial.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not direct participants in this specific award, though they may be subcontractors.

Oversight & Accountability

The Time and Materials (T&M) contract type necessitates robust oversight from the Social Security Administration to ensure costs remain within budget and that contractor effort is justified. Monitoring performance and deliverables is key to accountability.

Related Government Programs

  • Other Computer Related Services
  • Social Security Administration Contracting
  • Social Security Administration Programs

Risk Flags

  • Time and Materials contract type.
  • Lack of detailed service descriptions.
  • Potential for cost creep without strict oversight.
  • Limited insight into specific performance metrics.

Tags

other-computer-related-services, social-security-administration, md, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $89.0 million to LOCKHEED MARTIN CORPORATION. IGF::CT::IGF TASK ORDER 6 AGAINST INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60108, WITH LOCKHEED MARTIN, FOR CONTRACTOR SUPPORT. THIS WILL FUND TECHNICAL AREAS 2 AND 4 T&M TASK ORDERS AND TASK 5.00-001 CONTRACT MANAGEMENT TASK.

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 $89.0 million.

What is the period of performance?

Start: 2014-09-29. End: 2015-09-28.

What specific IT services are covered under Technical Areas 2 and 4, and Contract Management Task 5.00-001 to justify the $89 million expenditure?

The provided data lacks the granular detail to specify the exact services within Technical Areas 2 and 4, or the scope of Contract Management Task 5.00-001. Understanding the nature of these IT support services, such as system maintenance, software development, cybersecurity, or help desk operations, is crucial for assessing the value and appropriateness of the $89 million cost over the 364-day period.

Given the Time and Materials contract structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient resource utilization?

Time and Materials contracts inherently carry a risk of cost escalation. Effective mitigation requires stringent oversight, including detailed tracking of labor hours and rates, clear definition of allowable costs, and regular audits. The Social Security Administration must actively manage the scope of work and ensure that the contractor's efforts are directly tied to essential tasks and deliverables to prevent unnecessary spending.

How does this task order contribute to the Social Security Administration's overall IT modernization or operational effectiveness goals?

The data does not explicitly link this task order to specific IT modernization or operational effectiveness goals. However, funding technical areas and contract management suggests it supports the ongoing maintenance, operation, and potentially enhancement of existing IT systems. Its effectiveness would be measured by the reliability and performance of the IT services provided, ensuring seamless delivery of SSA's mission-critical functions to the public.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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, 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: $89,011,460

Exercised Options: $89,011,460

Current Obligation: $89,011,460

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $3,701,507

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SS001060108

IDV Type: IDC

Timeline

Start Date: 2014-09-29

Current End Date: 2015-09-28

Potential End Date: 2015-09-28 00:00:00

Last Modified: 2015-05-05

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