Lockheed Martin receives $20.7M for IT support services, funded via task order against a larger ITSSC contract

Contract Overview

Contract Amount: $20,713,317 ($20.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Social Security Administration

Start Date: 2014-11-18

End Date: 2015-09-28

Contract Duration: 314 days

Daily Burn Rate: $66.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CL::IGF - TASK ORDER 7 AGAINST INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60108, WITH LOCKHEED MARTIN FOR CONTRACTOR SUPPORT. THIS ACTION WILL FUND TECHNICAL AREA 2, T&M TASK ORDERS 5.02-620, 5.02-507, AND 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 $20.7 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::CL::IGF - TASK ORDER 7 AGAINST INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60108, WITH LOCKHEED MARTIN FOR CONTRACTOR SUPPORT. THIS ACTION WILL FUND TECHNICAL AREA 2, T&M TASK ORDERS 5.02-620, 5.02-507, AND 5.00-001 CONTRACT MANAGEMENT T… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Task order represents a portion of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, indicating ongoing IT support needs. 3. Funding covers technical areas and contract management, essential for program execution. 4. The contract duration is approximately 10 months, suggesting a focused scope of work. 5. Awarded to Lockheed Martin, a major defense and IT contractor with a significant federal presence. 6. The contract type is Time and Materials, which can pose cost control challenges if not managed closely.

Value Assessment

Rating: fair

The total award amount of $20.7 million for approximately 10 months of IT support services requires careful benchmarking against similar task orders under the parent ITSSC contract and other federal IT support contracts. Without specific details on the services rendered and labor categories, a precise value-for-money assessment is difficult. However, the Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not managed with strict oversight to prevent scope creep or inefficient labor utilization. The relatively short duration suggests a defined project or phase, which might limit the potential for long-term cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was issued against a parent contract (SS00-10-60108) that was awarded under full and open competition. This implies that the initial solicitation for the ITSSC contract allowed all responsible sources to submit proposals. For this specific task order, the competition details are not explicitly provided, but it is presumed to have been competed among the awardees of the parent IDIQ contract, or potentially re-competed if the parent contract allowed for it. The initial full and open competition for the parent contract suggests a robust process for selecting qualified vendors.

Taxpayer Impact: A full and open competition for the parent contract generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. This approach ensures that the government can access a wide range of capabilities at potentially better rates.

Public Impact

The Social Security Administration (SSA) benefits from continued IT support, ensuring the smooth operation of its critical systems. Federal employees and contractors receive technical support and contract management services. The geographic impact is primarily within the SSA's operational centers, likely concentrated in Maryland where the contract is managed. Workforce implications include the employment of technical personnel and contract administrators by Lockheed Martin to fulfill the task order requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for efficiency and scope.
The task order is part of a larger contract, making it difficult to assess the true cost-effectiveness of this specific increment without broader context.
Limited duration of the task order may indicate a need for follow-on work, potentially leading to continuous spending.
The specific technical areas funded are not detailed, making it hard to evaluate the necessity and impact of the services.

Positive Signals

Awarded under a contract that was initially competed full and open, suggesting a competitive foundation.
Funding is for essential IT support and contract management, crucial for agency operations.
Lockheed Martin is a large, established contractor with significant experience in federal IT services.
The task order is against an existing IDIQ contract, implying a streamlined process for acquiring needed services.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer-related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This task order represents a small component of the overall federal IT spending, which includes software development, system integration, cybersecurity, and IT support. Benchmarking this specific task order against broader IT support contracts would require detailed service descriptions and labor rates.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Lockheed Martin Corporation is a large prime contractor. There is no information provided regarding subcontracting plans or actual subcontracting performance for this specific task order. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless Lockheed Martin engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Social Security Administration's contracting officers and program managers. As a task order against a larger contract, it inherits the oversight mechanisms of the parent IDIQ. The Time and Materials nature of the award necessitates close monitoring of labor hours and costs to ensure compliance with the contract terms and prevent overspending. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Support Services Contracts (ITSSC)
Information Technology Professional Services
Contract Management Support
Technical Support Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of specific details on technical areas funded.
Limited duration may necessitate follow-on contracts.
Scope creep risk in T&M contracts.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $20.7 million to LOCKHEED MARTIN CORPORATION. IGF::CL::IGF - TASK ORDER 7 AGAINST INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60108, WITH LOCKHEED MARTIN FOR CONTRACTOR SUPPORT. THIS ACTION WILL FUND TECHNICAL AREA 2, T&M TASK ORDERS 5.02-620, 5.02-507, AND 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 $20.7 million.

What is the period of performance?

Start: 2014-11-18. End: 2015-09-28.

What specific technical areas are covered under Technical Area 2, and what is the historical performance of Lockheed Martin in these areas for the SSA?

The provided data does not specify the exact technical areas within 'Technical Area 2' funded by this task order. To assess Lockheed Martin's performance, one would need to review the Statement of Work (SOW) for this task order and compare it against the company's past performance records with the Social Security Administration (SSA) on similar IT support contracts. This would involve examining metrics such as on-time delivery, quality of service, adherence to budget, and responsiveness. Without this detailed information, a performance assessment is speculative. Historical data on Lockheed Martin's broader federal IT contracts could offer some insight, but SSA-specific performance is key.

How does the $20.7 million cost for this task order compare to similar IT support contracts awarded by the SSA or other federal agencies of comparable size?

Benchmarking the $20.7 million cost requires detailed comparison with similar IT support task orders or contracts. Key factors for comparison include the duration (approx. 10 months), the specific services rendered (e.g., help desk, network management, system administration), the labor categories and rates involved, and the overall scope of work. Given this is a Time and Materials (T&M) contract, the cost is driven by labor hours and rates. A comprehensive analysis would involve accessing contract databases (like FPDS) to find comparable T&M IT support contracts awarded by the SSA or agencies like the Department of Veterans Affairs or the Department of Health and Human Services. Without specific service details, a direct comparison is challenging, but the amount suggests a significant scope of work for the period.

What are the primary risks associated with a Time and Materials (T&M) contract for IT support services, and how are these risks mitigated in this case?

The primary risk with T&M contracts is the potential for cost overruns, as the government pays for the actual time and materials expended by the contractor, rather than a fixed price. This can lead to inefficiencies or scope creep if not managed diligently. Mitigation strategies typically include establishing labor hour ceilings, requiring detailed reporting of hours worked and tasks performed, implementing robust oversight by government personnel (Contracting Officer's Representatives - CORs), and defining clear deliverables and performance standards. For this specific task order, the relatively short duration (approx. 10 months) and the fact that it's a task order against a larger IDIQ may imply that oversight mechanisms are already in place through the parent contract's management structure.

What is the historical spending pattern for IT support services by the Social Security Administration, and how does this $20.7 million award fit within that trend?

The provided data snippet focuses on a single task order and does not offer historical spending patterns for the SSA's IT support services. To analyze this, one would need to examine the SSA's budget allocations and actual expenditures on IT services over several fiscal years. This would involve looking at data from sources like the Federal Procurement Data System (FPDS) or agency budget reports. Generally, federal agencies like the SSA have substantial and ongoing needs for IT support due to the complexity of their operations and the large volume of data they manage. A $20.7 million award for a 10-month period represents a significant investment, and its place within the SSA's overall IT spending trend would depend on the agency's total IT budget and the proportion allocated to support services versus development or infrastructure.

What is the significance of this task order being issued against an existing Information Technology Support Services Contract (ITSSC)?

Issuing this task order against an existing ITSSC signifies that the Social Security Administration (SSA) has already established a broader contract vehicle, likely through a competitive process, to procure a range of IT support services. This approach allows the agency to streamline the acquisition process for specific needs that fall under the umbrella of the parent ITSSC contract. Instead of conducting a new, full procurement for each individual requirement, the SSA can issue task orders against the pre-negotiated terms and conditions of the ITSSC. This can lead to faster delivery of services and potentially better pricing due to the volume commitments inherent in IDIQ contracts. The ITSSC itself was likely awarded based on Lockheed Martin's demonstrated capabilities and competitive pricing for IT support.

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, 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: $20,713,317

Exercised Options: $20,713,317

Current Obligation: $20,713,317

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SS001060108

IDV Type: IDC

Timeline