DoD's $12.1M Security Systems Contract Awarded to Lockheed Martin for 5 Years

Contract Overview

Contract Amount: $12,086,859 ($12.1M)

Contractor: Lockheed Martin Integrated Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2003-09-30

End Date: 2008-03-11

Contract Duration: 1,624 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: NOT REPORTED

Sector: Defense

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: Key points: 1. Contract value appears reasonable given the duration and scope of security systems services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of over 4 years indicates a long-term need for these security services. 4. Performance context is limited without specific details on the security systems deployed or their effectiveness. 5. This contract falls within the broader Defense Information Technology and Security sector. 6. No small business set-aside was utilized, suggesting larger prime contractors were expected to bid.

Value Assessment

Rating: good

The total award amount of approximately $12.1 million over roughly 4.5 years averages to about $2.7 million annually. This figure seems within a reasonable range for comprehensive security systems services for a major defense agency. Benchmarking against similar large-scale security system contracts within the Department of Defense would provide a more precise value-for-money assessment, but initial indications suggest fair pricing for the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations might have had limitations, the final award was made after a broad competitive process. The presence of 3 bidders suggests a moderate level of competition, which is generally positive for price discovery and innovation. However, the specific reasons for excluding certain sources prior to the final competition are not detailed.

Taxpayer Impact: A competitive process, even with initial exclusions, is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, driving down costs compared to sole-source awards.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency (DISA), which receives enhanced security systems. Services delivered include the provision and maintenance of security systems, crucial for protecting sensitive defense information and facilities. The geographic impact is likely concentrated around DISA facilities, primarily in Maryland as indicated by the awardee's state. Workforce implications may include specialized security technicians and system administrators, both within the contractor's organization and potentially requiring cleared personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The security systems services sector is a critical component of the broader defense industrial base, encompassing physical security, access control, surveillance, and alarm systems. This contract fits within the IT and security services sub-sector, which is experiencing consistent demand from government agencies due to evolving threat landscapes. Comparable spending benchmarks for similar security system contracts within the DoD often run into tens of millions of dollars annually, depending on the scale and complexity of the systems.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb: false'. This suggests that the scope and requirements were likely geared towards larger, established defense contractors capable of handling complex security systems on a large scale. There is no explicit information on subcontracting plans for small businesses, which could represent a missed opportunity for small business participation in this defense contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and program managers within the Defense Information Systems Agency. Accountability measures would be defined in the contract's performance work statement (PWS). Transparency is facilitated by the contract award data being publicly available, but detailed operational oversight and Inspector General jurisdiction would depend on specific clauses and ongoing performance reviews.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, disa, security-systems, it-services, full-and-open-competition, lockheed-martin, maryland, service-contract, long-term-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. See the official description on USAspending.

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 (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2003-09-30. End: 2008-03-11.

What specific types of security systems were included in this contract, and what was their primary function?

The contract falls under NAICS code 561621, 'Security Systems Services (except Locksmiths).' This typically encompasses a range of services including the design, installation, maintenance, and monitoring of electronic security systems. These could include intrusion detection systems, access control systems (card readers, biometric scanners), video surveillance (CCTV), alarm systems, and potentially integrated security management platforms. The primary function would be to protect sensitive DoD facilities, information, and personnel from unauthorized access, theft, espionage, and other security threats.

How does the $12.1 million award compare to other similar security systems contracts awarded by the DoD?

The total award of $12.1 million over approximately 4.5 years equates to an average annual value of roughly $2.7 million. This is a moderate-sized contract within the defense sector. Larger, more comprehensive security system overhauls or agency-wide implementations can easily exceed $10-20 million annually. Conversely, smaller, localized system upgrades or maintenance contracts might be in the hundreds of thousands. Without specific details on the scope (e.g., number of sites, types of systems, level of integration), a precise comparison is difficult, but it appears to be a substantial contract for ongoing security services.

What are the potential risks associated with a long-term contract (over 4 years) for security systems?

Long-term contracts for security systems carry several potential risks. Firstly, technological obsolescence is a significant concern; security technology evolves rapidly, and a 4+ year contract might lock the DoD into outdated systems if not structured with upgrade clauses. Secondly, vendor lock-in can occur, making it difficult and costly to switch providers even if performance declines or better solutions emerge. Thirdly, the contractor might become complacent, reducing innovation or responsiveness over time. Finally, changes in threat environments or agency needs might not be adequately addressed by the original contract scope without costly modifications.

What does the 'Full and Open Competition After Exclusion of Sources' clause imply about the bidding process?

This clause suggests a multi-stage procurement process. Initially, there might have been specific criteria or solicitations that excluded certain potential bidders (e.g., based on past performance, specific certifications, or geographic limitations). However, the 'Full and Open Competition' aspect means that after this initial filtering, the remaining pool of eligible offerors was allowed to compete without further restrictions. This aims to balance the need for specific capabilities with maximizing competition. The exclusion of sources implies that not all companies that might have been interested were allowed to bid in the final round, which could potentially limit the breadth of competition compared to a truly unrestricted full and open process.

What is the track record of Lockheed Martin Integrated Systems, LLC in providing similar security services to the government?

Lockheed Martin is a major defense contractor with extensive experience across various domains, including IT, cybersecurity, and systems integration. Lockheed Martin Integrated Systems, LLC, as a subsidiary or division, would leverage this corporate expertise. While specific performance details for this particular contract (561621) are not provided in the summary data, the company's overall track record suggests a high capacity for delivering complex technical solutions. Government contract databases often contain performance ratings (e.g., CPARS) which would offer a more granular view of their past performance on similar contracts, but this information is not directly available here.

Were there any specific performance metrics or KPIs tied to this contract that indicate its effectiveness?

The provided data summary does not include specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. Typically, such metrics would be detailed in the Performance Work Statement (PWS) and could include response times for system alerts, uptime percentages for monitored systems, successful completion rates for maintenance tasks, or adherence to security protocols. Without these details, assessing the contract's effectiveness relies on inferring value from the award amount, duration, and the general importance of security systems to the DoD.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesInvestigation and Security ServicesSecurity Systems Services (except Locksmiths)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 3

Pricing Type: NOT REPORTED (NO)

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: NO

Parent Contract

Parent Award PIID: DCA20002D5009

IDV Type: IDC

Timeline

Start Date: 2003-09-30

Current End Date: 2008-03-11

Potential End Date: 2008-03-11 00:00:00

Last Modified: 2009-06-07

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