Lockheed Martin receives $100M+ task order for IT support services from Social Security Administration

Contract Overview

Contract Amount: $100,169,037 ($100.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Social Security Administration

Start Date: 2016-09-29

End Date: 2017-09-28

Contract Duration: 364 days

Daily Burn Rate: $275.2K/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 17 AGAINST INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT NUMBER SS00-10-60108, WITH LOCKHEED MARTIN FOR CONTRACTOR SUPPORT. THIS ACTION WILL FUND TECHNICAL AREA 2, "APPLICATION DESIGN, DEVELOPMENT, TESTING, AND MAINTENANCE" AND 4, "DATABASE ADMINISTRATION AND IMAGING AND DOCUMENT MANAGEMENT" TIME&MATERIALS SUBTASKS FROM 09/29/16-09/28/17.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $100.2 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::CL::IGF - TASK ORDER 17 AGAINST INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT NUMBER SS00-10-60108, WITH LOCKHEED MARTIN FOR CONTRACTOR SUPPORT. THIS ACTION WILL FUND TECHNICAL AREA 2, "APPLICATION DESIGN, DEVELOPMENT, TESTING, AND MAINTENANCE" AND 4, "DATABASE ADMINISTRA… Key points: 1. Contract focuses on application development, database administration, and document management. 2. Significant funding allocated for a one-year period, indicating critical operational needs. 3. Full and open competition suggests a robust bidding process. 4. The contract's value places it among substantial IT service procurements. 5. Performance period aligns with typical annual IT support cycles. 6. The specific technical areas funded are core to IT infrastructure maintenance and enhancement.

Value Assessment

Rating: good

The contract value of over $100 million for a one-year period for IT support services is substantial. Benchmarking against similar large-scale IT service contracts, this amount appears to be within a reasonable range for comprehensive application development, testing, maintenance, and database administration. The 'Time and Materials' pricing structure, while common, warrants scrutiny for cost efficiency over the contract's duration. Without specific per-unit labor rates or detailed task breakdowns, a precise value-for-money assessment is challenging, but the scale suggests a significant investment in critical IT functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more competitive environment, potentially driving down prices and improving the quality of services offered. The number of bidders is not specified, but the 'full and open' designation suggests multiple entities vied for this significant task order, fostering price discovery and ensuring the government sought the best value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective and high-quality IT support services, preventing potential overpayment and ensuring efficient use of public funds.

Public Impact

Beneficiaries include Social Security Administration employees who rely on stable and advanced IT systems for program delivery. Services delivered encompass critical IT functions such as application design, development, testing, maintenance, and database administration. Geographic impact is primarily national, supporting the SSA's nationwide operations. Workforce implications include the potential for employment opportunities within Lockheed Martin and its subcontractors for IT professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials contracts if not closely monitored.
Dependency on a single large contractor for critical IT functions could pose risks.
Scope creep could increase costs beyond initial projections without strict management.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing and quality.
Focus on core IT functions essential for SSA's mission.
Experienced contractor (Lockheed Martin) with a track record in government IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT support services. The market for such services is vast and highly competitive, with numerous large and small businesses offering specialized capabilities. The Social Security Administration, like many large federal agencies, relies heavily on IT to manage its complex operations and deliver services to millions of Americans. Spending benchmarks for IT support services can vary widely based on scope, duration, and complexity, but contracts in the hundreds of millions of dollars are not uncommon for agencies of the SSA's size and mission.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Lockheed Martin is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Lockheed Martin's subcontracting plan and the specific requirements of the task order. Without further details on subcontracting goals, the direct impact on the small business ecosystem is unclear, though large prime contracts often involve significant subcontracting.

Oversight & Accountability

Oversight for this task order would typically be managed by the contracting officer and program managers within the Social Security Administration. The contract's performance would be monitored against established milestones and deliverables. Transparency is generally maintained through contract databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance or audit.

Related Government Programs

IT Professional Services
Application Development
Database Management
IT Infrastructure Support
Cloud Computing Services (potential future integration)
Cybersecurity Services (related)

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Scope management is critical to prevent budget creep.
Reliance on a single contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $100.2 million to LOCKHEED MARTIN CORPORATION. IGF::CL::IGF - TASK ORDER 17 AGAINST INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT NUMBER SS00-10-60108, WITH LOCKHEED MARTIN FOR CONTRACTOR SUPPORT. THIS ACTION WILL FUND TECHNICAL AREA 2, "APPLICATION DESIGN, DEVELOPMENT, TESTING, AND MAINTENANCE" AND 4, "DATABASE ADMINISTRATION AND IMAGING AND DOCUMENT MANAGEMENT" TIME&MATERIALS SUBTASKS FROM 09/29/16-09/28/17.

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 $100.2 million.

What is the period of performance?

Start: 2016-09-29. End: 2017-09-28.

What is Lockheed Martin's track record with the Social Security Administration and other federal agencies for similar IT support contracts?

Lockheed Martin Corporation is a major defense contractor and technology company with extensive experience serving federal agencies, including the Social Security Administration (SSA). They have a long history of providing a wide range of IT services, from system development and integration to cybersecurity and operational support. For the SSA specifically, Lockheed Martin has been awarded numerous contracts over the years, often for large-scale IT modernization and support efforts. Their track record generally indicates a capacity to handle complex, high-value contracts. However, like any large contractor, they may have faced past performance reviews or disputes on specific contracts. A detailed review of their past performance ratings and any documented issues with the SSA or other agencies would provide a more granular understanding of their reliability and effectiveness in delivering IT services.

How does the $100M+ value of this task order compare to typical annual IT spending by the Social Security Administration?

The Social Security Administration (SSA) is a large federal agency with significant IT needs, managing complex systems that serve millions of beneficiaries. Annual IT spending for agencies of the SSA's size can range from hundreds of millions to over a billion dollars, depending on modernization initiatives, operational demands, and contract vehicles. A single task order valued at over $100 million for one year, while substantial, represents a portion of the SSA's overall IT budget. It suggests a critical need for the specific services outlined (application development, database administration) during that period. To fully contextualize this value, one would need to compare it against the SSA's total IT budget for FY2016/2017 and analyze how this task order fits within their broader IT strategy and spending priorities.

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

Time and Materials (T&M) contracts, like the one awarded to Lockheed Martin, carry inherent risks, particularly at a value exceeding $100 million. The primary risk is cost control. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. This structure can lead to cost overruns if work is inefficient, scope creep occurs without proper management, or if labor rates are excessively high. For the government, it requires robust oversight to ensure that the hours billed are reasonable and necessary, and that the work performed is productive. Without stringent monitoring and clear task definitions, T&M contracts can become more expensive than anticipated, potentially offering less value for taxpayer money compared to well-defined fixed-price arrangements for predictable tasks.

What does the 'Other Computer Related Services' NAICS code (541519) imply about the scope of work for this contract?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specifically covered by more specialized codes. For this contract, it implies that the work performed by Lockheed Martin extends beyond standard software development or IT support. It could include services such as IT consulting, systems integration, data processing, disaster recovery planning, IT project management, and potentially specialized technical support or analysis. Given the task order specifies 'Application Design, Development, Testing, and Maintenance' and 'Database Administration,' the 541519 code serves as a catch-all for these comprehensive IT functions, indicating a broad scope of technical expertise required from the contractor.

How does the duration of 364 days (one year) impact the assessment of this contract's value and performance?

A duration of 364 days, essentially one year, is a common timeframe for task orders under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts or for specific project-based needs. This duration allows for a defined period to accomplish specific IT objectives, such as developing new applications, maintaining existing systems, or managing databases. From a value perspective, it provides a clear period over which to assess performance and cost-effectiveness. It also allows the agency to re-evaluate needs and potentially re-compete or adjust the scope at the end of the period. For performance assessment, a one-year term is sufficient to observe trends in productivity, quality, and adherence to timelines, providing a solid basis for future contracting decisions.

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: $100,169,037

Exercised Options: $100,169,037

Current Obligation: $100,169,037

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $717,774

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SS001060108

IDV Type: IDC

Timeline