DoD's $24.3M Legacy Hardware Maintenance Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $24,296,156 ($24.3M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2010-09-30
Contract Duration: 729 days
Daily Burn Rate: $33.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: IT
Official Description: R0I0040 FY08-0117 LEGACY HARDWARE MAINTENANCE
Place of Performance
Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180
Plain-Language Summary
Department of Defense obligated $24.3 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: R0I0040 FY08-0117 LEGACY HARDWARE MAINTENANCE Key points: 1. Significant spending on legacy systems indicates potential for modernization savings. 2. Sole-source award to Lockheed Martin raises questions about price competitiveness. 3. Long contract duration (2 years) for hardware maintenance warrants review. 4. Focus on IT infrastructure management within the Department of the Army.
Value Assessment
Rating: questionable
The contract value of $24.3M over two years for hardware maintenance appears high, especially for legacy systems. Benchmarking against similar IT maintenance contracts for comparable hardware would be necessary to determine fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no competition. This limits price discovery and may lead to inflated costs for the government.
Taxpayer Impact: Taxpayers may be overpaying due to the lack of competitive bidding on this essential IT maintenance service.
Public Impact
Continued reliance on older technology may hinder operational efficiency. Potential for taxpayer funds to be used inefficiently due to sole-source award. Ensuring the security of legacy systems is crucial despite their age.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Legacy system maintenance
- High contract value for maintenance
Positive Signals
- Essential IT support provided
Sector Analysis
This contract falls under IT services, specifically computer facilities management. Spending on IT maintenance, particularly for legacy systems, can be substantial across government agencies. Benchmarks for similar services vary widely based on system complexity and age.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
Oversight is needed to ensure the necessity of maintaining legacy hardware and to explore cost-saving modernization alternatives. The sole-source nature of the award requires justification and review.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpayment due to sole-source award.
- Risk of vendor lock-in with legacy systems.
- Security vulnerabilities associated with aging hardware.
- Opportunity cost of not investing in modern technology.
Tags
computer-facilities-management-services, department-of-defense, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.3 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. R0I0040 FY08-0117 LEGACY HARDWARE MAINTENANCE
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $24.3 million.
What is the period of performance?
Start: 2008-10-01. End: 2010-09-30.
What is the justification for the sole-source award of this legacy hardware maintenance contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. For legacy systems, it might stem from vendor-specific knowledge or support requirements that only Lockheed Martin can fulfill. However, the government should actively seek competitive solutions or plan for system retirement to avoid long-term sole-source dependencies.
Are there opportunities to modernize or replace the legacy hardware to reduce long-term maintenance costs?
Given the contract's focus on legacy hardware maintenance, exploring modernization or replacement is a critical step. Continuous investment in outdated systems can be more expensive than a strategic transition to newer, more efficient technologies. A thorough cost-benefit analysis should be conducted to determine the optimal path forward, potentially leading to significant long-term savings and improved performance.
How does the per-unit cost of this maintenance compare to industry benchmarks for similar legacy systems?
Without specific details on the hardware components and services covered, a precise per-unit cost benchmark is difficult. However, the overall contract value of $24.3M over two years for maintenance suggests a substantial cost. Agencies should leverage government-wide IT purchasing vehicles and conduct market research to compare pricing against industry standards for comparable legacy hardware maintenance contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 2001 JEFFERSON DAVIS HWY, STE 900, ARLINGTON, VA, 22202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,296,156
Exercised Options: $24,296,156
Current Obligation: $24,296,156
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91WMC07D0001
IDV Type: IDC
Timeline
Start Date: 2008-10-01
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2020-05-29
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