DoD's $21.8M Computer Facilities Management Services Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $21,781,081 ($21.8M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2010-10-01
End Date: 2011-10-31
Contract Duration: 395 days
Daily Burn Rate: $55.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: IT
Official Description: R0I0830 S11-0004 BLA A-09 SERVERS
Place of Performance
Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180
Plain-Language Summary
Department of Defense obligated $21.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: R0I0830 S11-0004 BLA A-09 SERVERS Key points: 1. Contract awarded for Computer Facilities Management Services to Lockheed Martin. 2. Significant value of $21.8 million over 13 months. 3. No competition was utilized for this award. 4. The sector is Information Technology, specifically computer facilities management.
Value Assessment
Rating: questionable
The contract's pricing is difficult to assess without a benchmark. Given the 'COST NO FEE' type, the government bears the cost, and the contractor receives a fee. This structure can sometimes lead to less aggressive cost management by the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, there is no price discovery mechanism to ensure the government receives the best possible price. This raises concerns about potential overpayment.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on this contractor for critical IT infrastructure management. The contract duration of over a year without competition warrants scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type (implied by 'COST NO FEE')
- No small business participation noted
Positive Signals
- Awarded to a known entity (Lockheed Martin)
- Specific service category identified
Sector Analysis
This contract falls within the IT sector, specifically Computer Facilities Management Services. Benchmarks for such services can vary widely based on scope, location, and complexity, but the lack of competition here prevents a direct comparison.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation in federal IT services.
Oversight & Accountability
The sole-source nature of this award suggests a potential lack of robust oversight in the procurement process. Further review is needed to understand why competition was not pursued.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Potential for overpricing due to lack of competition
- No small business participation
- Lack of transparency regarding justification for sole-sourcing
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 $21.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. R0I0830 S11-0004 BLA A-09 SERVERS
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 $21.8 million.
What is the period of performance?
Start: 2010-10-01. End: 2011-10-31.
What was the justification for not competing this significant IT services contract?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a documented justification, such as the existence of only one responsible source or a national emergency. Without this justification, it's impossible to assess the validity of bypassing the competitive process.
What is the estimated fee for Lockheed Martin under this 'COST NO FEE' contract?
The 'COST NO FEE' contract type means the contractor is reimbursed for allowable costs but receives no additional fee. The government bears the full cost of the services. Therefore, the contractor's profit is embedded within their cost structure, making it difficult to isolate a specific fee without detailed cost breakdowns.
How does the $21.8M award compare to industry benchmarks for similar IT facilities management services?
Direct comparison to industry benchmarks is challenging without knowing the specific scope of services, geographic location, and service level agreements. However, the absence of competition means there's no market-driven price point to evaluate against. A thorough review would involve comparing the delivered services and costs to similar government or commercial contracts that underwent competitive bidding.
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: $21,781,081
Exercised Options: $21,781,081
Current Obligation: $21,781,081
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: 2010-10-01
Current End Date: 2011-10-31
Potential End Date: 2011-10-31 00:00:00
Last Modified: 2020-05-29
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