DoD Awards $21M ACE-IT Contract Option to Lockheed Martin for Computer Facilities Management
Contract Overview
Contract Amount: $20,980,563 ($21.0M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2011-11-01
End Date: 2013-09-30
Contract Duration: 699 days
Daily Burn Rate: $30.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: IT
Official Description: R0I0830 CTES (OPTION PERIOD 3) ACE-IT
Place of Performance
Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180
Plain-Language Summary
Department of Defense obligated $21.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: R0I0830 CTES (OPTION PERIOD 3) ACE-IT Key points: 1. Contract value of $20.98M for Option Period 3. 2. Awarded to Lockheed Martin Integrated Systems, LLC. 3. Services fall under Computer Facilities Management Services (NAICS 541513). 4. Contract was not competed, raising potential value concerns.
Value Assessment
Rating: questionable
The contract type is Cost No Fee, which offers limited incentive for cost control. Without a competitive benchmark, assessing the pricing's fairness is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have hindered price discovery and potentially led to higher costs for taxpayers.
Taxpayer Impact: The absence of competition suggests taxpayers may not have received the best possible price for these services.
Public Impact
Taxpayers may be overpaying due to lack of competition. Potential for reduced service quality if contractor faces no competitive pressure. Lack of transparency in the award process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- No small business participation noted
Positive Signals
- Established contractor
- Long-term relationship with DoD
Sector Analysis
The IT services sector is highly competitive, making non-competed awards for services like computer facilities management noteworthy. Benchmarks for similar services are typically established through competitive bidding.
Small Business Impact
The data indicates no small business participation in this contract. Further investigation is needed to determine if opportunities were missed to engage small businesses in this IT services contract.
Oversight & Accountability
The non-competed nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and effective service delivery. Transparency in the justification for sole-source awards is crucial.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- No small business participation
- Cost-plus contract type
- Limited transparency in award justification
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 $21.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. R0I0830 CTES (OPTION PERIOD 3) ACE-IT
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 $21.0 million.
What is the period of performance?
Start: 2011-11-01. End: 2013-09-30.
What was the justification for not competing this contract, and how was the price determined to be fair and reasonable?
The justification for not competing this contract is not provided in the data. Typically, agencies must document reasons like urgency, unique capabilities, or lack of sources. Without this documentation, it's impossible to assess the price determination process. A Cost No Fee contract type also complicates price reasonableness assessment as it lacks performance incentives.
What are the risks associated with a sole-source contract for IT facilities management services?
Sole-source contracts for IT facilities management pose risks including inflated pricing due to lack of competition, potential for complacency in service quality, and limited innovation. Taxpayers may not receive the best value. Furthermore, it can create barriers for new or smaller companies to enter the market and provide potentially more cost-effective solutions.
How does the Cost No Fee contract type impact the government's ability to ensure effective service delivery and value for money?
The Cost No Fee (CNF) contract type offers the contractor no incentive to control costs or improve efficiency, as their fee is fixed regardless of performance or cost outcomes. This shifts the entire risk of cost overruns to the government. While it can be useful in specific, high-risk R&D scenarios, for routine services like IT facilities management, it significantly hinders the government's ability to ensure value for money and drive performance improvements.
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: $20,980,563
Exercised Options: $20,980,563
Current Obligation: $20,980,563
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: 2011-11-01
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2020-05-29
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