DOJ awards $53.6M for Custom Computer Programming Services to Lockheed Martin
Contract Overview
Contract Amount: $53,636,715 ($53.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Justice
Start Date: 2014-09-26
End Date: 2014-12-31
Contract Duration: 96 days
Daily Burn Rate: $558.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ::IGF
Place of Performance
Location: CLARKSBURG, HARRISON County, WEST VIRGINIA, 26306
Plain-Language Summary
Department of Justice obligated $53.6 million to LOCKHEED MARTIN CORPORATION for work described as: ::IGF Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is significant, indicating a substantial need for services. 4. The duration of the contract is 96 months, suggesting a long-term requirement.
Value Assessment
Rating: fair
The award amount of $53.6M over 96 months suggests an average annual value of approximately $6.7M. Without specific deliverables or comparable contract data, it's difficult to definitively assess pricing. However, for custom programming services, this range can be typical for complex, long-term projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a Firm Fixed Price contract type aims to transfer risk to the contractor and provides cost certainty for the government.
Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently. The Firm Fixed Price structure helps control costs over the contract's long duration.
Public Impact
Ensures continued operation and development of critical FBI systems. Supports technological advancement within a key law enforcement agency. Potential for job creation and economic activity related to the contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (96 months) may lead to scope creep or evolving needs.
- Firm Fixed Price can be disadvantageous if requirements change significantly.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type.
- Significant investment in critical IT infrastructure.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is crucial for government agencies to maintain and upgrade their technological capabilities. Benchmarks for similar contracts can vary widely based on complexity and duration.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss=false, sb=false). This suggests that the scope or nature of the required services may have favored larger, more established contractors with specialized capabilities.
Oversight & Accountability
The contract was awarded by the Department of Justice, Federal Bureau of Investigation. Oversight would typically involve program managers and contracting officers ensuring adherence to terms, performance standards, and budget.
Related Government Programs
- Custom Computer Programming Services
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Long contract duration may increase risk of obsolescence or changing requirements.
- Lack of small business participation.
- Firm Fixed Price for a long duration can be inflexible to evolving needs.
- Potential for vendor lock-in with a single provider for an extended period.
Tags
custom-computer-programming-services, department-of-justice, wv, po, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $53.6 million to LOCKHEED MARTIN CORPORATION. ::IGF
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $53.6 million.
What is the period of performance?
Start: 2014-09-26. End: 2014-12-31.
What specific custom computer programming services are being procured, and how do they align with the FBI's strategic IT goals?
The contract specifies 'Custom Computer Programming Services' (NAICS 541511). While the data doesn't detail the exact services, it's reasonable to infer they support the FBI's mission-critical functions, potentially involving software development, system integration, or maintenance of existing platforms. Alignment with strategic goals would require reviewing the Statement of Work (SOW) and FBI's IT modernization plans.
Given the 96-month duration and Firm Fixed Price, what mechanisms are in place to manage potential cost overruns or scope changes?
A Firm Fixed Price (FFP) contract places the cost risk on the contractor. However, for long-duration FFP contracts, mechanisms like contract modifications for equitable adjustments due to unforeseen circumstances or defined change order procedures are crucial. The FBI would need robust contract management to monitor performance and manage any necessary changes to prevent uncontrolled cost escalation.
How does the $53.6M award compare to industry benchmarks for similar custom programming services over an 8-year period?
Benchmarking this $53.6M award (averaging $6.7M annually) against industry standards for custom programming over 96 months is challenging without detailed SOW specifics. Factors like complexity, security requirements, and required expertise significantly influence pricing. However, for large-scale, long-term government IT projects, this value is within a plausible range, though a detailed cost-benefit analysis would be needed for definitive assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,636,715
Exercised Options: $53,636,715
Current Obligation: $53,636,715
Timeline
Start Date: 2014-09-26
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2015-02-03
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