Labor's $11.1M Data Processing Contract Awarded to Lockheed Martin Services, LLC Under SAP
Contract Overview
Contract Amount: $11,135,684 ($11.1M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Labor
Start Date: 2007-01-01
End Date: 2012-12-31
Contract Duration: 2,191 days
Daily Burn Rate: $5.1K/day
Competition Type: COMPETED UNDER SAP
Pricing Type: NOT REPORTED
Sector: IT
Official Description: DATA PROCESSING AND MAILROOM
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210
Plain-Language Summary
Department of Labor obligated $11.1 million to LOCKHEED MARTIN SERVICES, LLC for work described as: DATA PROCESSING AND MAILROOM Key points: 1. Contract value of $11.1 million over 5 years. 2. Awarded under Simplified Acquisition Procedures (SAP), suggesting a less competitive process. 3. No small business participation reported. 4. Sector is IT services, specifically data processing and hosting.
Value Assessment
Rating: fair
The contract value of $11.1 million over five years averages $2.2 million annually. Benchmarking against similar IT infrastructure contracts is difficult without more specific service details, but this appears to be a moderate expenditure for the scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, which typically involves fewer vendors and potentially less price discovery than full and open competition. The award to Lockheed Martin Services, LLC suggests they were the selected vendor through this limited process.
Taxpayer Impact: The use of SAP may limit competitive pressure, potentially leading to higher costs for taxpayers compared to a fully competed contract. However, the overall value is moderate.
Public Impact
Essential data processing and mailroom services for the Department of Labor are maintained. The contract supports a major defense contractor, Lockheed Martin, in the IT services sector. Lack of small business involvement may limit opportunities for smaller, specialized IT firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to SAP.
- No small business participation.
- Potential for higher costs due to limited competition.
Positive Signals
- Contract awarded to a well-established provider.
- Services are critical for agency operations.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on data processing, web hosting, and related services. Annual spending in this broad category can range widely, but this contract's $2.2 million annual value is within a typical range for specialized IT support services.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that opportunities for small businesses were either not sought or not realized in this procurement, which could be a missed opportunity for economic development.
Oversight & Accountability
The use of SAP and a BPA award mechanism warrants oversight to ensure fair pricing and adequate performance. Tracking contract modifications and performance metrics would be key to accountability.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Potential for non-compliance with SAP thresholds.
- Lack of transparency in competition.
- No small business utilization.
- Uncertainty regarding best value due to limited competition.
Tags
computing-infrastructure-providers-data-, department-of-labor, dc, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $11.1 million to LOCKHEED MARTIN SERVICES, LLC. DATA PROCESSING AND MAILROOM
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).
What is the total obligated amount?
The obligated amount is $11.1 million.
What is the period of performance?
Start: 2007-01-01. End: 2012-12-31.
What specific data processing and mailroom services are included, and how do they align with the agency's core mission needs?
The contract covers essential data processing and mailroom functions for the Department of Labor, likely supporting administrative and operational workflows. Understanding the criticality and scope of these services is key to assessing their value. Without detailed service descriptions, it's difficult to definitively link them to specific mission outcomes, but they are fundamental to agency operations.
What was the rationale for using Simplified Acquisition Procedures (SAP) for an $11.1 million contract, and what was the estimated cost savings compared to full and open competition?
The rationale for using SAP, which typically applies to procurements under $250,000, for an $11.1 million contract is unclear and potentially problematic. It suggests either a misunderstanding of SAP thresholds or a specific justification not evident in the data. This deviation raises concerns about potential missed savings and reduced competition, warranting further investigation into the procurement process.
How effectively did the limited competition under SAP ensure fair and reasonable pricing for these IT services over the five-year period?
The limited competition inherent in SAP procedures raises questions about the effectiveness of price discovery. While Lockheed Martin Services, LLC was awarded the contract, the lack of broader competition makes it difficult to ascertain if the pricing was truly the most competitive available. A thorough review of the pricing structure against market rates and similar contracts would be necessary to assess fairness and reasonableness.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Pricing Type: NOT REPORTED (NO)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 2339 ROUTE 70 WEST, FLOOR 3W, CHERRY HILL, NJ, 01
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $59,291,070
Exercised Options: $11,838,186
Current Obligation: $11,135,684
Parent Contract
Parent Award PIID: DOLQ079E24738
IDV Type: BPA
Timeline
Start Date: 2007-01-01
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2012-10-23
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