EPA's SEMS Support contract awarded to Lockheed Martin for over $23M, spanning 7 years

Contract Overview

Contract Amount: $23,380,369 ($23.4M)

Contractor: Lockheed Martin Services, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2011-12-16

End Date: 2018-11-30

Contract Duration: 2,541 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: C-2991 OSRTI SUPERFUND ENTERPRISE MANAGEMENT SYSTEM (SEMS) SUPPORT

Place of Performance

Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08002

State: New Jersey Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $23.4 million to LOCKHEED MARTIN SERVICES, INC. for work described as: C-2991 OSRTI SUPERFUND ENTERPRISE MANAGEMENT SYSTEM (SEMS) SUPPORT Key points: 1. The contract's cost-plus award fee structure allows for performance-based incentives, potentially driving value. 2. Competition was full and open, suggesting a robust market for these services. 3. The duration of the contract (over 7 years) indicates a long-term need for these IT services. 4. The contract falls under Computer Systems Design Services, a common category for federal IT support. 5. Performance context is crucial given the award fee structure; actual value depends on achieved metrics. 6. The absence of small business set-aside suggests larger prime contractors are expected to perform the work.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics tied to the award fee. The cost-plus award fee (CPAF) structure can lead to cost overruns if not managed tightly, but also incentivizes performance. Comparing it to similar IT support contracts for environmental agencies would require detailed scope analysis. The total award value of over $23 million over nearly seven years suggests a significant investment in IT infrastructure and support for the EPA's Superfund program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This process typically fosters a competitive environment, allowing the government to solicit proposals from a wide range of qualified contractors. The presence of multiple bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, maximizing the value of federal dollars spent.

Public Impact

The Environmental Protection Agency (EPA) benefits directly through enhanced IT support for its Superfund Enterprise Management System (SEMS). This contract ensures the continued operation and maintenance of critical IT systems supporting environmental cleanup efforts. The services delivered are essential for managing data and processes related to hazardous waste sites across the nation. The primary geographic impact is national, supporting the EPA's mission to protect human health and the environment. Workforce implications include the employment of IT professionals by Lockheed Martin and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts require diligent oversight to ensure costs remain reasonable and performance targets are met.
The long contract duration could lead to vendor lock-in if not managed with regular performance reviews and market checks.
Reliance on a single large contractor for critical IT systems may pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
The award fee structure incentivizes strong performance, which can lead to better service delivery.
The contract supports a critical national mission (Superfund), indicating a stable and important requirement.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The EPA's need for specialized support for its SEMS highlights the importance of IT infrastructure in managing complex environmental programs. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded by federal agencies for similar mission-critical systems, considering factors like system complexity and user base.

Small Business Impact

The contract was not set aside for small businesses, and the 'ss' (small business set-aside) field is false. This indicates that the primary contract was awarded to a large business, Lockheed Martin. While there is no direct set-aside, large prime contractors are often required to meet small business subcontracting goals. The impact on the small business ecosystem would depend on whether Lockheed Martin actively seeks out and utilizes small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. Accountability measures are built into the Cost Plus Award Fee (CPAF) structure, which links a portion of the contractor's fee to performance metrics. Transparency is generally facilitated through contract award databases, though specific performance details might be less public. The EPA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

EPA Superfund Program IT Support
Federal IT Services Contracts
Computer Systems Design Services
Environmental Data Management Systems

Risk Flags

Long contract duration may lead to technological obsolescence.
Cost-plus award fee requires diligent oversight to manage costs and ensure performance.
Potential for vendor lock-in due to extended reliance on a single provider.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $23.4 million to LOCKHEED MARTIN SERVICES, INC.. C-2991 OSRTI SUPERFUND ENTERPRISE MANAGEMENT SYSTEM (SEMS) SUPPORT

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2011-12-16. End: 2018-11-30.

What specific IT systems and services are covered under the SEMS Support contract?

The SEMS Support contract, awarded to Lockheed Martin Services, Inc., by the Environmental Protection Agency (EPA), is designed to provide comprehensive IT support for the Superfund Enterprise Management System (SEMS). This likely includes a range of services such as system development, integration, maintenance, operations, help desk support, data management, cybersecurity, and potentially cloud services. SEMS is a critical system for the EPA's Superfund program, which manages the cleanup of hazardous waste sites across the United States. Therefore, the IT services are crucial for ensuring the reliability, security, and functionality of the systems that track site assessments, remedial actions, enforcement activities, and financial data related to these cleanup efforts. The specific scope would be detailed in the contract's Statement of Work (SOW).

How does the Cost Plus Award Fee (CPAF) structure influence contractor performance and cost control?

The Cost Plus Award Fee (CPAF) contract structure is designed to incentivize superior performance by allowing the contractor to earn a base fee plus an award fee. The base fee covers the contractor's costs and a standard profit margin. The award fee is determined by the government based on pre-defined performance criteria and metrics outlined in the contract. If the contractor meets or exceeds these targets, they receive a higher award fee, effectively increasing their total profit. Conversely, subpar performance can result in a reduced or zero award fee. This structure encourages the contractor to go beyond minimum requirements to achieve exceptional results. However, it also necessitates robust government oversight to ensure that performance evaluations are objective and that costs remain reasonable, as the contractor is reimbursed for allowable costs regardless of the award fee outcome.

What is the historical spending trend for SEMS support at the EPA?

Analyzing historical spending trends for SEMS support at the EPA requires access to detailed contract data beyond this single award. This contract, with an award value of approximately $23.4 million and a duration from December 2011 to November 2018, represents a significant investment over its 7-year period. To understand trends, one would need to examine prior contracts for SEMS support, including their values, durations, and contractors, as well as any subsequent contracts awarded after its completion. This would reveal whether spending has increased, decreased, or remained relatively stable, and if there have been shifts in contracting strategies (e.g., from sole-source to competitive, or changes in contract types). Such an analysis would provide context on the EPA's long-term commitment and evolving needs for SEMS IT services.

What are the potential risks associated with a long-duration IT support contract like this one?

Long-duration IT support contracts, such as this 7-year SEMS Support contract, carry several potential risks. One primary risk is technological obsolescence; IT systems and solutions can evolve rapidly, and a contract spanning several years might not adequately accommodate newer, more efficient technologies unless it includes flexible provisions for modernization. Another risk is vendor lock-in, where the government becomes heavily reliant on a single contractor, making it difficult and costly to switch providers even if performance declines or better options emerge. Cost escalation is also a concern, as unforeseen issues or changes in scope can lead to increased costs over time, especially with cost-reimbursable contract types. Furthermore, contractor performance can degrade over extended periods if oversight is not consistently rigorous, or if key personnel depart. Finally, changes in agency priorities or budget constraints could render the contract's scope less relevant or affordable.

How does the geographic location of the contract performance (New Jersey) relate to the EPA's Superfund mission?

The contract performance location being in New Jersey (ST='NJ', SN='NEW JERSEY') is significant in relation to the EPA's Superfund mission. New Jersey has a high number of Superfund sites due to its industrial history, meaning the EPA's activities in the state are substantial. Having IT support personnel or facilities located within or near the region where significant Superfund operations occur can offer several advantages. It can facilitate closer collaboration between IT support staff and the program managers or field personnel who rely on SEMS. It may also allow for quicker response times for on-site technical assistance if needed, although much of the support is likely remote. Proximity can foster a deeper understanding of the specific challenges and operational nuances faced by EPA staff working on New Jersey's numerous hazardous waste sites, potentially leading to more tailored and effective IT solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 6404 IVY LANE, SUITE 800, GREENBELT, MD, 20770

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,094,274

Exercised Options: $24,094,274

Current Obligation: $23,380,369

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010054

IDV Type: IDC

Timeline