Lockheed Martin Awarded $53.9M for ADP Systems Development Services by Department of Defense

Contract Overview

Contract Amount: $53,903,388 ($53.9M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2001-10-01

End Date: 2011-10-31

Contract Duration: 3,682 days

Daily Burn Rate: $14.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200202!000049!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !FA877002C0008 !A!N! !Y! !20011001!20020930!001690924!195861059!834951691!N!LOCKHEED MARTIN CORPORATION !12506LAKE UNDERHILL ROAD !ORLANDO !FL!32825!86660!057!39!WRIGHT PATTERSON AFB!GREENE !OHIO !+000005400000!N!N!000000000000!D302!ADP SYSTEMS DEVELOPMENT SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !3! ! ! ! ! !99990909!B!F!Y!A! !C!U!J!1!001!N!1G!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825, UNITED STATES OF AMERICA

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $53.9 million to LOCKHEED MARTIN CORPORATION for work described as: 200202!000049!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !FA877002C0008 !A!N! !Y! !20011001!20020930!001690924!195861059!834951691!N!LOCKHEED MARTIN CORPORATION !12506LAKE UNDERHILL ROAD !ORLANDO !FL!32825!86660!057!39!WRIGHT PATTERSON AFB!GREENE !OHIO !+000005400000!N!N!000000000000!… Key points: 1. The contract, valued at $53.9 million, is for ADP Systems Development Services. 2. Awarded to Lockheed Martin Corporation, a major defense contractor. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract value of $53.9 million for ADP Systems Development Services over approximately 10 years suggests a significant investment. Benchmarking against similar, competed IT development contracts would be necessary for a precise assessment, but the lack of competition makes direct comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning it was not competed. This method can lead to higher prices as there is no market pressure to offer the best value. The lack of competition limits transparency in price discovery.

Taxpayer Impact: The sole-source nature of this award may result in taxpayers paying a premium compared to a competitively bid contract, as market forces were not leveraged to ensure the lowest possible price.

Public Impact

Significant taxpayer funds allocated to a single contractor for IT services. Lack of competition raises questions about the efficiency and cost-effectiveness of the award. Potential for reduced innovation and service quality due to absence of market pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of clear performance metrics (implied by 'NOT DISCERNABLE OR CLASSIFIED')

Positive Signals

Award to a known, established contractor (Lockheed Martin)
Contract supports critical defense functions (ADP Systems Development)

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across the federal government, supporting a wide range of digital infrastructure and services. Benchmarks for IT services vary widely based on complexity and scope.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a large corporation like Lockheed Martin suggests a focus on established prime contractors for complex IT development services.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure that the Department of Defense received fair value and that the justification for not competing the contract was sound. Transparency in reporting and justification for sole-source awards is crucial for accountability.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits price competition.
Long contract duration increases risk of cost escalation and obsolescence.
Lack of transparency regarding specific services and performance metrics.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.9 million to LOCKHEED MARTIN CORPORATION. 200202!000049!5700!GV70 !MSG/PK BLDG 262, ROOM C022 !FA877002C0008 !A!N! !Y! !20011001!20020930!001690924!195861059!834951691!N!LOCKHEED MARTIN CORPORATION !12506LAKE UNDERHILL ROAD !ORLANDO !FL!32825!86660!057!39!WRIGHT PATTERSON AFB!GREENE !OHIO !+000005400000!N!N!000000000000!D302!ADP SYSTEMS DEVELOPMENT SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541519!E! !3! ! ! ! ! !99990909!B!F!Y!A! !C!U!J!1!001!N!1G!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! !

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $53.9 million.

What is the period of performance?

Start: 2001-10-01. End: 2011-10-31.

What was the specific justification for awarding this contract sole-source, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification, such as a critical need, lack of qualified sources, or national security concerns. Without this, it's impossible to assess if alternative competitive strategies were adequately explored or if the sole-source justification was appropriate.

How does the $53.9 million contract value compare to industry benchmarks for similar ADP Systems Development Services, considering the lack of competition?

Directly comparing this sole-source award to industry benchmarks is challenging because competition typically drives prices down. While Lockheed Martin is a reputable contractor, the absence of competitive bidding means the price may not reflect the most cost-effective market rate. A detailed analysis would involve comparing the scope of work and deliverables to similar, competitively awarded contracts, adjusting for any unique requirements.

What are the potential risks associated with a sole-source, long-term IT development contract, and how are they being mitigated?

Risks include potential cost overruns, vendor lock-in, reduced innovation, and a lack of flexibility if requirements change. Mitigation strategies could involve robust contract management, clear performance metrics, regular reviews, and defined exit clauses. The long duration (over 10 years) amplifies these risks, necessitating strong oversight to ensure continued value and alignment with evolving technological needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 12506LAKE UNDERHILL ROAD, ORLANDO, FL, 32825

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline