GSA awards $17M IT support contract to Lockheed Martin, highlighting need for specialized computer systems design services

Contract Overview

Contract Amount: $17,056,443 ($17.1M)

Contractor: Lockheed Martin Corporation

Awarding Agency: General Services Administration

Start Date: 2010-10-01

End Date: 2011-09-30

Contract Duration: 364 days

Daily Burn Rate: $46.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: PROVIDE INFORMATION SERVICES SUPPORT.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $17.1 million to LOCKHEED MARTIN CORPORATION for work described as: PROVIDE INFORMATION SERVICES SUPPORT. Key points: 1. Contract value of $17.06 million over 364 days indicates a significant investment in IT support. 2. Award to a large, established defense contractor suggests a focus on reliability and extensive capabilities. 3. The 'Computer Systems Design Services' category points to complex IT infrastructure needs. 4. Full and open competition was utilized, implying a broad search for qualified vendors. 5. The contract's duration of one year suggests a need for ongoing, but not necessarily long-term, support. 6. The use of 'Labor Hours' as a pricing mechanism can introduce cost variability. 7. This contract falls under the 'Information Services' domain, a critical area for federal operations.

Value Assessment

Rating: good

The contract value of $17.06 million for one year of IT support services appears reasonable given the provider and the scope of 'Computer Systems Design Services'. Benchmarking against similar large-scale IT support contracts awarded by GSA or other agencies would provide a more precise value assessment. However, the award to a major contractor like Lockheed Martin suggests a competitive bidding process likely yielded a fair market price for the specialized services required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the use of this procurement method suggests a robust competition aimed at securing the best value for the government.

Taxpayer Impact: Full and open competition maximizes the potential for cost savings for taxpayers by ensuring that the government receives proposals from a wide range of qualified vendors, driving down prices through market forces.

Public Impact

Federal agencies requiring specialized computer systems design and IT support services benefit from this contract. The contract supports the operational efficiency and technological infrastructure of the General Services Administration. Workforce implications include potential employment opportunities for IT professionals within Lockheed Martin and its subcontractors. The geographic impact is primarily within the United States, supporting federal IT operations nationwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to 'Labor Hours' pricing if not closely managed.
Dependence on a single large contractor may limit flexibility for future IT needs.
The specific performance metrics and quality assurance measures are not detailed, posing a potential risk to service delivery.

Positive Signals

Award to a reputable contractor like Lockheed Martin suggests a high likelihood of meeting technical requirements.
Full and open competition indicates a thorough vetting process and a commitment to best value.
The contract supports critical federal IT infrastructure, ensuring continuity of government operations.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, encompassing everything from basic hardware maintenance to complex software development and systems integration. This contract for 'Computer Systems Design Services' falls within the broader IT consulting and support market, which is highly competitive. Federal agencies rely heavily on these services to maintain and modernize their technological infrastructure. Comparable spending benchmarks would typically involve analyzing the average cost of similar IT support contracts awarded by agencies like GSA, DoD, or other civilian departments.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Lockheed Martin Corporation is a large business, suggesting that subcontracting opportunities may exist for small businesses within its supply chain. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem is uncertain. Further analysis would be needed to determine if small businesses are being leveraged effectively for this contract.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts, including performance monitoring, quality assurance surveillance plans, and contract officer representative (COR) oversight. Transparency is generally maintained through contract award databases like FPDS-NG. Inspector General (IG) jurisdiction would likely fall under the GSA's Office of Inspector General, which investigates fraud, waste, and abuse in GSA programs and contracts.

Related Government Programs

GSA IT Schedule 70
Information Technology Professional Services
Computer Systems Design and Related Services
Federal Civilian IT Spending
Defense Information Technology Support

Risk Flags

Potential for cost creep due to labor hour pricing.
Contract duration is relatively short, requiring potential re-competition or extension.
Lack of specific detail on competition level (number of bidders) limits full assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.1 million to LOCKHEED MARTIN CORPORATION. PROVIDE INFORMATION SERVICES SUPPORT.

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2010-10-01. End: 2011-09-30.

What is the track record of Lockheed Martin Corporation in delivering similar IT support services to the federal government?

Lockheed Martin Corporation is a well-established defense contractor with extensive experience in providing a wide range of IT and information services to the federal government across various agencies. They have a history of managing large, complex contracts involving systems integration, cybersecurity, software development, and IT infrastructure support. Their track record includes significant work with the Department of Defense, NASA, and other civilian agencies. While specific performance metrics for individual contracts are not always publicly detailed, their consistent presence as a prime contractor on major federal IT programs suggests a generally positive performance history. However, like any large contractor, they may have faced challenges or criticisms on specific projects, which would require a deeper dive into individual contract performance reports and oversight findings.

How does the awarded value of $17.06 million for a one-year contract compare to similar IT support services procured by GSA?

The awarded value of $17.06 million for a one-year contract for 'Computer Systems Design Services' by GSA to Lockheed Martin appears to be within a reasonable range for a large, established contractor providing specialized IT support. To provide a precise comparison, one would need to benchmark against contracts with similar scope, duration, and complexity, ideally awarded under similar procurement methods (e.g., full and open competition) and to contractors of comparable size and capability. GSA's IT Schedule 70 (now MAS IT) and other contract vehicles offer a wide array of IT services, and prices can vary significantly based on the specific services, labor categories, and required expertise. Without access to detailed pricing breakdowns and specific service level agreements for this contract, a definitive value-for-money assessment is challenging. However, the use of full and open competition suggests that the government sought competitive bids to ensure fair pricing.

What are the primary risks associated with a 'Labor Hours' pricing structure for this contract?

The primary risk associated with a 'Labor Hours' pricing structure for this contract is the potential for cost escalation if not managed diligently. This pricing model means the government pays for the actual time spent by contractor personnel, plus a fixed fee or profit. If the contractor's efficiency is low, or if the scope of work expands without adequate control, the total cost can exceed initial estimates. This can lead to budget overruns and reduced value for money. To mitigate this risk, the government must implement strong contract oversight, including detailed tracking of labor hours, performance monitoring, and robust change management processes. Clear task definitions and performance standards are crucial to ensure that labor hours translate into productive work and desired outcomes.

What is the expected effectiveness of Lockheed Martin in delivering 'Computer Systems Design Services' based on their general capabilities?

Based on Lockheed Martin's extensive experience and established reputation in the defense and aerospace sectors, their effectiveness in delivering 'Computer Systems Design Services' is generally expected to be high. The company possesses significant resources, technical expertise, and a proven ability to manage complex projects. Their involvement in designing and implementing sophisticated systems for government clients suggests a strong capability in areas such as system architecture, software engineering, integration, and testing. While specific project outcomes depend on numerous factors, including the precise requirements and the government's own project management, Lockheed Martin's general profile indicates a capacity to meet demanding technical challenges and deliver robust solutions within the scope of computer systems design.

How does this contract fit into the broader landscape of federal IT spending, particularly within GSA's role?

This contract fits into the broader landscape of federal IT spending as a component of GSA's mission to provide efficient and effective IT solutions to government agencies. GSA acts as a central procurement authority, leveraging its purchasing power to acquire IT services and products at competitive prices. Contracts like this, for 'Computer Systems Design Services,' are essential for agencies to develop, maintain, and modernize their IT infrastructure, which underpins virtually all government operations. Federal IT spending is a significant portion of the overall federal budget, and GSA plays a crucial role in managing a substantial portion of this spending through its various contract vehicles, including IT schedules and other procurement programs. This specific award reflects the ongoing need for specialized IT expertise to support agency missions.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 90

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

Financial Breakdown

Contract Ceiling: $18,350,723

Exercised Options: $17,056,443

Current Obligation: $17,056,443

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GSTFMGBPA090001

IDV Type: BPA

Timeline