DoD's $11.8M IT contract for computer systems design services awarded to Lockheed Martin Corporation

Contract Overview

Contract Amount: $11,862,012 ($11.9M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2008-03-21

End Date: 2013-03-31

Contract Duration: 1,836 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUBJECT MATTER EXPERT TEAM

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to LOCKHEED MARTIN CORPORATION for work described as: SUBJECT MATTER EXPERT TEAM Key points: 1. Contract awarded under firm-fixed-price terms, indicating predictable costs for the government. 2. The contract was competed on a full and open basis, suggesting a competitive environment. 3. The duration of 1836 days (5 years) suggests a long-term need for these services. 4. The contractor, Lockheed Martin Corporation, is a major defense contractor with extensive experience. 5. The contract falls under the 'Computer Systems Design Services' NAICS code, a common IT service category. 6. The award was made by the Defense Information Systems Agency (DISA), a key DoD IT provider.

Value Assessment

Rating: good

Benchmarking the value of this $11.8 million contract requires more detailed cost breakdowns and comparisons to similar IT service contracts within the Department of Defense. However, given the firm-fixed-price structure, the government has a degree of cost certainty. The contractor, Lockheed Martin, is a large, established entity, which can sometimes imply higher overhead but also a track record of performance. Without specific performance metrics or detailed cost data, a definitive value assessment is challenging, but the competitive award suggests a reasonable price was negotiated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 2 bids suggests a moderate level of competition for this specific requirement. While more than two bidders would typically indicate stronger price discovery, a competitive process was still employed, which is generally favorable for obtaining fair market value.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, provides taxpayers with assurance that the government sought the best possible offer and did not restrict the field unnecessarily.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Defense Information Systems Agency, which receives essential IT support. Services delivered include computer systems design, likely encompassing planning, development, integration, and maintenance of IT systems. The geographic impact is primarily within the Department of Defense's operational areas, potentially global. Workforce implications include employment opportunities for IT professionals within Lockheed Martin and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs, despite firm-fixed-price structure.
Dependence on a single large contractor could limit flexibility in future IT solutions.
Ensuring adequate performance monitoring for a 5-year contract is crucial.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a reputable large contractor like Lockheed Martin suggests a high likelihood of successful delivery.
Full and open competition process generally leads to better value.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. This is a critical area for defense agencies, involving the architecture, development, and implementation of complex IT infrastructures. The market for such services is large and competitive, with major players like Lockheed Martin often securing significant portions of government contracts due to their scale, expertise, and existing relationships. Comparable spending benchmarks would involve analyzing other large-scale IT system design and integration contracts awarded by DoD agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor is Lockheed Martin Corporation, a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless Lockheed Martin voluntarily includes small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent DISA oversight bodies. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract databases like FPDS-NG, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Technology Services
IT Systems Integration
Computer Systems Design
Lockheed Martin Defense Contracts
DoD IT Procurement

Risk Flags

Potential for scope creep
Vendor lock-in risk
Performance monitoring challenges over long duration
Cybersecurity vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to LOCKHEED MARTIN CORPORATION. SUBJECT MATTER EXPERT TEAM

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 Information Systems Agency).

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2008-03-21. End: 2013-03-31.

What is Lockheed Martin's track record with similar IT system design contracts for the DoD?

Lockheed Martin Corporation has an extensive and long-standing track record of providing IT and systems integration services to the Department of Defense across various branches and agencies. They are a prime contractor on numerous large-scale programs, including command and control systems, network infrastructure, cybersecurity solutions, and enterprise resource planning implementations. Their experience spans decades, and they are known for handling complex, mission-critical projects. While specific performance data for individual contracts is often not publicly detailed, their continued success in winning and executing large DoD contracts suggests a generally positive performance history. However, like any large contractor, they may have faced challenges or criticisms on specific projects, which would require deeper dives into contract performance reports or IG investigations.

How does the $11.8 million value compare to similar IT system design contracts awarded by DISA?

The $11.8 million value for this 5-year contract (approximately $2.36 million per year) for computer systems design services appears to be within a reasonable range for specialized IT support within a large federal agency like DISA. However, a precise comparison is difficult without knowing the specific scope, complexity, and deliverables. DISA procures a wide array of IT services, from basic support to highly complex system development and integration. Contracts can range from a few million to hundreds of millions of dollars. For context, other IT service contracts awarded by DISA for system design, development, or integration often fall into the multi-million dollar category annually. The firm-fixed-price nature and the competitive award suggest that the negotiated price was considered fair market value at the time of award.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks associated with this contract include potential cost overruns if the scope of 'Computer Systems Design Services' expands beyond initial expectations, despite the firm-fixed-price structure. There's also a risk of vendor lock-in, where the DoD becomes heavily reliant on Lockheed Martin's specific systems and expertise, potentially limiting future flexibility or the adoption of newer technologies. Performance risk is another concern; ensuring that Lockheed Martin consistently meets or exceeds the required service levels and technical specifications over the 5-year duration is critical. Finally, cybersecurity risks are inherent in any IT contract, requiring robust security protocols and continuous monitoring to protect sensitive DoD data.

How effective has Lockheed Martin been in delivering computer systems design services to the government historically?

Lockheed Martin has historically been a highly effective provider of computer systems design and integration services to the government, particularly the DoD. Their extensive portfolio includes designing and implementing complex command, control, communications, computers, and intelligence (C4I) systems, as well as modernizing legacy IT infrastructures. They possess deep technical expertise and a proven ability to manage large, multi-year programs. While specific contract performance metrics are often proprietary or not publicly detailed, their consistent award of major contracts and their role in critical defense systems underscore their perceived effectiveness. Occasional contract disputes or performance issues can arise, as with any large contractor, but overall, they are considered a reliable partner for complex IT endeavors.

What are the historical spending patterns for computer systems design services by the Defense Information Systems Agency?

The Defense Information Systems Agency (DISA) consistently spends significant amounts on computer systems design services, reflecting the critical role of IT in modern military operations. Historical spending patterns show a continuous demand for services related to network design, system integration, software development, cybersecurity implementation, and IT infrastructure modernization. DISA often utilizes both competitive full and open solicitations and, at times, other contract vehicles to procure these services. The total annual spending can fluctuate based on specific modernization initiatives, emerging threats, and budget allocations, but it generally remains in the multi-billion dollar range across all IT service categories, with system design being a substantial component.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

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

Financial Breakdown

Contract Ceiling: $11,862,013

Exercised Options: $11,862,012

Current Obligation: $11,862,012

Parent Contract

Parent Award PIID: GS35F0400J

IDV Type: FSS

Timeline