HHS Awards $19.8M for Custom Computer Programming Services to Lockheed Martin Services, LLC

Contract Overview

Contract Amount: $19,861,914 ($19.9M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2004-07-01

End Date: 2007-09-14

Contract Duration: 1,170 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MULTIPLE CONTRACT TYPES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.9 million to LOCKHEED MARTIN SERVICES, LLC for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Contract awarded to a single, large vendor, indicating potential for concentrated market share. 2. The service category (Custom Computer Programming) is broad and could encompass various IT needs. 3. The contract duration of 1170 days suggests a significant, long-term project. 4. The award was made under full and open competition, implying a competitive bidding process.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar custom programming contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific details of the bidding and evaluation are not provided.

Taxpayer Impact: The use of Cost Plus Fixed Fee contracts carries a risk of higher taxpayer cost if expenditures exceed initial estimates without commensurate value.

Public Impact

Impacts public health initiatives supported by the CDC through IT infrastructure and services. Ensures the CDC has necessary custom software development for data analysis and public health management. Potential for improved public health outcomes due to enhanced technological capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending.
Lack of specific service details makes comprehensive value assessment challenging.
No indication of small business participation.

Positive Signals

Awarded under full and open competition.
Long contract duration suggests sustained support for critical CDC functions.
Awarded to a known entity in government contracting.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming. Spending in this area is critical for government agencies to maintain and upgrade their digital infrastructure and develop specialized software solutions.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

The contract was awarded under full and open competition, which generally implies a degree of oversight in the solicitation and award process. However, the specific oversight mechanisms for this Cost Plus Fixed Fee contract are not detailed.

Related Government Programs

Custom Computer Programming Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Cost Plus Fixed Fee contract type can lead to higher costs.
Lack of detailed service description hinders value assessment.
No small business participation indicated.
Potential for cost overruns without strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.9 million to LOCKHEED MARTIN SERVICES, LLC. MULTIPLE CONTRACT TYPES

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2004-07-01. End: 2007-09-14.

What specific custom computer programming services were procured, and how do they align with CDC's mission priorities?

The provided data only specifies 'Custom Computer Programming Services' (NAICS 541511). To assess alignment, a detailed breakdown of the services is required. This could include software development for disease surveillance, data analytics platforms, public health reporting systems, or internal IT infrastructure. Understanding these specifics is crucial to determine if the $19.8M investment directly supports critical CDC objectives and enhances public health outcomes.

What were the key factors that led to the selection of Lockheed Martin Services, LLC, and how did the competition ensure the best value for taxpayers?

While the contract was awarded under 'Full and Open Competition,' the specific evaluation criteria and the number of bids received are not detailed. For a Cost Plus Fixed Fee contract, ensuring the 'fixed fee' component is competitive and that cost controls are robust is paramount. Understanding the trade-offs made between technical approach, past performance, and price would clarify the value proposition for taxpayers beyond the initial contract award.

What mechanisms are in place to monitor and control costs under this Cost Plus Fixed Fee contract, given its duration and potential for scope creep?

Cost Plus Fixed Fee contracts require diligent oversight to manage expenditures effectively. Key mechanisms would include regular audits of costs, clear definition and management of the 'fixed fee,' stringent change control processes, and performance metrics tied to both technical delivery and cost adherence. Without insight into these oversight activities, the risk of cost overruns and potential inefficiency for taxpayers remains a concern over the 1170-day period.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,079,846,451

Exercised Options: $1,036,126,014

Current Obligation: $19,861,914

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSD200200403526I

IDV Type: IDC

Timeline