HHS awarded $46.6M for program services support to DSNS, with Lockheed Martin Services, LLC as the contractor

Contract Overview

Contract Amount: $46,566,666 ($46.6M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2008-07-13

End Date: 2011-07-31

Contract Duration: 1,113 days

Daily Burn Rate: $41.8K/day

Competition Type: COMPETED UNDER SAP

Sector: Other

Official Description: PROGRAM SERVICES SUPPORT TO DSNS

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $46.6 million to LOCKHEED MARTIN SERVICES, LLC for work described as: PROGRAM SERVICES SUPPORT TO DSNS Key points: 1. The contract value of $46.6 million over approximately three years represents a significant investment in program support services. 2. Competition dynamics for this contract, awarded under SAP (Simplified Acquisition Procedures) and as a BPA Call, suggest a potentially streamlined but possibly less competitive process. 3. The duration of 1113 days (approx. 3 years) indicates a need for sustained support, but also raises questions about long-term cost-effectiveness. 4. The specific nature of 'PROGRAM SERVICES SUPPORT TO DSNS' requires further clarification to fully assess performance and value. 5. The contractor, Lockheed Martin Services, LLC, is a large entity with extensive government contracting experience, which can be both a positive for capability and a potential indicator of higher pricing. 6. The contract was awarded in 2008, meaning current market rates and technological capabilities may differ significantly from the period of performance.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the 'PROGRAM SERVICES SUPPORT TO DSNS'. However, the total award of $46.6 million over roughly three years averages to approximately $15.5 million annually. This figure needs to be compared against the scope and complexity of the services provided. Given the contractor's size and the nature of government contracts, the pricing is likely within a broad range of acceptable, but without specific deliverables and performance metrics, a definitive value-for-money assessment is difficult. The contract's age also complicates direct comparison to current market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures) and awarded as a BPA Call (Blanket Purchase Agreement Call). While SAP is intended for smaller purchases, its use here for a $46.6 million award suggests it was likely a competitive process within the simplified acquisition thresholds or that the agency utilized a pre-existing BPA that was competed. The specific number of bidders is not provided, but the 'COMPETED UNDER SAP' designation generally implies an effort to solicit offers from multiple sources, aiming for price competition.

Taxpayer Impact: Competing contracts, even under SAP, generally leads to better price discovery and can result in cost savings for taxpayers compared to sole-source awards. The extent of these savings depends on the number of bids received and the rigor of the evaluation process.

Public Impact

The primary beneficiaries are likely the Centers for Disease Control and Prevention (CDC) and potentially other entities within the Department of Health and Human Services (HHS) that rely on the DSNS program. The services delivered are broadly categorized as 'Other Scientific and Technical Consulting Services', indicating support for scientific or technical operations, research, or program management. The geographic impact is specified as 'GA' (Georgia), suggesting the primary performance location or the location of the contracting activity. Workforce implications could include the employment of scientific, technical, and administrative personnel by the contractor to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The age of the contract (awarded in 2008) raises concerns about whether the services and pricing remain relevant to current needs and market conditions.
The broad categorization of 'Other Scientific and Technical Consulting Services' hinders a precise understanding of the value delivered.
Reliance on SAP for a contract of this magnitude might indicate less stringent competition oversight compared to larger, full-and-open procurements.

Positive Signals

The contract was competed, suggesting an effort to obtain fair pricing and value.
The contractor, Lockheed Martin Services, LLC, is an established entity with significant experience in government contracting, implying a capacity to deliver complex services.
The award to a single contractor for a defined period suggests a clear line of accountability for service delivery.
The contract was awarded to a specific location in Georgia, potentially supporting local employment and economic activity in that region.

Sector Analysis

The contract falls under the 'Other Scientific and Technical Consulting Services' category (NAICS code 541690). This sector encompasses a wide range of advisory and assistance services related to scientific and technical activities. Government spending in this area is substantial, supporting everything from research and development to program management and operational support across various agencies. Comparable spending benchmarks would depend heavily on the specific nature of the 'PROGRAM SERVICES SUPPORT TO DSNS', but consulting services for federal programs can range from thousands to millions of dollars depending on scope, duration, and expertise required.

Small Business Impact

The data indicates that small business participation was not a specific set-aside consideration for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from small business set-aside requirements for this particular award. The prime contractor, Lockheed Martin Services, LLC, is a large business, and any subcontracting would be at their discretion, not driven by a set-aside mandate.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and the program office within the Centers for Disease Control and Prevention (CDC). Performance monitoring, delivery of services, and adherence to contract terms would be subject to regular review. Transparency is generally facilitated through contract databases like FPDS-NG, which provide basic award information. However, detailed operational oversight and specific accountability measures are internal to the agency and contractor relationship, and Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

CDC Program Support Contracts
HHS Scientific and Technical Consulting Services
DSNS Program Operations
Federal IT and Scientific Support Services
Government Consulting Services

Risk Flags

Contract Age
Ambiguous Service Description
Potential for Limited Competition (SAP)
Lack of Specific Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46.6 million to LOCKHEED MARTIN SERVICES, LLC. PROGRAM SERVICES SUPPORT TO DSNS

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 $46.6 million.

What is the period of performance?

Start: 2008-07-13. End: 2011-07-31.

What specific services were provided under 'PROGRAM SERVICES SUPPORT TO DSNS'?

The provided data categorizes the contract under 'Other Scientific and Technical Consulting Services' (NAICS 541690) but does not detail the specific tasks performed for 'PROGRAM SERVICES SUPPORT TO DSNS'. This could range widely, potentially including data analysis, research support, program management assistance, technical consulting, or administrative support related to the DSNS program. Without a detailed Statement of Work (SOW) or task orders, the precise nature of the services remains undefined. Understanding these specifics is crucial for evaluating the contract's effectiveness, value for money, and alignment with agency objectives. Further investigation into contract line item numbers (CLINs) or associated task orders would be necessary to ascertain the exact deliverables.

How does the $46.6 million award compare to similar contracts for program support at the CDC or HHS?

Comparing the $46.6 million award requires context regarding the duration and scope of services. This contract spanned approximately three years (1113 days). Annually, this averages to about $15.5 million. To benchmark effectively, one would need to identify comparable contracts within HHS or the CDC that procured similar 'scientific and technical consulting services' for program support over similar timeframes. Factors like the specific program's complexity, the level of expertise required (e.g., scientific, technical, administrative), and the number of personnel involved would influence pricing. Given the contractor is Lockheed Martin Services, LLC, a large entity, the pricing might reflect comprehensive service offerings but could also be higher than smaller, specialized firms. Without access to detailed task orders and performance metrics, a precise comparison is difficult, but the overall value appears substantial for program support.

What are the key risks associated with a contract of this nature and age?

Several risks are associated with this contract. Firstly, the age of the award (2008) raises concerns about obsolescence; the services, technologies, and potentially the pricing may no longer reflect current market conditions or agency needs. Secondly, the broad description 'PROGRAM SERVICES SUPPORT TO DSNS' introduces ambiguity, increasing the risk of scope creep, misaligned expectations, or difficulty in measuring performance and value. Thirdly, while competed under SAP, the specific competition level (number of bidders) is unknown, potentially impacting price discovery and value for taxpayers. Finally, reliance on a single large contractor, while potentially ensuring capability, can also pose risks related to vendor lock-in or less agile service delivery compared to a more diversified approach.

What was the historical spending pattern for 'PROGRAM SERVICES SUPPORT TO DSNS' prior to this award?

The provided data only details this specific contract award of $46.6 million. It does not offer information on historical spending patterns for 'PROGRAM SERVICES SUPPORT TO DSNS' either with Lockheed Martin Services, LLC or other contractors. To understand historical spending, one would need to query federal procurement databases (like FPDS-NG) for previous contracts awarded under the same or similar NAICS codes (541690) and for the same or related programs (DSNS) by the Centers for Disease Control and Prevention (CDC) or the Department of Health and Human Services (HHS). Without this historical data, it's impossible to determine if this $46.6 million award represents an increase, decrease, or consistent level of investment in these support services.

How does the contractor's track record influence the assessment of this contract?

Lockheed Martin Services, LLC is a subsidiary of Lockheed Martin Corporation, a major defense contractor and aerospace company with extensive experience in various government sectors, including health and technology services. Their track record suggests a high capacity for managing large, complex contracts and delivering sophisticated technical and programmatic support. This extensive experience can be viewed positively, indicating a lower risk of contractor failure and a higher likelihood of meeting performance requirements. However, large contractors often come with higher overhead costs, potentially impacting the overall value for money compared to smaller, more specialized firms. Their established presence implies they are well-versed in government procurement processes and compliance, which can streamline execution but also suggests they command premium pricing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $966,688,838

Exercised Options: $213,386,506

Current Obligation: $46,566,666

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSD2002007M19541B

IDV Type: BPA

Timeline