HHS Spends $14.4M on IT DSAT Support from Lockheed Martin, Lacking Competition
Contract Overview
Contract Amount: $14,418,455 ($14.4M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2009-07-01
End Date: 2012-12-31
Contract Duration: 1,279 days
Daily Burn Rate: $11.3K/day
Competition Type: NOT COMPETED UNDER SAP
Sector: IT
Official Description: COTPER IT DSAT SUPPORT
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $14.4 million to LOCKHEED MARTIN SERVICES, LLC for work described as: COTPER IT DSAT SUPPORT Key points: 1. Significant spending on IT DSAT support highlights reliance on specific vendors. 2. The contract's lack of competition raises concerns about potential overpricing. 3. Limited competition suggests a potential risk of vendor lock-in and reduced innovation. 4. The 'Other Scientific and Technical Consulting Services' category is broad, making direct sector benchmarks difficult.
Value Assessment
Rating: questionable
The contract value of $14.4 million over approximately 3.5 years is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value for 'Other Scientific and Technical Consulting Services'.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED UNDER SAP' and awarded via a BPA Call, indicating a limited competition approach. This method may not have explored the full range of potential vendors, potentially impacting price discovery and value for money.
Taxpayer Impact: The lack of robust competition could lead to taxpayers paying more than necessary for these IT DSAT support services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The CDC's reliance on a single vendor for critical IT support could pose a risk if that vendor fails to perform. Limited transparency in the procurement process hinders public understanding of how funds are utilized.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Vendor lock-in risk
Positive Signals
- Contract awarded to a known entity (Lockheed Martin)
- Services provided to a critical agency (CDC)
Sector Analysis
The $14.4 million spent on 'Other Scientific and Technical Consulting Services' for IT DSAT support falls under a broad category. Benchmarking is challenging without more specific service details, but significant IT consulting contracts can range widely in price.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting a missed opportunity for small business participation in federal IT support services.
Oversight & Accountability
The 'NOT COMPETED UNDER SAP' and BPA Call award mechanism warrants further scrutiny to ensure proper justification for limited competition and adherence to procurement regulations.
Related Government Programs
- Other Scientific and Technical Consulting Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in procurement
- Risk of vendor dependency
- Broad NAICS code obscuring service specifics
Tags
other-scientific-and-technical-consultin, department-of-health-and-human-services, ga, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $14.4 million to LOCKHEED MARTIN SERVICES, LLC. COTPER IT DSAT SUPPORT
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 $14.4 million.
What is the period of performance?
Start: 2009-07-01. End: 2012-12-31.
What specific IT DSAT support services were provided, and how do they align with the 'Other Scientific and Technical Consulting Services' NAICS code?
The NAICS code 541690, 'Other Scientific and Technical Consulting Services,' is very broad. Understanding the precise nature of the IT DSAT support is crucial for assessing its appropriateness under this code and for comparing costs to similar, more specific IT service contracts. Without this detail, the value proposition remains unclear.
What was the justification for not competing this contract under SAP, and were alternative competitive strategies considered?
The justification for not competing under the Simplified Acquisition Procedures (SAP) is critical. Agencies must demonstrate that limited competition was necessary and in the government's best interest. Exploring if a full and open competition or other competitive methods were feasible would shed light on whether the government secured the best possible value and price.
How does the performance of Lockheed Martin Services, LLC on this contract compare to industry benchmarks for similar IT DSAT support services?
Assessing performance against industry benchmarks is difficult without specific metrics from the contract. However, given the lack of competition, it's important to determine if the services met or exceeded expectations and if the pricing remained competitive relative to what could have been achieved through a more open bidding process.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT 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: $67,144,080
Exercised Options: $18,269,764
Current Obligation: $14,418,455
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD2002007M19541B
IDV Type: BPA
Timeline
Start Date: 2009-07-01
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2018-09-28
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