HHS awarded $19M for DSNS Support Services to Lockheed Martin, a competed contract

Contract Overview

Contract Amount: $19,056,127 ($19.1M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2011-08-31

End Date: 2013-06-30

Contract Duration: 669 days

Daily Burn Rate: $28.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DSNS SUPPORT SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.1 million to LOCKHEED MARTIN SERVICES, LLC for work described as: DSNS SUPPORT SERVICES Key points: 1. The contract value of $19.06 million for DSNS Support Services represents a significant investment in scientific and technical consulting. 2. Competition dynamics for this contract are noted as 'COMPETED UNDER SAP', suggesting a streamlined procurement process. 3. The firm-fixed-price contract type indicates that the contractor assumes the risk for cost overruns. 4. Performance is situated in Georgia, with the contract duration spanning approximately 669 days. 5. The 'Other Scientific and Technical Consulting Services' NAICS code places this contract within a broad professional services sector.

Value Assessment

Rating: fair

Benchmarking the value of this $19.06 million contract is challenging without specific performance metrics or comparable contract data. The firm-fixed-price structure suggests a defined scope and cost expectation. However, the absence of detailed cost breakdowns or comparisons to similar services within the federal government makes a definitive value assessment difficult. Further analysis would require understanding the specific deliverables and their market cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of bidders and a less formal solicitation process compared to full and open competition. While competed, the specific number of bidders or the extent of outreach is not detailed, suggesting a potentially less robust competitive landscape. This approach is often used for procurements below certain dollar thresholds.

Taxpayer Impact: Competing under SAP may lead to less aggressive pricing than a full and open competition, potentially resulting in higher costs for taxpayers. However, it can also offer faster award times.

Public Impact

The Centers for Disease Control and Prevention (CDC) is the primary beneficiary, utilizing these services for its Data Systems Network Support (DSNS). The services delivered likely involve technical consulting and support for critical data systems essential for public health operations. The geographic impact is centered in Georgia, where the contractor's performance is based. Workforce implications include the potential for skilled technical and consulting roles to be filled by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could result in suboptimal pricing.
Lack of detailed performance metrics makes value assessment difficult.
Contract duration and value require careful monitoring for potential scope creep or cost overruns.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Contract was competed, indicating some level of market engagement.
Awarded to a large, established contractor (Lockheed Martin) which may imply reliability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically 'Other Scientific and Technical Consulting Services'. This sector is characterized by a wide range of specialized expertise. Federal spending in this area supports various government functions, from research and development to operational support. Comparable spending benchmarks would depend on the specific nature of the DSNS support, but consulting services for large government agencies can range from millions to hundreds of millions annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, Lockheed Martin, is a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). As a competed contract, standard procurement regulations and oversight apply. Transparency is facilitated through contract databases like FPDS. Specific accountability measures would be detailed in the contract's statement of work and performance clauses. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

CDC IT Support Services
Federal Scientific and Technical Consulting Contracts
Department of Health and Human Services IT Procurement
Lockheed Martin Government Contracts

Risk Flags

Limited competition due to SAP procurement.
Potential for cost overruns if scope is not well-defined.
Lack of detailed performance metrics for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.1 million to LOCKHEED MARTIN SERVICES, LLC. DSNS SUPPORT SERVICES

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 $19.1 million.

What is the period of performance?

Start: 2011-08-31. End: 2013-06-30.

What is the track record of Lockheed Martin Services, LLC in providing similar DSNS support?

Lockheed Martin Services, LLC is a subsidiary of Lockheed Martin Corporation, a major defense contractor with extensive experience across various government sectors, including IT and technical services. While specific details on their DSNS support track record for HHS are not provided in this data snippet, the corporation has a history of managing large-scale, complex IT and support contracts for federal agencies. Their performance on similar contracts would typically be assessed through past performance evaluations during the bidding process. Agencies often review contractor performance on prior contracts, including timeliness, quality of deliverables, and adherence to budget, when making award decisions. Further investigation into Lockheed Martin's broader federal contract performance database could provide more granular insights into their capabilities relevant to DSNS support.

How does the $19.06 million contract value compare to similar DSNS support contracts within HHS or other agencies?

Direct comparison of the $19.06 million contract value for DSNS Support Services is difficult without access to a comprehensive database of similar contracts with detailed scopes of work and performance periods. However, federal spending on IT and technical consulting services for agencies like HHS can range significantly. Contracts supporting critical data systems often represent substantial investments. Given the duration of approximately 669 days (about 1.8 years), the annual value is roughly $10.6 million. This figure needs to be benchmarked against the complexity and criticality of the DSNS, as well as the specific services provided. Without more granular data on comparable contracts, it's challenging to definitively state if this represents high, low, or average spending for such services.

What are the primary risks associated with this contract, given its 'COMPETED UNDER SAP' status?

The primary risk associated with a contract 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) is potentially reduced competition. SAP is designed for procurements below certain thresholds and often involves fewer bidders and less extensive market research than full and open competition. This can lead to a risk of suboptimal pricing, as the government may not achieve the most competitive rates available in the market. Additionally, there's a risk that innovative solutions or a wider range of capabilities might be overlooked if the outreach is limited. While SAP can expedite the acquisition process, it necessitates careful monitoring to ensure that the selected vendor provides adequate value and that the government's needs are fully met within the established price.

How effective is the firm-fixed-price (FFP) contract type in managing costs for DSNS support?

The Firm-Fixed-Price (FFP) contract type is generally considered effective in managing costs for services with well-defined scopes, such as DSNS support, because it shifts the primary cost risk from the government to the contractor. Under an FFP contract, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to manage their resources efficiently and control expenses. For the government, it provides cost certainty, making budgeting more predictable. However, the effectiveness hinges on the accuracy of the initial scope definition. If the scope is poorly defined or unforeseen issues arise, the contractor may seek change orders, potentially increasing the overall cost, or they might cut corners to maintain profitability, impacting quality.

What is the historical spending pattern for DSNS Support Services at the CDC or HHS?

The provided data snippet only details a single contract award of $19.06 million for DSNS Support Services from August 2011 to June 2013. To understand historical spending patterns, a broader analysis of past contracts for similar services at the CDC and HHS would be necessary. This would involve querying federal procurement databases for all contracts related to 'Data Systems Network Support' or equivalent services over several fiscal years. Analyzing trends in contract values, durations, awardees, and competition levels would reveal whether spending has increased, decreased, or remained stable. It would also highlight any shifts in procurement strategies or reliance on specific contractors over time.

What are the implications of the contract being awarded to Lockheed Martin Services, LLC for the DSNS program?

Awarding the DSNS Support Services contract to Lockheed Martin Services, LLC, implies leveraging the capabilities of a large, established defense and technology contractor. This can bring significant advantages, including access to extensive technical expertise, robust project management methodologies, and potentially a strong track record in handling complex government IT and support functions. For the DSNS program, this could translate to reliable service delivery and the implementation of advanced solutions. However, it also means that a substantial portion of federal funds is directed towards a large corporation, which might have implications for smaller, specialized firms seeking similar opportunities. The firm-fixed-price nature of the contract further means Lockheed Martin bears the financial risk, incentivizing efficient execution.

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

Solicitation ID: 2007Q09180

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $23,673,529

Exercised Options: $23,673,529

Current Obligation: $19,056,127

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSD2002007M19541B

IDV Type: BPA

Timeline