HHS Awards $17.8M for National Data Warehouse to Lockheed Martin Services, LLC
Contract Overview
Contract Amount: $17,798,273 ($17.8M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-29
End Date: 2009-05-31
Contract Duration: 975 days
Daily Burn Rate: $18.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: NATIONAL DATA WAREHOUSE
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $17.8 million to LOCKHEED MARTIN SERVICES, LLC for work described as: NATIONAL DATA WAREHOUSE Key points: 1. The contract value is $17.8 million. 2. Lockheed Martin Services, LLC is the sole awardee. 3. The contract falls under Computer Systems Design Services. 4. The period of performance is from 2006 to 2009.
Value Assessment
Rating: fair
The contract was awarded as a Cost Plus Award Fee (CPAF) type, which can lead to higher costs if not managed carefully. The award value of $17.8 million for a 3-year period for data warehousing services appears within a reasonable range, but specific performance metrics and outcomes are needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is listed as 'COMPETITIVE DELIVERY ORDER', but the data does not specify if this was a competitive bid or a sole-source award under a larger contract. If it was competitive, it suggests a fair price discovery process. If sole-source, the pricing may not reflect market competition.
Taxpayer Impact: The taxpayer impact is tied to the efficiency and effectiveness of the National Data Warehouse. If the services provided are essential and delivered at a reasonable cost, the impact is positive. Conversely, cost overruns or underperformance would negatively impact taxpayers.
Public Impact
Ensures continued operation and development of the National Data Warehouse, crucial for healthcare data analysis. Supports Centers for Medicare and Medicaid Services (CMS) in managing healthcare programs. Potential for improved healthcare policy and patient outcomes through data utilization. The contract duration of nearly 3 years suggests a significant, ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on competitive nature of the award.
- CPAF contract type can incentivize cost increases.
- No specific performance metrics provided to assess value.
Positive Signals
- Awarded to a known large defense and aerospace contractor.
- Supports a critical government function (National Data Warehouse).
Sector Analysis
This contract falls under IT services, specifically computer systems design. Spending in this sector is substantial across government agencies for data management, analysis, and infrastructure. Benchmarks for similar data warehousing contracts would typically consider system complexity, data volume, and security requirements.
Small Business Impact
The awardee is Lockheed Martin Services, LLC, a large corporation. There is no indication of small business participation in this specific award based on the provided data. Efforts to ensure small business subcontracting opportunities would be a separate consideration.
Oversight & Accountability
Oversight would typically be managed by CMS program officials responsible for the National Data Warehouse. The CPAF structure implies performance monitoring to determine award fees. The duration and value suggest a need for robust oversight to ensure taxpayer funds are used effectively.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Lack of transparency regarding the competitive process.
- No clear performance metrics provided for evaluation.
- Long contract duration without specified review points.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $17.8 million to LOCKHEED MARTIN SERVICES, LLC. NATIONAL DATA WAREHOUSE
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 Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $17.8 million.
What is the period of performance?
Start: 2006-09-29. End: 2009-05-31.
What specific performance metrics were used to determine the 'Award Fee' component of this contract, and how did Lockheed Martin Services, LLC perform against them?
The provided data does not include specific performance metrics or the resulting award fee determination. A Cost Plus Award Fee (CPAF) contract relies heavily on defined metrics and objective evaluations to justify the 'award' portion of the fee. Without this information, it's impossible to assess if the contractor met expectations or if the government effectively incentivized desired outcomes.
How did the competitive process for this delivery order ensure fair and reasonable pricing, given the Cost Plus Award Fee structure?
The data indicates 'COMPETITIVE DELIVERY ORDER', suggesting some level of competition. However, the specifics of this competition are not detailed. For a CPAF contract, ensuring fair pricing involves comparing proposed costs against independent government estimates and market research. The 'Plus' aspect of CPAF means the final price could exceed initial estimates based on performance, necessitating careful monitoring of cost drivers.
What is the long-term strategic value of the National Data Warehouse, and how does this contract contribute to its ongoing effectiveness?
The National Data Warehouse is vital for CMS's ability to analyze healthcare trends, manage program integrity, and inform policy decisions. This contract, covering a nearly three-year period, ensures the continuity of operations and potential enhancements to the warehouse. Its effectiveness hinges on the contractor's ability to maintain system uptime, data accuracy, and security, directly impacting the government's analytical capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 2339 ROUTE 70 WEST, FLOOR 3W, CHERRY HILL, NJ, 08002
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,798,273
Exercised Options: $17,798,273
Current Obligation: $17,798,273
Parent Contract
Parent Award PIID: HHSM500200600024I
IDV Type: IDC
Timeline
Start Date: 2006-09-29
Current End Date: 2009-05-31
Potential End Date: 2009-05-31 00:00:00
Last Modified: 2017-05-02
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