DHS Awards $33.5M IT Support Contract to Lockheed Martin, Raising Value Concerns
Contract Overview
Contract Amount: $33,542,690 ($33.5M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2014-07-31
End Date: 2015-11-30
Contract Duration: 487 days
Daily Burn Rate: $68.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IT-NOVA BRIDGE - IT SUPPORT FOR DHS HQ COMPONENTS IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407
Plain-Language Summary
Department of Homeland Security obligated $33.5 million to LOCKHEED MARTIN SERVICES, LLC for work described as: IT-NOVA BRIDGE - IT SUPPORT FOR DHS HQ COMPONENTS IGF::OT::IGF Key points: 1. Contract value of $33.5M for IT support services. 2. Awarded to Lockheed Martin Services, LLC. 3. Competition was full and open, but pricing assessment is needed. 4. Sector is Information Technology, specifically Computer Systems Design Services.
Value Assessment
Rating: questionable
The contract value of $33.5M for 16 months of IT support appears high. Benchmarking against similar contracts for Computer Systems Design Services is crucial to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the final price and value need further scrutiny to ensure taxpayer funds are used efficiently.
Taxpayer Impact: The $33.5M contract value represents a significant taxpayer investment. Ensuring competitive pricing and effective service delivery is paramount to maximizing the value for taxpayers.
Public Impact
Citizens expect efficient use of taxpayer funds for essential government IT services. The contract supports critical IT infrastructure for DHS headquarters. Transparency in contract awards and pricing is vital for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for a 16-month period.
- Potential for cost overruns in Time and Materials contracts.
- Need for detailed performance metrics and oversight.
Positive Signals
- Awarded through full and open competition.
- Supports a critical government agency (DHS).
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, with benchmarks varying based on service scope and duration.
Small Business Impact
The contract was awarded to Lockheed Martin Services, LLC, a large business. There is no indication of small business participation in this specific award, which could be an area for improvement in future solicitations.
Oversight & Accountability
Oversight of this Time and Materials contract is critical to prevent cost overruns. The Department of Homeland Security's Office of Procurement Operations managed the award, and performance monitoring should be robust.
Related Government Programs
- Computer Systems Design Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- High contract value.
- Time and Materials contract type.
- Lack of explicit small business participation.
- Need for detailed value assessment.
Tags
computer-systems-design-services, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $33.5 million to LOCKHEED MARTIN SERVICES, LLC. IT-NOVA BRIDGE - IT SUPPORT FOR DHS HQ COMPONENTS IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $33.5 million.
What is the period of performance?
Start: 2014-07-31. End: 2015-11-30.
What specific IT support services are included in this $33.5M contract, and how do they align with DHS's core mission requirements?
The contract covers Computer Systems Design Services for DHS HQ Components. While the exact breakdown of services isn't detailed, it likely includes system integration, network support, and IT infrastructure management. Alignment with the mission requires a review of the Statement of Work against DHS's operational needs and strategic IT goals.
Given the Time and Materials pricing structure, what measures are in place to control costs and prevent scope creep over the 16-month period?
Time and Materials contracts inherently carry risk for cost escalation. Effective oversight would involve rigorous tracking of labor hours and material costs, clear task authorizations, and regular performance reviews. Establishing firm-fixed-price CLINs for specific deliverables or implementing strong ceiling controls are essential mitigation strategies.
How does the awarded price of $33.5M compare to industry benchmarks for similar IT support contracts of comparable scope and duration?
A direct comparison requires detailed analysis of the Statement of Work. However, $33.5M for 16 months of comprehensive IT support for a large agency's headquarters suggests a potentially high per-month cost. Benchmarking against GSA schedules or other government-wide contracts for similar services is necessary to validate cost-effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,548,339
Exercised Options: $33,542,690
Current Obligation: $33,542,690
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $4,224,533
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200034W
IDV Type: GWAC
Timeline
Start Date: 2014-07-31
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2017-09-01
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