NASA Awards $27.2M for ODIN IT Services to Lockheed Martin, Undisclosed Competition
Contract Overview
Contract Amount: $27,212,111 ($27.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2007-04-03
End Date: 2011-10-31
Contract Duration: 1,672 days
Daily Burn Rate: $16.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SAP PURCHASE REQUISITION: 4200196010 PROVIDE ODIN IT SERVICES FOR NASA-DFRC.
Place of Performance
Location: EDWARDS, KERN County, CALIFORNIA, 93523
Plain-Language Summary
National Aeronautics and Space Administration obligated $27.2 million to LOCKHEED MARTIN CORPORATION for work described as: SAP PURCHASE REQUISITION: 4200196010 PROVIDE ODIN IT SERVICES FOR NASA-DFRC. Key points: 1. Significant contract value of $27.2 million for IT services. 2. Awarded to a large defense contractor, Lockheed Martin. 3. Lack of disclosed competition raises questions about price discovery. 4. IT services sector, specifically computer systems design, is a common area for federal spending.
Value Assessment
Rating: fair
The contract value of $27.2 million is substantial for IT services. Without a competitive benchmark or detailed cost breakdown, assessing its value relative to similar contracts is difficult. The firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' indicating a limited competition approach. This method may not yield the best price or value for taxpayers as it bypasses a broader market solicitation. The specific reasons for limited competition are not detailed.
Taxpayer Impact: The lack of full and open competition could result in higher costs for taxpayers compared to a more competitive procurement process.
Public Impact
NASA's reliance on external IT services for critical functions like the DFRC. Potential for taxpayer funds to be used inefficiently due to non-competitive award. Impact on smaller IT service providers who may not have had an opportunity to bid.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of transparency in award justification
- Potential for inflated pricing
Positive Signals
- Firm fixed-price contract type
- Long-term engagement providing stability
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Federal spending in this area is consistently high, with agencies often outsourcing complex IT functions. Benchmarks for similar services vary widely based on scope and complexity.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of subcontracting opportunities for small businesses. This represents a missed opportunity to support the small business IT sector.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential gaps in the procurement oversight process, as full and open competition is generally preferred. Further review would be needed to understand the justification for this approach and ensure accountability.
Related Government Programs
- Computer Systems Design Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency
- No small business participation noted
Tags
computer-systems-design-services, national-aeronautics-and-space-administr, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $27.2 million to LOCKHEED MARTIN CORPORATION. SAP PURCHASE REQUISITION: 4200196010 PROVIDE ODIN IT SERVICES FOR NASA-DFRC.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $27.2 million.
What is the period of performance?
Start: 2007-04-03. End: 2011-10-31.
What was the specific justification for not competing this significant IT services contract?
The provided data indicates the contract was 'NOT COMPETED.' Without further documentation from NASA, the specific justification remains unknown. Typically, justifications for non-competitive awards include factors like urgent need, sole-source availability of the service provider, or specific technical requirements that only one vendor can meet. Understanding this rationale is crucial for assessing the procurement's validity.
How does the $27.2 million price compare to industry benchmarks for similar IT services over a 4-year period?
Directly comparing the $27.2 million price to industry benchmarks is challenging without detailed service descriptions and performance metrics. However, for a 4-year contract (2007-2011) for computer systems design services, this amount suggests a significant scope of work. The lack of competition makes it difficult to ascertain if this price represents fair market value or if it is potentially inflated compared to what a competitive bidding process might have yielded.
What is the potential risk to NASA's IT operations if Lockheed Martin's services are not effectively delivered under this contract?
The primary risk to NASA's IT operations is service disruption or underperformance, given the critical nature of IT services for agencies like DFRC. As this was a non-competed award, NASA may have limited leverage to quickly switch providers if issues arise. The long duration of the contract (over 4 years) amplifies this risk, potentially leading to prolonged operational inefficiencies or security vulnerabilities if the services are not up to par.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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 LOC B, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,257,945
Exercised Options: $29,257,945
Current Obligation: $27,212,111
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: NAS598145
IDV Type: IDC
Timeline
Start Date: 2007-04-03
Current End Date: 2011-10-31
Potential End Date: 2011-10-31 00:00:00
Last Modified: 2017-09-11
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