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

State: California Government Spending

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 ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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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