NASA's $24.7M ODIN contract awarded to Lockheed Martin for IT services faces scrutiny over competition
Contract Overview
Contract Amount: $24,668,503 ($24.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-12-01
End Date: 2007-11-30
Contract Duration: 1,094 days
Daily Burn Rate: $22.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ODIN DESKTOP, SERVER, TELEPHONE AND REMOTE COMMUNICATION SERVICES (FOLLOW-ON TO CC90303B)
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529, UNITED STATES OF AMERICA
Plain-Language Summary
National Aeronautics and Space Administration obligated $24.7 million to LOCKHEED MARTIN CORPORATION for work described as: ODIN DESKTOP, SERVER, TELEPHONE AND REMOTE COMMUNICATION SERVICES (FOLLOW-ON TO CC90303B) Key points: 1. The contract, a follow-on to a previous award, focuses on IT infrastructure and communication services. 2. Lockheed Martin Corporation is the sole awardee, raising questions about competitive pricing. 3. The contract's duration and fixed-price nature suggest potential for cost savings but also risk if requirements change. 4. The IT sector is highly competitive, making the lack of visible competition for this follow-on award notable.
Value Assessment
Rating: questionable
The total award value of $24.7 million over three years for IT and communication services appears within a reasonable range for large-scale government contracts. However, without more granular data on the specific services provided and comparable contracts, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded as a competitive delivery order, but the data indicates Lockheed Martin Corporation is the sole awardee. This suggests that while the initial solicitation may have been competitive, only one offer was received or deemed acceptable, potentially limiting price discovery.
Taxpayer Impact: The impact on taxpayers is uncertain. While a competitive process was intended, the lack of multiple bids could mean taxpayers did not benefit from the lowest possible price achievable through robust competition.
Public Impact
Taxpayers may not have received the best value due to limited competition. NASA's reliance on a single vendor for critical IT and communication services could pose a risk. The follow-on nature of the contract suggests a potential for vendor lock-in. Transparency in the competitive process could be improved to ensure public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for a follow-on contract.
- Potential for vendor lock-in.
- Lack of detailed service breakdown for value assessment.
Positive Signals
- Fixed-price contract can provide cost certainty.
- Awarded to a known large defense contractor.
Sector Analysis
This contract falls within the Custom Computer Programming Services sector, specifically related to IT infrastructure and communication. Spending in this sector for government agencies is substantial, with benchmarks varying widely based on the complexity and scope of services required.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the awardee is Lockheed Martin Corporation, a large corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract was awarded as a competitive delivery order, suggesting some level of oversight. However, the limited competition warrants further review to ensure accountability and adherence to procurement regulations.
Related Government Programs
- Custom Computer Programming Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Limited competition.
- Potential for vendor lock-in.
- Lack of transparency in the competitive process.
- Sole awardee for a follow-on contract.
Tags
custom-computer-programming-services, national-aeronautics-and-space-administr, ms, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $24.7 million to LOCKHEED MARTIN CORPORATION. ODIN DESKTOP, SERVER, TELEPHONE AND REMOTE COMMUNICATION SERVICES (FOLLOW-ON TO CC90303B)
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 $24.7 million.
What is the period of performance?
Start: 2004-12-01. End: 2007-11-30.
What specific factors led to only one offer being received or accepted in this 'competitive' delivery order, and how does NASA ensure fair pricing in such scenarios?
NASA would typically ensure fair pricing through pre-negotiation market research, establishing a fair and reasonable price determination based on historical data, commercial pricing, or independent government cost estimates. The specific factors leading to limited competition would need to be detailed in the contract file, potentially including highly specialized requirements, inadequate solicitation outreach, or market conditions.
Given the follow-on nature and sole awardee, what are the primary risks to NASA's operational continuity and budget if Lockheed Martin's performance falters or prices increase?
The primary risks include potential disruptions to critical IT and communication services, leading to operational inefficiencies or failures. Budgetary risks arise from potential price escalations in future modifications or contract renewals, as competition is limited. NASA would mitigate this through strong contract management, performance monitoring, and contingency planning, but a transition to a new vendor would be costly and time-consuming.
How does the $24.7 million value compare to similar IT and communication service contracts awarded by NASA or other agencies of comparable scope and duration?
Without specific details on the services rendered (e.g., cloud hosting, network management, software development), a direct comparison is challenging. However, $24.7 million over three years for comprehensive IT and communication services for a major agency like NASA is within the expected range for large-scale contracts. Benchmarking would require analyzing contracts with similar service descriptions, contract types, and agency sizes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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
Financial Breakdown
Contract Ceiling: $24,679,993
Exercised Options: $24,679,993
Current Obligation: $24,668,503
Parent Contract
Parent Award PIID: NAS598144
IDV Type: IDC
Timeline
Start Date: 2004-12-01
Current End Date: 2007-11-30
Potential End Date: 2007-11-30 00:00:00
Last Modified: 2017-07-07
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