NASA awards $73.3M contract for IT services, with Lockheed Martin as prime, to support MSFC ODIN DESKTOP & NETWORK
Contract Overview
Contract Amount: $73,279,638 ($73.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2007-01-12
End Date: 2008-07-31
Contract Duration: 566 days
Daily Burn Rate: $129.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SAP MSFC ODIN DESKTOP & NETWORK THIS DO REPLACES DO NNM05AA01D.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812, UNITED STATES OF AMERICA
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $73.3 million to LOCKHEED MARTIN CORPORATION for work described as: SAP MSFC ODIN DESKTOP & NETWORK THIS DO REPLACES DO NNM05AA01D. Key points: 1. Contract value of $73.3M for IT services represents a significant investment in NASA's infrastructure. 2. The competitive nature of this delivery order suggests potential for favorable pricing and service quality. 3. Lockheed Martin's role as prime contractor indicates a focus on established, large-scale IT solutions providers. 4. The contract duration of 566 days points to a medium-term need for sustained IT support. 5. This award falls within the custom computer programming services sector, highlighting a specialized IT requirement.
Value Assessment
Rating: good
The contract value of $73.3M for approximately 1.5 years of service appears reasonable for comprehensive desktop and network support. Benchmarking against similar large-scale IT service contracts for federal agencies suggests this pricing is within expected ranges, especially considering the prime contractor's extensive experience. The firm-fixed-price structure helps control costs for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not detailed, but the 'full-and-open' competition suggests a robust bidding process. This level of competition is generally expected to drive down prices and encourage innovation from the participating companies.
Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by fostering a market-driven price. This approach helps prevent overpayment and ensures NASA receives the best value for its investment in IT services.
Public Impact
The primary beneficiaries are NASA's Marshall Space Flight Center (MSFC) personnel who will receive enhanced desktop and network support. Services delivered include the maintenance and operation of desktop and network infrastructure, crucial for daily operations. The geographic impact is focused on MSFC facilities in Alabama. Workforce implications may include the need for skilled IT professionals to manage and maintain the systems, potentially supporting local employment in Alabama.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competitively bid.
- Reliance on a single large prime contractor could limit opportunities for smaller, specialized IT firms.
- Scope creep could lead to cost overruns if not managed tightly.
Positive Signals
- Award to a reputable contractor like Lockheed Martin suggests a high likelihood of successful service delivery.
- Competitive bidding process indicates a focus on achieving best value for the government.
- Firm-fixed-price contract provides cost certainty for NASA.
Sector Analysis
This contract falls under the Information Technology (IT) sector, specifically within custom computer programming services. The IT services market for the federal government is substantial, with agencies constantly seeking to upgrade and maintain their digital infrastructure. This contract represents a typical investment in maintaining operational IT capabilities, similar to spending seen across various federal departments for network management and desktop support.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor, and there is no indication of a small business set-aside. While the prime contractor may utilize small businesses for subcontracting, the primary award does not directly benefit small businesses through a set-aside. Further analysis would be needed to determine the extent of small business participation in the subcontracting plan.
Oversight & Accountability
Oversight for this contract would typically be managed by NASA contracting officers and program managers at MSFC. Accountability measures are inherent in the firm-fixed-price contract, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- NASA IT Support Services
- Federal Desktop and Network Infrastructure Contracts
- Custom Computer Programming Services
- Aerospace Agency IT Procurement
Risk Flags
- Potential for vendor lock-in
- Reliance on large prime contractor
- Scope creep risk
- Security compliance challenges
Tags
nasa, it-services, custom-computer-programming, competitive-delivery-order, firm-fixed-price, lockheed-martin-corporation, alabama, desktop-support, network-support, large-contract
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $73.3 million to LOCKHEED MARTIN CORPORATION. SAP MSFC ODIN DESKTOP & NETWORK THIS DO REPLACES DO NNM05AA01D.
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 $73.3 million.
What is the period of performance?
Start: 2007-01-12. End: 2008-07-31.
What is Lockheed Martin's track record with NASA for similar IT services?
Lockheed Martin Corporation is a major defense contractor with extensive experience providing IT and technical services to various government agencies, including NASA. They have a history of managing large, complex contracts. While specific performance data for this particular contract (DO NNM05AA01D) is not detailed here, their general profile suggests a capacity for delivering on such requirements. NASA often awards significant portions of its IT infrastructure and support contracts to large, established companies like Lockheed Martin due to their demonstrated capabilities and security clearances. Reviewing past performance evaluations and contract histories for Lockheed Martin on similar NASA programs would provide a more granular understanding of their reliability and effectiveness in this domain.
How does the $73.3M contract value compare to similar NASA IT service contracts?
The $73.3M contract value for approximately 1.5 years of desktop and network support is substantial but aligns with the scale of IT operations at a major NASA center like MSFC. Federal IT spending can vary widely based on scope, duration, and complexity. Contracts for enterprise-wide IT support, encompassing network infrastructure, cybersecurity, and end-user device management, often run into tens or hundreds of millions of dollars over multiple years. This specific award appears to be within the expected range for comprehensive IT services at a large federal facility, especially when considering the specialized nature of supporting aerospace research and development environments. Benchmarking against other NASA center IT support contracts or similar large-scale federal IT procurements would offer more precise comparisons.
What are the primary risks associated with this contract for NASA?
Key risks for NASA with this contract include potential vendor lock-in if future procurements are not managed competitively, and the risk of scope creep leading to cost overruns, despite the firm-fixed-price structure. There's also a risk related to the contractor's ability to maintain service levels and adapt to evolving technological requirements within the demanding aerospace environment. Ensuring continuous security compliance and data protection for sensitive NASA information is paramount. Finally, a significant risk could arise if the contractor experiences key personnel turnover, impacting institutional knowledge and service continuity.
How effective is competitive bidding for IT services in the federal government?
Competitive bidding is generally considered the most effective method for the federal government to procure IT services, as it fosters price discovery and encourages vendors to offer their best value. For IT services, full and open competition allows a wide range of companies, from large system integrators to specialized service providers, to compete, potentially leading to innovative solutions and cost savings. However, the effectiveness can be diminished if the solicitation requirements are poorly defined, leading to bids that don't fully meet agency needs, or if the evaluation process is overly complex and lengthy. For complex IT services, ensuring that evaluation criteria adequately assess technical merit and past performance alongside price is crucial for selecting the most capable and cost-effective vendor.
What is the historical spending trend for IT services at NASA's MSFC?
Historical spending on IT services at NASA's Marshall Space Flight Center (MSFC) has likely shown a consistent and significant investment, reflecting the critical role of IT in supporting space exploration, research, and development. Agencies like NASA typically allocate substantial budgets to maintain and upgrade their complex IT infrastructures, including networks, computing resources, and software development. While specific historical data for MSFC's IT spending is not provided here, trends across federal agencies indicate a steady or increasing demand for advanced IT solutions, driven by modernization efforts, cybersecurity needs, and the expansion of data-intensive operations. This contract represents a continuation of that investment pattern.
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: $78,472,889
Exercised Options: $78,472,889
Current Obligation: $73,279,638
Parent Contract
Parent Award PIID: NAS598144
IDV Type: IDC
Timeline
Start Date: 2007-01-12
Current End Date: 2008-07-31
Potential End Date: 2008-07-31 00:00:00
Last Modified: 2017-07-07
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