DoD's $18M IT Service Support Contract with Lockheed Martin Raises Questions on Value and Competition
Contract Overview
Contract Amount: $17,953,369 ($18.0M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2005-12-01
End Date: 2011-09-30
Contract Duration: 2,129 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SERVICE SUPPORT
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $18.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: INFORMATION TECHNOLOGY SERVICE SUPPORT Key points: 1. The contract awarded to Lockheed Martin for IT service support represents a significant investment by the Department of Defense. 2. Competition details are limited, making it difficult to assess if the pricing reflects market value. 3. The duration and cost-plus-fixed-fee structure warrant scrutiny for potential cost overruns and efficiency. 4. This spending falls within the broad IT services sector, which is crucial for modern defense operations.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, while common for complex IT projects, can lead to higher costs if not tightly managed. Without detailed cost breakdowns or benchmarks, it's difficult to definitively assess if $17.95 million over nearly six years is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as 'full and open competition,' the limited information available makes it hard to gauge the true extent of bidding and how effectively price discovery was achieved. The award to a single entity suggests potential factors influencing the outcome.
Taxpayer Impact: The substantial cost of this contract means taxpayers are funding IT services that require rigorous oversight to ensure efficiency and prevent waste.
Public Impact
Taxpayers are funding a long-term IT service contract for a major defense agency. The effectiveness of IT support directly impacts military operational capabilities. The contract's duration and cost structure could set precedents for future IT procurements.
Waste & Efficiency Indicators
Waste Risk Score: 84 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Long contract duration
- Limited transparency on competition effectiveness
Positive Signals
- Awarded under full and open competition
- Essential IT services for defense
Sector Analysis
This contract falls under Information Technology services, a critical and rapidly evolving sector for government operations. Benchmarks for similar long-term, comprehensive IT support contracts can vary widely based on scope and specific services required.
Small Business Impact
The data provided does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Defense Contract Management Agency's oversight is crucial for a contract of this magnitude and duration. Regular audits and performance reviews are essential to ensure cost control and adherence to contract terms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Long contract duration may not adapt to rapid tech changes
- Lack of detailed performance metrics and outcomes
- Limited transparency on the effectiveness of the competition process
Tags
wired-telecommunications-carriers, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. INFORMATION TECHNOLOGY SERVICE SUPPORT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $18.0 million.
What is the period of performance?
Start: 2005-12-01. End: 2011-09-30.
What specific IT services were included in this $17.95 million contract, and how do they align with current technological needs?
The provided data lacks specifics on the exact IT services rendered. Understanding the scope, such as network management, cybersecurity, software development, or hardware support, is crucial for assessing its value and relevance. Without this detail, it's difficult to determine if the investment aligns with evolving defense technology requirements or if it supports legacy systems.
How was the 'full and open competition' process managed to ensure the best possible price and quality for these IT services?
While the contract states 'full and open competition,' the limited data prevents a thorough assessment of its effectiveness. Key questions include the number of bids received, the evaluation criteria used, and whether the winning bid truly represented the best value. Without this transparency, it's hard to confirm if taxpayer money was used optimally or if potential savings were missed.
What mechanisms were in place to control costs and ensure efficiency under the Cost Plus Fixed Fee (CPFF) structure over the contract's 6-year duration?
The CPFF structure inherently carries a risk of cost overruns if not rigorously managed. For this contract, it's vital to know if there were specific cost ceilings, performance incentives, or detailed reporting requirements to ensure Lockheed Martin operated efficiently. The long duration amplifies the need for strong oversight to prevent escalating costs without proportional benefit to the DoD.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1701 NORTH ST, ENDICOTT, NY, 13760
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,718,190
Exercised Options: $17,953,369
Current Obligation: $17,953,369
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0008
IDV Type: IDC
Timeline
Start Date: 2005-12-01
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2018-05-31
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