GIG-a-Bite: Lockheed Takes $4.6 Billion Contract from SAIC
In June 2012, Lockheed Martin’s Information Systems & Global Solutions Division in Manassas, VA won a competition, transferring the keystone GSM-O IT services contract away from SAIC, a 15-year incumbent. GSM-O pays for the worldwide support services necessary to carry out day-to-day operations of the US military’s Global Information Grid networks and related services, and to update them with new technologies. The contract could be worth up to $4.6 billion over 7 years, making it a major win for Lockheed Martin, and a big loss for SAIC.
So, what is the USA’s Global Information Grid? And how will this contract work?
Got a GIG?
The Global Information Grid is a vast undertaking. Technically, it supports connectivity for all of DoD’s warfighting, combat support, and business IT. A 2009 memo from the DISA [PDF] defined it as:
“The globally interconnected, end-to-end set of information capabilities for collecting, processing, storing, disseminating, and managing information on demand to warfighters, policy makers, and support personnel. The GIG includes owned and leased communications and computing systems and services, software (including applications), data, security services, other associated services, and National Security Systems. Non-GIG IT includes stand-alone, selfcontained, or embedded IT that is not, and will not be, connected to the enterprise network.”
A Sept 22/1999 memo from the Pentagon’s CIO validated the requirement, and described GIG as the “globally interconnected, end-to-end set of information capabilities, associated processes and personnel for collecting, processing, storing, disseminating, and managing information on demand to warfighters, policy makers, and support personnel.”
The GIG initially included all owned and leased communications and computing systems and services, software (including applications), data, security services, and national security systems as defined in section 5142 of the Clinger-Cohen Act of 1996. The GIG supports all DoD, national security, and related intelligence community missions and functions, reaching out to all operating locations. Finally, the GIG provides interfaces for partners outside the Pentagon, including long-standing allies and coalition members on operations.
DISA’s 2009 memo canceled the 2002 policy guidelines in DoDD 8100.01 (“Global Information Grid (GIG) Overarching Policy”), and offered a cut-down definition of the GIG that excluded the S.5142 services, “all operating locations” references, and reference to partners outside the Pentagon.
GSM-O: Team and Terms
GSM-O is the largest of 3 DISA Global Systems Management contracts, and include program management, operations, and engineering services; as well as material, equipment, and facilities. It’s an indefinite-delivery/ indefinite-quantity umbrella contract that can order services as needed, using a mix of firm-fixed-price, fixed-price with incentive, cost-plus-incentive-fee, and cost-plus and fixed-fee pricing plans. Lockheed Martin was unwilling to discuss most aspects of the contract, as there are a number of details that must still be nailed down by program kickoff events and transition plans. One of the few innovations they would discuss is an e-commerce component that makes it much easier to see the various services and pricing plans on offer, then order them online.
Oct 3/12: The GAO dismisses the challenge to Lockheed Martin’s GSM-O award, which clears the way for the contract to begin. Lockheed Martin.
June 15/12: GSM-O awarded. The Pentagon says that the total cumulative face value of the contract is $1.91 billion over the base period of performance of 3 years, from July 9/12 through July 8/15. The contract has internal options, as well as a pair of 2-year extension options that could push service to July 9/19, and drive its value toward Lockheed Martin’s $4.6 billion figure.
Lockheed Martin’s GSM-O teammates include AT&T, ACS, Serco, BAE Systems, ManTech, and a number of other other specialized and small businesses. Most work will be performed within the continental United States, but the nature of the GIG means that services will be required around the world. The original solicitation was issued as a full and open competitive action via FBO.gov, and 2 proposals were received by the DITCO at Scott AFB, IL (HC1028-12-D-0021). GSM-O itself, however, is headquartered at Fort Meade, MD, with a number of other program office locations around the world. See also Lockheed Martin.