Federal Contracting activities of a Specified Company - Case Study Example

Federal Contracting activities of a Specified Company Introduction: The chosen company would be Lockheed Martin and it is proposed to discuss federal contracts awarded to this company by the American Government. It is seen that recently, Lockheed has received “US$1 billion contract to build a next-generation biometrics-based identification system.” (Gross, 2008). FBI (IAFIS) contract: The main aspects of this federal contracting would be in terms of contractual obligation to prepare blueprints, develop, test and employ a futuristic system of bio-metric identification for facial, iris and image recognition for the Federal Bureaus of Investigation (FBI) Criminal Justice Information Services Divisions Integrated Automated Fingerprint Identification System (IAFIS), which is basically a fingerprint recognition structure functioning from West Virginia. The principal idea behind this is to expand the fingerprinting capacity of FBI and increase the present database of FBI twofold. This has become necessary following increase security concerns especially in wake of worldwide terrorism and the need for significantly raising the bar on global safety, security and criminal prevention, detection and surveillance. Lockheed would work with two other companies to install this 10 year contract- Accenture and BAE Systems Information Technology. The major responsibilities of Lockheed would be in terms of providing “program management and oversight as well as development of biometric and large systems, the company said.” (Gross, 2008). Areas where federal contracting activities are carried out: Lockheed is a major choice for most Federal governments for airport surveillance and Necessary identification and passage of passenger in major airports of the US. In the case of Ports, it has been assigned to verify credentials of nearly 1.1 Million dock Workers in the US ports “over five years.” (Biometrics, 2008). Lockheed has crafted robust and enduring partnerships with federal governments through contracts and covenants. This is through mutual respect, trust and professionalism which underpin contractual obligations and its execution, especially under trying circumstances. Our contracts go a long way in building a two way partnership that has stood the test of time and challenges. Lockheed depends largely on Government Funding for sustaining research work and this is essential for making out a strong client - vendor affiliation. In the 21st Century, Lockheed has provided ideal partnerships for federal government, in terms of providing excellent State-of-the –Art technological support and support. In terms of social security, citizens of the US who are not able to work need the benefits of Social security. This infrastructure relies heavily on Lockheed software systems to provide regular and fast payments to nearly “35 million” needy Americans under social security. (Information technology, 2008). The influence of Lockheed’s technology is found in many areas of government accountability and in critical areas of public performance. In the postal department, through systems provided by Lockheed, the US postal dept. is now capable of sorting and sending 600 Million letters per day. (Information technology, 2008). Information Technology (IT) is a major strength of Lockheed and this is translated in Medicare, Medicaid and other nodal medical schemes designed to address medical issues of the poorer section of society, its software systems are largely responsible for efficient running of many major government departments like Patent and Trademarks Registry, Census department, etc., and are well documented. Pros and Cons of Federal contracting activities: It is seen that the system of awarding contracts under governmental contracts are long tedious, complicated and cumbersome. There are various norms and procedures to be met and also protocols effected. However, the audit trails of governmental transactions are present, and the referrals and archiving could substantially, be gained later. This is necessary for CAG requirements and disputes at later stages of contractual performance. In most cases, it is seen that outsourcing of government services, involves a great deal of significant authority and accountability. It is seen that most powers in governmental contracts vests with contracting officials and they have to interact with private contractors. Thus, the conduct of contracting officials has to be above question, and the aspect of conflict of interest should not arise. The conflict of interests would arise if the concerned official has monetary or other interests in awarding, or not awarding contract to one party or to show undue preference for one party, or parties, over others, stemming from some kind of interest, monetary or otherwise. However, in the case of government contractual activities, an aspect of even greater significance is that of competitive binding, which the underlining aspect of such activities really is. It envisages a free and competitive environment in which all competitors stand equal chances of being awarded the contract, depending upon a host of factors, like capability, previous track record and proven degree of competence in dealing successfully with such large kind of contracts. However it is seen that it is now always that the criteria of awarding contracts be stemmed on bidding. Often there are cases where competitive bidding is compromised for single sourced contracts where one party gets the contract. It is seen in the case of LM that just around 1/3 of their contracts are through competitive bidding. LM, the “largest government contractor in FY 2005 with $ 24.8Billion in awards”, out of a major chunk is said to be from single party contracts. (Verkuil, 2007, P. 147). Thus, it could be said that the company, Lockheed has positioned itself to be a major supplier of aircrafts, fighter jets and other military ware for aerial, naval and ground defense. It could also be said that its position as the No.1 government supplier has been proved time and again; However, the performance of Lockheed notwithstanding, the matter of government contracts needs to be overhauled, especially with regard to contracts relating to the Iraq supplies. It is seen that some suppliers have been given a carte blanche with regard to matters relating to ordinance supplies for the Iraq occupied American troops and for maintaining military installations and infra-structure in that country. Lockheed forms strategic alliances and mutually fruitful partnerships with governmental agencies and client, including US Coast Guards, transportation administrators, Customs and Border Security forces, and so on. These strategic associations ensure that Lockheed contributes in enforcing the highest degree of internal security of its people and their properties and also plays a lead role in helping to maintain international peace and security in the world. It could also be seen in terms of the fact that Government contract activities are not only designed and effected to make profitable ventures with Federal Governments, according to current needs and availability of resources, but are also designed in order to create future availability of resource mobilization. The underlying facts that through performance and product competence, combined with commitment and alacrity, a large number of governmental contracts in defense and allied industries are now been met by Lockheed even without the need for competitive bidding, since only Lockheed has necessary inputs and infra-structure to deal effectively with high risks entailed contract performance. Moreover, Lockheed‘s proven capacities and competencies automatically makes it the first choice in ordinance and defense supplies, especially in Middle East countries. Conclusions: The case that had been deliberated above is with regard to specific case of Lockheed Martin, global pioneering giants for military supplies and aircraft makers. It is to be seen that a large portion of the Federal Government contracting relates to Defense deals and upkeep of military occupations in certain countries in order to preserve and maintain peace and security in these regions. Conversely, it could also be seen that where norms and protocols are lowered, or unheeded, there are very high risks of frauds, misrepresentations and other irregularities. Over a period of time, this could snowball into major defense scandals that may prove embarrassing for the respective governments, and/or the concerned departments. Therefore, it would be in everybody’s interests that the prescribed guidelines, procedures, etc, are followed and the highest degree of transparency and reporting is maintained. Objective of Federal covenants: Finally, the main objectives of federal contracting is to enter into meaningful agreements for supply of material resources, manpower and technology for major projects, whether in the US and abroad, and it is in everyone interests that contract is carried out according to the letter and spirit o the covenant that binds the parties- the Federal government and providers are maintained. References Gross, Grant. (2008, February 13). Lockheed wins 10-year FBI biometric contract. About.com. Retrieved December 5, 2008, from http://pcworld.about.com/od/biometricsecuritydevices/Lockheed-wins-10-year-FBI-biom.htm Biometrics. (2008). Lockheed Martin. Retrieved December 5, 2008, from http://www.lockheedmartin.com/how/stories/biometrics.html Information technology. (2008). Lockheed Martin. Retrieved December 5, 2008, from http://www.lockheedmartin.com/how/stories/it.html Verkuil, Paul R. (2007). Outsourcing sovereignty: Why democracy and what we can do about it. Cambridge University Press. P.147. Retrieved December 5, 2008, from http://books.google.com/books?id=ecAYc_tuAukC&pg=RA1-PA147&dq=Federal+contracting+and+Lockheed+Martin#PRA1-PA147,M1 Read More