The Transportation Security Administration (TSA) last week awarded Lockheed Martin [LMT] a potential $1.2 billion contract to provide a range of human resource (HR) support services for a period of up to eight and one-half years under the Integrated Hiring Options and Personnel Program (IHOPP).
Moreover, the contract has the flexibility to allow the headquarter management at the Department of Homeland Security (DHS) to obtain HR services from Lockheed Martin, raising the maximum potential value of the award to $3 billion. DHS headquarters has an ongoing contract for HR services with General Dynamics [GD] but can use Lockheed Martin’s help if it needs if it has a surge in demand.
Under IHOPP, TSA is consolidating work currently being done by three contractors: Accenture [ACN]; CPS Human Resource Services; and TKC/Avue. Lockheed Martin, which began its work under the new contract on July 3, will work under a six-month transition phase to be followed by a one-year base period. The contract includes options for upwards of seven additional years.
Lockheed Martin will provide information technology infrastructure as well as labor services to help TSA on a variety of human resource functions, including recruitment and hiring, personnel and payroll processing, employee benefits, workforce management and help desk services.
Lockheed Martin is no stranger to providing HR support to federal agencies, although the TSA win is the largest in this area. The company also manages the Defense Department’s Defense Civilian Personnel Data System and the Navy Standard Integrated Personnel System. In addition, Lockheed Martin provides HR support to the Air Force and NASA.
The IHOPP win expands Lockheed Martin’s presence within TSA. The company has been providing specialized training to the agency’s security officers since 2003 to the tune of about $70 million a year and last year won the Transportation Worker Identification Credential contract.