Lockheed Martin awarded $33.6M for logistics management and repair services by U.S. Special Operations Command

Contract Overview

Contract Amount: $33,660,838 ($33.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2018-03-29

End Date: 2019-03-31

Contract Duration: 367 days

Daily Burn Rate: $91.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF LOGISTICS MANAGEMENT AND REPAIR

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $33.7 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF LOGISTICS MANAGEMENT AND REPAIR Key points: 1. Contract value of $33.6 million for a 367-day period suggests a significant operational support requirement. 2. Awarded to a single, large defense contractor, indicating potential consolidation of specialized support services. 3. The 'All Other Support Services' NAICS code is broad, making direct performance benchmarking challenging. 4. Delivery Order under a larger contract structure implies this is part of an ongoing, potentially larger, support framework. 5. The Cost Plus Incentive Fee (CPIF) contract type suggests performance incentives tied to cost targets. 6. Geographic location in Kentucky (KY) may indicate a specific operational hub or facility being supported.

Value Assessment

Rating: fair

The contract value of $33.6 million for a 367-day duration translates to approximately $91,719 per day. Without specific deliverables or performance metrics, it's difficult to benchmark this against similar contracts. The CPIF contract type introduces variability based on performance, making a fixed value assessment challenging. However, the award to a major defense contractor like Lockheed Martin for logistics support is not unusual in the defense sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders were considered. However, the data only indicates this was a Delivery Order, which could be part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The specific number of bidders for this particular delivery order is not provided, but the 'full and open' designation implies a competitive process was initiated.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

U.S. Special Operations Command (SOCOM) personnel and operations are the primary beneficiaries, receiving essential logistics and repair support. Services likely include maintenance, repair, supply chain management, and potentially deployment support for special operations equipment. The geographic impact is centered in Kentucky (KY), suggesting support for a specific base, facility, or operational area within the state. This contract supports a specialized segment of the defense workforce, likely involving technical and logistical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad NAICS code (561990) makes it difficult to ascertain the precise nature and scope of services, potentially obscuring inefficiencies.
CPIF contracts can lead to cost overruns if not carefully managed and monitored, despite incentive structures.
Reliance on a single large contractor for specialized logistics may limit flexibility and introduce vendor lock-in risks.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
The use of CPIF suggests an effort to align contractor performance with cost objectives.
The contract duration of over a year implies a sustained need for these critical support services.

Sector Analysis

This contract falls within the broader 'Support Services' sector, specifically catering to the unique and often complex logistical needs of defense organizations like SOCOM. The market for defense logistics is substantial, characterized by large, established contractors capable of handling specialized requirements. Benchmarking is challenging due to the niche nature of special operations support, but general defense logistics spending runs into billions annually.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem for this specific award is likely minimal unless Lockheed Martin engages small businesses as subcontractors.

Oversight & Accountability

Oversight would typically be managed by the U.S. Special Operations Command contracting and program management offices. Accountability measures are embedded within the CPIF contract structure, linking contractor performance and cost control to financial incentives. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Special Operations Forces (SOF) Equipment Maintenance
Military Base Operations Support
Aerospace and Defense Logistics Services

Risk Flags

Broad NAICS code may obscure specific service details.
CPIF contract type carries potential for cost variability.
Reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.7 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF LOGISTICS MANAGEMENT AND REPAIR

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $33.7 million.

What is the period of performance?

Start: 2018-03-29. End: 2019-03-31.

What specific logistics and repair services are covered under this contract?

The provided data classifies this contract under NAICS code 561990, 'All Other Support Services,' and identifies the service as 'LOGISTICS MANAGEMENT AND REPAIR.' This broad classification suggests a wide range of potential activities. These could include inventory management, supply chain coordination, maintenance and repair of specialized equipment (potentially including vehicles, communication systems, or operational gear), transportation coordination, and general operational support for U.S. Special Operations Command units. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here. Given the client (SOCOM), the services likely involve high-specification equipment and demanding operational tempo.

How does the $33.6 million value compare to similar logistics support contracts for SOCOM or other defense entities?

Direct comparison of the $33.6 million value is difficult without knowing the specific deliverables and duration of comparable contracts. However, for a 367-day period, this represents a daily expenditure of approximately $91,719. SOCOM and other major defense commands frequently award multi-million dollar contracts for logistics, maintenance, and operational support. Contracts for similar services can range from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and complexity of the supported operations or platforms. The value here appears substantial but not extraordinary for specialized defense support.

What are the key performance indicators and incentives under the Cost Plus Incentive Fee (CPIF) structure for this contract?

A Cost Plus Incentive Fee (CPIF) contract structure means the contractor (Lockheed Martin) is reimbursed for allowable costs plus a predetermined fee, which is adjusted based on whether the final cost is above or below a target cost. Key performance indicators (KPIs) would be defined in the contract's SOW and would likely relate to factors such as equipment readiness rates, repair turnaround times, inventory accuracy, and delivery schedules. The incentive component would reward Lockheed Martin for achieving or exceeding targets in cost savings, efficiency, or specific performance metrics, while penalties might apply for failing to meet them. The exact targets and incentive/penalty structure are proprietary details of the contract.

What is Lockheed Martin's track record in providing logistics and repair services to the Department of Defense, particularly SOCOM?

Lockheed Martin is a major defense contractor with extensive experience in providing a wide array of services to the Department of Defense, including complex logistics, maintenance, and systems integration. They have a long-standing relationship with various branches of the U.S. military, including special operations forces. Their portfolio includes support for aircraft, naval systems, ground vehicles, and command and control systems. While specific performance details for this particular contract are not public, Lockheed Martin's overall track record involves managing large-scale, technologically advanced support programs, often under challenging conditions and for critical national security missions.

What is the historical spending trend for 'All Other Support Services' (NAICS 561990) by the Department of Defense?

Historical spending data for NAICS 561990 by the Department of Defense (DoD) shows a consistent and significant allocation of funds over the years. This broad category encompasses a diverse range of support services beyond specialized areas like IT or construction. DoD spending in this sector typically runs into the billions of dollars annually, reflecting the vast operational and administrative needs of the military. Trends can fluctuate based on geopolitical events, force structure changes, and specific program requirements. While this specific $33.6 million award is a single data point, it fits within a larger pattern of substantial investment in general support services critical for military readiness and operations.

Are there any identified risks associated with this contract, such as cost overruns or performance deficiencies?

Potential risks associated with this contract include the inherent uncertainties of a CPIF contract, where costs can exceed initial estimates if targets are missed, although incentives aim to mitigate this. The broad nature of the NAICS code could also pose a risk if the scope of work is not clearly defined, leading to disputes or inefficiencies. Furthermore, reliance on a single large contractor for critical logistics support can create dependencies. Performance deficiencies are always a risk in complex service contracts; however, the CPIF structure includes mechanisms to incentivize good performance and potentially penalize poor performance. Specific risk assessments would be detailed in internal DoD evaluations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9225416R0001

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 5749 BRIAR HILL RD, LEXINGTON, KY, 40516

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,660,838

Exercised Options: $33,660,838

Current Obligation: $33,660,838

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $73,047

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9225417D0001

IDV Type: IDC

Timeline