DoD Awards $29.6M for SSE LCSM Off-Site Services to Lockheed Martin
Contract Overview
Contract Amount: $29,614,349 ($29.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-03-30
End Date: 2022-03-31
Contract Duration: 1,462 days
Daily Burn Rate: $20.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SSE LCSM OFF-SITE : AWARD
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $29.6 million to LOCKHEED MARTIN CORPORATION for work described as: SSE LCSM OFF-SITE : AWARD Key points: 1. Awarded to a single, large defense contractor, indicating potential consolidation. 2. The contract type (Cost Plus Fixed Fee) can lead to cost overruns. 3. Limited information on specific services provided by SSE LCSM. 4. The duration of the contract (over 4 years) suggests a long-term need.
Value Assessment
Rating: fair
The contract value of $29.6M over 4 years is substantial. Without specific service details or benchmarks for SSE LCSM, it's difficult to definitively assess value. The Cost Plus Fixed Fee structure warrants scrutiny for potential cost inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific award type (Delivery Order) suggests it might be part of a larger IDIQ or framework, where initial competition may have occurred.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. However, the Cost Plus Fixed Fee structure could lead to higher-than-expected costs if not managed closely.
Public Impact
Supports U.S. Special Operations Command, indicating a critical national security function. The services are categorized under 'All Other Support Services,' lacking specific detail. The contract is managed by the Department of Defense, a major federal spender.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of specific service details
- Long contract duration
Positive Signals
- Awarded under full and open competition
Sector Analysis
This contract falls under support services for defense operations. Benchmarks for similar 'All Other Support Services' contracts are difficult to establish due to the broad category. Defense spending on support services is a significant portion of the overall budget.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation as subcontractors in the provided data.
Oversight & Accountability
The Department of Defense is responsible for oversight. The specific oversight mechanisms for this delivery order, especially given the CPFF structure, would be crucial to ensure cost control and performance.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Broad service category ('All Other Support Services')
- Long contract duration (over 4 years)
- Awardee is a large, established defense contractor
Tags
all-other-support-services, department-of-defense, ky, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.6 million to LOCKHEED MARTIN CORPORATION. SSE LCSM OFF-SITE : AWARD
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 $29.6 million.
What is the period of performance?
Start: 2018-03-30. End: 2022-03-31.
What specific services does SSE LCSM provide, and how do these services align with the needs of U.S. Special Operations Command?
The provided data categorizes the service as 'All Other Support Services,' which is too broad to ascertain specific functions. Understanding the precise nature of SSE LCSM's off-site support is crucial for evaluating its necessity and effectiveness for U.S. Special Operations Command's mission objectives and ensuring taxpayer funds are used appropriately.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this $29.6M award?
The CPFF structure incentivizes the contractor to incur costs, as their fee is a fixed percentage of those costs. This can lead to a lack of cost control and potential for cost overruns if not rigorously monitored by the government. It shifts much of the cost risk to the government, potentially increasing the final price beyond initial estimates.
How effectively does the 'full and open competition' designation translate to actual value and competitive pricing for these specific support services?
While 'full and open competition' is a positive indicator for market research and price discovery, the effectiveness depends on the specific market for SSE LCSM services. If the market is highly specialized or dominated by a few large players, the competition might be less robust than the designation implies. The subsequent award type (Delivery Order) also warrants examination for potential follow-on awards.
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
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
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: $29,614,349
Exercised Options: $29,614,349
Current Obligation: $29,614,349
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $14,231,307
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9225417D0001
IDV Type: IDC
Timeline
Start Date: 2018-03-30
Current End Date: 2022-03-31
Potential End Date: 2022-03-31 00:00:00
Last Modified: 2025-09-23
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