DoD Awards $15.6M for LCSM Sustainment to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $15,570,483 ($15.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-07-01
End Date: 2023-06-30
Contract Duration: 1,825 days
Daily Burn Rate: $8.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: S351 SUSTAINMENT LCSM TASK ORDER AWARD
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $15.6 million to LOCKHEED MARTIN CORPORATION for work described as: S351 SUSTAINMENT LCSM TASK ORDER AWARD Key points: 1. Significant contract value for sustainment services. 2. Awarded to a major defense contractor, indicating established capabilities. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Services fall under 'All Other Support Services' sector.
Value Assessment
Rating: good
The contract value of $15.6M appears reasonable for a 5-year sustainment task order for LCSM. Benchmarking against similar complex system sustainment contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.
Public Impact
Ensures continued operational readiness of LCSM assets. Supports critical mission capabilities for U.S. Special Operations Command. Maintains employment within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long duration (5 years) may lead to scope creep or evolving requirements.
- Lack of specific performance metrics in provided data.
Positive Signals
- Awarded under full and open competition.
- Awarded to a known, established contractor.
- Supports critical national security assets.
Sector Analysis
This contract falls under general support services, often associated with the defense sector's need for specialized maintenance and operational support. Benchmarks for similar sustainment contracts vary widely based on system complexity and duration.
Small Business Impact
The prime contractor is Lockheed Martin Corporation, a large business. There is no indication of small business participation in the provided data.
Oversight & Accountability
The Department of Defense and U.S. Special Operations Command are responsible for oversight. The Cost Plus Fixed Fee structure requires diligent monitoring to control costs.
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.
- Long contract duration.
- Potential for undefined scope creep.
- Lack of specific performance metrics provided.
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 $15.6 million to LOCKHEED MARTIN CORPORATION. S351 SUSTAINMENT LCSM TASK ORDER 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 $15.6 million.
What is the period of performance?
Start: 2018-07-01. End: 2023-06-30.
What is the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how are profit margins determined?
The Cost Plus Fixed Fee (CPFF) structure involves the contractor being reimbursed for allowable costs plus a fixed fee representing profit. Oversight is crucial to ensure costs are reasonable and allocable. The fixed fee is negotiated upfront and should reflect the contractor's risk and effort. Detailed financial reporting and audits are necessary to verify cost allowability and prevent contractor overreach.
What are the key performance indicators (KPIs) for this sustainment contract, and how is performance measured?
Key performance indicators (KPIs) for sustainment contracts typically include metrics such as system availability, mean time between failures (MTBF), response times for maintenance, and adherence to maintenance schedules. Performance is usually measured through regular reporting, site visits, and operational data analysis. The effectiveness of the sustainment effort is directly tied to the operational readiness of the LCSM assets.
How does the sustainment of LCSM contribute to the overall mission effectiveness of U.S. Special Operations Command?
Effective sustainment of LCSM assets is critical for ensuring their operational readiness and reliability, directly impacting the success of U.S. Special Operations Command missions. Reliable platforms allow operators to execute complex and often high-stakes operations without interruption. Conversely, sustainment failures can lead to mission delays, increased risk to personnel, and reduced operational capability.
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 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: $15,570,483
Exercised Options: $15,570,483
Current Obligation: $15,570,483
Subaward Activity
Number of Subawards: 67
Total Subaward Amount: $25,119,294
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: 2018-07-01
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2025-09-18
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