DoD's $35.5M Contract with Lockheed Martin for Support Services Awarded via Full and Open Competition
Contract Overview
Contract Amount: $35,556,367 ($35.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-04-01
End Date: 2023-03-31
Contract Duration: 1,825 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOS
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $35.6 million to LOCKHEED MARTIN CORPORATION for work described as: JOS Key points: 1. Contract Value: $35.56 million over 5 years. 2. Competition: Awarded through full and open competition, indicating a competitive bidding process. 3. Risk: Lockheed Martin is a major defense contractor, suggesting established capabilities but also potential for high costs. 4. Sector: Defense sector, specifically U.S. Special Operations Command.
Value Assessment
Rating: good
The contract value of $35.56 million over five years appears reasonable for specialized support services within the defense sector. Benchmarking against similar contracts for 'All Other Support Services' (NAICS 561990) would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically fosters competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market value.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring a competitive marketplace drives down costs.
Public Impact
Supports U.S. Special Operations Command, impacting national security operations. Contract duration of 5 years provides long-term stability for service provision. Involves specialized support services, potentially critical for mission success. Awarded to a major defense contractor, Lockheed Martin.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in Cost Plus Fixed Fee contracts.
- Dependence on a single large contractor for critical support.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability.
- Supports a critical government agency (SOCOM).
Sector Analysis
This contract falls within the defense sector, specifically for support services. Spending in this area is substantial across the government, with significant portions allocated to major contractors for specialized capabilities. Benchmarks for similar support services vary widely based on scope and duration.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Lockheed Martin, a large corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
Awarded via full and open competition suggests a structured procurement process. Oversight would typically involve contract management by the U.S. Special Operations Command to ensure performance and adherence to terms.
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 can lead to cost overruns.
- Lack of small business participation.
- Contract awarded to a single large prime contractor.
- Specific services are not detailed, making precise risk assessment difficult.
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 $35.6 million to LOCKHEED MARTIN CORPORATION. JOS
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 $35.6 million.
What is the period of performance?
Start: 2018-04-01. End: 2023-03-31.
What specific support services are being provided under this contract, and how critical are they to SOCOM's mission?
The contract is categorized under NAICS code 561990, 'All Other Support Services.' While the specific services are not detailed, this broad category can encompass a wide range of activities, from administrative and logistical support to specialized technical assistance. The criticality to SOCOM's mission would depend on the exact nature of these services, but given the agency's role, any support is likely vital for operational readiness and effectiveness.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for these support services?
CPFF contracts carry inherent risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. While the fixed fee incentivizes efficiency, there's a risk that the contractor may not aggressively control costs if the fee is substantial. This structure requires robust government oversight to monitor expenditures and ensure the fixed fee remains appropriate for the services rendered.
How does the competitive landscape for 'All Other Support Services' for SOCOM influence pricing and innovation?
The 'full and open competition' award suggests a healthy competitive landscape for these services. This typically drives down prices as contractors vie for the contract. It also encourages innovation as companies seek to differentiate their offerings to win bids. However, the specific nature of SOCOM's needs might limit the pool of truly capable competitors, potentially impacting the degree of price and innovation pressure.
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: $45,471,609
Exercised Options: $35,556,367
Current Obligation: $35,556,367
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $3,754,048
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: 2018-04-01
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2025-08-19
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