DoD's $15.5M TCC Contract with Lockheed Martin: Full and Open Competition
Contract Overview
Contract Amount: $15,560,352 ($15.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-04-20
End Date: 2023-04-22
Contract Duration: 1,828 days
Daily Burn Rate: $8.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TCC-TECHNICAL COLLECTION AND COMMUNICATION
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: TCC-TECHNICAL COLLECTION AND COMMUNICATION Key points: 1. Contract Value: $15.56 million over 5 years. 2. Competition: Awarded under full and open competition. 3. Risk: Lockheed Martin is a large, established defense contractor. 4. Sector: Information Technology and Support Services.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking against similar support services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the CPFF pricing structure may not always yield the most cost-effective outcome for the government.
Taxpayer Impact: Taxpayer funds are utilized for technical collection and communication services, with the effectiveness of the spending dependent on efficient contract management and performance.
Public Impact
Supports critical U.S. Special Operations Command (SOCOM) missions. Ensures advanced technical collection and communication capabilities. Potential for technological advancements in communication systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF pricing risk
- Contract duration
Positive Signals
- Full and open competition
- Established contractor
Sector Analysis
This contract falls within the broader IT and support services sector, which is a significant area of government spending. Benchmarks for similar support services contracts vary widely based on scope and complexity.
Small Business Impact
The contract was not awarded to a small business, indicating a lack of direct opportunity for small business participation in this specific award. Future solicitations could explore subcontracting opportunities.
Oversight & Accountability
Oversight is crucial for CPFF contracts to ensure costs are reasonable and performance meets requirements. The Department of Defense and SOCOM are responsible for monitoring this contract's execution.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost overrun potential due to CPFF structure
- Long contract duration may not reflect evolving needs
- Limited visibility into specific cost drivers
- Potential for vendor lock-in with specialized technology
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. TCC-TECHNICAL COLLECTION AND COMMUNICATION
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: 2018-04-20. End: 2023-04-22.
What specific technical collection and communication capabilities does this contract provide, and how do they align with SOCOM's strategic objectives?
This contract likely supports SOCOM's need for advanced intelligence gathering, data processing, and secure communication systems essential for special operations. The specific capabilities would detail the technology and services procured to enhance situational awareness and operational effectiveness in complex environments.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) pricing model in this contract, and how are they mitigated?
The primary risk of CPFF is that the contractor may have less incentive to control costs, potentially leading to higher overall expenditures. Mitigation strategies include robust government oversight, detailed cost audits, and clear performance metrics to ensure value for money and prevent unnecessary spending.
How does the performance of Lockheed Martin on this contract contribute to the overall effectiveness of U.S. Special Operations Command's missions?
Lockheed Martin's performance directly impacts SOCOM's ability to execute its missions by providing reliable and advanced technical collection and communication tools. Effective service delivery ensures seamless information flow, enhances operational planning, and supports the success of critical, often sensitive, special operations.
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: $15,560,352
Exercised Options: $15,560,352
Current Obligation: $15,560,352
Subaward Activity
Number of Subawards: 37
Total Subaward Amount: $3,867,095
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: 2018-04-20
Current End Date: 2023-04-22
Potential End Date: 2023-04-22 00:00:00
Last Modified: 2025-09-15
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