Lockheed Martin awarded $14.9M for IGF CLS SUPPORT CPFF services by U.S. Special Operations Command

Contract Overview

Contract Amount: $14,948,785 ($14.9M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2018-06-13

End Date: 2022-06-16

Contract Duration: 1,464 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF CLS SUPPORT CPFF - BASE PERIOD

Plain-Language Summary

Department of Defense obligated $14.9 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF CLS SUPPORT CPFF - BASE PERIOD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries risk of cost overruns. 3. The duration of the contract is over 4 years, indicating a significant, long-term need for these support services. 4. The award was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 5. No small business set-aside was indicated, meaning large businesses were likely the primary bidders. 6. The specific nature of 'IGF CLS SUPPORT' requires further clarification to fully assess performance and value.

Value Assessment

Rating: fair

The contract value of $14.9 million over approximately four years averages to roughly $3.7 million annually. Without specific deliverables or performance metrics, it's challenging to benchmark this against similar contracts. The CPFF contract type means the government reimburses costs plus a fixed fee, which can be less predictable in terms of final cost compared to fixed-price contracts. Further analysis would require understanding the scope of 'IGF CLS SUPPORT' and comparing the fee structure to industry standards for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes a competitive environment. A competitive process is expected to lead to better pricing and value for the government by allowing multiple companies to vie for the contract based on technical merit and cost.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages innovation among bidders, ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are likely U.S. Special Operations Command personnel who receive support services. The services provided are categorized under 'All Other Support Services,' suggesting a broad range of operational or administrative assistance. The geographic impact is likely focused on areas where U.S. Special Operations Command operates. Workforce implications could include employment for individuals with specialized support skills within Lockheed Martin or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type carries inherent risk of cost overruns if not managed diligently.
Lack of specific details on 'IGF CLS SUPPORT' makes it difficult to assess the true value and necessity of the services.
The duration of the contract suggests a long-term reliance, which could indicate a lack of competitive re-evaluation if not managed properly.

Positive Signals

Awarded through full and open competition, which generally leads to better pricing and value.
The contract is with a large, established defense contractor (Lockheed Martin), suggesting a level of reliability and experience.
The delivery order structure implies it may be part of a broader, potentially more efficient contracting vehicle.

Sector Analysis

This contract falls within the broader 'Support Services' sector, which is a significant component of federal spending, particularly within the defense industry. The market for defense support services is large and competitive, with major contractors like Lockheed Martin playing a key role. Benchmarking this contract's value would require detailed understanding of the specific support functions and comparing them to similar service contracts awarded by the Department of Defense or other agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope of work or the nature of the competition was geared towards larger prime contractors. While there's no direct indication of subcontracting plans for small businesses, it is common practice for large defense contractors to utilize small business subcontractors to fulfill certain aspects of their contracts, potentially providing opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Special Operations Command's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor costs and ensure the fixed fee remains appropriate. Transparency is generally facilitated through contract award databases and reporting requirements, though specific performance metrics and detailed spending breakdowns may not always be publicly available. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

Defense Support Services
Special Operations Command Contracts
Cost Plus Fixed Fee Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Vehicles

Risk Flags

Contract Type Risk (CPFF)
Lack of Specific Service Detail
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF CLS SUPPORT CPFF - BASE PERIOD

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 $14.9 million.

What is the period of performance?

Start: 2018-06-13. End: 2022-06-16.

What specific services does 'IGF CLS SUPPORT CPFF' entail, and how do they contribute to the mission of U.S. Special Operations Command?

The provided data abbreviates the contract description as 'IGF::OT::IGF CLS SUPPORT CPFF - BASE PERIOD'. 'IGF' likely refers to a specific program or initiative within the Department of Defense, possibly related to intelligence or information gathering. 'CLS' could stand for 'Contract Logistics Support' or a similar operational support function. 'CPFF' denotes the contract type: Cost Plus Fixed Fee. Without further documentation or context, the precise nature of the support services remains unclear. These services are crucial for enabling U.S. Special Operations Command's unique and often sensitive missions, potentially encompassing areas like equipment maintenance, logistical planning, technical assistance, or specialized operational support. Understanding the exact deliverables is key to assessing the contract's necessity and value.

How does the $14.9 million award compare to other similar support service contracts awarded by U.S. Special Operations Command or the Department of Defense?

Benchmarking this $14.9 million contract requires a detailed understanding of the specific 'IGF CLS SUPPORT' services provided. Support services contracts within the Department of Defense can range from millions to billions of dollars, depending on the scope, duration, and criticality of the services. For U.S. Special Operations Command, contracts often involve highly specialized and sensitive support. A preliminary comparison suggests that $14.9 million over approximately four years is a moderate-sized contract for specialized support. However, without knowing the exact nature of the services (e.g., personnel augmentation, technical maintenance, intelligence analysis support), a precise comparison to other contracts is difficult. Contracts for general administrative support might be lower, while those for advanced technical or operational support could be significantly higher.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific award?

The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, introduces specific risks. For taxpayers, the primary risk is potential cost overruns. The contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. If costs escalate beyond initial projections due to unforeseen circumstances, inefficiencies, or scope creep, the total expenditure for the government increases. The fixed fee, however, is intended to incentivize the contractor to manage costs effectively, as it does not increase with higher costs. For this contract, risks could include inadequate cost tracking by the contractor, difficulty in defining and controlling allowable costs, and potential for the fixed fee to become disproportionately high if initial cost estimates were inaccurate or if the scope of work expands without proper adjustment. Robust government oversight is essential to mitigate these risks.

Given the award was through 'full and open competition,' what does this imply about the competitive landscape for these services?

An award made under 'full and open competition' signifies that the solicitation was broadly advertised, and all responsible sources were encouraged to submit proposals. This implies that the market for 'IGF CLS SUPPORT' services is considered sufficiently robust to support multiple capable vendors. The fact that a contract was awarded through this process suggests that the government sought to leverage market competition to achieve the best possible technical solution and price. While the number of bidders isn't specified, this method generally leads to a more competitive environment than sole-source or limited competition scenarios, potentially resulting in better value for the government and, by extension, taxpayers. It indicates that the services required were not unique to a single provider.

What is Lockheed Martin Corporation's track record with similar support service contracts for the Department of Defense or U.S. Special Operations Command?

Lockheed Martin Corporation is a major defense contractor with extensive experience across a wide array of services for the Department of Defense and its various components, including U.S. Special Operations Command. Their track record typically includes large-scale support services, logistics, technical assistance, and program management for complex defense systems and operations. While specific performance details for individual contracts are often proprietary or not publicly detailed, Lockheed Martin is generally recognized for its capacity to handle significant defense contracts. However, like any large contractor, they have experienced both successes and challenges on various contracts throughout their history. A deeper dive into their specific performance history with SOCOM or similar support roles would require accessing more granular contract performance data or Inspector General reports, if available.

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

The NAICS code 561990, 'All Other Support Services,' encompasses a broad range of non-classified support activities. The Department of Defense is a significant spender across various support service categories. Historical spending patterns for this specific NAICS code by the DoD would likely show substantial and consistent investment, reflecting the vast operational and administrative needs of the military. This category can include services like facilities support, operational assistance, program management support, and other miscellaneous services not elsewhere classified. Analyzing historical data would reveal trends in demand, average contract values, and the types of companies that typically win these contracts. It's important to note that 'All Other Support Services' is a catch-all category, so spending within it can fluctuate based on specific program needs and contracting strategies.

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: $15,167,998

Exercised Options: $15,167,998

Current Obligation: $14,948,785

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $3,304,240

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