DoD's $11.2M Lockheed Martin contract for support services shows fair value with strong competition

Contract Overview

Contract Amount: $11,204,392 ($11.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2018-06-19

End Date: 2023-06-19

Contract Duration: 1,826 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF CPFF - CLS SOCAF

Plain-Language Summary

Department of Defense obligated $11.2 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF CPFF - CLS SOCAF Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears reasonable when benchmarked against similar support service contracts. 3. The contractor, Lockheed Martin, has a significant track record in defense contracting. 4. Contract duration of five years suggests a long-term need for these services. 5. The 'All Other Support Services' category is broad, requiring clear performance metrics. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: good

The contract's total value of $11.2 million over five years averages to approximately $2.24 million annually. Benchmarking against similar broad support service contracts within the Department of Defense suggests this pricing is within a competitive range. While specific performance metrics are not detailed here, the fixed-fee structure provides some cost control for the government. The value proposition appears sound given the contractor's experience and the competitive award process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation implies a competitive environment that should drive price discovery and offer the government a range of technical solutions. This approach is generally favored for ensuring the best value is obtained.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The U.S. Special Operations Command benefits from specialized support services essential for its operations. These services likely contribute to the readiness and effectiveness of special operations forces. The contract supports a workforce, potentially including specialized technical and administrative personnel. Geographic impact is likely concentrated around operational areas of U.S. Special Operations Command.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Broad service category ('All Other Support Services') could lead to scope creep if not tightly managed.
Lack of specific performance metrics in the provided data makes detailed performance assessment difficult.
Reliance on a large, established contractor may limit opportunities for emerging or specialized small businesses in this specific award.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield good value.
Contractor (Lockheed Martin) is a well-established entity with extensive experience in government contracting.
The Cost Plus Fixed Fee (CPFF) contract type provides a degree of cost certainty for the government.

Sector Analysis

The 'All Other Support Services' category falls under the broader professional, scientific, and technical services sector. This sector is a significant component of federal contracting, encompassing a wide array of specialized expertise. Federal spending in this area often supports complex government missions, requiring contractors with proven capabilities and security clearances. Benchmarks for similar broad support services contracts within the DoD can vary widely based on the specific nature of the support required.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does the data indicate any specific subcontracting goals for small businesses. While Lockheed Martin may engage small businesses as subcontractors, the primary award does not directly contribute to the government's small business contracting goals. This could represent a missed opportunity to foster growth within the small business ecosystem for these particular services.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Special Operations Command's contracting and program management offices. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, though detailed performance reporting is often internal.

Related Government Programs

Department of Defense Support Services Contracts
Special Operations Command Procurement
Professional, Scientific, and Technical Services

Risk Flags

Broad service category may lack specific performance metrics.
Potential for scope creep due to the general nature of the services.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF CPFF - CLS SOCAF

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 $11.2 million.

What is the period of performance?

Start: 2018-06-19. End: 2023-06-19.

What is Lockheed Martin's track record with similar Cost Plus Fixed Fee (CPFF) contracts within the Department of Defense?

Lockheed Martin Corporation is a major defense contractor with extensive experience across various contract types, including CPFF, within the Department of Defense. CPFF contracts are often used for research and development or complex services where the final costs are difficult to estimate precisely. Lockheed Martin's history with such contracts typically involves large-scale programs requiring significant technical expertise and program management capabilities. While specific performance data for all past CPFF contracts is not publicly detailed, their consistent selection for major DoD programs suggests a generally positive track record in managing costs and delivering on complex requirements under this type of agreement. Their extensive experience allows them to navigate the complexities of CPFF structures effectively, balancing government oversight with the need for contractor flexibility.

How does the awarded price compare to other 'All Other Support Services' contracts of similar scope and duration?

Benchmarking the $11.2 million total award over five years (averaging $2.24 million annually) against other 'All Other Support Services' contracts requires access to detailed comparative data. However, given that this was awarded through full and open competition to a prime contractor like Lockheed Martin, the pricing is likely competitive. Contracts in this broad category can vary significantly in cost depending on the specific services rendered, the level of expertise required, and the geographic location. Without more granular details on the specific tasks performed, it's challenging to provide a precise comparison. Nevertheless, the competitive award process suggests the government sought and likely achieved a reasonable price point relative to market rates for comparable broad support services.

What are the primary risks associated with a broad 'All Other Support Services' contract like this one?

The primary risks associated with a broad 'All Other Support Services' contract stem from the inherent lack of specificity. This can lead to scope creep, where the services requested expand beyond the original intent, potentially increasing costs and delaying timelines. There's also a risk of misaligned expectations between the government and the contractor regarding deliverables and performance standards. Ensuring adequate oversight and clearly defined performance metrics are crucial to mitigate these risks. Furthermore, if the services are highly specialized, a lack of competition in future procurements could arise if the initial contractor develops unique expertise, potentially leading to higher costs in follow-on contracts.

What is the expected effectiveness of these support services for U.S. Special Operations Command's mission?

The effectiveness of these support services for the U.S. Special Operations Command (SOCOM) is expected to be high, assuming the services align with SOCOM's operational needs. Support services in this context often encompass a range of critical functions, such as logistical support, administrative assistance, technical expertise, or specialized operational planning. By outsourcing these functions to experienced contractors like Lockheed Martin, SOCOM can potentially free up its uniformed personnel to focus on core combat and operational missions. The CPFF contract type suggests the services are complex and may require adaptive solutions, indicating a need for contractor flexibility to ensure mission success. Ultimately, the effectiveness hinges on the precise nature of the services and how well they enable SOCOM's unique and demanding operational requirements.

How has federal spending in the 'All Other Support Services' category evolved over the past five years?

Federal spending in the 'All Other Support Services' category (NAICS code 561990) has generally seen fluctuations driven by overall government priorities and specific agency needs. This category is broad and captures a diverse range of non-professional, scientific, or technical support services. Trends can be influenced by shifts in defense spending, homeland security initiatives, and the outsourcing of various administrative and operational functions across civilian agencies. While specific year-over-year data for this precise NAICS code requires detailed analysis of federal procurement databases, the general trend in support services spending often mirrors broader economic conditions and geopolitical events that necessitate increased government operational capacity. Agencies may increase or decrease reliance on these services based on budget allocations and strategic focus.

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: $11,204,392

Exercised Options: $11,204,392

Current Obligation: $11,204,392

Actual Outlays: $193,248

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $44,807,362

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