DoD's $127M UAS LCSM Support Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $127,238,227 ($127.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-07-20
End Date: 2020-01-31
Contract Duration: 560 days
Daily Burn Rate: $227.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF UAS LCSM SUPPORT
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $127.2 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF UAS LCSM SUPPORT Key points: 1. Significant contract value of $127.2 million for Unmanned Aircraft Systems (UAS) LCSM Support. 2. Awarded to a single, large incumbent contractor, Lockheed Martin Corporation. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract falls under the 'All Other Support Services' category, indicating a broad service scope.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) pricing structure allows for flexibility but requires careful monitoring to ensure cost efficiency. The award amount of $127.2M is substantial for support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for achieving competitive pricing. This method allows all eligible contractors to bid, fostering a market-driven price discovery.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by encouraging multiple bids and driving down costs.
Public Impact
Supports critical Unmanned Aircraft Systems (UAS) capabilities for U.S. Special Operations Command. Ensures continued operational readiness and maintenance of vital defense assets. Potential impact on technological advancements and integration within special operations forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) can lead to cost overruns if not managed tightly.
- Reliance on a single large contractor may limit future competition or innovation.
- The specific nature of 'LCSM Support' could be subject to scope creep.
Positive Signals
- Full and open competition utilized.
- Awarded to a well-established defense contractor.
- Supports critical Special Operations Command needs.
Sector Analysis
This contract falls within the broader defense sector, specifically supporting advanced UAS technologies. Spending benchmarks for similar complex support services can vary widely based on system criticality and duration.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no explicit indication of small business subcontracting participation in the provided data, which warrants further investigation.
Oversight & Accountability
The Department of Defense, through U.S. Special Operations Command, is responsible for oversight. The contract's duration and CPFF structure necessitate diligent monitoring to ensure performance and cost control.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of explicit small business participation noted.
- Scope creep risk in 'All Other Support Services'.
- Long-term reliance on a single contractor.
Tags
all-other-support-services, department-of-defense, ky, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $127.2 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF UAS LCSM SUPPORT
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 $127.2 million.
What is the period of performance?
Start: 2018-07-20. End: 2020-01-31.
What specific LCSM support services are included in this contract, and how do they align with current operational needs?
The contract details 'All Other Support Services' for UAS LCSM (likely Logistics, Configuration, Sustainment, and Maintenance). A thorough review of the Statement of Work (SOW) is needed to confirm alignment with evolving operational requirements and technological advancements within SOCOM's UAS fleet.
What are the key performance indicators (KPIs) and how is Lockheed Martin's performance being measured against them?
Performance metrics for CPFF contracts typically focus on meeting delivery schedules, technical specifications, and operational availability targets. Specific KPIs should be detailed in the contract's performance work statement (PWS) and actively monitored by the contracting officer's representative (COR) to ensure mission success and value.
What is the projected cost growth potential under this CPFF contract, and what mechanisms are in place to mitigate it?
CPFF contracts inherently carry risk of cost growth due to their structure. Mitigation strategies include robust government oversight, detailed cost tracking, regular performance reviews, and clear change order management processes. The baseline estimate of $127.2M requires vigilant management to prevent significant overruns.
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: $127,238,227
Exercised Options: $127,238,227
Current Obligation: $127,238,227
Subaward Activity
Number of Subawards: 76
Total Subaward Amount: $125,335,494
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: 2018-07-20
Current End Date: 2020-01-31
Potential End Date: 2020-01-31 00:00:00
Last Modified: 2025-09-08
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