Lockheed Martin awarded $17.6M for non-standard aircraft support to USASOC, highlighting specialized defense services

Contract Overview

Contract Amount: $17,590,650 ($17.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2018-08-01

End Date: 2021-04-30

Contract Duration: 1,003 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF USASOAC NON-STANDARD AIRCRAFT SUPPORT

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF USASOAC NON-STANDARD AIRCRAFT SUPPORT Key points: 1. Contract value represents a significant investment in specialized aviation support for unique operational requirements. 2. Competition was robust, suggesting a fair market price was likely achieved. 3. Performance period spans over two years, indicating a sustained need for these services. 4. The award falls within the broader category of specialized support services for defense agencies. 5. Contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight of costs. 6. Geographic focus on Kentucky suggests a specific operational base or training area.

Value Assessment

Rating: good

The contract value of $17.6 million for non-standard aircraft support appears reasonable given the specialized nature of the services required by U.S. Special Operations Command (USASOC). Benchmarking against similar contracts for niche aviation support is challenging due to the unique requirements of 'non-standard' aircraft. However, the fixed fee component suggests a degree of cost control. The duration of the contract (over two years) also implies a consistent and necessary demand for these specialized services, which often command higher prices due to limited expertise and resources.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a single award suggests that Lockheed Martin's proposal was deemed the most advantageous to the government based on the evaluation criteria. A competitive process like this generally leads to better price discovery and ensures that the government receives a fair market value for the services rendered.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for specialized defense support services, preventing potential overpricing and ensuring efficient use of funds.

Public Impact

Special Operations Forces personnel benefit from reliable and specialized support for their unique aircraft, enhancing operational readiness. The services delivered are critical for maintaining the airworthiness and operational capability of non-standard aircraft used in sensitive missions. The primary geographic impact is in Kentucky, where the contractor is located and likely where the services are performed or supported. This contract supports a highly specialized segment of the aerospace and defense workforce, requiring specific technical skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed diligently.
The 'non-standard' nature of the aircraft may introduce unforeseen technical challenges and associated costs.
Reliance on a single contractor for specialized support could create future dependency and limit future competition.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract duration suggests a stable and ongoing requirement, demonstrating the value of the services provided.
Lockheed Martin is a well-established defense contractor with a proven track record in complex aviation support.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on specialized aviation support services. The market for non-standard aircraft support is niche, often characterized by high barriers to entry due to specialized knowledge, certifications, and infrastructure requirements. Spending in this area is critical for defense agencies that operate unique or modified aircraft platforms not covered by standard military aviation contracts. Comparable spending benchmarks are difficult to establish precisely due to the custom nature of 'non-standard' support, but overall defense aviation maintenance and support represent a multi-billion dollar segment.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. As a large prime contractor, Lockheed Martin may engage small businesses for specific components or services, but the primary awardee is a major corporation. Further analysis would be needed to determine the extent of small business participation through subcontracting opportunities.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically be managed by contracting officers and program managers within the U.S. Special Operations Command. Accountability measures would include performance reviews, milestone tracking, and financial audits to ensure compliance with contract terms and efficient use of funds. Transparency is generally maintained through contract databases, though specific operational details remain classified.

Related Government Programs

Special Operations Forces Equipment Procurement
Aviation Maintenance and Repair Services
Defense Contractor Support Services
Specialized Aircraft Operations

Risk Flags

Cost Overrun Risk (CPFF)
Technical Complexity of Non-Standard Aircraft
Supply Chain Dependency for Specialized Parts
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF USASOAC NON-STANDARD AIRCRAFT 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 $17.6 million.

What is the period of performance?

Start: 2018-08-01. End: 2021-04-30.

What is Lockheed Martin's track record with similar non-standard aircraft support contracts for USASOC or other special operations commands?

Lockheed Martin Corporation, a major defense contractor, has a long history of providing aviation support services across various platforms, including specialized and non-standard aircraft. While specific contract details for 'non-standard' support can be sensitive, the company's extensive experience with military aviation, including modifications, maintenance, and operational support for diverse aircraft types, suggests a strong capability. Their involvement in complex defense programs indicates a capacity to handle the unique technical and logistical challenges associated with non-standard platforms. Past performance evaluations on similar contracts, often available through government contract databases or agency reports, would provide a more granular view of their success rate, adherence to schedule, and cost control on prior engagements. USASOC, in particular, relies on contractors with proven expertise in adapting and maintaining aircraft for unique mission profiles.

How does the $17.6 million contract value compare to historical spending on non-standard aircraft support by USASOC?

Comparing the $17.6 million contract value to historical spending on non-standard aircraft support by USASOC requires access to detailed historical contract data, which is not fully available in the provided snippet. However, the value suggests a significant, multi-year commitment to a specific set of aircraft or support functions. USASOC operates a diverse fleet, including platforms that may not be standard military issue, necessitating specialized support. Annual spending on such niche services can fluctuate based on operational tempo, fleet readiness requirements, and specific program needs. Without a direct comparison dataset for 'non-standard aircraft support' specifically, it's difficult to definitively state if this award is high or low relative to past trends. However, the amount is substantial enough to indicate a critical requirement for these specialized services over the contract's duration.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for specialized aviation services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for specialized aviation services, such as non-standard aircraft support, revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost-plus' element means the government bears the risk of cost overruns. If the contractor's actual costs exceed initial estimates, the government pays the actual costs plus the pre-determined fee. This can incentivize contractors to incur higher costs if not managed diligently, as their fee remains constant regardless of the final cost. For specialized aviation, unforeseen technical issues, supply chain disruptions, or evolving performance requirements can lead to cost increases. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

What specific types of 'non-standard' aircraft might this contract cover, and why is specialized support needed?

The term 'non-standard aircraft' typically refers to platforms that are not part of the conventional military inventory or are heavily modified versions of existing aircraft. This could include civilian-derived aircraft (e.g., turboprops, helicopters, or light jets) acquired and adapted for special operations roles, intelligence gathering, or unique transport missions. Specialized support is needed because these aircraft often lack the standardized maintenance procedures, parts availability, and technical documentation associated with military-specific platforms. They may require unique repair techniques, custom-fabricated parts, specialized tooling, and highly trained technicians with expertise in both aviation mechanics and the specific modifications made for operational purposes. USASOC utilizes such aircraft for their flexibility, lower operational footprint, and ability to operate in environments where standard military aircraft might be unsuitable or too conspicuous.

What does the 'All Other Support Services' NAICS code (561990) imply about the scope of this contract?

The North American Industry Classification System (NAICS) code 561990, 'All Other Support Services,' is a broad category that encompasses a wide range of support activities not classified elsewhere. For this contract, it implies that the services provided by Lockheed Martin go beyond typical aircraft maintenance or repair. This could include logistical support, operational planning assistance, training, technical consulting, program management, or other specialized support functions related to the non-standard aircraft. The broadness of the code suggests flexibility in the contract's scope, allowing it to adapt to evolving needs of USASOC concerning these unique aviation assets. It highlights that the contract is not just about fixing planes but encompasses a comprehensive support package tailored to the specific requirements of special operations aviation.

How does the geographic location in Kentucky (ST: KY) influence the contract's execution and oversight?

The contract's designation of Kentucky (ST: KY) as the location likely indicates the primary base of operations or performance site for Lockheed Martin's support services. This geographic focus can influence the contract's execution by concentrating resources and personnel within that state, potentially streamlining logistics and on-site support. For oversight, it means that government contracting officers and potentially inspectors may be physically located near or regularly visit the contractor's facilities in Kentucky. This proximity can facilitate more direct communication, easier site visits for performance monitoring, and quicker resolution of issues. However, it also means that oversight efforts are geographically concentrated, and if the contractor relies on external suppliers or facilities outside Kentucky, those aspects might require separate monitoring 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: $17,590,650

Exercised Options: $17,590,650

Current Obligation: $17,590,650

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $12,754,489

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