DoD's $20M contract for OCONUS support services awarded to Lockheed Martin Corporation
Contract Overview
Contract Amount: $20,007,885 ($20.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-08-09
End Date: 2023-08-17
Contract Duration: 1,834 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: WEAPONS OCONUS FSR
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $20.0 million to LOCKHEED MARTIN CORPORATION for work described as: WEAPONS OCONUS FSR Key points: 1. Value for money appears fair given the long duration and specialized nature of support. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a Cost Plus Fixed Fee structure potentially leading to cost overruns. 4. Performance context is within specialized OCONUS support, requiring significant logistical and operational expertise. 5. Sector positioning is within defense services, a mature market with established players like Lockheed Martin.
Value Assessment
Rating: fair
The contract's value of approximately $20 million over five years for OCONUS support services is difficult to benchmark without specific performance details. However, given the specialized nature of support required in overseas locations, the pricing appears within a reasonable range. Comparing it to similar contracts for logistical and operational support in austere environments would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, carries inherent risks of cost escalation if not managed tightly.
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 were likely solicited and evaluated. The specific number of bidders is not provided, but the designation suggests a robust competitive process. This level of competition is generally expected to drive more favorable pricing and innovative solutions for the government.
Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best value and competitive pricing for the services rendered.
Public Impact
U.S. Special Operations Command benefits from specialized support services enabling mission readiness. Services delivered likely include logistical, operational, and potentially technical support in overseas locations. Geographic impact is concentrated in overseas contingency operations areas. Workforce implications include employment for personnel with specialized skills in supporting military operations abroad.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
- Long contract duration (over 5 years) increases the risk of scope creep or evolving requirements.
- Performance in OCONUS environments presents inherent logistical and security challenges.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Contractor (Lockheed Martin) is a major defense contractor with extensive experience.
- Support services are critical for enabling specific military operations.
Sector Analysis
This contract falls within the broader defense services sector, which is a significant portion of federal spending. The market is characterized by large, established prime contractors like Lockheed Martin, as well as numerous subcontractors. Spending in this sector is driven by national security requirements and geopolitical events, often involving complex logistical and operational support in challenging environments. Benchmarking comparable spending would require detailed analysis of similar OCONUS support contracts.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. However, large prime contractors like Lockheed Martin often engage small businesses as subcontractors for specialized services, though the extent of this particular contract's subcontracting plan is not detailed here.
Oversight & Accountability
Oversight for this contract would primarily fall under the U.S. Special Operations Command (SOCOM) and the Department of Defense. Accountability measures would be tied to the performance work statement and the Cost Plus Fixed Fee structure, requiring detailed financial reporting and progress tracking. Transparency is generally maintained through contract award databases, but specific operational details may be classified or sensitive.
Related Government Programs
- Defense Logistics Agency Support Contracts
- Special Operations Forces Support Services
- Overseas Contingency Operations Funding
- Global Support Services Contracts
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type may lead to cost overruns.
- Performance in OCONUS environments carries inherent security and logistical risks.
- Long contract duration increases potential for scope creep and requirement changes.
Tags
defense, department-of-defense, u.s.-special-operations-command, lockheed-martin-corporation, oconus, support-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, long-term-contract, specialized-services, kentucky
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.0 million to LOCKHEED MARTIN CORPORATION. WEAPONS OCONUS FSR
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 $20.0 million.
What is the period of performance?
Start: 2018-08-09. End: 2023-08-17.
What specific types of 'All Other Support Services' are included under this contract?
The specific breakdown of 'All Other Support Services' is not detailed in the provided data. However, given the context of a Department of Defense contract awarded to Lockheed Martin by U.S. Special Operations Command for OCONUS operations, these services likely encompass a broad range of critical functions. This could include logistical support (transportation, supply chain management, maintenance), base operations support, security services, technical assistance, intelligence support, and potentially specialized training or advisory roles. The 'All Other' classification suggests services that do not fit neatly into more defined categories but are essential for mission execution in overseas environments.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar OCONUS support services?
The Cost Plus Fixed Fee (CPFF) structure is common for complex service contracts where the scope of work may be difficult to define precisely upfront or where innovation is encouraged. It allows the contractor to recover allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost overruns if costs exceed estimates. For OCONUS support, where unforeseen challenges are frequent, CPFF can be advantageous for ensuring service continuity, but it necessitates robust government oversight to control costs and prevent contractor inefficiencies from inflating the final price.
What is Lockheed Martin's track record with similar OCONUS support contracts for SOCOM?
Lockheed Martin Corporation is a major defense contractor with extensive experience in providing a wide array of support services, including those for overseas operations and special operations forces. While specific contract details beyond this award are not provided, the company has a long history of performing complex logistical, technical, and operational support for various U.S. military branches and agencies globally. Their track record typically involves managing large-scale, high-value contracts in challenging environments. Performance reviews and past performance evaluations for specific contracts would offer a more granular assessment of their success with SOCOM or similar entities.
What are the potential risks associated with performing support services in OCONUS locations for this contract?
Performing support services in OCONUS (Outside the Continental United States) locations presents several inherent risks. These include heightened security threats requiring robust protective measures for personnel and assets, complex logistical challenges related to transportation and supply chains in remote or austere environments, political instability that could disrupt operations, and varying legal and regulatory frameworks. Additionally, cultural differences and language barriers can complicate coordination and execution. The CPFF structure, while offering flexibility, also introduces financial risk if unforeseen operational costs escalate significantly due to these OCONUS-specific challenges.
How does the $20 million total contract value compare to historical spending on similar OCONUS support services by SOCOM?
The provided data indicates a total award value of approximately $20 million for this specific contract. To compare this to historical spending, one would need access to SOCOM's historical contract databases and filter for similar OCONUS support services, potentially categorized under 'All Other Support Services' or related functional areas. Without that comparative data, it's challenging to definitively state whether $20 million represents a significant increase, decrease, or is consistent with past spending patterns. However, given the specialized nature and duration, it suggests a moderately sized contract within the broader scope of SOCOM's operational support requirements.
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: $20,406,352
Exercised Options: $20,406,352
Current Obligation: $20,007,885
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $6,979
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: 2018-08-09
Current End Date: 2023-08-17
Potential End Date: 2023-08-17 00:00:00
Last Modified: 2025-09-22
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