DoD Awards $19.6M for UME Support to Lockheed Martin Under Full and Open Competition

Contract Overview

Contract Amount: $19,659,569 ($19.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2018-11-28

End Date: 2023-11-30

Contract Duration: 1,828 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF G4 UME SUPPORT INITIAL AWARD. CPFF BASE PERIOD UME SUPPORT

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF G4 UME SUPPORT INITIAL AWARD. CPFF BASE PERIOD UME SUPPORT Key points: 1. Significant contract value for specialized support services. 2. Lockheed Martin, a major defense contractor, is the awardee. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The contract falls under 'All Other Support Services' within the defense sector.

Value Assessment

Rating: good

The contract value of $19.6M for a 5-year period appears reasonable for specialized support services. Benchmarking against similar complex support contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process for soliciting bids. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The use of full and open competition aims to maximize taxpayer value by fostering a competitive environment among potential offerors.

Public Impact

Supports U.S. Special Operations Command's critical missions. Ensures continuity of essential support services for defense operations. Potential for technology integration and innovation within support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration of 5 years may require performance reviews.
  • Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns if not managed closely.

Positive Signals

  • Awarded under full and open competition.
  • Experienced contractor with a strong track record.

Sector Analysis

This contract falls within the 'All Other Support Services' category, which is broad and encompasses a variety of non-IT, non-construction, non-logistics services. Spending in this area is substantial across the DoD, supporting diverse operational needs.

Small Business Impact

The awardee is a large corporation, and there is no indication of small business participation in this specific award. Future solicitations could explore opportunities for small business subcontracting.

Oversight & Accountability

Oversight will be crucial given the CPFF contract type to ensure costs remain controlled and performance meets requirements. The Special Operations Command likely has established oversight mechanisms for such critical support contracts.

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.
  • Contract duration requires ongoing performance monitoring.
  • Specificity of 'UME Support' requires further definition for full understanding.

Tags

all-other-support-services, department-of-defense, ky, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF G4 UME SUPPORT INITIAL AWARD. CPFF BASE PERIOD UME 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 $19.7 million.

What is the period of performance?

Start: 2018-11-28. End: 2023-11-30.

What specific UME support services are being provided, and how do they contribute to operational effectiveness?

UME (Unspecified Mission Equipment) support likely encompasses a range of technical, logistical, and maintenance services critical for the readiness and deployment of specialized operational units. These services ensure that complex equipment functions optimally, directly impacting mission success and personnel safety. The specific nature of these services is vital for understanding their true value and necessity.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Key performance indicators for UME support contracts typically include response times for maintenance, equipment uptime, successful mission support rates, and adherence to safety protocols. Performance is usually measured through regular reporting, site inspections, and feedback from the supported units. Robust KPIs and diligent measurement are essential for ensuring the contractor meets the demanding requirements of special operations.

How does the CPFF contract structure balance cost control with the need for flexibility in specialized support?

The Cost Plus Fixed Fee (CPFF) structure aims to provide flexibility for evolving support needs while offering the contractor a fixed profit margin. However, it requires stringent oversight to prevent cost creep, as the government bears the cost of performance. Effective management involves detailed cost tracking, regular audits, and clear communication to ensure the fixed fee remains appropriate for the scope and value delivered.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesOther Support ServicesAll 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: $19,659,569

Exercised Options: $19,659,569

Current Obligation: $19,659,569

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $72,233,279

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: 2018-11-28

Current End Date: 2023-11-30

Potential End Date: 2023-11-30 00:00:00

Last Modified: 2025-09-16

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