DoD's $39.8M MQ-9 Maintenance Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $39,779,083 ($39.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-11-01
End Date: 2019-10-31
Contract Duration: 364 days
Daily Burn Rate: $109.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MQ-9 MAINTENANCE SUPPORT
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $39.8 million to LOCKHEED MARTIN CORPORATION for work described as: MQ-9 MAINTENANCE SUPPORT Key points: 1. Significant contract value for specialized aircraft maintenance. 2. Lockheed Martin, a major defense contractor, is the awardee. 3. Full and open competition suggests a potentially competitive bidding process. 4. The contract falls under the 'All Other Support Services' NAICS code.
Value Assessment
Rating: good
The contract value of $39.8M for one year of support appears reasonable given the specialized nature of MQ-9 maintenance. Benchmarking against similar complex aircraft support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense support services.
Public Impact
Ensures continued operational readiness of MQ-9 aircraft for special operations. Supports advanced drone technology crucial for intelligence and reconnaissance missions. Maintains critical defense capabilities for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in Cost Plus Fixed Fee contracts.
- Dependence on a single contractor for critical maintenance.
Positive Signals
- Awarded through full and open competition.
- Supports advanced military technology.
Sector Analysis
This contract is within the defense sector, specifically supporting unmanned aerial vehicle (UAV) operations. Spending on UAV maintenance is a growing area as these platforms become more integral to military operations.
Small Business Impact
The awardee, Lockheed Martin, is a large defense contractor. There is no indication in the data that small businesses were significantly involved in this specific contract, though they may be subcontractors.
Oversight & Accountability
The contract was awarded by the U.S. Special Operations Command, a key component of the Department of Defense. Oversight would typically involve contract performance monitoring and financial reviews to ensure compliance and value.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- High reliance on a single large contractor.
- Potential for scope creep if not managed tightly.
- Dependence on specialized technical expertise.
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 $39.8 million to LOCKHEED MARTIN CORPORATION. MQ-9 MAINTENANCE 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 $39.8 million.
What is the period of performance?
Start: 2018-11-01. End: 2019-10-31.
What is the historical performance of Lockheed Martin in providing maintenance support for MQ-9 or similar platforms?
Lockheed Martin has a long history of supporting complex defense systems, including unmanned aerial vehicles. Their experience with the MQ-9 platform specifically would be a key factor in their ability to provide effective maintenance. Past performance reviews and contract data would offer insights into their reliability, cost control, and technical proficiency in similar engagements.
How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and potential for overruns in this contract?
The CPFF structure incentivizes the contractor to control costs while allowing for profit based on a fixed fee. However, it can lead to overruns if the initial cost estimates are inaccurate or if unforeseen issues arise during performance. Robust government oversight and clear contract terms are crucial to mitigate these risks and ensure fair pricing.
What are the key performance indicators (KPIs) used to measure the effectiveness of this maintenance support contract?
Effectiveness is likely measured by metrics such as aircraft availability rates, turnaround time for repairs, quality of maintenance performed (e.g., defect rates), and adherence to delivery schedules. Meeting these KPIs ensures the MQ-9 fleet remains mission-ready for U.S. Special Operations Command's critical tasks.
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
Parent Company: Lockheed Martin Corp (UEI: 834951691)
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: $39,779,083
Exercised Options: $39,779,083
Current Obligation: $39,779,083
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $60,500
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9225417D0001
IDV Type: IDC
Timeline
Start Date: 2018-11-01
Current End Date: 2019-10-31
Potential End Date: 2019-10-31 00:00:00
Last Modified: 2021-08-11
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