DoD's $28M Block 1 Production Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $28,178,448 ($28.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-10-15
End Date: 2023-08-04
Contract Duration: 1,754 days
Daily Burn Rate: $16.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BLOCK 1 PRODUCTION
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $28.2 million to LOCKHEED MARTIN CORPORATION for work described as: BLOCK 1 PRODUCTION Key points: 1. The contract value is $28.18 million. 2. Lockheed Martin Corporation is the sole awardee. 3. The contract falls under 'All Other Support Services' (NAICS 561990). 4. This award is for the U.S. Special Operations Command. 5. The contract type is Cost Plus Fixed Fee.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts in the 'All Other Support Services' sector is challenging due to the broad nature of the NAICS code, but the award value appears moderate for a specialized support service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing, but the CPFF structure requires diligent oversight to ensure cost efficiency.
Taxpayer Impact: Taxpayer funds are utilized for specialized support services, with the expectation that competition and oversight will ensure value for money.
Public Impact
Supports U.S. Special Operations Command, indicating a role in critical national security functions. The duration of the contract (1754 days) suggests a long-term need for these services. Awarded to a major defense contractor, Lockheed Martin, highlighting industry concentration in specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Broad NAICS code makes specific benchmarking difficult.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supports critical Special Operations Command needs.
- Long contract duration indicates sustained requirement.
Sector Analysis
This contract falls within the broader 'Support Services' sector, which is diverse. Defense-related support services often involve specialized expertise and can command premium pricing. Benchmarking is difficult without more specific service details.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award (ss: false, sb: false). This suggests that the services required were likely beyond the scope or capacity of typical small business offerings in this domain.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of Defense to manage costs effectively and ensure that the fixed fee remains appropriate for the services rendered. The duration of the contract also implies ongoing monitoring.
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.
- Lack of specific service details.
- No small business participation.
- Broad NAICS code limits precise benchmarking.
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 $28.2 million to LOCKHEED MARTIN CORPORATION. BLOCK 1 PRODUCTION
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 $28.2 million.
What is the period of performance?
Start: 2018-10-15. End: 2023-08-04.
What specific 'Block 1 Production' services are being procured, and how do they align with Special Operations Command's mission requirements?
The provided data lacks specificity regarding 'Block 1 Production' services. Understanding the exact nature of these services is crucial for assessing their necessity and effectiveness in supporting U.S. Special Operations Command's unique and often sensitive missions. Without this detail, it's difficult to determine if the procurement directly addresses critical operational needs or if alternative, potentially more cost-effective solutions exist.
How will the Department of Defense ensure cost control and prevent potential overruns with a Cost Plus Fixed Fee contract for these specialized services?
Effective oversight is paramount for CPFF contracts. The DoD must implement stringent monitoring of all direct costs, rigorous auditing processes, and clear performance metrics. Regular reviews of the contractor's cost accounting practices and justification for incurred expenses are essential. The fixed fee itself should be periodically reviewed to ensure it remains commensurate with the complexity and risk associated with the services provided.
Given the full and open competition, what was the competitive landscape, and how did it influence the final pricing and contractor selection for this specialized support?
While full and open competition was utilized, the specific details of the bidding process and the number of competing offers are not provided. This method generally fosters a competitive environment, which should theoretically lead to favorable pricing. However, the nature of specialized support services, especially for entities like SOCOM, might limit the pool of qualified bidders, potentially impacting the degree of price competition achieved.
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: $28,178,448
Exercised Options: $28,178,448
Current Obligation: $28,178,448
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $77,672
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: 2018-10-15
Current End Date: 2023-08-04
Potential End Date: 2023-08-04 00:00:00
Last Modified: 2025-12-10
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