DoD awards $11.2M contract to Lockheed Martin for support services, highlighting full and open competition

Contract Overview

Contract Amount: $11,220,493 ($11.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2019-03-26

End Date: 2021-03-25

Contract Duration: 730 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF RELEASE AWARD FOR SERVICES CPFF - BASE PERIOD

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF RELEASE AWARD FOR SERVICES CPFF - BASE PERIOD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can shift risk to the government. 3. The base period duration is 730 days, indicating a medium-term service requirement. 4. The award value of $11.2 million for the base period requires careful benchmarking against similar services. 5. The contractor, Lockheed Martin, is a large, established defense contractor. 6. The specific service category (All Other Support Services) is broad and requires further definition for detailed analysis.

Value Assessment

Rating: fair

The contract value of $11.2 million for a two-year base period for 'All Other Support Services' is difficult to benchmark without more specific service details. CPFF contracts can sometimes lead to higher costs for the government if not managed closely, as the contractor is reimbursed for costs plus a fixed fee. Comparing this to similar support service contracts within the U.S. Special Operations Command (SOCOM) or the broader Department of Defense (DoD) would be necessary to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select from a wide range of potential contractors. The use of full and open competition is a positive indicator for achieving a competitive price.

Taxpayer Impact: Taxpayers benefit from the potential for a more competitive price due to the open bidding process. This approach aims to ensure that government funds are used efficiently by leveraging market forces.

Public Impact

This contract likely supports U.S. Special Operations Command (SOCOM) operations, indirectly benefiting national security objectives. The services provided are categorized broadly as 'All Other Support Services,' suggesting a role in enabling SOCOM's mission. The contract is being performed in Kentucky (ST), indicating a potential impact on the local workforce and economy in that state. The specific nature of the support services will determine the direct impact on military readiness and operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can incentivize cost overruns if not rigorously monitored.
The broad 'All Other Support Services' category lacks specificity, making performance assessment challenging.
Reliance on a single large contractor like Lockheed Martin could limit future competition or flexibility.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The contractor, Lockheed Martin, has extensive experience in defense contracting.
The contract is for a defined base period, allowing for reassessment of needs and performance.

Sector Analysis

The defense sector is characterized by complex, high-value contracts for a wide range of goods and services. Support services, like those procured here, are critical for enabling military operations and maintaining readiness. Spending in this category can vary significantly based on geopolitical events and specific military requirements. Benchmarking this contract's value would involve comparing it to other support service contracts awarded by SOCOM or the DoD, considering the specific nature of the services and the contractor's overhead structure.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Lockheed Martin is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would need to be reviewed to understand the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Special Operations Command contracting office and potentially the Department of Defense Inspector General. The CPFF structure necessitates close monitoring of costs and performance to ensure value for money and prevent contractor overreach. Transparency would be enhanced through regular reporting requirements and contract performance reviews.

Related Government Programs

Special Operations Forces Support Services
Department of Defense Other Support Services
Lockheed Martin Defense Contracts
Cost Plus Fixed Fee Service Contracts

Risk Flags

CPFF Contract Type
Broad Service Category
Large Prime Contractor Reliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF RELEASE AWARD FOR SERVICES CPFF - BASE PERIOD

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 $11.2 million.

What is the period of performance?

Start: 2019-03-26. End: 2021-03-25.

What specific services are included under 'All Other Support Services' for SOCOM, and how do they align with SOCOM's mission requirements?

The classification 'All Other Support Services' (NAICS 561990) is a broad category encompassing a wide array of non-professional, non-technical support activities not elsewhere classified. For SOCOM, this could range from logistical support, facility maintenance, administrative assistance, to specialized operational support. Without the detailed Statement of Work (SOW), it's impossible to ascertain the precise services. However, given SOCOM's unique mission set, these services are likely tailored to enhance the operational effectiveness, readiness, and administrative functions of special operations forces. Understanding the specific tasks is crucial for assessing performance, risk, and value for money, as the cost and impact can vary dramatically depending on the nature of the support.

How does the $11.2 million base period cost compare to similar support service contracts awarded by SOCOM or the DoD?

Benchmarking the $11.2 million base period cost requires comparing it against contracts with similar scope, duration, and complexity within the defense sector, specifically SOCOM. The 'All Other Support Services' category is very broad, making direct comparisons challenging without a detailed SOW. However, if this contract involves routine administrative or logistical support, $11.2 million over two years ($5.6 million annually) might be within a reasonable range for a large, complex organization like SOCOM. If it includes highly specialized or mission-critical support, the cost could be justified. A thorough analysis would involve examining contract databases for comparable services, considering factors like labor rates, overhead, and profit margins typical for CPFF contracts in this domain.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for these support services?

The Cost Plus Fixed Fee (CPFF) contract structure, while common in defense, carries inherent risks for the government. The primary risk is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the actual expenses. Effective risk mitigation requires robust government oversight, including detailed cost accounting, regular audits, and stringent performance monitoring to ensure that costs are reasonable and allocable, and that the fixed fee adequately compensates the contractor for the effort and risk undertaken. Without diligent management, CPFF contracts can lead to cost overruns compared to fixed-price alternatives.

What is Lockheed Martin's track record with SOCOM and similar support service contracts?

Lockheed Martin Corporation is a major defense contractor with extensive experience supporting various branches of the U.S. military, including SOCOM. They have a long history of delivering complex services and systems. Their track record with SOCOM likely includes a variety of support functions, ranging from technical services to operational logistics. While specific performance data for this particular contract is not detailed here, Lockheed Martin's overall reputation suggests a capacity to handle large-scale defense contracts. However, as with any large contractor, past performance reviews, contract close-outs, and any disputes or claims associated with previous SOCOM contracts would provide a more granular understanding of their reliability and effectiveness in similar service delivery.

How has federal spending on 'All Other Support Services' (NAICS 561990) evolved over the past five years, and where does this contract fit?

Federal spending on NAICS code 561990, 'All Other Support Services,' has generally seen a steady increase over the past five years, reflecting the government's reliance on external contractors for a diverse range of support functions across various agencies. This category is broad and captures services not specified elsewhere, making precise trend analysis difficult without segmenting by agency or specific service type. This $11.2 million award to Lockheed Martin by SOCOM represents a significant, albeit specific, allocation within this broader spending category. Its placement within SOCOM suggests a focus on specialized operational or administrative support critical to special operations missions, rather than general government administrative services.

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: $11,220,493

Exercised Options: $11,220,493

Current Obligation: $11,220,493

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $16,619,386

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