DoD's $35.5M Logistics Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $35,457,930 ($35.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-03-28
End Date: 2020-04-19
Contract Duration: 388 days
Daily Burn Rate: $91.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: LOGISTICS, MAINTENANCE, AND RESET
Place of Performance
Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $35.5 million to LOCKHEED MARTIN CORPORATION for work described as: LOGISTICS, MAINTENANCE, AND RESET Key points: 1. Contract value of $35.5 million for logistics, maintenance, and reset services. 2. Awarded to Lockheed Martin Corporation, a major defense contractor. 3. Utilized full and open competition, suggesting a competitive bidding process. 4. Services fall under 'All Other Support Services' within the logistics sector.
Value Assessment
Rating: good
The contract type is Cost Plus Incentive Fee, which allows for shared savings if costs are below target. This can incentivize efficiency. The award amount is substantial for the specified period.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple bidders were likely considered, promoting price discovery and potentially leading to a more competitive price. The award was a delivery order against a larger contract.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.
Public Impact
Supports U.S. Special Operations Command's critical logistics and maintenance needs. Ensures readiness and operational effectiveness of special operations forces. Potential impact on the broader defense logistics and support services market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Awarded to a well-established defense contractor.
- Services support critical SOCOM operations.
Sector Analysis
This contract falls within the defense logistics and support services sector, which is a significant area of government spending. Benchmarks for similar services can vary widely based on scope and duration.
Small Business Impact
The data indicates the prime contractor is Lockheed Martin Corporation, a large business. There is no specific information provided regarding subcontracting to small businesses on this particular delivery order.
Oversight & Accountability
The contract was awarded by the Department of Defense, U.S. Special Operations Command, suggesting oversight from a major federal agency. The use of delivery orders implies a structured procurement process.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Broad NAICS code may obscure specific service details.
- CPIF contracts can sometimes lead to cost growth if not managed tightly.
- Lack of explicit small business subcontracting data.
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 $35.5 million to LOCKHEED MARTIN CORPORATION. LOGISTICS, MAINTENANCE, AND RESET
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 $35.5 million.
What is the period of performance?
Start: 2019-03-28. End: 2020-04-19.
What is the specific nature of the 'logistics, maintenance, and reset' services provided under this contract?
The 'All Other Support Services' NAICS code (561990) is broad. These services likely encompass a range of activities critical to maintaining and preparing equipment and assets for special operations forces. This could include repair, overhaul, supply chain management, and readiness support for various platforms and systems.
How does the Cost Plus Incentive Fee (CPIF) structure impact the final cost and contractor performance?
A CPIF contract sets target costs and target profits. If the final cost is below the target, both the government and contractor share in the savings. Conversely, if costs exceed the target, the contractor's profit is reduced. This structure incentivizes the contractor to control costs while maintaining performance standards.
What is the historical performance and pricing trend for Lockheed Martin in similar logistics and maintenance contracts?
Assessing Lockheed Martin's historical performance and pricing requires a deeper dive into past contracts, including their execution, cost overruns or underruns, and customer satisfaction ratings. Benchmarking against their previous awards for similar services would provide insight into whether this $35.5 million award represents competitive pricing.
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 INCENTIVE FEE (V)
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: $35,457,930
Exercised Options: $35,457,930
Current Obligation: $35,457,930
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: 2019-03-28
Current End Date: 2020-04-19
Potential End Date: 2020-04-19 00:00:00
Last Modified: 2021-08-11
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