DoD's $13.3M COTS Sustainment Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $13,310,506 ($13.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-04-03
End Date: 2023-11-05
Contract Duration: 1,677 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF COTS SUSTAINMENT 1SFC CPFF - BASE PERIOD
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $13.3 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF COTS SUSTAINMENT 1SFC CPFF - BASE PERIOD Key points: 1. Contract awarded to a single, large defense contractor. 2. The contract is for COTS sustainment services. 3. Significant contract value suggests potential for ongoing support needs. 4. The award was made under full and open competition. 5. The contract duration is over 4 years.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking against similar sustainment contracts is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, though the CPFF structure warrants close monitoring for cost control.
Public Impact
Ensures continued operational readiness for critical systems supported by COTS sustainment. Supports a major defense contractor, potentially impacting the broader defense industrial base. The use of COTS software implies reliance on commercial technology, which may have implications for long-term security and supportability. The contract's value suggests a significant investment in maintaining existing capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize contractor to incur costs.
- Lack of specific performance metrics makes value assessment difficult.
- Long contract duration may not adapt to rapidly changing COTS technology.
Positive Signals
- Awarded under full and open competition.
- Supports critical U.S. Special Operations Command needs.
- Contractor is a well-established entity in defense sustainment.
Sector Analysis
This contract falls within the 'All Other Support Services' NAICS code, often encompassing a wide range of professional and technical services. Spending in this sector can vary significantly based on agency needs and the complexity of the support required.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of Defense, specifically U.S. Special Operations Command, is responsible for oversight. The CPFF structure necessitates robust oversight to manage costs and ensure performance objectives are met.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Lack of specific COTS product details.
- Absence of defined performance metrics.
- Long contract duration for COTS sustainment.
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 $13.3 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF COTS SUSTAINMENT 1SFC 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 $13.3 million.
What is the period of performance?
Start: 2019-04-03. End: 2023-11-05.
What specific COTS products or systems are being sustained under this contract, and how critical are they to SOCOM operations?
The provided data does not specify the COTS products or systems. Understanding the criticality of these systems is essential for assessing the true value and risk associated with this sustainment contract. Without this information, it's difficult to determine if the $13.3 million investment is appropriately aligned with operational priorities and potential mission impacts.
How does the Cost Plus Fixed Fee (CPFF) structure mitigate the risk of cost overruns for COTS sustainment, given the potential for evolving commercial product updates?
The CPFF structure, while allowing for cost reimbursement plus a fixed fee, can incentivize contractors to incur costs. For COTS sustainment, the risk of cost overruns is heightened by the dynamic nature of commercial products, which may require frequent updates or patches. Effective oversight and clear contract terms are crucial to manage these risks and ensure the fixed fee remains appropriate.
What performance metrics are in place to ensure the effectiveness of the sustainment services provided by Lockheed Martin?
The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Effectiveness is therefore difficult to objectively measure. Robust performance metrics related to system uptime, response times, and successful resolution of issues are necessary to ensure the government receives adequate value and that the sustainment services are truly effective.
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: $13,310,506
Exercised Options: $13,310,506
Current Obligation: $13,310,506
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $784,988
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: 2019-04-03
Current End Date: 2023-11-05
Potential End Date: 2023-11-05 00:00:00
Last Modified: 2025-09-30
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