Lockheed Martin awarded $34.4M for support services by U.S. Special Operations Command

Contract Overview

Contract Amount: $34,415,010 ($34.4M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2019-08-13

End Date: 2023-08-14

Contract Duration: 1,462 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: BARE BASE DARROW SUPPORT 205A BASE

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $34.4 million to LOCKHEED MARTIN CORPORATION for work described as: BARE BASE DARROW SUPPORT 205A BASE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Performance period spans over four years, indicating a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 561990 covers 'All Other Support Services,' a broad category. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The contractor, Lockheed Martin Corporation, is a major defense contractor with extensive experience. 7. The contract is for support services, which can encompass a wide range of activities.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost control, but the cost-plus nature means the government pays for actual costs incurred plus a predetermined fee. Comparing this to similar support service contracts within the Department of Defense, particularly those for Special Operations Command, would be necessary to assess if the pricing is competitive. Given the broad nature of 'support services,' the total value could be reasonable if the scope of work is extensive and critical.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 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 fosters a competitive environment, which should theoretically lead to better pricing and value for the government. The broad competition suggests that the market has multiple capable providers for these types of support services.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among potential contractors.

Public Impact

The U.S. Special Operations Command benefits from essential support services, enabling its critical missions. The services provided are likely crucial for the operational readiness and effectiveness of special operations forces. The geographic impact is primarily within Kentucky (ST/SN), where the contract is managed or performed. The contract supports a highly specialized segment of the defense workforce, potentially involving skilled personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously managed.
The broad 'All Other Support Services' category lacks specificity, making it difficult to assess the exact nature and necessity of the services.
Lack of detailed performance metrics or outcome-based evaluations in the provided data makes it hard to gauge true value for money.
The long performance period (over 4 years) increases exposure to potential changes in requirements or market conditions.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
Contractor, Lockheed Martin, is a reputable and experienced defense industry leader.
The contract addresses a clear need for support services within a critical military command (USSOCOM).
The fixed fee component provides a degree of cost predictability for the government.

Sector Analysis

This contract falls within the broader defense support services sector, a significant segment of the federal contracting market. The defense industry is characterized by large, established players like Lockheed Martin, and contracts often involve complex, specialized services. Spending in this sector is driven by national security requirements and geopolitical factors. Comparable spending benchmarks would typically involve analyzing other support service contracts awarded to prime contractors by agencies like the Department of Defense, particularly those supporting special operations or intelligence functions.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, there are no direct small business set-aside implications. However, as a large prime contractor, Lockheed Martin may engage small businesses as subcontractors. The extent of subcontracting to small businesses would depend on the specific nature of the support services and the prime contractor's subcontracting plan, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Special Operations Command contracting office and potentially the Department of Defense Inspector General. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases like FPDS, though detailed cost breakdowns and performance reports are often considered sensitive or proprietary.

Related Government Programs

Department of Defense Support Services
U.S. Special Operations Command Contracts
Cost Plus Fixed Fee Contracts
Defense Logistics and Support Services
Federal IT and Professional Services

Risk Flags

Cost Plus Fixed Fee contract type
Broad NAICS code classification
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.4 million to LOCKHEED MARTIN CORPORATION. BARE BASE DARROW SUPPORT 205A BASE

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 $34.4 million.

What is the period of performance?

Start: 2019-08-13. End: 2023-08-14.

What is the specific nature of the 'All Other Support Services' provided under this contract?

The provided data classifies this contract under NAICS code 561990, 'All Other Support Services.' This is a broad category that can encompass a wide array of non-specific support functions not covered by other classifications. Without access to the detailed Statement of Work (SOW) or contract line item numbers (CLINs), it is impossible to determine the precise services rendered. These could range from administrative support, logistical assistance, facility maintenance, technical support, or even specialized operational support tailored to the unique needs of the U.S. Special Operations Command. The lack of specificity in the NAICS code highlights a common challenge in federal procurement data, where broad categories can obscure the true nature and value of contracted services.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is significant uncertainty in the costs involved, such as in research and development or complex service contracts. In a CPFF contract, the government reimburses the contractor for allowable costs plus a fixed fee representing profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, incentivizing contractor efficiency. For routine support services with well-defined requirements, FFP contracts are generally preferred for better cost control. However, for specialized or evolving needs within SOCOM, CPFF might be deemed necessary to ensure adequate support is provided, though it shifts more cost risk to the government. Benchmarking against similar SOCOM contracts would reveal the prevalence of CPFF versus other structures.

What is Lockheed Martin's track record with the U.S. Special Operations Command?

Lockheed Martin Corporation is a major defense contractor with a long-standing relationship with the Department of Defense, including the U.S. Special Operations Command (USSOCOM). While this specific contract award of $34.4 million is a single data point, Lockheed Martin consistently secures substantial contracts across various defense agencies for a wide range of services and products, including intelligence, surveillance, reconnaissance (ISR), command and control systems, and special operations support. Their extensive experience and established presence within the defense sector suggest a high level of familiarity with SOCOM's requirements and operational environment. However, a comprehensive assessment would require analyzing their performance history, past contract values, and any documented issues or successes specifically with USSOCOM.

What are the potential risks associated with a four-year contract for support services?

A contract duration of over four years (1462 days) for support services, especially under a Cost Plus Fixed Fee structure, presents several potential risks. Firstly, the extended period increases the likelihood of scope creep, where requirements may evolve or expand beyond the original intent, potentially leading to cost increases if not managed through formal contract modifications. Secondly, the longer timeframe means the government is committed to a specific contractor and service level for an extended period, potentially missing out on innovations or more cost-effective solutions that may emerge in the market. Thirdly, maintaining consistent oversight and performance management over such a long duration requires sustained effort and resources from the contracting agency. Finally, economic or geopolitical shifts during the contract period could impact the relevance or necessity of the services being provided.

How does this contract fit into the overall spending patterns of the U.S. Special Operations Command?

The U.S. Special Operations Command (USSOCOM) has a significant budget dedicated to supporting its unique and often sensitive missions. Spending typically focuses on specialized equipment, training, intelligence, and operational support. A $34.4 million contract for 'All Other Support Services' represents a moderate investment within the context of USSOCOM's overall annual expenditures, which can run into billions of dollars. This type of contract likely addresses a foundational need for operational continuity and effectiveness, rather than a major new capability development. Analyzing historical spending data for USSOCOM would reveal the proportion of their budget allocated to support services and the typical contract values for such requirements, providing context for this specific award.

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

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: $34,415,010

Exercised Options: $34,415,010

Current Obligation: $34,415,010

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $6,312,137

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