DoD's $10.4M CIRCM Kits Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $10,448,998 ($10.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2024-06-07
Contract Duration: 1,712 days
Daily Burn Rate: $6.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CIRCM KITS, INSTALLS, AND CASES
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to LOCKHEED MARTIN CORPORATION for work described as: CIRCM KITS, INSTALLS, AND CASES Key points: 1. The contract for CIRCM Kits, Installs, and Cases totals $10,448,998.39. 2. Awarded to Lockheed Martin Corporation, this contract falls under the U.S. Special Operations Command. 3. The contract was awarded using a full and open competition method. 4. The primary sector for this spending is Defense. 5. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to higher costs compared to fixed-price contracts. Benchmarking against similar support services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure may limit the competitive pressure on cost containment.
Taxpayer Impact: Taxpayer funds are being used for specialized support services, with the final cost influenced by the fee structure and potential for cost increases.
Public Impact
Ensures operational readiness for special operations forces through critical CIRCM kits. Supports advanced defense technology and integration services. Potential for follow-on work and sustainment contracts in the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can inflate costs.
- Lack of detailed cost breakdown makes precise value assessment challenging.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense capabilities for special operations.
Sector Analysis
This contract falls within the Defense sector, specifically supporting U.S. Special Operations Command. Spending benchmarks for specialized support services like CIRCM kits can vary significantly based on technology and scope.
Small Business Impact
The data does not indicate any specific involvement or subcontracting opportunities for small businesses in this contract.
Oversight & Accountability
The contract was awarded by the Department of Defense's U.S. Special Operations Command, implying oversight from a specialized agency. Further details on specific oversight mechanisms are not provided.
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.
- Potential for cost overruns.
- Limited transparency on detailed cost breakdowns.
- Long contract duration (ending 2024).
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 $10.4 million to LOCKHEED MARTIN CORPORATION. CIRCM KITS, INSTALLS, AND CASES
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 $10.4 million.
What is the period of performance?
Start: 2019-09-30. End: 2024-06-07.
What is the estimated total cost of ownership for these CIRCM kits over their lifecycle, including installation and maintenance?
The current contract value is $10.45 million for kits, installs, and cases. A comprehensive lifecycle cost analysis would require projections for maintenance, upgrades, and potential future support services. Without this data, the full taxpayer impact remains unclear, especially given the Cost Plus Fixed Fee structure which can incentivize higher spending.
What are the specific risks associated with the Cost Plus Fixed Fee contract type for this acquisition?
The primary risk of a Cost Plus Fixed Fee contract is that the contractor is reimbursed for all allowable costs plus a fixed fee. This can reduce the incentive for the contractor to control costs, potentially leading to higher overall expenditures than anticipated. It also makes precise budgeting more challenging for the government.
How effectively does this contract contribute to the overall mission readiness and technological advantage of U.S. Special Operations Command?
CIRCM kits are crucial for protecting aircraft from missile threats, directly enhancing mission survivability and effectiveness. The contract's success hinges on timely delivery, proper installation, and reliable performance of the kits. While the award suggests a need, the long-term effectiveness depends on the technology's capabilities and integration with existing systems.
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: $10,448,998
Exercised Options: $10,448,998
Current Obligation: $10,448,998
Actual Outlays: $355,305
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $521,053
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: 2019-09-30
Current End Date: 2024-06-07
Potential End Date: 2024-06-07 00:00:00
Last Modified: 2025-12-17
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