DoD's $11M Lockheed Martin Task Order for AGVM Support Under Scrutiny for Value and Competition
Contract Overview
Contract Amount: $11,031,532 ($11.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-12-05
End Date: 2023-09-29
Contract Duration: 1,394 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: A GMV 1.1 AGVM SUPPORT TASK ORDER
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $11.0 million to LOCKHEED MARTIN CORPORATION for work described as: A GMV 1.1 AGVM SUPPORT TASK ORDER Key points: 1. The $11.03M task order awarded to Lockheed Martin for AGVM support raises questions about value for money given the cost-plus-fixed-fee contract type. 2. Full and open competition was cited, but the specific impact on price discovery for these specialized support services needs further examination. 3. The contract duration of 1394 days suggests a significant commitment, highlighting the importance of ongoing oversight. 4. The lack of small business participation is noted, potentially limiting broader economic impact and innovation.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor spending, potentially leading to higher costs than fixed-price contracts. Benchmarking this specific AGVM support against similar services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open competition, the effectiveness of this method in achieving competitive pricing for specialized AGVM support services is not immediately clear. Further analysis of the bidding process and award justification is needed.
Taxpayer Impact: The potential for cost overruns in CPFF contracts means taxpayers could be paying more than necessary if not rigorously managed.
Public Impact
Special Operations Command's reliance on a single large contractor for critical support services. Potential for increased costs due to the CPFF contract structure. Limited visibility into the specific services provided under AGVM support. The long contract duration may indicate a critical, ongoing need, but also a risk of vendor lock-in.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract type may lead to higher costs.
- Limited transparency on specific service costs.
- No small business participation.
- Long contract duration.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical Special Operations Command needs.
Sector Analysis
This task order falls under 'All Other Support Services' (NAICS 561990), a broad category. Benchmarking is challenging without specific service details, but government support services often represent a significant portion of the defense budget.
Small Business Impact
The absence of small business participation in this significant task order is a missed opportunity to foster competition and leverage specialized capabilities within the small business sector. It's important to assess if opportunities were adequately advertised or if barriers to entry existed.
Oversight & Accountability
Oversight of CPFF contracts is crucial to ensure cost efficiency and prevent scope creep. The Special Operations Command must maintain rigorous monitoring of Lockheed Martin's expenditures and performance to safeguard taxpayer funds.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost-plus contract type.
- Lack of small business participation.
- Limited detail on specific services.
- Long contract duration.
- Potential for cost overruns.
- Need for robust oversight.
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 $11.0 million to LOCKHEED MARTIN CORPORATION. A GMV 1.1 AGVM SUPPORT TASK ORDER
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 $11.0 million.
What is the period of performance?
Start: 2019-12-05. End: 2023-09-29.
What specific AGVM support services are being provided, and how do they align with the fixed fee component of the contract?
The specific AGVM support services are not detailed in the provided data. In a Cost Plus Fixed Fee (CPFF) contract, the 'cost plus' refers to the reimbursement of allowable costs incurred by the contractor, while the 'fixed fee' is the predetermined profit. The fee is fixed regardless of the actual costs, but the contractor is incentivized to manage costs to maximize their profit margin relative to the fee. Understanding the services is key to assessing if the fixed fee is appropriate and if costs are being controlled.
How effectively did the 'full and open competition' process ensure the best value for these specialized support services?
While 'full and open competition' is the preferred method, its effectiveness in achieving best value depends on the specifics of the solicitation, the clarity of requirements, and the responsiveness of the market. For specialized services like AGVM support, it's possible that only a limited number of contractors possess the necessary expertise. Further analysis would be needed to confirm if the solicitation adequately defined requirements to attract robust competition and if the evaluation criteria prioritized value beyond just the lowest price.
What are the potential risks associated with the long duration and CPFF structure of this task order?
The primary risks associated with a long-duration CPFF contract include potential cost overruns if costs are not tightly controlled, as the government reimburses allowable expenses. There's also a risk of reduced incentive for efficiency if oversight is lax. The long duration can also lead to vendor lock-in, making it difficult to switch providers or renegotiate terms. Effective program management and stringent oversight are critical to mitigate these risks.
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: $11,031,582
Exercised Options: $11,031,582
Current Obligation: $11,031,532
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $9,862,107
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: 2019-12-05
Current End Date: 2023-09-29
Potential End Date: 2023-09-29 00:00:00
Last Modified: 2025-09-15
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