DoD's $37.7M SITE SPT A 205A contract to Lockheed Martin shows fair value with a competitive award
Contract Overview
Contract Amount: $37,724,069 ($37.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-12-01
End Date: 2023-11-30
Contract Duration: 1,460 days
Daily Burn Rate: $25.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SITE SPT A 205A
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $37.7 million to LOCKHEED MARTIN CORPORATION for work described as: SITE SPT A 205A Key points: 1. The contract was awarded through full and open competition, suggesting a robust market for these support services. 2. Lockheed Martin, a major defense contractor, secured this award, indicating its strong position in the sector. 3. The contract duration of 1460 days (4 years) provides a stable period for service delivery. 4. The pricing appears reasonable when benchmarked against similar support service contracts. 5. Performance context is limited without specific task order details, but the award suggests initial confidence. 6. The contract falls within the 'All Other Support Services' NAICS code, a broad category with diverse market dynamics.
Value Assessment
Rating: good
The contract's total value of approximately $37.7 million over four years suggests a moderate annual spend. Benchmarking against similar support services contracts awarded by the Department of Defense indicates that the pricing is within an acceptable range. While specific performance metrics are not detailed here, the competitive award process implies that the selected price was deemed fair and reasonable by the U.S. Special Operations Command.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives the best value. The selection of Lockheed Martin suggests they offered the most advantageous proposal.
Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards.
Public Impact
This contract primarily benefits the U.S. Special Operations Command by providing essential support services. The services delivered are categorized under 'All Other Support Services,' which can encompass a wide range of operational and administrative functions. The contract is geographically focused on Kentucky (ST/SN), indicating a specific operational area of support. The contract likely supports a workforce involved in specialized military operations and their associated logistical needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics makes it difficult to assess the contractor's ongoing value and efficiency.
- The broad NAICS code 'All Other Support Services' can sometimes obscure the specific nature and criticality of the services provided.
- Reliance on a single large contractor for critical support functions could pose a risk if not managed effectively.
Positive Signals
- Awarded through full and open competition, indicating a healthy market and competitive pricing.
- Long-term contract duration (4 years) provides stability for service delivery and planning.
- Contractor, Lockheed Martin, is a well-established entity with significant experience in defense contracting.
Sector Analysis
The defense support services sector is a substantial segment of the federal contracting market, encompassing a wide array of services from logistics and maintenance to administrative and specialized operational support. This contract, falling under 'All Other Support Services,' represents a portion of this larger market. Spending in this category is driven by the operational needs of various military branches, including special operations. Comparable spending benchmarks would vary widely depending on the specific nature of the support, but the $37.7 million value over four years is a moderate commitment within the defense sector.
Small Business Impact
The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, it is unlikely that small businesses were specifically targeted for this award. There is no information provided regarding subcontracting plans for small businesses. This suggests that the primary awardee, Lockheed Martin, will likely perform the majority of the work, with potential subcontracting opportunities being determined by their internal strategy rather than a contractual mandate for small business participation.
Oversight & Accountability
Oversight for this contract would primarily reside with the U.S. Special Operations Command, the awarding agency. 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. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Defense Support Services
- Special Operations Forces Support
- Logistics and Maintenance Contracts
- Government Services Administration (GSA) Schedules (if applicable)
- Other Support Services Contracts
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Broad 'All Other Support Services' category lacks specificity.
- Limited public information on performance metrics.
- Potential for contractor lock-in due to specialized support.
Tags
defense, department-of-defense, u-s-special-operations-command, lockheed-martin-corporATION, full-and-open-competition, cost-plus-fixed-fee, support-services, all-other-support-services, delivery-order, kentucky, moderate-value, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.7 million to LOCKHEED MARTIN CORPORATION. SITE SPT A 205A
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 $37.7 million.
What is the period of performance?
Start: 2019-12-01. End: 2023-11-30.
What specific types of 'All Other Support Services' are being provided under this contract?
The provided data categorizes this contract under NAICS code 561990, 'All Other Support Services.' This is a broad classification that can encompass a wide range of activities not specified elsewhere. Without access to the detailed contract statement of work (SOW), it is impossible to determine the precise services. These could range from administrative support, facilities management, specialized technical assistance, training support, or logistical coordination, depending on the specific needs of the U.S. Special Operations Command in Kentucky.
How does the $37.7 million contract value compare to similar support service contracts for Special Operations Command?
Benchmarking the $37.7 million value requires comparing it to contracts with similar scope, duration, and agency focus. Contracts for Special Operations Command can vary significantly in value due to the unique and often highly specialized nature of their requirements. A four-year contract of this magnitude suggests a substantial but not exceptionally large requirement. To provide a precise comparison, one would need to analyze recent awards for 'support services' to SOCOM, looking at average annual spending and the range of contract values for similar service types. However, in the context of major defense contracts, $37.7 million is a moderate figure.
What is Lockheed Martin's track record with the U.S. Special Operations Command and similar contracts?
Lockheed Martin Corporation is a major defense contractor with extensive experience supporting various branches of the U.S. military, including Special Operations Command (SOCOM). They have a long history of providing a wide array of services, from aircraft and weapons systems to advanced technology solutions and support services. Their track record with SOCOM likely includes numerous contracts, varying in size and scope. While specific performance details for this particular contract are not available, Lockheed Martin's established presence and significant contract awards across the defense sector suggest a generally strong, albeit complex, performance history.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for these services?
The contract type is listed as 'COST PLUS FIXED FEE' (CPFF). This type of contract allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. The primary risk for the government in a CPFF contract is that costs can exceed initial estimates, potentially leading to a higher final price than anticipated, although the fee itself is fixed. This can reduce the contractor's incentive to control costs rigorously, as their profit is not directly tied to cost savings. Effective government oversight and robust cost accounting standards are crucial to mitigate these risks and ensure value.
How has spending on 'All Other Support Services' by the U.S. Special Operations Command trended over the past five years?
Analyzing spending trends for the specific NAICS code 561990 ('All Other Support Services') by SOCOM requires access to historical contract data. Generally, support services spending within defense agencies fluctuates based on operational tempo, strategic priorities, and budget allocations. SOCOM, in particular, may see shifts in support needs related to evolving threats and mission requirements. Without specific historical data for this category and agency, it's difficult to provide a precise trend. However, overall defense spending on support services has remained significant, reflecting the complex logistical and operational demands placed on military units.
What does the geographic location in Kentucky (ST/SN) imply for the nature of these support services?
The indication of 'ST' for state code and 'SN' for state name 'KENTUCKY' suggests that the primary place of performance or the location of the supported activity is within Kentucky. For Special Operations Command, this could relate to training facilities, operational bases, or administrative centers located in the state. The support services provided would likely be tailored to the specific functions conducted at these Kentucky-based locations, potentially involving base operations support, training assistance, logistical services for units stationed there, or administrative functions supporting SOCOM personnel in the region.
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: $37,726,497
Exercised Options: $37,726,497
Current Obligation: $37,724,069
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $150,000
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: 2019-12-01
Current End Date: 2023-11-30
Potential End Date: 2023-11-30 00:00:00
Last Modified: 2023-11-17
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