DoD's $28.6M Contract with Lockheed Martin for Support Services Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $28,567,937 ($28.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-01-15
End Date: 2021-01-18
Contract Duration: 369 days
Daily Burn Rate: $77.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: FOSOV MECHANICS: AWARD
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $28.6 million to LOCKHEED MARTIN CORPORATION for work described as: FOSOV MECHANICS: AWARD Key points: 1. Awarded to a major defense contractor, indicating significant scope. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns. 4. The sector is 'Other Support Services,' which is broad and requires further definition.
Value Assessment
Rating: fair
The contract value of $28.6 million for a 369-day duration is substantial. Benchmarking against similar 'All Other Support Services' contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the widest range of bidders and promotes price discovery. However, the specific nature of 'All Other Support Services' may limit the number of truly competitive bids.
Taxpayer Impact: The use of full and open competition is generally positive for taxpayers, as it aims to secure the best value through market forces.
Public Impact
Taxpayers may benefit from competitive pricing due to the full and open competition. The broad category of 'All Other Support Services' could encompass a wide range of activities, impacting the clarity of public understanding. The contract duration of just over one year suggests a specific, potentially short-term need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Broad service category lacks specificity, making oversight challenging.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Contract awarded to a well-established contractor.
Sector Analysis
The 'All Other Support Services' category (NAICS 561990) is very broad and can include a wide array of services not elsewhere classified. Benchmarking spending in this category is challenging due to its heterogeneity.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was not specifically set aside for small businesses.
Oversight & Accountability
The contract was awarded by the U.S. Special Operations Command, a component of the Department of Defense. Oversight would typically involve contract management teams within SOCOM to ensure performance and cost control.
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.
- Broad and undefined service category.
- No small business participation noted.
- Contract duration is relatively short, potentially indicating a specific, non-recurring need.
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 $28.6 million to LOCKHEED MARTIN CORPORATION. FOSOV MECHANICS: AWARD
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 $28.6 million.
What is the period of performance?
Start: 2020-01-15. End: 2021-01-18.
What specific services are included under 'All Other Support Services' for this contract?
The specific services encompassed by 'All Other Support Services' (NAICS 561990) for this Lockheed Martin contract are not detailed in the provided data. This broad classification can include a wide range of support functions, from administrative and general management to specialized operational support, making it difficult to assess the precise nature of the work performed without further documentation.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type in this context?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it incentivizes the contractor to control costs to protect their fee, it can also lead to cost overruns if the initial cost estimates are inaccurate or if scope creep occurs. The government bears the risk of cost increases beyond the estimate.
How does the full and open competition impact the overall effectiveness and value for taxpayers?
Full and open competition is designed to maximize the pool of potential bidders, thereby fostering a more competitive environment that should lead to better pricing and higher quality services for the government. This approach is generally considered effective in achieving value for taxpayers by leveraging market forces to identify the most capable and cost-efficient provider.
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
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: $28,567,937
Exercised Options: $28,567,937
Current Obligation: $28,567,937
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $38,062,022
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: 2020-01-15
Current End Date: 2021-01-18
Potential End Date: 2021-01-18 00:00:00
Last Modified: 2025-09-25
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