DoD Awards $20.3M to Lockheed Martin for PMSS Fielding Support
Contract Overview
Contract Amount: $20,265,297 ($20.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-02-11
End Date: 2025-09-05
Contract Duration: 2,033 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PMSS FIELDING SUPPORT: AWARD
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $20.3 million to LOCKHEED MARTIN CORPORATION for work described as: PMSS FIELDING SUPPORT: AWARD Key points: 1. Contract awarded to a single, large defense contractor. 2. Full and open competition was utilized. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. Spending is within the 'All Other Support Services' sector.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs than 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 under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may limit price discovery and incentivize cost escalation.
Taxpayer Impact: Taxpayer funds are being used for specialized support services, with the final cost influenced by actual expenses plus a fixed fee.
Public Impact
Ensures continued operational readiness for PMSS systems. Supports U.S. Special Operations Command's mission. Potential for cost growth impacts overall budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (over 5 years)
Positive Signals
- Awarded under full and open competition
- Supports critical SOCOM operations
Sector Analysis
This contract falls under 'All Other Support Services,' a broad category. Benchmarking requires comparison with similar specialized support services for defense systems, which can vary widely.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the awardee is a large corporation, suggesting limited direct participation for small businesses in this specific award.
Oversight & Accountability
Oversight will be crucial to monitor costs and performance under the Cost Plus Fixed Fee structure, ensuring the contractor meets objectives efficiently and effectively.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee structure
- Potential for cost escalation
- Long contract duration
- Lack of small business participation noted
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 $20.3 million to LOCKHEED MARTIN CORPORATION. PMSS FIELDING SUPPORT: 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 $20.3 million.
What is the period of performance?
Start: 2020-02-11. End: 2025-09-05.
What is the estimated total cost if the contractor incurs maximum allowable costs?
The contract is a Cost Plus Fixed Fee (CPFF) award. The total value of $20.3M represents the estimated cost plus the fixed fee. The actual cost is not capped, meaning the government could pay more if the contractor's allowable costs exceed the initial estimate, plus the agreed-upon fixed fee.
What are the primary risks associated with a Cost Plus Fixed Fee contract for this service?
The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fee. This structure provides less incentive for the contractor to control costs compared to fixed-price contracts, potentially leading to higher overall expenditure for the government.
How does the 'All Other Support Services' category typically benchmark against other defense spending?
The 'All Other Support Services' category is very broad and can encompass a wide range of activities. Benchmarking is challenging without specific details on the services provided. However, support services are a significant component of overall defense spending, essential for maintaining readiness and operational capabilities.
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: $20,265,297
Exercised Options: $20,265,297
Current Obligation: $20,265,297
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $15,113,275
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: 2020-02-11
Current End Date: 2025-09-05
Potential End Date: 2025-09-05 00:00:00
Last Modified: 2025-09-17
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