DoD Awards $27.6M to Lockheed Martin for Special Operations Support Services
Contract Overview
Contract Amount: $27,631,772 ($27.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-02-18
End Date: 2024-02-17
Contract Duration: 1,460 days
Daily Burn Rate: $18.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MISO LCSM: AWARD
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $27.6 million to LOCKHEED MARTIN CORPORATION for work described as: MISO LCSM: AWARD Key points: 1. Significant award to a major defense contractor. 2. Competition method indicates potential for price discovery. 3. Risk associated with sole-source or limited competition. 4. Sector is IT/Support Services, a common area for large contracts.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Benchmarking against similar support services contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary services.
Public Impact
Supports critical U.S. Special Operations Command missions. Ensures continued provision of essential support services. Potential for job creation within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires careful oversight.
- Long duration of the contract (4 years).
Positive Signals
- Awarded under full and open competition.
- Supports a critical national security agency.
Sector Analysis
This contract falls within the 'All Other Support Services' category, which is broad and can encompass a wide range of professional and technical services. Spending in this area is substantial across the federal government.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Lockheed Martin Corporation, a large prime contractor. Small businesses may be involved as subcontractors.
Oversight & Accountability
Oversight will be crucial given the Cost Plus Fixed Fee structure to ensure costs remain reasonable and performance meets requirements. The Department of Defense and SOCOM are responsible for monitoring this award.
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.
- Long contract duration.
- Broad 'All Other Support Services' category lacks specificity.
- Award to a large prime contractor, potential for limited small business prime participation.
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 $27.6 million to LOCKHEED MARTIN CORPORATION. MISO LCSM: 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 $27.6 million.
What is the period of performance?
Start: 2020-02-18. End: 2024-02-17.
What specific support services are being provided under this contract, and how do they align with SOCOM's mission requirements?
The contract is for 'All Other Support Services' (NAICS 561990). While specific details are not provided, these services typically include a broad range of non-core functions essential for operational readiness and administrative support. Understanding the precise nature of these services is key to assessing their alignment with SOCOM's unique and demanding mission requirements.
What are the potential risks associated with the Cost Plus Fixed Fee contract type for this significant award?
Cost Plus Fixed Fee (CPFF) contracts carry inherent risks of cost overruns if the government does not maintain rigorous oversight. The contractor has an incentive to control costs to maximize their fixed fee, but the government bears the risk of increased costs. Effective management and clear performance metrics are essential to mitigate these risks and ensure value for taxpayer money.
How does the $27.6 million award compare to typical spending for similar support services within SOCOM or the broader DoD?
Without specific service details, a direct comparison is challenging. However, $27.6 million for a four-year contract is a substantial award, reflecting the critical nature of support services for an organization like SOCOM. Benchmarking against contracts for similar scope and duration within the DoD's vast portfolio would be necessary to determine if this represents efficient spending.
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: $27,631,772
Exercised Options: $27,631,772
Current Obligation: $27,631,772
Subaward Activity
Number of Subawards: 79
Total Subaward Amount: $7,608,655
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: 2020-02-18
Current End Date: 2024-02-17
Potential End Date: 2024-02-17 00:00:00
Last Modified: 2025-09-30
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)