DoD's $33.8M Logistics Contract with Lockheed Martin Raises Questions on Value and Competition
Contract Overview
Contract Amount: $33,817,777 ($33.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-04-01
End Date: 2022-03-31
Contract Duration: 729 days
Daily Burn Rate: $46.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LOGISTICS, MAINTENANCE, AND RESET
Place of Performance
Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $33.8 million to LOCKHEED MARTIN CORPORATION for work described as: LOGISTICS, MAINTENANCE, AND RESET Key points: 1. The contract awarded to Lockheed Martin for logistics, maintenance, and reset services represents a significant investment. 2. Full and open competition was cited, but the specific impact on price discovery needs further examination. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee (CPFF) structure. 4. The sector is critical for defense readiness, highlighting the importance of efficient spending.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. Benchmarking against similar logistics and maintenance contracts is crucial to assess if the $33.8M award represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open competition, the specific details of the bidding process and the number of bids received are not provided. This limits the ability to fully assess the price discovery achieved through the competition.
Taxpayer Impact: The impact on taxpayers depends heavily on the efficiency and cost-effectiveness achieved under this contract. Without further data on performance and final costs, the precise taxpayer impact is difficult to quantify.
Public Impact
Ensures operational readiness for U.S. Special Operations Command by providing essential logistics and maintenance. Supports a major defense contractor, potentially impacting jobs and the defense industrial base. The contract's duration and scope suggest a substantial commitment of taxpayer funds towards specialized support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize cost overruns.
- Lack of detailed competition metrics.
- Potential for scope creep in long-term contracts.
Positive Signals
- Addresses critical logistics and maintenance needs.
- Awarded under full and open competition.
- Supports vital Special Operations Command missions.
Sector Analysis
This contract falls within the broader defense logistics and support services sector. Spending in this area is critical for maintaining military readiness, but can be prone to cost inefficiencies if not carefully managed and benchmarked against industry standards.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no direct indication of small business participation in this specific award, suggesting potential for subcontracting opportunities but not direct prime awards.
Oversight & Accountability
Oversight of CPFF contracts is paramount to ensure costs are reasonable and allocable. The Department of Defense and U.S. Special Operations Command are responsible for monitoring performance and expenditures to ensure accountability.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Limited transparency on competition details.
- Potential for cost overruns.
- Long contract duration (729 days).
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 $33.8 million to LOCKHEED MARTIN CORPORATION. LOGISTICS, MAINTENANCE, AND RESET
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 $33.8 million.
What is the period of performance?
Start: 2020-04-01. End: 2022-03-31.
What specific performance metrics were used to justify the $33.8M award and ensure value for money?
The provided data does not include specific performance metrics tied to the $33.8M award. Assessing value for money would require examining the contract's statement of work, deliverables, and any associated performance evaluations or key performance indicators (KPIs) that were established and monitored by the agency.
How did the 'full and open competition' process ensure the most cost-effective solution was selected?
While the contract was awarded under 'full and open competition,' the data lacks details on the number of bids received, the evaluation criteria, and the comparative analysis of proposals. To confirm cost-effectiveness, one would need to review the competitive range, the rationale for selecting Lockheed Martin, and any cost-saving measures identified during the bidding process.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) structure in this contract?
The primary risk of a CPFF contract is that the contractor may have less incentive to control costs, as their fee is fixed regardless of the final project cost. This can lead to cost overruns if the government's oversight and auditing are not rigorous, potentially increasing the total expenditure beyond initial estimates.
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: $33,817,777
Exercised Options: $33,817,777
Current Obligation: $33,817,777
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: 2020-04-01
Current End Date: 2022-03-31
Potential End Date: 2022-03-31 00:00:00
Last Modified: 2025-05-22
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)