Lockheed Martin awarded $33.7M for NSWC Range Support, with 5 years of service

Contract Overview

Contract Amount: $33,675,947 ($33.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-04-01

End Date: 2026-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NSWC RANGE SUPPORT: AWARD

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $33.7 million to LOCKHEED MARTIN CORPORATION for work described as: NSWC RANGE SUPPORT: AWARD Key points: 1. Contract value appears reasonable given the 5-year duration and specialized support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract type (Cost Plus Fixed Fee) carries inherent risk of cost overruns. 4. Performance is within the Department of Defense sector, supporting critical training and testing. 5. This award fits within the broader category of specialized support services for defense operations.

Value Assessment

Rating: good

The contract value of $33.7 million over five years averages to approximately $6.7 million annually. Without specific benchmarks for NSWC range support, it's difficult to definitively assess value. However, the duration and the nature of specialized support services suggest this is a moderate investment. The Cost Plus Fixed Fee structure, while common for complex services, requires careful monitoring to ensure costs remain controlled and represent good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the method itself suggests a robust process aimed at achieving fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential range support services.

Public Impact

The U.S. Special Operations Command (SOCOM) is the primary beneficiary, receiving critical support for its training and testing ranges. Services delivered likely include maintenance, operations, and technical support for specialized range facilities. The geographic impact is centered in Kentucky (KY), where the Naval Surface Warfare Center (NSWC) ranges are located. This contract supports a specialized workforce skilled in range operations and defense support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to maximize profit.
The long duration of the contract (5 years) increases the risk of performance degradation or evolving needs not being met.
Lack of specific performance metrics in the provided data makes it difficult to assess potential performance risks.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that can lead to better value.
The contractor, Lockheed Martin Corporation, is a large and experienced defense contractor with a significant track record.
The contract supports critical national defense functions, indicating a high level of importance and potential for positive impact.

Sector Analysis

This contract falls within the broader defense services sector, which encompasses a wide range of support activities for military operations. The market for specialized range support is likely concentrated among a few large defense contractors capable of meeting the stringent requirements. Comparable spending benchmarks are difficult to ascertain without more specific details on the services provided, but annual spending in the defense services sector is in the billions.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside provisions. However, the prime contractor may still engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Special Operations Command and the Department of Defense. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Surface Warfare Center (NSWC) Operations
Special Operations Forces Support Contracts
Defense Training and Simulation Services
Military Range Maintenance and Operations

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration (5 years) may lead to evolving needs not being met or performance degradation.
Lack of specific performance metrics in provided data hinders detailed risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.7 million to LOCKHEED MARTIN CORPORATION. NSWC RANGE 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 $33.7 million.

What is the period of performance?

Start: 2021-04-01. End: 2026-03-31.

What is Lockheed Martin Corporation's track record with similar range support contracts?

Lockheed Martin Corporation, a major defense contractor, has extensive experience supporting various military branches and agencies with complex services, including those related to training ranges and operational support. While specific details on their past NSWC range support contracts are not provided here, their broad portfolio includes areas like simulation, training systems, and facility operations. Their historical performance across numerous large-scale defense contracts suggests a capacity to manage complex projects. However, a deeper dive into their performance metrics, past issues, and client feedback on similar contracts would be necessary for a comprehensive assessment of their track record specifically for this type of service.

How does the $33.7 million contract value compare to similar range support contracts awarded by SOCOM or other DoD entities?

Benchmarking the $33.7 million contract value requires comparing it to similar range support contracts awarded by SOCOM or other Department of Defense entities. Without access to a comprehensive database of comparable contracts, a precise comparison is challenging. However, considering this is a five-year contract, the annual value is approximately $6.7 million. This figure needs to be evaluated against the scope, complexity, and specific services required for NSWC range support. Contracts for large-scale, multi-year support services for critical infrastructure like military ranges can range from several million to tens of millions of dollars annually, depending on the facility's size, technological sophistication, and operational tempo. This award appears to be within a moderate range for such specialized support.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for range support services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for range support services is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While the fixed fee incentivizes efficiency, it does not cap the total cost to the government. If the contractor incurs higher-than-expected costs due to unforeseen circumstances, scope creep, or inefficient management, the government bears the burden of these increased expenses. This necessitates robust oversight and rigorous cost tracking by the contracting agency to ensure that costs remain reasonable and that the contractor exercises due diligence in managing expenses.

How effective is full and open competition in ensuring value for money in specialized defense support services?

Full and open competition is generally considered the most effective method for ensuring value for money in defense contracting, including specialized support services. By allowing all responsible sources to compete, it fosters a dynamic environment where multiple companies vie for the contract, driving down prices and encouraging innovation. This broad competition increases the likelihood that the government will receive the best combination of price, technical capability, and performance. While the specific number of bidders for this NSWC Range Support contract is not detailed, the use of full and open competition signals an intent to leverage market forces to achieve optimal outcomes for taxpayers and the mission.

What are the potential implications of this contract on the operational readiness and capabilities of U.S. Special Operations Command?

This contract is crucial for maintaining and enhancing the operational readiness and capabilities of U.S. Special Operations Command (SOCOM). The NSWC ranges are vital facilities for training, testing, and developing the specialized skills and equipment required by special operations forces. By ensuring the effective support, maintenance, and operation of these ranges, the contract directly contributes to SOCOM's ability to conduct complex missions worldwide. Reliable range support allows for realistic training scenarios, testing of new technologies, and continuous improvement of operational tactics, all of which are essential for maintaining a strategic advantage and ensuring mission success.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract that indicate its expected effectiveness?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) associated with this contract. Typically, contracts of this nature would include detailed requirements and measurable outcomes related to range availability, equipment uptime, safety compliance, response times for maintenance, and the successful execution of support tasks. The effectiveness of the contract would be assessed against these KPIs throughout its duration. Without this information, it is difficult to quantitatively evaluate the expected effectiveness or to monitor the contractor's performance beyond general adherence to the contract terms.

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: $33,675,947

Exercised Options: $33,675,947

Current Obligation: $33,675,947

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $11,099,052

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