Lockheed Martin awarded $13M for hardened facility support, with a significant portion allocated to Kentucky

Contract Overview

Contract Amount: $13,028,925 ($13.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-03-20

End Date: 2026-03-19

Contract Duration: 1,825 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: HARDENED FACILITY SUPPORT 205A

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to LOCKHEED MARTIN CORPORATION for work described as: HARDENED FACILITY SUPPORT 205A Key points: 1. Contract value represents a substantial investment in specialized facility services. 2. The award to a major defense contractor suggests a need for high-level technical expertise. 3. A 5-year duration indicates a long-term requirement for these support services. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 5. The geographic focus on Kentucky highlights regional operational needs for the Special Operations Command. 6. The absence of small business set-asides may limit opportunities for smaller firms in this specific award.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without more specific service details. However, $13 million over five years for specialized hardened facility support, especially for a sensitive entity like U.S. Special Operations Command, suggests a potentially fair price given the likely complexity and security requirements. The Cost Plus Fixed Fee structure means the final cost could fluctuate, making direct price comparisons difficult. Further analysis would require understanding the specific services rendered and comparing them to similar, publicly available contracts for hardened facility operations and maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally promotes competitive pricing and allows the government to select the best value offer. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust bidding process was intended, which is positive for price discovery and ensuring a wide range of potential solutions were evaluated.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the chances of obtaining the best possible price and quality by encouraging a broad range of capable contractors to bid.

Public Impact

U.S. Special Operations Command personnel and operations benefit from secure and functional hardened facilities. Essential support services, including maintenance and operations, are delivered to ensure facility readiness. The primary geographic impact is in Kentucky, supporting regional SOCOM activities. The contract supports specialized roles within the defense sector, potentially involving skilled labor for facility management and security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
Reliance on a single large contractor for critical facility support could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Long-term contract duration (5 years) provides stability for essential services.
The contractor, Lockheed Martin, is a well-established entity with significant defense contracting experience.

Sector Analysis

This contract falls within the broader 'Support Services' sector, specifically related to facility operations and maintenance for defense applications. The market for specialized hardened facility support is niche, often dominated by large defense contractors capable of meeting stringent security and operational requirements. Comparable spending benchmarks would typically be found within the Department of Defense's facilities maintenance and base operations support categories, which can run into billions annually across various service providers.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (sb: false) and there is no indication of small business subcontracting goals (ss: false). This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if initiated by the prime contractor. Without explicit subcontracting plans, the direct impact on the small business ecosystem for this specific award appears limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Special Operations Command's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure costs remain reasonable and allocable. Transparency would be enhanced through regular reporting requirements from the contractor and potential reviews by the Government Accountability Office (GAO) or the Department of Defense's Inspector General, depending on the scale and nature of any identified issues.

Related Government Programs

Base Operations Support Services
Facilities Maintenance and Repair
Special Operations Forces Support
Defense Infrastructure Management
Government Contracting Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Long contract duration may reduce flexibility for future needs.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to LOCKHEED MARTIN CORPORATION. HARDENED FACILITY SUPPORT 205A

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 $13.0 million.

What is the period of performance?

Start: 2021-03-20. End: 2026-03-19.

What specific services are included under 'HARDENED FACILITY SUPPORT 205A'?

The designation 'HARDENED FACILITY SUPPORT 205A' is a specific line item or task order within a larger contract vehicle. While the data indicates the award is for 'All Other Support Services' (NAICS 561990), the precise nature of 'hardened facility support' typically encompasses a range of specialized services. These can include the operation and maintenance of secure, reinforced structures designed to withstand significant threats (e.g., blast, environmental hazards). Services might involve physical security, environmental controls (HVAC, power redundancy), life support systems, communication infrastructure maintenance, access control, and potentially specialized equipment upkeep within these secure environments. The '205A' likely refers to a specific task or project identifier within the contract.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset or involves a high degree of uncertainty, research, or development. For facility support, it allows the contractor to incur costs deemed necessary and reasonable to perform the work, plus a predetermined fixed fee representing profit. This differs from Fixed Price contracts, where the price is set regardless of actual costs, and Cost Plus Incentive Fee (CPIF) contracts, which adjust the fee based on performance against targets. CPFF offers flexibility for evolving requirements but places a greater burden on the government to meticulously track and audit costs to prevent overspending. It is generally considered less cost-certain for the government than fixed-price arrangements.

What is the typical cost range for hardened facility support services for entities like U.S. Special Operations Command?

Determining a precise 'typical' cost range for hardened facility support for entities like U.S. Special Operations Command (SOCOM) is difficult due to the highly specialized and often classified nature of the requirements. Costs are heavily influenced by factors such as the size and complexity of the facility, the level of hardening (e.g., against specific threats), the duration of the support, the geographic location, and the specific services required (e.g., security, life support, maintenance, IT infrastructure). Contracts for such services can range from hundreds of thousands to tens or even hundreds of millions of dollars over their lifespan. The $13 million awarded to Lockheed Martin over five years ($2.6 million annually) for this specific task order suggests a significant, but not exceptionally large, scope, likely focused on a particular facility or set of capabilities within SOCOM's broader needs.

What are the potential risks associated with a 5-year contract duration for facility support?

A 5-year duration for facility support offers stability and continuity, which can be beneficial for maintaining critical infrastructure. However, potential risks include the contractor becoming complacent or less efficient over time due to the long-term commitment. Technological advancements or changes in operational requirements might render the initial service scope outdated, necessitating costly modifications or contract renegotiations. Furthermore, a prolonged contract period can reduce opportunities for other vendors to compete and introduce innovative solutions. Effective contract management, including performance reviews and potential for mid-term adjustments, is crucial to mitigate these risks and ensure continued value for the government.

How does Lockheed Martin's track record in defense contracting influence the assessment of this award?

Lockheed Martin is one of the largest defense contractors globally, with extensive experience in complex systems integration, aerospace, defense, and security solutions. Their long history and substantial footprint in the defense sector suggest a high level of technical capability, established processes for managing large government contracts, and familiarity with stringent security and compliance requirements. This track record generally implies a lower risk of contractor failure or inability to perform. However, it also means they are a high-cost provider, and the value proposition must be carefully assessed against their pricing and the specific needs of the U.S. Special Operations Command to ensure optimal use of taxpayer funds.

What does the 'All Other Support Services' (NAICS 561990) classification imply about the contract's scope?

The North American Industry Classification System (NAICS) code 561990, 'All Other Support Services,' is a broad category that encompasses establishments primarily engaged in providing a variety of support services not elsewhere classified. This includes services like administrative support, facilities support, and other business support services. For this contract, it suggests that the 'HARDENED FACILITY SUPPORT 205A' likely involves a combination of operational, maintenance, security, and potentially logistical support functions for specialized facilities. The broadness of the code underscores the need for detailed review of the specific contract statement of work to understand the precise deliverables and ensure the pricing aligns with the complexity of the services provided.

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: $13,651,993

Exercised Options: $13,651,993

Current Obligation: $13,028,925

Subaward Activity

Number of Subawards: 57

Total Subaward Amount: $5,381,980

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