DoD's $55.3M PEO MARITIME LCSM contract awarded to Lockheed Martin for support services

Contract Overview

Contract Amount: $55,356,836 ($55.4M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-04-23

End Date: 2023-04-22

Contract Duration: 729 days

Daily Burn Rate: $75.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PEO MARITIME LCSM

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $55.4 million to LOCKHEED MARTIN CORPORATION for work described as: PEO MARITIME LCSM Key points: 1. Contract value represents a significant investment in specialized support services. 2. Competition dynamics suggest a potentially robust bidding process for this service category. 3. Risk indicators are moderate, requiring careful monitoring of performance and cost. 4. Performance context is tied to specific maritime support needs within the Special Operations Command. 5. Sector positioning places this contract within the broader defense services industry.

Value Assessment

Rating: fair

The contract's value of $55.3 million for support services appears within a reasonable range for specialized defense contracts of this nature. Benchmarking against similar contracts for PEO MARITIME LCSM or comparable support services within SOCOM would provide a clearer picture of value for money. Without specific per-unit cost data or detailed service breakdowns, a definitive assessment of pricing efficiency is challenging. However, the cost-plus-fixed-fee structure necessitates close oversight to ensure costs remain controlled and the fixed fee is justified by the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The use of full and open competition suggests that the agency sought the best value from a wide range of potential contractors, which can lead to more innovative solutions and cost savings.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and higher quality services due to a competitive bidding environment. This approach aims to ensure that government funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the U.S. Special Operations Command, receiving critical support services for maritime operations. Services delivered likely encompass a range of technical, logistical, or operational support essential for LCSM programs. Geographic impact is concentrated around operational areas of SOCOM, potentially including naval bases or deployment zones. Workforce implications may involve specialized technical personnel employed by the contractor to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost overruns if not managed diligently.
Lack of specific performance metrics makes it difficult to assess the true value delivered.
The broad 'All Other Support Services' NAICS code may obscure the specific nature and criticality of the services provided.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Contract duration of two years provides a stable period for service delivery.
The contractor, Lockheed Martin, is a major defense industry player with extensive experience.

Sector Analysis

This contract falls within the broader defense services sector, a significant segment of the federal procurement landscape. The market for specialized support services to military branches, particularly for advanced platforms like those managed by PEO MARITIME LCSM, is substantial. Comparable spending benchmarks would involve analyzing other contracts for similar support functions within the Department of Defense, especially those related to naval systems or special operations. The size of this contract, approximately $55.3 million, is moderate within the context of large defense contracts but significant for the specific services procured.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the prime contractor, Lockheed Martin, is expected to fulfill the majority of the work, and opportunities for small businesses may be limited unless they are direct subcontractors to Lockheed Martin. Further analysis of subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, specifically within U.S. Special Operations Command. Accountability measures are typically embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

PEO MARITIME
Littoral Combat Ship (LCS)
Naval Support Services
Special Operations Forces Support
Defense Logistics Support

Risk Flags

Cost-plus-fixed-fee contract type requires careful cost monitoring.
Broad NAICS code may obscure specific service details and risks.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.4 million to LOCKHEED MARTIN CORPORATION. PEO MARITIME LCSM

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 $55.4 million.

What is the period of performance?

Start: 2021-04-23. End: 2023-04-22.

What is the specific nature of the 'All Other Support Services' provided under this contract?

The NAICS code 561990, 'All Other Support Services,' is a broad category that encompasses a wide range of non-classified support activities. For this specific contract, PEO MARITIME LCSM (Program Executive Office, Maritime, Littoral Combat Ship Mission) implies that the services are likely related to the sustainment, operation, or enhancement of Littoral Combat Ships or their mission systems. This could include technical support, maintenance planning, logistical coordination, training development, or program management support. Without more granular detail in the contract award data, the exact services remain generalized under this NAICS code. Further investigation into contract line item numbers (CLINs) or attached statements of work would be necessary for a precise definition.

How does the cost-plus-fixed-fee (CPFF) pricing structure impact value for money in this contract?

The Cost-Plus-Fixed-Fee (CPFF) pricing structure means the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is subject to change, making it difficult to estimate costs accurately upfront. For value for money, CPFF presents a mixed bag. On one hand, it allows flexibility to adapt to evolving requirements. On the other hand, it can incentivize contractors to incur higher costs, as their reimbursement is tied to actual expenses. The fixed fee, however, provides a predictable profit margin. Effective oversight, stringent cost controls, and clear performance metrics are crucial to ensure that the government receives good value and that costs do not escalate unnecessarily. The fixed fee should be proportionate to the effort and risk involved.

What is Lockheed Martin's track record with similar support service contracts for the Department of Defense?

Lockheed Martin Corporation is a major defense contractor with extensive experience in providing a wide array of support services across numerous Department of Defense programs. Their track record includes complex logistics, maintenance, systems integration, and program management for various platforms, including naval vessels. While specific performance data for this particular contract is not detailed here, Lockheed Martin's history suggests a capacity to handle large-scale, technically demanding support requirements. However, like any large contractor, they have faced scrutiny on past contracts regarding cost performance and schedule adherence. A comprehensive assessment would involve reviewing past performance evaluations and any contract disputes or corrective actions related to similar service contracts within the DoD.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such details are outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For a contract of this nature, KPIs might relate to response times for technical support, availability of personnel, successful completion of maintenance tasks, adherence to delivery schedules for parts or services, or overall mission readiness impact. The absence of this information in the summary data means that assessing the contractor's performance effectiveness is not possible from this dataset alone. A review of the full contract documentation would be required to identify and evaluate these critical performance measures.

How does this contract's value compare to historical spending on PEO MARITIME LCSM support services?

To compare this contract's value ($55.3 million) to historical spending on PEO MARITIME LCSM support services, one would need access to historical contract data for this specific program executive office and its associated platforms, such as the Littoral Combat Ship. This would involve querying federal procurement databases (like FPDS or USASpending) for prior awards related to LCS Mission Systems support, maintenance, or related services. Factors such as inflation, changes in program scope, and evolving operational requirements would need to be considered for a meaningful comparison. Without that historical data readily available here, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending compared to previous periods.

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

Parent Company: Lockheed Martin Corp

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: $55,356,836

Exercised Options: $55,356,836

Current Obligation: $55,356,836

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $12,544,287

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