DoD Awards $39.5M for MH-47G BLK II Support Services to Lockheed Martin
Contract Overview
Contract Amount: $39,546,955 ($39.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-06-01
End Date: 2026-05-31
Contract Duration: 1,825 days
Daily Burn Rate: $21.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MH-47G BLK II IND SPT (LOT4) OFFSITE
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $39.5 million to LOCKHEED MARTIN CORPORATION for work described as: MH-47G BLK II IND SPT (LOT4) OFFSITE Key points: 1. Contract awarded to incumbent, Lockheed Martin, for specialized support. 2. Significant contract value suggests critical operational importance. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Sector focus on specialized aviation support services.
Value Assessment
Rating: good
The contract value of $39.5M over five years appears reasonable for specialized aviation support. Benchmarking against similar complex aircraft support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense support services.
Public Impact
Ensures continued operational readiness for critical MH-47G aircraft. Supports specialized maintenance and logistics for U.S. Special Operations Command. Impacts personnel and resources dedicated to advanced aviation support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long duration (5 years) increases exposure to potential cost escalations.
- Limited detail on specific services provided.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security assets.
- Incumbent contractor likely possesses specialized knowledge.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on support services for specialized rotary-wing aircraft. Spending benchmarks for similar support contracts are typically high due to the complexity and criticality of the equipment.
Small Business Impact
The prime contractor is Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific delivery order, which is common for highly specialized defense contracts.
Oversight & Accountability
The Department of Defense and U.S. Special Operations Command are responsible for oversight. The contract type and duration will require diligent monitoring to ensure cost control and performance.
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.
- Lack of publicly available detailed performance metrics.
- Potential for cost creep over the contract period.
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 $39.5 million to LOCKHEED MARTIN CORPORATION. MH-47G BLK II IND SPT (LOT4) OFFSITE
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 $39.5 million.
What is the period of performance?
Start: 2021-06-01. End: 2026-05-31.
What is the projected cost breakdown for the MH-47G support services over the contract period?
The contract is a Cost Plus Fixed Fee (CPFF) award, meaning the government pays the contractor's allowable costs plus a fixed fee. A detailed breakdown of projected costs for labor, parts, and overhead would be necessary for effective oversight. Without this, it's difficult to assess the efficiency of spending beyond the fixed fee.
What are the specific performance metrics and Key Performance Indicators (KPIs) for this support contract?
Performance metrics are crucial for a contract of this nature to ensure the effectiveness of the support services. KPIs would likely include aircraft availability rates, turnaround times for maintenance, and quality of repairs. The absence of publicly available specific KPIs raises concerns about objective performance measurement and accountability.
How does the pricing for this contract compare to industry benchmarks for similar specialized aviation support?
Benchmarking is essential given the CPFF structure. While the total award value is $39.5M, the actual cost to the government depends on incurred costs. Comparing labor rates, overhead application, and fee structures against similar contracts for complex military aircraft support is vital to determine if the pricing is competitive and represents good value.
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: $39,546,955
Exercised Options: $39,546,955
Current Obligation: $39,546,955
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $9,722,159
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: 2021-06-01
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2025-12-10
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