DoD Awards $63.8M for MH47G BLK II POST PROD LOT 3, Boosting Special Operations Support
Contract Overview
Contract Amount: $63,793,534 ($63.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-06-29
End Date: 2025-08-15
Contract Duration: 1,508 days
Daily Burn Rate: $42.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MH47G BLK II POST PROD LOT 3 (P11)
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $63.8 million to LOCKHEED MARTIN CORPORATION for work described as: MH47G BLK II POST PROD LOT 3 (P11) Key points: 1. Significant contract value of $63.8 million for post-production support. 2. Lockheed Martin Corporation is the sole awardee, raising questions about competition. 3. Potential risk associated with a single-source award for critical support services. 4. Spending falls under 'All Other Support Services' sector, requiring careful benchmarking.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar support services contracts is crucial to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded as a Delivery Order, the contract states 'FULL AND OPEN COMPETITION'. However, the award to a single contractor, Lockheed Martin Corporation, warrants scrutiny to ensure true price discovery and competitive pressure.
Taxpayer Impact: Taxpayer funds are being utilized for essential post-production support. Ensuring competitive pricing and efficient service delivery is key to maximizing taxpayer value.
Public Impact
Enhances readiness and operational capabilities for U.S. Special Operations Command. Supports advanced helicopter platform maintenance and upgrades. Potential for job creation and economic activity in Kentucky.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Single awardee for critical support
- Lack of detailed performance metrics in provided data
Positive Signals
- Supports critical Special Operations Command mission
- Long-term contract duration
- Awarded in Kentucky, potentially supporting local economy
Sector Analysis
This contract falls under 'All Other Support Services,' a broad category. Benchmarking against similar specialized support services for defense platforms is essential to determine if the $63.8 million represents a fair price.
Small Business Impact
The provided data indicates the awardee is Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific award, suggesting limited opportunities for SMBs.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to prevent cost creep. The Special Operations Command and the Department of Defense must ensure rigorous monitoring of performance and expenditures.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Limited visibility into the competitive process despite 'full and open' designation.
- Dependence on a single contractor for critical support.
- Lack of specific performance metrics in the provided data.
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 $63.8 million to LOCKHEED MARTIN CORPORATION. MH47G BLK II POST PROD LOT 3 (P11)
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 $63.8 million.
What is the period of performance?
Start: 2021-06-29. End: 2025-08-15.
What specific post-production support services are included in this contract, and how do they align with operational needs?
The contract covers post-production support for the MH47G BLK II helicopter. This likely includes maintenance, repair, logistics, and potentially upgrades or modifications necessary to keep the aircraft operational and effective for Special Operations Command missions. Detailed service descriptions are needed to fully assess alignment with evolving operational requirements.
How was the 'full and open competition' process managed to ensure fair pricing and prevent contractor lock-in?
While stated as 'full and open competition,' the award to a single entity, Lockheed Martin Corporation, raises questions. The contracting agency must demonstrate that multiple bids were solicited and evaluated, and that the final price reflects competitive pressures. Transparency regarding the solicitation and evaluation process is key to justifying the award.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?
Key performance indicators are essential for a Cost Plus Fixed Fee contract to ensure effectiveness and value. These should include metrics related to aircraft availability, turnaround time for repairs, quality of work, and adherence to delivery schedules. Regular performance reviews against these KPIs will be critical for oversight.
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: $63,793,534
Exercised Options: $63,793,534
Current Obligation: $63,793,534
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $13,136
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: 2021-06-29
Current End Date: 2025-08-15
Potential End Date: 2025-08-15 00:00:00
Last Modified: 2025-12-10
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