DoD Awards $38.6M for LCSM Support Services to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $38,647,026 ($38.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-07-01
End Date: 2022-06-30
Contract Duration: 364 days
Daily Burn Rate: $106.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FOSOV LCSM AWARD
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $38.6 million to LOCKHEED MARTIN CORPORATION for work described as: FOSOV LCSM AWARD Key points: 1. The contract is for All Other Support Services, with a total value of $38.6 million. 2. Awarded to Lockheed Martin Corporation, indicating a significant player in the defense sector. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract duration is 364 days, ending in June 2022. 5. The Special Operations Command is the contracting activity.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. However, the benchmark of $106,173 for this type of contract suggests reasonable pricing for the services rendered.
Cost Per Unit: $106,173
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, allowing multiple vendors to bid and potentially driving down costs. This method ensures the government receives competitive offers.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price, maximizing taxpayer value for the support services procured.
Public Impact
Special Operations Command receives critical support services, enhancing operational capabilities. Taxpayers benefit from a competitive bidding process that aims for cost-effectiveness. Lockheed Martin Corporation secures a significant contract, contributing to its revenue and market position. The defense sector sees continued investment in support services for advanced platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
- The specific nature of 'All Other Support Services' lacks detail, potentially obscuring performance metrics.
Positive Signals
- Full and open competition utilized.
- Awarded to a major defense contractor with proven capabilities.
- Contract duration aligns with operational needs.
Sector Analysis
This contract falls under the 'All Other Support Services' NAICS code (561990), which is broad. Defense sector spending on support services is substantial, often comprising a significant portion of overall budgets to maintain complex systems and operations.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Larger prime contractors like Lockheed Martin often subcontract, but direct awards to small businesses are not evident here.
Oversight & Accountability
The contract was awarded by the U.S. Special Operations Command, a component of the Department of Defense, which has established oversight mechanisms. However, the specific oversight for this delivery order is not detailed.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Contract type (Cost Plus Fixed Fee) can lead to cost overruns.
- Vague service description ('All Other Support Services') hinders detailed value assessment.
- No indication of small business participation.
- Lack of specific oversight details for this delivery order.
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 $38.6 million to LOCKHEED MARTIN CORPORATION. FOSOV LCSM 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 $38.6 million.
What is the period of performance?
Start: 2021-07-01. End: 2022-06-30.
What specific support services are included under this contract to ensure value for money?
The contract description 'All Other Support Services' is vague. Further details on the specific tasks, deliverables, and performance metrics would be necessary to fully assess the value for money. Without this, it's difficult to determine if the $38.6 million award directly translates to essential and efficiently provided support.
What are the potential risks associated with a Cost Plus Fixed Fee contract for these services?
Cost Plus Fixed Fee contracts carry the risk of cost overruns if the contractor's costs exceed projections, as the fixed fee remains constant. This can incentivize less efficient cost management. Robust oversight and clear performance standards are crucial to mitigate this risk and ensure the government doesn't overpay.
How effectively does this contract support the mission objectives of the U.S. Special Operations Command?
While the contract value and duration suggest a significant commitment, the effectiveness hinges on the quality and timeliness of the support services provided by Lockheed Martin. The full and open competition is a positive sign for obtaining capable services, but ongoing performance monitoring is key to ensuring mission support.
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: $38,647,026
Exercised Options: $38,647,026
Current Obligation: $38,647,026
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $7,545,492
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: 2021-07-01
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2025-09-16
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