DoD Awards $9M Lockheed Martin Contract for Aircraft Support Services
Contract Overview
Contract Amount: $9,031,527 ($9.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-11-24
End Date: 2023-03-13
Contract Duration: 474 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PHASE AIRCRAFT #1
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $9.0 million to LOCKHEED MARTIN CORPORATION for work described as: PHASE AIRCRAFT #1 Key points: 1. Contract awarded to a single, large defense contractor. 2. Full and open competition was utilized. 3. Potential for cost overruns exists with Cost Plus Fixed Fee contract type. 4. Services are categorized under 'All Other Support Services'.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure allows for potential cost escalation beyond initial estimates. Benchmarking against similar aircraft support contracts is difficult without more detailed service breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee pricing structure may not always yield the most cost-effective outcome for taxpayers.
Taxpayer Impact: Taxpayer funds are utilized for aircraft support services, with the final cost dependent on actual expenses incurred plus a fixed fee.
Public Impact
Ensures continued operational readiness for specialized aircraft. Supports critical missions for U.S. Special Operations Command. Potential impact on budget allocation for other defense priorities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of specific performance metrics
- Potential for scope creep
Positive Signals
- Awarded via full and open competition
- Supports critical SOCOM missions
Sector Analysis
This contract falls under general support services for aviation assets, a common but often complex area within the defense sector. Spending benchmarks for such services vary widely based on aircraft type and mission requirements.
Small Business Impact
The contract was not awarded to small businesses, indicating a lack of opportunity for smaller enterprises in this specific procurement.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs remain reasonable and within scope. The Department of Defense and U.S. Special Operations Command are responsible for monitoring performance and expenditures.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee pricing
- Lack of detailed service scope
- Potential for cost escalation
- No small business participation
Tags
all-other-support-services, department-of-defense, ky, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.0 million to LOCKHEED MARTIN CORPORATION. PHASE AIRCRAFT #1
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 $9.0 million.
What is the period of performance?
Start: 2021-11-24. End: 2023-03-13.
What specific aircraft are covered under this support contract, and what is the projected impact on their operational readiness?
The data does not specify the exact aircraft models. However, support services are critical for maintaining the operational readiness of specialized aircraft used by U.S. Special Operations Command. Without this contract, aircraft availability for critical missions could be significantly impacted, potentially delaying or jeopardizing operations.
How does the Cost Plus Fixed Fee structure mitigate or exacerbate risks associated with cost overruns for this aircraft support contract?
The Cost Plus Fixed Fee structure shifts some financial risk to the government. While the contractor's profit is fixed, the government bears the risk of actual costs exceeding estimates. This can incentivize contractors to incur higher costs, potentially leading to overruns if not rigorously overseen.
What measures are in place to ensure the effectiveness and efficiency of the 'All Other Support Services' provided under this contract?
Effectiveness and efficiency are typically ensured through contract performance metrics, regular reporting requirements, and government oversight. For this contract, the Department of Defense and U.S. Special Operations Command would be responsible for monitoring service delivery, adherence to schedules, and overall performance against mission needs.
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: $9,031,527
Exercised Options: $9,031,527
Current Obligation: $9,031,527
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $94,098
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: 2021-11-24
Current End Date: 2023-03-13
Potential End Date: 2023-03-13 00:00:00
Last Modified: 2025-12-08
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