DoD's $33.5M Lockheed Martin contract for support services shows fair value with a 92% performance rating
Contract Overview
Contract Amount: $33,547,163 ($33.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-04-01
End Date: 2023-03-31
Contract Duration: 364 days
Daily Burn Rate: $92.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LMR SPR FY22
Place of Performance
Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $33.5 million to LOCKHEED MARTIN CORPORATION for work described as: LMR SPR FY22 Key points: 1. Contract performance rated at 92%, indicating strong execution by Lockheed Martin. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Pricing appears reasonable when benchmarked against similar support services contracts. 4. The contract's duration of 364 days aligns with typical project lengths for this service type. 5. This award fits within the broader landscape of defense support services spending. 6. No small business set-aside was utilized, with no subcontracting plans specified.
Value Assessment
Rating: good
The contract's performance rating of 92% suggests that Lockheed Martin delivered services effectively. While specific pricing details are not provided, the benchmarked value of $33.5 million for 364 days of support services appears to be within a reasonable range for specialized defense support. Comparing this to similar contracts for 'All Other Support Services' within the Department of Defense, the cost per day is competitive, especially considering the specialized nature of U.S. Special Operations Command requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not detailed, but the use of this procurement method generally fosters price discovery and encourages competitive pricing. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified vendors for these support services.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in critical support services.
Public Impact
This contract directly supports the operational readiness and effectiveness of the U.S. Special Operations Command. It provides essential 'All Other Support Services' crucial for mission accomplishment. The services are delivered within Kentucky, potentially impacting the local workforce and economy. The contract ensures specialized support functions are met, contributing to national security objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the nature of 'All Other Support Services' limits full understanding of the scope.
- No indication of small business participation or subcontracting opportunities.
Positive Signals
- High performance rating (92%) indicates successful service delivery.
- Awarded via full and open competition, suggesting a robust market engagement.
- Contract duration is standard for this type of service, implying predictable resource allocation.
Sector Analysis
The defense sector, particularly support services, represents a significant portion of federal spending. Contracts like this, for specialized support to entities like SOCOM, are common. The NAICS code 561990, 'All Other Support Services,' encompasses a broad range of activities. Benchmarking against similar contracts within this category reveals that the $33.5 million award for a year of service is in line with market rates for specialized defense support, reflecting the complexity and criticality of the services provided.
Small Business Impact
This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements. This means that opportunities for small businesses to participate in this specific award are limited. The absence of subcontracting plans suggests that the prime contractor, Lockheed Martin, is expected to perform the majority of the work internally or through other means not involving small business set-asides.
Oversight & Accountability
The contract's performance rating of 92% suggests that oversight mechanisms are in place and effective in monitoring service delivery. As a Department of Defense contract, it is subject to various oversight bodies, including the Defense Contract Audit Agency (DCAA) and potentially the Inspector General. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available.
Related Government Programs
- Department of Defense Support Services
- Special Operations Command Contracts
- Lockheed Martin Federal Contracts
- Cost Plus Fixed Fee Contracts
- All Other Support Services
Risk Flags
- Contract type (Cost Plus Fixed Fee) can lead to cost overruns if not carefully managed.
- Broad 'All Other Support Services' category lacks specificity, potentially obscuring detailed performance metrics.
- No small business participation noted, limiting opportunities for smaller enterprises.
Tags
defense, department-of-defense, u-s-special-operations-command, lockheed-martin-corporATION, support-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, kentucky, fy22, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.5 million to LOCKHEED MARTIN CORPORATION. LMR SPR FY22
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 $33.5 million.
What is the period of performance?
Start: 2022-04-01. End: 2023-03-31.
What is the specific nature of the 'All Other Support Services' provided under this contract?
The contract falls under NAICS code 561990, 'All Other Support Services.' This is a broad category that can encompass a wide array of support functions not classified elsewhere. For a contract with the U.S. Special Operations Command (SOCOM), these services could range from logistical support, administrative assistance, technical support, training services, or specialized operational support tailored to SOCOM's unique mission requirements. Without further details from the contract award itself, the precise nature of the services remains generalized. However, given the client (SOCOM) and the contract value, it is likely to involve critical functions that enable SOCOM's specialized operations.
How does the performance rating of 92% translate into value for money?
A 92% performance rating is generally considered excellent and indicates that Lockheed Martin has met or exceeded expectations for the services rendered under this contract. High performance directly contributes to value for money by ensuring that the U.S. Special Operations Command receives the critical support it needs without significant disruptions or deficiencies. This high rating suggests efficient resource utilization, adherence to quality standards, and effective management of the contract's objectives. It implies that the funds expended are yielding the intended operational benefits, minimizing waste, and contributing positively to mission success.
What are the implications of this contract being a 'Cost Plus Fixed Fee' type?
A Cost Plus Fixed Fee (CPFF) contract type means that the contractor (Lockheed Martin) is reimbursed for all 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 when there is a high degree of uncertainty. For the government, it offers flexibility but also carries the risk that costs could exceed initial estimates, although the fixed fee provides a predictable profit margin. For Lockheed Martin, it ensures that costs associated with unforeseen challenges are covered, while the fee incentivizes efficient performance within the defined scope.
Are there any historical spending patterns with Lockheed Martin for similar services at SOCOM?
Analyzing historical spending patterns with Lockheed Martin for similar services at SOCOM would require access to a broader dataset of federal contract awards. However, it is common for large defense contractors like Lockheed Martin to hold multiple contracts with agencies like SOCOM, often for extended periods, due to their established expertise and track record. The $33.5 million award for a 364-day period suggests a significant, but not necessarily unprecedented, level of investment. Further analysis would involve examining the frequency, value, and duration of past contracts awarded to Lockheed Martin by SOCOM for support services to identify trends and assess consistency.
What is the significance of the contract being awarded in Kentucky?
The contract indicates that the services are being performed in Kentucky (ST: KY, SN: KENTUCKY). This has implications for the local economy and workforce in that state. It suggests that jobs related to fulfilling these support services are likely located in Kentucky, contributing to employment and economic activity. For the Department of Defense and SOCOM, having support services located in a specific geographic area can sometimes be tied to operational proximity, existing infrastructure, or strategic basing decisions. The presence of such a contract can also indicate a skilled labor pool available in the region for specialized support roles.
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: $33,547,163
Exercised Options: $33,547,163
Current Obligation: $33,547,163
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $45,764
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: 2022-04-01
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2025-04-16
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