Lockheed Martin awarded $51.5M contract for AFSOC CMT services, with a significant portion allocated to Florida
Contract Overview
Contract Amount: $51,497,907 ($51.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-03-01
End Date: 2025-02-28
Contract Duration: 1,095 days
Daily Burn Rate: $47.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: AFSOC CMT
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $51.5 million to LOCKHEED MARTIN CORPORATION for work described as: AFSOC CMT Key points: 1. Contract value represents a substantial investment in specialized support services. 2. Competition dynamics suggest a potentially competitive bidding process for this type of service. 3. Risk indicators may include performance complexity and the need for specialized expertise. 4. Performance context is tied to U.S. Special Operations Command's mission requirements. 5. Sector positioning places this contract within the broader defense support services industry.
Value Assessment
Rating: good
The contract's value of approximately $51.5 million over three years appears reasonable for specialized support services within the defense sector. Benchmarking against similar contracts for AFSOC (Air Force Special Operations Command) or other SOCOM (Special Operations Command) components would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) pricing structure allows for flexibility but requires careful monitoring to ensure costs remain controlled and aligned with the fixed fee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The number of bidders and the specific evaluation criteria would determine the intensity of the competition. A robust competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of contractors to bid, driving down prices and fostering innovation.
Public Impact
U.S. Special Operations Command benefits from enhanced support services critical to its operations. Specialized support services are delivered to enhance the capabilities of the Air Force Special Operations Command. The contract has a geographic impact primarily in Florida, where the services will be performed. Workforce implications include potential job creation and the utilization of specialized skills within the defense support sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not managed diligently.
- The duration of the contract (1095 days) requires sustained oversight to ensure ongoing performance and value.
- Dependence on a single large contractor like Lockheed Martin could present risks if performance falters.
Positive Signals
- Awarded under full and open competition, suggesting a competitive market for these services.
- The contract supports critical U.S. Special Operations Command missions, indicating strategic importance.
- The fixed fee component of the CPFF contract provides a degree of cost certainty.
Sector Analysis
This contract falls within the defense support services sector, a significant segment of the federal contracting market. This sector encompasses a wide range of services, from logistics and maintenance to specialized technical support. Spending in this area is often driven by the evolving needs of military operations and technological advancements. Comparable spending benchmarks would typically be found within the broader U.S. Special Operations Command or Air Force budget allocations for support services.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Lockheed Martin, may engage small businesses as subcontractors, depending on their own procurement strategies and the availability of specialized services in the market.
Oversight & Accountability
Oversight for this contract will likely be managed by the U.S. Special Operations Command, with specific contracting officers and program managers responsible for monitoring performance, costs, and adherence to contract terms. Accountability measures are built into the Cost Plus Fixed Fee structure, which includes a fixed fee component. Transparency may be enhanced through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or the Inspector General.
Related Government Programs
- Special Operations Forces Support Services
- Air Force Command and Control Systems
- Defense Logistics and Maintenance Contracts
- Specialized Technical Support Services
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Ambiguity in 'All Other Support Services' NAICS code could lead to scope definition issues.
- Reliance on a single large contractor for critical support functions.
Tags
defense, special-operations, support-services, cost-plus-fixed-fee, full-and-open-competition, lockheed-martin, florida, air-force-special-operations-command, us-special-operations-command, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.5 million to LOCKHEED MARTIN CORPORATION. AFSOC CMT
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 $51.5 million.
What is the period of performance?
Start: 2022-03-01. End: 2025-02-28.
What is the historical spending trend for AFSOC CMT services, and how does this award compare?
Analyzing historical spending for AFSOC CMT (Air Force Special Operations Command Combat Mission Training or similar acronym) services requires access to detailed historical contract data. Without specific historical data for this exact contract line item or service code, a direct comparison is difficult. However, the current award of approximately $51.5 million over three years suggests a consistent or potentially increasing investment in these capabilities. Federal spending in defense support services is generally influenced by geopolitical factors, evolving mission requirements, and technological upgrades. If previous contracts for similar services were significantly lower, this award might indicate an expansion of scope, increased service complexity, or inflation. Conversely, if historical awards were in a similar range, it suggests a stable level of support.
What specific services are included under the 'All Other Support Services' (NAICS 561990) for AFSOC CMT?
The NAICS code 561990, 'All Other Support Services,' is a broad category that encompasses a wide array of non-classified support activities. For AFSOC CMT (assuming Combat Mission Training or a similar operational support function), these services could range from logistical support, facility maintenance, and administrative functions to specialized training development, simulation operations, or technical assistance related to mission readiness. The specific details of the services rendered would be outlined in the contract's Statement of Work (SOW). Given the context of AFSOC, it's likely these services are critical for enabling the operational effectiveness and readiness of special operations forces, potentially involving complex technical or operational support that doesn't fit into more narrowly defined service categories.
How does the Cost Plus Fixed Fee (CPFF) pricing structure impact cost control and contractor incentive for this contract?
The Cost Plus Fixed Fee (CPFF) pricing structure means the contractor 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 at the outset or involves a high degree of uncertainty, as might be the case with specialized support services. For cost control, the government relies on robust oversight to ensure that only allowable costs are reimbursed. The fixed fee provides a clear profit target, but it doesn't directly incentivize the contractor to reduce costs beyond what's necessary to complete the work within the estimated cost range. Unlike fixed-price contracts, there's less direct financial incentive for the contractor to be highly efficient if costs escalate, as they will be reimbursed. However, the government's ability to audit costs and the potential for future contract awards can serve as indirect incentives for performance and cost management.
What is Lockheed Martin's track record with U.S. Special Operations Command and similar defense contracts?
Lockheed Martin is a major defense contractor with an extensive history of working with the U.S. Department of Defense, including U.S. Special Operations Command (SOCOM). They have a broad portfolio encompassing aircraft, weapons systems, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and various support services. Their track record with SOCOM likely includes numerous contracts related to special operations platforms, training, intelligence, and logistical support. While specific performance details for individual contracts are often not publicly disclosed, Lockheed Martin's continued success in securing large, complex contracts with SOCOM and other military branches suggests a generally positive performance history and established relationship. However, like any large contractor, they may have faced scrutiny or performance issues on specific projects over their long history.
Are there any specific performance risks associated with the 'All Other Support Services' category for AFSOC?
The primary performance risk associated with the broad 'All Other Support Services' category (NAICS 561990) for AFSOC lies in the potential ambiguity of the Statement of Work (SOW) and the diverse nature of the services. If the SOW is not meticulously detailed, it can lead to misunderstandings regarding deliverables, scope creep, and disputes over contract requirements. For AFSOC, which operates in highly specialized and often sensitive environments, the services provided must be exceptionally reliable and effective. Risks could include the contractor's ability to recruit and retain personnel with the necessary specialized skills, maintain security clearances, adapt to evolving operational needs, and ensure seamless integration with existing AFSOC systems and processes. The CPFF structure, while flexible, can also mask underlying performance issues if cost tracking is not rigorous.
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: $51,497,907
Exercised Options: $51,497,907
Current Obligation: $51,497,907
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $5,943,531
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: 2022-03-01
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-04-17
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