DoD Awards $36.3M Contract for LCSM Support Services to Lockheed Martin
Contract Overview
Contract Amount: $36,259,889 ($36.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-01
End Date: 2023-06-30
Contract Duration: 364 days
Daily Burn Rate: $99.6K/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 $36.3 million to LOCKHEED MARTIN CORPORATION for work described as: FOSOV LCSM AWARD Key points: 1. Contract awarded to a single, large defense contractor. 2. Full and open competition was utilized. 3. The contract is for support services, not a specific product. 4. Potential for cost overruns exists with Cost Plus Fixed Fee contracts.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed closely. Benchmarking against similar support service contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing outcomes and how they were achieved are not detailed.
Taxpayer Impact: Taxpayer funds are being used for support services, with the final cost influenced by the Cost Plus Fixed Fee structure and the competitive process.
Public Impact
Supports U.S. Special Operations Command's mission. Contract value of $36.3 million over one year. Awarded to Lockheed Martin Corporation, a major defense contractor. Services provided are classified under 'All Other Support Services'.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of detailed cost breakdown makes value assessment challenging.
- Contract duration is one year, requiring future competition.
Positive Signals
- Awarded through full and open competition.
- Supports critical Special Operations Command needs.
Sector Analysis
This contract falls under general support services, a broad category within the defense sector. Spending benchmarks for 'All Other Support Services' are highly variable and depend on the specific nature of the services rendered.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight will be crucial given the Cost Plus Fixed Fee structure to ensure efficient use of taxpayer funds and prevent cost overruns. The Department of Defense and U.S. Special Operations Command are responsible for monitoring contract performance.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of detailed service description.
- No small business participation noted.
- One-year contract duration requires future competition.
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 $36.3 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 $36.3 million.
What is the period of performance?
Start: 2022-07-01. End: 2023-06-30.
What specific support services are included in this contract, and how do they align with operational needs?
The contract is for 'All Other Support Services' (NAICS 561990) for the LCSM program. Without further details on the specific tasks, it's difficult to assess their direct alignment with operational needs. However, given the award to U.S. Special Operations Command, these services are presumed to be critical for supporting their unique missions and readiness.
What is the potential risk associated with the Cost Plus Fixed Fee contract type for this award?
The Cost Plus Fixed Fee (CPFF) structure carries a risk of cost overruns. While the contractor receives a fixed fee, the government bears the cost of performance. If the contractor's costs exceed estimates, the government pays more. Effective oversight is essential to manage these costs and ensure value for money.
How effectively does the full and open competition ensure optimal value for the taxpayer in this context?
Full and open competition is generally the best method for ensuring taxpayer value by fostering a competitive environment that drives down prices. However, for complex support services, the effectiveness depends on the clarity of the requirements, the evaluation criteria, and the contractor's ability to accurately estimate costs within the CPFF framework.
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: $36,259,889
Exercised Options: $36,259,889
Current Obligation: $36,259,889
Subaward Activity
Number of Subawards: 61
Total Subaward Amount: $8,400,151
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: 2022-07-01
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2025-08-14
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)