DoD Awards $70.6M Lockheed Martin Contract for MC-130J CR2M Onsite Base Support
Contract Overview
Contract Amount: $70,638,786 ($70.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-11-21
End Date: 2026-05-03
Contract Duration: 1,259 days
Daily Burn Rate: $56.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MC-130J CR2M INSTALL ONSITE BASE
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $70.6 million to LOCKHEED MARTIN CORPORATION for work described as: MC-130J CR2M INSTALL ONSITE BASE Key points: 1. Contract value of $70.6M for specialized aircraft support services. 2. Sole awarded to Lockheed Martin Corporation, indicating potential lack of competition. 3. Risk of cost overruns due to Cost Plus Fixed Fee (CPFF) pricing structure. 4. Services fall under 'All Other Support Services' within the Defense sector.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee. This can lead to higher costs if not managed tightly, especially for complex onsite support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the specific award type is a delivery order, which may not fully reflect the competitive landscape for the underlying contract.
Taxpayer Impact: Taxpayer funds are being used for specialized aircraft support, with the final cost influenced by the competitive bidding process and the CPFF structure.
Public Impact
Ensures continued operational readiness for MC-130J aircraft. Supports U.S. Special Operations Command's critical missions. Potential for cost efficiencies through competitive award, though CPFF structure requires monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF pricing structure can incentivize cost increases.
- Lack of specific performance metrics in provided data.
- Potential for scope creep in onsite support services.
Positive Signals
- Awarded under full and open competition.
- Supports critical Special Operations Command missions.
- Long-term contract duration provides stability.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft support services. Benchmarks for similar support contracts vary widely based on aircraft type and service scope.
Small Business Impact
The data indicates the prime contractor is Lockheed Martin Corporation. There is no explicit information provided regarding small business participation in this specific delivery order.
Oversight & Accountability
Oversight will be crucial to manage the CPFF structure effectively and ensure that the fixed fee remains appropriate throughout the contract duration. The Department of Defense and U.S. Special Operations Command are responsible for accountability.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited visibility into specific performance metrics.
- Reliance on a single large contractor.
- Complexity of specialized aircraft support services.
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 $70.6 million to LOCKHEED MARTIN CORPORATION. MC-130J CR2M INSTALL ONSITE BASE
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 $70.6 million.
What is the period of performance?
Start: 2022-11-21. End: 2026-05-03.
What specific services are included under 'MC-130J CR2M INSTALL ONSITE BASE' and how do they contribute to mission effectiveness?
The 'MC-130J CR2M INSTALL ONSITE BASE' likely refers to the installation and ongoing onsite support for the Combat Rescue Mission (CR2M) modification or system on the MC-130J aircraft. This support is critical for maintaining the operational readiness and effectiveness of these specialized aircraft, which are vital for U.S. Special Operations Command's unique and often high-risk missions.
How will the Cost Plus Fixed Fee (CPFF) structure be managed to mitigate potential cost overruns and ensure value for taxpayer money?
Effective management of the CPFF structure requires robust oversight from the contracting agency. This includes detailed tracking of all allowable costs, regular audits, and clear communication with the contractor to ensure the fixed fee remains fair and that costs are controlled. Performance metrics and milestones should be clearly defined and monitored to incentivize efficiency.
What is the anticipated impact of this contract on the overall operational capabilities and readiness of the MC-130J fleet?
This contract is expected to ensure the continued operational readiness and effectiveness of the MC-130J fleet, particularly those equipped with or undergoing the CR2M modification. Reliable onsite support is essential for minimizing downtime, addressing technical issues promptly, and ensuring these critical assets are available for U.S. Special Operations Command's demanding missions.
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: $75,180,471
Exercised Options: $70,638,786
Current Obligation: $70,638,786
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $33,215,346
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: 2022-11-21
Current End Date: 2026-05-03
Potential End Date: 2026-05-03 00:00:00
Last Modified: 2025-10-29
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