DoD Awards $17.8M for Dry Combat Submersible Support to Lockheed Martin
Contract Overview
Contract Amount: $17,811,169 ($17.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-02-08
End Date: 2025-12-31
Contract Duration: 1,057 days
Daily Burn Rate: $16.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DRY COMBAT SUBMERSIBLE (DCS) SUPPORT
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $17.8 million to LOCKHEED MARTIN CORPORATION for work described as: DRY COMBAT SUBMERSIBLE (DCS) SUPPORT Key points: 1. Contract awarded to a single, large corporation, indicating potential for concentrated market power. 2. The contract is for specialized support services, suggesting a niche market with limited competition. 3. Risk of cost overruns exists due to the Cost Plus Fixed Fee (CPFF) contract type. 4. Spending is within the Defense sector, which often involves complex and high-value procurements.
Value Assessment
Rating: good
The $17.8M award for Dry Combat Submersible (DCS) support appears reasonable given the specialized nature of the service. Benchmarking against similar niche defense support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the specific nature of DCS support may limit the number of capable bidders.
Taxpayer Impact: Taxpayer funds are being used for specialized defense equipment support, ensuring operational readiness for critical missions.
Public Impact
Ensures continued operational capability for U.S. Special Operations Command's advanced submersible assets. Supports advanced technology development and maintenance within the defense sector. Contributes to national security by maintaining critical special operations equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
- Limited competition for highly specialized services can impact long-term pricing.
- Dependence on a single contractor for critical support.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security missions.
- Long-term contract provides stability for support services.
Sector Analysis
This contract falls within the Defense sector, specifically supporting specialized underwater operations. Defense spending often involves high-value, complex procurements with unique technological requirements.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no explicit indication of small business participation in this specific award, suggesting potential for subcontracting opportunities.
Oversight & Accountability
The contract is managed by the U.S. Special Operations Command, which has established oversight mechanisms for complex defense procurements. Monitoring the CPFF structure will be crucial for accountability.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Overruns (CPFF)
- Limited Competition
- Contractor Lock-in
- Specialized Technology Risk
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 $17.8 million to LOCKHEED MARTIN CORPORATION. DRY COMBAT SUBMERSIBLE (DCS) SUPPORT
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 $17.8 million.
What is the period of performance?
Start: 2023-02-08. End: 2025-12-31.
What is the projected total cost of ownership for the Dry Combat Submersible program, including this support contract?
The total cost of ownership for the Dry Combat Submersible (DCS) program is not fully detailed in this award. This $17.8M contract covers support services through December 2025. A comprehensive total cost of ownership analysis would require data on acquisition, sustainment, upgrades, and potential future support contracts over the program's lifecycle.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specialized support?
The primary risk with a CPFF contract is that the contractor is reimbursed for all allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government bears the burden. For specialized support like DCS, this necessitates rigorous oversight to ensure costs remain reasonable and the fixed fee adequately compensates the contractor without excessive profit.
How effective is the current competition strategy in ensuring the best value for taxpayer dollars on specialized defense support services?
While this contract was awarded under full and open competition, the specialized nature of DCS support may inherently limit the pool of capable bidders. The effectiveness in ensuring best value hinges on the thoroughness of the solicitation process and the government's ability to accurately define requirements and evaluate proposals. Continued market research is vital to identify potential new entrants.
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: $17,811,169
Exercised Options: $17,811,169
Current Obligation: $17,811,169
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $7,935,578
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: 2023-02-08
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-10-29
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)