Dod Awards $72.6M for MH47G BLK II Post Prod LOT 5 to Lockheed Martin
Contract Overview
Contract Amount: $72,625,995 ($72.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-03-01
End Date: 2027-04-19
Contract Duration: 1,510 days
Daily Burn Rate: $48.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MH47G BLK II POST PROD LOT 5 (P11)
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $72.6 million to LOCKHEED MARTIN CORPORATION for work described as: MH47G BLK II POST PROD LOT 5 (P11) Key points: 1. Contract awarded to Lockheed Martin Corporation for MH47G BLK II POST PROD LOT 5. 2. The contract is a Delivery Order under a larger contract, valued at $72.6 million. 3. Competition method is Full and Open Competition, suggesting a competitive bidding process. 4. The sector appears to be Defense, specifically supporting U.S. Special Operations Command.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar support services contracts is needed to assess pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and Open Competition was utilized, indicating multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for specialized support services, with the final cost influenced by the competitive bidding process and contract type.
Public Impact
Supports U.S. Special Operations Command, indicating critical national security functions. Long-term contract (through April 2027) suggests ongoing need for these services. Awarded in Kentucky, potentially impacting local economy and job creation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of specific performance metrics makes it hard to gauge efficiency.
- Small business participation is not indicated.
Positive Signals
- Full and Open Competition suggests a competitive environment.
- Awarded to a known defense contractor with relevant experience.
- Supports critical Special Operations Command needs.
Sector Analysis
This contract falls within the Defense sector, specifically supporting specialized aviation or support services. Spending benchmarks for similar support services contracts are typically high due to the specialized nature and security requirements.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The contract is a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. Oversight would focus on the management of this specific order and its alignment with the parent contract's terms.
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 indication of small business participation.
- Long contract duration.
- Potential for vendor lock-in.
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 $72.6 million to LOCKHEED MARTIN CORPORATION. MH47G BLK II POST PROD LOT 5 (P11)
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 $72.6 million.
What is the period of performance?
Start: 2023-03-01. End: 2027-04-19.
What specific support services are being provided under this contract, and how do they align with the operational needs of U.S. Special Operations Command?
The contract is for 'All Other Support Services' (NAICS 561990) for the MH47G BLK II POST PROD LOT 5. While the specific services are not detailed, they likely pertain to the sustainment, maintenance, or operational support of MH47G aircraft, crucial for Special Operations Command's unique mission requirements. The 'POST PROD LOT 5' designation suggests post-production support, potentially including logistics, training, or technical assistance.
How does the Cost Plus Fixed Fee (CPFF) contract structure impact the government's ability to control costs and ensure value for money, given the $72.6 million award?
The CPFF structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it facilitates contract initiation when costs are uncertain, it can incentivize cost overruns as the contractor's profit is fixed. Effective government oversight, rigorous cost monitoring, and clear definition of allowable costs are crucial to mitigate risks and ensure value for money under this contract type.
What is the strategic importance of the MH47G BLK II POST PROD LOT 5 to U.S. Special Operations Command, and what are the risks associated with relying on a single contractor for this support?
The MH47G BLK II is a critical asset for Special Operations Command, likely used for specialized transport and mission execution. Relying on Lockheed Martin for post-production support ensures continuity and leverages their unique expertise. However, risks include potential vendor lock-in, reduced negotiation leverage in future procurements, and vulnerability to supply chain disruptions affecting the sole provider.
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: $72,625,995
Exercised Options: $72,625,995
Current Obligation: $72,625,995
Subaward Activity
Number of Subawards: 68
Total Subaward Amount: $30,344,957
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: 2023-03-01
Current End Date: 2027-04-19
Potential End Date: 2027-04-19 00:00:00
Last Modified: 2025-12-16
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