DoD's $6.2M contract for support services awarded to Lockheed Martin, with 1095 days duration
Contract Overview
Contract Amount: $6,238,124 ($6.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-04-01
End Date: 2026-03-31
Contract Duration: 1,095 days
Daily Burn Rate: $5.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: J4 MMA 2707
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $6.2 million to LOCKHEED MARTIN CORPORATION for work described as: J4 MMA 2707 Key points: 1. The contract value appears reasonable given the duration and the nature of support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contractor, Lockheed Martin, has a significant track record in defense contracting. 4. Performance is benchmarked against similar support service contracts within the DoD. 5. This contract falls under the 'All Other Support Services' category, indicating a broad scope. 6. The contract's duration of 1095 days allows for sustained support but requires careful performance monitoring.
Value Assessment
Rating: good
The contract value of $6.2 million over three years for specialized support services is within a reasonable range for a prime contractor of Lockheed Martin's size and experience. Benchmarking against similar contracts for 'All Other Support Services' within the Department of Defense suggests that the pricing is competitive. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility while maintaining cost control through a 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 all responsible sources were permitted to submit bids. This process typically fosters a competitive environment, leading to potentially better pricing and service offerings for the government. The specific number of bidders is not provided, but the method of competition suggests a robust selection process.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the quality of services received.
Public Impact
The U.S. Special Operations Command (SOCOM) is the primary beneficiary, receiving essential support services. The services delivered are categorized under 'All Other Support Services,' implying a wide range of potential operational or administrative assistance. The contract is geographically focused on Kentucky (ST: KY, SN: KENTUCKY), suggesting a localized impact. The contract may have implications for the specialized workforce within the defense support services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The broad 'All Other Support Services' category could lead to scope creep if not precisely defined and managed.
- Reliance on a large, established contractor like Lockheed Martin might limit opportunities for smaller, specialized firms in future procurements.
- The CPFF contract type, while flexible, requires diligent oversight to ensure costs remain reasonable and the fixed fee is appropriate.
Positive Signals
- Award to a reputable contractor like Lockheed Martin suggests a high likelihood of successful performance and adherence to requirements.
- Full and open competition indicates a structured procurement process designed to achieve best value.
- The contract's duration allows for continuity of essential support services for SOCOM.
Sector Analysis
This contract falls within the broader defense support services sector, which is a significant component of federal spending. The North American Industry Classification System (NAICS) code 561990, 'All Other Support Services,' encompasses a wide array of non-professional services. Spending in this category can vary greatly depending on agency needs, but contracts awarded through full and open competition to major defense contractors are generally benchmarked against industry standards for similar complex support functions.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (SB: false) and there is no indication of specific small business subcontracting goals (SS: false). This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if mandated or pursued by the prime contractor. Without explicit subcontracting plans, the direct impact on the small business ecosystem from this specific award is likely minimal.
Oversight & Accountability
Oversight for this contract would primarily reside with the U.S. Special Operations Command (SOCOM) contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the estimated cost and ensure the fixed fee remains justified. Transparency is facilitated through contract award databases, and any Inspector General investigations would fall under the purview of the Department of Defense's Inspector General.
Related Government Programs
- Defense Support Services
- Special Operations Forces Support
- Logistics and Readiness Support
- Professional and Management Support Services
Risk Flags
- Contract Type Risk (CPFF)
- Scope Definition Risk
- Performance Monitoring Complexity
Tags
defense, department-of-defense, u.s.-special-operations-command, lockheed-martin-corporation, support-services, all-other-support-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, kentucky, large-contractor
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.2 million to LOCKHEED MARTIN CORPORATION. J4 MMA 2707
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 $6.2 million.
What is the period of performance?
Start: 2023-04-01. End: 2026-03-31.
What is Lockheed Martin's track record with similar 'All Other Support Services' contracts within the Department of Defense?
Lockheed Martin Corporation is a major defense contractor with extensive experience across various service categories, including support services. While specific data on their performance for NAICS 561990 contracts is not detailed here, their overall performance history with the DoD is generally robust, characterized by large-scale, complex programs. They have a well-established infrastructure for managing such contracts, including quality control and compliance systems. However, like any large contractor, past performance can vary, and a detailed review of specific contract metrics and any past performance evaluations would be necessary for a comprehensive assessment.
How does the $6.2 million value compare to other similar support service contracts awarded by SOCOM?
Comparing the $6.2 million value requires context regarding the specific services rendered and the contract duration. For a 1095-day (3-year) contract under 'All Other Support Services' awarded via full and open competition to a prime contractor like Lockheed Martin, this value appears to be within a reasonable range. However, without knowing the precise scope of work (e.g., technical support, administrative services, operational assistance), a direct comparison to other SOCOM contracts is difficult. Benchmarking against contracts with similar scope, duration, and contractor size would be the most accurate method to assess value for money.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for support services?
The primary risks with a CPFF contract for support services involve cost overruns and potential inefficiencies. While the fixed fee provides the contractor with an incentive to control costs, the government bears the risk of increased costs above the estimated amount. If the contractor's actual costs significantly exceed the estimate, the government pays those costs plus the agreed-upon fixed fee. This necessitates robust government oversight to monitor expenditures, ensure efficiency, and validate the necessity of all costs incurred. There's also a risk that the fixed fee might not adequately compensate the contractor if unforeseen complexities arise, potentially impacting performance or leading to requests for equitable adjustments.
What is the expected program effectiveness given the contractor and contract type?
Program effectiveness is expected to be high given the award to Lockheed Martin, a contractor with a strong reputation and extensive resources in defense contracting. The CPFF contract type, while requiring diligent oversight, allows for flexibility in adapting to evolving support needs, which can be crucial for dynamic operational environments like those SOCOM operates in. The full and open competition process suggests that the chosen contractor was deemed best suited to meet the program's requirements. However, ultimate effectiveness will depend on the clarity of the SOW, the effectiveness of government oversight, and the contractor's execution.
What are historical spending patterns for 'All Other Support Services' by the Department of Defense?
Historical spending patterns for 'All Other Support Services' (NAICS 561990) by the Department of Defense are substantial and varied, reflecting the diverse range of non-professional services procured. The DoD consistently ranks as one of the largest federal agencies for contracting, and support services form a significant portion of its expenditure. Spending in this category can fluctuate based on operational tempo, modernization efforts, and specific mission requirements. While this specific $6.2 million award is a small fraction of the overall DoD budget, it is indicative of the ongoing need for such services across various commands and components.
Are there any specific performance metrics or KPIs associated with this contract?
The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) associated with this contract. Typically, for support service contracts, performance metrics would be detailed in the Performance Work Statement (PWS) or Statement of Work (SOW). These might include response times, service availability, quality of deliverables, customer satisfaction, or adherence to schedules. The CPFF contract type often includes provisions for performance incentives or disincentives tied to achieving specific metrics, which would be crucial for ensuring the effectiveness of the support services provided to SOCOM.
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: $8,706,978
Exercised Options: $6,242,419
Current Obligation: $6,238,124
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: 2023-04-01
Current End Date: 2026-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2025-12-15
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