DoD Awards $21.18M Contract to Lockheed Martin for SOJTF-L Rebalance and Retrograde

Contract Overview

Contract Amount: $21,176,011 ($21.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-08-22

End Date: 2026-08-21

Contract Duration: 1,095 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SOJTF-L REBALANCE AND RETROGRADE

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to LOCKHEED MARTIN CORPORATION for work described as: SOJTF-L REBALANCE AND RETROGRADE Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on support services for Special Operations Command. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Long duration of 1095 days suggests significant project scope.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can lead to higher costs if not managed tightly. 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, indicating a competitive bidding process. However, the specific award type is a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where initial competition occurred.

Taxpayer Impact: Taxpayer funds are being used for specialized support services, with the final cost influenced by the competitive bidding process and the CPFF structure.

Public Impact

Supports U.S. Special Operations Command's logistical and operational needs. Contract duration spans three years, indicating ongoing requirements. Funds allocated for rebalancing and retrograde operations, crucial for mission readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee structure can incentivize higher spending.
  • Long contract duration increases exposure to potential cost escalations.
  • Limited visibility into specific service details and performance metrics.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical Special Operations Command missions.
  • Delivery order structure may indicate pre-competed framework.

Sector Analysis

This contract falls within the 'All Other Support Services' category, which is broad and can encompass a wide range of specialized services. Defense spending on support services is a significant portion of the overall budget, often driven by operational tempo and mission requirements.

Small Business Impact

The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no explicit information provided regarding small business participation or subcontracting goals within this specific delivery order.

Oversight & Accountability

Oversight will be crucial given the CPFF contract type and the long duration. The Department of Defense and U.S. Special Operations Command will need robust mechanisms to monitor costs, performance, and ensure adherence to contract terms to safeguard taxpayer funds.

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.
  • Long contract duration (3 years).
  • Award to a single large prime contractor.
  • Limited detail on specific services provided.
  • Potential for scope creep impacting costs.

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 $21.2 million to LOCKHEED MARTIN CORPORATION. SOJTF-L REBALANCE AND RETROGRADE

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 $21.2 million.

What is the period of performance?

Start: 2023-08-22. End: 2026-08-21.

What specific services are included under 'SOJTF-L REBALANCE AND RETROGRADE' and how do they contribute to mission effectiveness?

The contract likely encompasses logistical support, personnel movement, equipment redeployment, and potentially facility closure or transition services related to Special Operations Joint Task Force - Logistics (SOJTF-L). These services are critical for maintaining operational readiness, ensuring efficient resource allocation, and facilitating mission success by managing the complex process of repositioning or withdrawing assets and personnel.

How does the Cost Plus Fixed Fee (CPFF) structure mitigate or exacerbate cost risks for this contract?

CPFF aims to control costs by providing a fixed fee to the contractor regardless of actual costs incurred, incentivizing efficiency. However, it can also lead to cost risks if the initial cost estimates are inaccurate or if the scope of work expands significantly. Robust oversight is needed to ensure the 'cost' portion remains reasonable and that the 'fixed fee' adequately compensates for the defined scope without excessive profit.

What is the expected impact of this contract on the overall budget of the U.S. Special Operations Command?

This $21.18 million contract represents a specific allocation for logistical and operational support within the U.S. Special Operations Command's budget. While significant for this particular task, its overall impact depends on the command's total budget and the prioritization of these services against other operational needs. Effective execution and cost management are key to ensuring this spending yields maximum value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesOther Support ServicesAll 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: $21,176,011

Exercised Options: $21,176,011

Current Obligation: $21,176,011

Actual Outlays: $1,502,004

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $6,067,984

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: 2023-08-22

Current End Date: 2026-08-21

Potential End Date: 2026-08-21 00:00:00

Last Modified: 2025-12-11

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