DoD's $28.1M MTUAS/MEUAS Product Support Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $28,105,013 ($28.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-05-01
End Date: 2026-04-30
Contract Duration: 1,095 days
Daily Burn Rate: $25.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MTUAS / MEUAS PRODUCT SUPPORT
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $28.1 million to LOCKHEED MARTIN CORPORATION for work described as: MTUAS / MEUAS PRODUCT SUPPORT Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on product support for unmanned aircraft systems. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Long-term contract duration of 3 years.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar product support contracts for complex systems 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, suggesting a competitive bidding process. However, the specific award type is a delivery order, which may not fully reflect the competitive landscape for the underlying contract.
Taxpayer Impact: The use of Cost Plus Fixed Fee could result in higher taxpayer costs if efficiencies are not realized by the contractor.
Public Impact
Ensures continued operational readiness for critical unmanned aerial systems. Supports advanced surveillance and reconnaissance capabilities for special operations. Potential impact on the broader defense industrial base for UAS support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Single award to a large corporation.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense assets.
Sector Analysis
This contract falls within the defense sector, specifically supporting unmanned aerial systems (UAS). Spending on UAS and related support services has been increasing significantly as the military modernizes its capabilities.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a major defense contractor. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.
Oversight & Accountability
Oversight will be crucial to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that the contractor meets performance requirements within the agreed-upon fixed fee.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Overruns
- Technological Obsolescence
- Contractor Performance Risk
- Lack of Small Business Participation
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 $28.1 million to LOCKHEED MARTIN CORPORATION. MTUAS / MEUAS PRODUCT 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 $28.1 million.
What is the period of performance?
Start: 2023-05-01. End: 2026-04-30.
What is the projected cost efficiency of this Cost Plus Fixed Fee contract compared to alternative contract types for product support?
Cost Plus Fixed Fee contracts are generally less cost-efficient than fixed-price contracts because the government bears the risk of cost overruns. Efficiency depends heavily on contractor management and government oversight to control costs while ensuring performance. Benchmarking requires detailed cost data, which is often proprietary.
What are the primary risks associated with the long duration and product support nature of this contract?
Risks include potential for scope creep, evolving technology rendering current support obsolete, contractor complacency leading to reduced service quality, and difficulty in accurately forecasting long-term sustainment needs. The Cost Plus Fixed Fee structure can exacerbate cost risks over the extended period.
How effectively will this contract ensure the long-term operational readiness and technological relevance of the MTUAS/MEUAS?
Effectiveness hinges on robust performance metrics within the contract and diligent oversight. While it ensures support, long-term relevance depends on the contractor's ability to adapt to technological advancements and the government's proactive management of system upgrades and lifecycle sustainment.
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: $38,130,916
Exercised Options: $38,130,916
Current Obligation: $28,105,013
Subaward Activity
Number of Subawards: 56
Total Subaward Amount: $12,085,196
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: 2023-05-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-11
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