DoD Awards $7.03M Contract for MELB 6R Reconstitution to Lockheed Martin
Contract Overview
Contract Amount: $7,030,180 ($7.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-07-14
End Date: 2026-10-30
Contract Duration: 1,204 days
Daily Burn Rate: $5.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MELB 6R RECONSTITUTION
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $7.0 million to LOCKHEED MARTIN CORPORATION for work described as: MELB 6R RECONSTITUTION Key points: 1. Contract value of $7.03 million for reconstitution services. 2. Awarded to Lockheed Martin Corporation. 3. Services fall under 'All Other Support Services' (NAICS 561990). 4. Contract duration spans from July 2023 to October 2026. 5. Awarded via Full and Open Competition.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to higher costs if not managed carefully. Benchmarking CPFF contracts for similar reconstitution services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through Full and Open Competition, suggesting a competitive bidding process. However, the specific price discovery mechanisms and the number of bids received are not detailed, making it hard to assess if the best possible price was achieved.
Taxpayer Impact: Taxpayer funds are being used for essential military equipment reconstitution. The competitive nature of the award is a positive sign for cost-effectiveness, but the CPFF structure warrants monitoring.
Public Impact
Ensures readiness of critical Special Operations Command (SOCOM) assets. Supports military modernization and sustainment efforts. Potential for follow-on work based on performance. Impacts the defense industrial base, specifically support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize overspending.
- Lack of detailed cost breakdown makes price validation challenging.
- Limited information on the competitive landscape beyond 'Full and Open'.
Positive Signals
- Awarded through Full and Open Competition.
- Supports critical SOCOM mission requirements.
- Long-term contract provides stability for services.
Sector Analysis
This contract falls within the broader defense support services sector. Spending in this area is crucial for maintaining military readiness and technological superiority. Benchmarks for reconstitution services are highly specialized and depend on the specific equipment involved.
Small Business Impact
The prime contractor is Lockheed Martin Corporation, a large defense contractor. There is no explicit indication of small business participation in this specific award, which is common for large prime contracts.
Oversight & Accountability
Oversight will be managed by the U.S. Special Operations Command. The CPFF contract type necessitates diligent oversight to control costs and ensure performance standards are met to protect taxpayer interests.
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.
- Limited transparency on specific cost drivers.
- Potential for scope creep without strict management.
- Reliance on a single large prime contractor.
Tags
all-other-support-services, department-of-defense, ky, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.0 million to LOCKHEED MARTIN CORPORATION. MELB 6R RECONSTITUTION
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 $7.0 million.
What is the period of performance?
Start: 2023-07-14. End: 2026-10-30.
What specific reconstitution tasks are included in this contract, and how do they align with SOCOM's current operational needs?
The contract is for MELB 6R Reconstitution. While the specific tasks are not detailed in the provided data, MELB likely refers to a specific platform or system used by SOCOM. Reconstitution implies bringing equipment back to a specified standard, potentially after deployment or damage. This aligns with SOCOM's need to maintain a high state of readiness for its specialized assets.
How does the Cost Plus Fixed Fee structure impact the potential for cost overruns on this reconstitution project?
The CPFF structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fixed fee provides some incentive for efficiency, it can also lead to cost overruns if the government does not effectively monitor and control the 'cost' portion. Robust government oversight is critical to mitigate this risk.
What is the anticipated impact of this contract on the operational readiness of U.S. Special Operations Forces?
This contract directly supports the operational readiness of U.S. Special Operations Forces by ensuring critical MELB 6R assets are properly maintained and reconstituted. Timely completion of these services is essential for SOCOM to deploy and execute its unique missions effectively, maintaining a critical capability for national security.
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: $7,030,180
Exercised Options: $7,030,180
Current Obligation: $7,030,180
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $552,764
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: 2023-07-14
Current End Date: 2026-10-30
Potential End Date: 2026-10-30 00:00:00
Last Modified: 2026-01-12
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)