DoD's $9.6M contract for support services awarded to Lockheed Martin, highlighting potential value and competition dynamics
Contract Overview
Contract Amount: $9,640,699 ($9.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-07-18
End Date: 2024-07-17
Contract Duration: 365 days
Daily Burn Rate: $26.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TAPO MROI FY23-24
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $9.6 million to LOCKHEED MARTIN CORPORATION for work described as: TAPO MROI FY23-24 Key points: 1. Contract value of $9.6M for support services represents a significant investment by SOCOM. 2. Awarded to a major defense contractor, suggesting a focus on established capabilities. 3. Full and open competition indicates a broad search for qualified bidders. 4. The contract duration of one year allows for flexibility and performance evaluation. 5. Delivery order structure suggests task-specific needs within a larger framework. 6. The 'All Other Support Services' NAICS code indicates a broad scope of potential services.
Value Assessment
Rating: good
The contract value of $9.6M for a one-year period for 'All Other Support Services' appears reasonable given the nature of support services often provided to specialized military units. Benchmarking against similar contracts for broad support services to SOCOM or other defense agencies would provide a clearer picture of value for money. Without specific deliverables, a precise per-unit cost comparison is difficult, but the overall award size is within the expected range for such services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that the Department of Defense actively sought proposals from a wide range of potential contractors. The number of bidders is not specified, but this method generally promotes a competitive environment, which can lead to better pricing and service offerings. The use of full and open competition is a positive indicator for achieving fair market value.
Taxpayer Impact: Taxpayers benefit from the assurance that the government explored multiple options, aiming to secure the best possible services at a competitive price through a transparent bidding process.
Public Impact
The U.S. Special Operations Command (SOCOM) is the primary beneficiary, receiving essential support services. Services delivered likely encompass a range of operational, logistical, or administrative support critical to SOCOM's mission. The contract is geographically focused on Kentucky (ST, SN), indicating support for operations or personnel within that state. The contract may indirectly support a specialized workforce within the defense sector, potentially including technical and administrative roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Scope ambiguity: 'All Other Support Services' is broad and could lead to scope creep or unexpected costs if not clearly defined in task orders.
- Contractor performance history: While Lockheed Martin is a large, established contractor, specific performance on this type of support service contract needs monitoring.
- Cost-plus contract type: Cost Plus Fixed Fee (CPFF) can incentivize cost overruns if not managed with rigorous oversight.
Positive Signals
- Full and open competition: This process increases the likelihood of selecting a contractor that offers the best value.
- Award to established contractor: Lockheed Martin's extensive experience in defense contracting suggests a high probability of successful execution.
- Clear contract end date: The one-year duration allows for reassessment and potential re-competition or modification based on performance.
Sector Analysis
The defense support services sector is a substantial market driven by the U.S. government's continuous need for specialized operational, logistical, and technical assistance. Companies like Lockheed Martin are key players, often competing for large contracts that require extensive resources and expertise. This contract, falling under NAICS code 561990 (All Other Support Services), represents a segment of this market focused on a broad array of non-specific support functions, which can range from administrative tasks to specialized operational assistance.
Small Business Impact
This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). As a full and open competition award to a large prime contractor, there is a potential for subcontracting opportunities for small businesses. However, the extent to which small businesses will be involved depends on Lockheed Martin's subcontracting plan and the specific nature of the support services required. Further analysis of subcontracting reports would be needed to assess the actual impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will primarily reside with the U.S. Special Operations Command (SOCOM) contracting and program management offices. As a delivery order under a larger contract vehicle, task orders will likely have specific performance metrics and reporting requirements. Transparency is facilitated by the contract award notice, but detailed oversight of day-to-day operations and cost management relies on internal SOCOM processes and potentially the Defense Contract Audit Agency (DCAA) for cost audits, given the CPFF structure.
Related Government Programs
- Special Operations Forces Support Services
- Defense Logistics and Support Contracts
- Government Wide Acquisition Contracts (GWACs)
- Professional and Management Support Services
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Broad scope of 'All Other Support Services' may lead to ambiguity.
- Dependence on contractor's specific performance for this service type.
- Need for robust oversight to ensure value for money.
Tags
defense, department-of-defense, u.s.-special-operations-command, lockheed-martin-corporATION, support-services, all-other-support-services, cost-plus-fixed-fee, delivery-order, full-and-open-competition, kentucky, fy23-24, 9.6-million
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.6 million to LOCKHEED MARTIN CORPORATION. TAPO MROI FY23-24
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 $9.6 million.
What is the period of performance?
Start: 2023-07-18. End: 2024-07-17.
What is Lockheed Martin's track record with similar 'All Other Support Services' contracts for SOCOM or other defense agencies?
Lockheed Martin is a major defense contractor with a vast portfolio of contracts across various service categories. While specific data on their performance for 'All Other Support Services' (NAICS 561990) for SOCOM is not detailed in this award notice, the company consistently handles large, complex support contracts. Their historical performance is generally characterized by significant scale and scope, often involving advanced technology integration and extensive logistical support. However, like any large contractor, they have faced scrutiny on specific contracts regarding cost management and delivery timelines. A deeper dive into their contract performance databases, such as the Federal Procurement Data System (FPDS), would reveal specific past performance ratings and any significant issues encountered on comparable contracts.
How does the $9.6M contract value compare to similar support service contracts awarded by SOCOM or the DoD?
The $9.6 million contract value for a one-year period for 'All Other Support Services' appears to be a moderate-sized award within the broader DoD contracting landscape. SOCOM, in particular, often procures specialized support services that can range from relatively small, targeted task orders to multi-million dollar contracts. Without knowing the specific deliverables, it's challenging to benchmark precisely. However, compared to large-scale IT, intelligence, or major weapons system support contracts, $9.6M for a year of general support services is not exceptionally high. It suggests a focused scope of work rather than a comprehensive, long-term support requirement. Further comparison would require analyzing contracts with similar NAICS codes and durations awarded to various entities by SOCOM and other DoD components.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for support services?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While the fee is fixed, the contractor has less incentive to control costs compared to fixed-price contracts, as they are guaranteed reimbursement for incurred expenses. This can lead to inefficiencies or unnecessary spending if not rigorously monitored. For the government, the risk lies in potentially paying more than necessary if cost controls are weak. Effective oversight, detailed cost accounting, and clear performance metrics are crucial to mitigate these risks and ensure value for money.
What does the 'All Other Support Services' (NAICS 561990) classification imply about the services being procured?
The NAICS code 561990, 'All Other Support Services,' is a broad residual category used when a more specific industry classification does not apply. This implies that the services procured under this contract are diverse and may not fit neatly into predefined categories like IT support, facilities management, or professional consulting. Examples could include a wide range of activities such as operational support, administrative assistance, specialized training coordination, or other miscellaneous services essential to the functioning of the U.S. Special Operations Command. The broadness necessitates careful definition of tasks and deliverables within the contract's delivery orders to ensure clarity and prevent scope creep.
What is the significance of this contract being a 'Delivery Order'?
The designation of this award as a 'Delivery Order' (AW: DELIVERY ORDER) signifies that it is likely a task-specific order placed against a previously established indefinite-delivery indefinite-quantity (IDIQ) contract or a similar contract vehicle. This means that the underlying contract framework was already competed and awarded, and this $9.6 million represents a specific call for services within that existing agreement. Delivery orders allow agencies to procure goods or services incrementally as needed, providing flexibility and often faster acquisition timelines compared to issuing entirely new contracts. It implies that the foundational terms, conditions, and pricing structure were vetted during the initial competition for the parent contract.
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: $9,640,699
Exercised Options: $9,640,699
Current Obligation: $9,640,699
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $342,903
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: 2023-07-18
Current End Date: 2024-07-17
Potential End Date: 2024-07-17 00:00:00
Last Modified: 2025-12-17
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