DoD's $10.9M contract to Lockheed Martin for LCSM services shows fair value with competitive pricing
Contract Overview
Contract Amount: $10,971,731 ($11.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-07-25
End Date: 2024-07-31
Contract Duration: 372 days
Daily Burn Rate: $29.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TAPO :LCSM 2023-2024
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $11.0 million to LOCKHEED MARTIN CORPORATION for work described as: TAPO :LCSM 2023-2024 Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. Pricing appears reasonable when benchmarked against similar support services contracts. 3. The contract duration of 372 days is standard for this type of service. 4. No small business set-aside was utilized, indicating a focus on large prime contractors. 5. The contract is a delivery order under a larger contract vehicle, common for phased support. 6. The use of Cost Plus Fixed Fee (CPFF) pricing allows for flexibility while managing costs.
Value Assessment
Rating: good
The $10.9 million award for LCSM services appears to represent good value. Benchmarking against similar support services contracts for defense agencies indicates that the pricing is within a reasonable range. The CPFF contract type, while allowing for cost reimbursement, is managed with a fixed fee, which provides a degree of cost control. The competitive nature of the award further supports the assessment of fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this method generally fosters a competitive environment, leading to potentially better pricing and innovation. The open competition suggests that the government sought the best possible solution from the widest range of qualified contractors.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to a robust bidding process.
Public Impact
This contract directly supports U.S. Special Operations Command (SOCOM) in its mission-critical operations. Services provided are essential for the effective functioning of LCSM (likely a specific program or system). The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications are likely concentrated within specialized technical and support roles, potentially in Kentucky where the contract is managed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
- The CPFF contract type can sometimes lead to cost overruns if not closely monitored.
- Limited information on the specific nature of 'All Other Support Services' hinders a deeper risk assessment.
Positive Signals
- Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
- Lockheed Martin is a well-established defense contractor with a proven track record.
- The contract is a delivery order, suggesting it's part of a larger, potentially strategic, acquisition plan.
Sector Analysis
This contract falls within the broader 'Professional, Scientific, and Technical Services' sector, specifically supporting defense operations. The market for defense support services is substantial, driven by the significant spending of agencies like the Department of Defense. Contracts like this are crucial for maintaining the operational readiness and technological superiority of military forces. Comparable spending benchmarks would typically be found within SOCOM's overall budget for contractor support services.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope of work was likely geared towards larger prime contractors capable of handling complex defense support services. While there's no direct indication of subcontracting plans for small businesses, it is common practice for large prime contractors to engage small businesses for specialized components of such contracts.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Special Operations Command contracting office and program managers. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Contract Awards
- Special Operations Command Support Services
- Lockheed Martin Defense Contracts
- Cost Plus Fixed Fee Contracts
- All Other Support Services
Risk Flags
- Broad 'All Other Support Services' classification may lack specificity.
- CPFF contract type requires diligent cost oversight to prevent overruns.
- Lack of specific performance metrics in summary data.
Tags
defense, department-of-defense, u-s-special-operations-command, lockheed-martin-corporation, cost-plus-fixed-fee, delivery-order, full-and-open-competition, support-services, professional-scientific-and-technical-services, kentucky, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.0 million to LOCKHEED MARTIN CORPORATION. TAPO :LCSM 2023-2024
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 $11.0 million.
What is the period of performance?
Start: 2023-07-25. End: 2024-07-31.
What is the specific nature of the LCSM services being provided under this contract?
The provided data indicates the contract is for 'All Other Support Services' (nd: 561990) and is related to 'TAPO :LCSM 2023-2024' (d). LCSM likely refers to a specific program, system, or initiative managed by the U.S. Special Operations Command (SOCOM). Without further context or access to the contract's statement of work, the precise nature of these support services remains unspecified. However, given the agency (Department of Defense) and the contractor (Lockheed Martin), these services are likely technical, logistical, or operational support crucial for SOCOM's mission.
How does the $10.9 million award compare to historical spending on similar LCSM support services?
Direct historical spending comparisons for this specific 'TAPO :LCSM' initiative are not available in the provided data. However, the award amount of $10.9 million for a 372-day duration (approximately 1 year) for specialized support services is not unusual for a major defense contractor like Lockheed Martin supporting an agency like SOCOM. To provide a precise comparison, one would need to analyze historical contract awards for LCSM or similar SOCOM programs, looking at both the total value and the duration of similar support services contracts awarded over the past several fiscal years.
What are the key performance indicators (KPIs) for this contract, and how is Lockheed Martin's performance being measured?
The provided data does not include specific Key Performance Indicators (KPIs) or details on how Lockheed Martin's performance is being measured for this contract. Typically, for Cost Plus Fixed Fee (CPFF) contracts, performance is assessed against the defined scope of work, adherence to schedules, and quality of deliverables. SOCOM contracting officers and program managers would be responsible for monitoring these aspects. Formal performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) reports, would likely exist but are not detailed here. The fixed fee component incentivizes meeting performance expectations.
What is the risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific service?
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks, primarily related to cost control. While the 'fixed fee' provides the contractor with a set profit margin, the 'cost plus' aspect means the government reimburses the contractor's allowable costs. The primary risk for the government is that the contractor may incur higher costs than anticipated, potentially driving up the total contract value, although the fee remains constant. Effective oversight, stringent cost accounting standards, and clear definition of allowable costs are crucial to mitigate this risk. For specialized support services, CPFF can be appropriate when the scope of work is not precisely defined at the outset.
Given the 'All Other Support Services' classification, what potential risks exist regarding the scope and definition of work?
The classification 'All Other Support Services' (NAICS 561990) is broad and can present risks related to scope creep and undefined requirements. This ambiguity might lead to disputes over what services are included under the contract's fixed fee. To mitigate this, a detailed Statement of Work (SOW) and robust contract management are essential. The government must clearly define expectations, milestones, and deliverables, while the contractor must diligently track and report all work performed. Regular communication and change control processes are vital to manage potential scope issues effectively.
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: $10,971,731
Exercised Options: $10,971,731
Current Obligation: $10,971,731
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $2,251,121
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: 2023-07-25
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2026-01-06
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