DoD Awards $55M for H-47ER Post Production to Lockheed Martin, Spanning Over 3 Years
Contract Overview
Contract Amount: $55,181,461 ($55.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-14
End Date: 2027-08-10
Contract Duration: 1,426 days
Daily Burn Rate: $38.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: H-47ER POST PRODUCTION
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $55.2 million to LOCKHEED MARTIN CORPORATION for work described as: H-47ER POST PRODUCTION Key points: 1. Significant contract value of $55.18 million for specialized support services. 2. Awarded to a single, established contractor, raising questions about competition. 3. Potential risk associated with sole-source or limited competition for critical support. 4. Services fall under 'All Other Support Services' within the Defense sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar post-production support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as full and open competition, the award to a single entity suggests potential limitations in the bidding process or a highly specialized requirement. Price discovery may be impacted if only one qualified bidder emerged.
Taxpayer Impact: Taxpayer funds are being utilized for specialized support services. The effectiveness of the competition method will determine if the best possible price was achieved.
Public Impact
Ensures continued operational readiness for H-47ER aircraft. Supports critical missions for U.S. Special Operations Command. Potential for cost overruns due to Cost Plus Fixed Fee structure. Limited visibility into the specific services provided under 'All Other Support Services'.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type.
- Potential for limited competition despite 'full and open' designation.
- Lack of detailed cost breakdown for transparency.
Positive Signals
- Supports critical Special Operations Command missions.
- Long-term contract ensures sustained support.
- Awarded to a known entity with likely relevant expertise.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aviation assets. Spending benchmarks for post-production support can vary widely based on the complexity and age of the aircraft.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the contractor delivers value for taxpayer money. The Special Operations Command is responsible for monitoring performance and costs.
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 may inflate costs.
- Potential for limited effective competition despite 'full and open' status.
- Lack of detailed service breakdown hinders transparency.
- Reliance on a single large contractor.
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 $55.2 million to LOCKHEED MARTIN CORPORATION. H-47ER POST PRODUCTION
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 $55.2 million.
What is the period of performance?
Start: 2023-09-14. End: 2027-08-10.
What specific post-production support services are included in this $55 million contract, and how do they contribute to the operational effectiveness of the H-47ER?
The contract covers 'All Other Support Services' for the H-47ER, which likely includes maintenance, repair, logistics, and technical support essential for maintaining aircraft readiness. These services directly enable the U.S. Special Operations Command to execute its critical missions by ensuring the H-47ER fleet remains operational and effective in diverse and demanding environments.
Given the Cost Plus Fixed Fee structure and the 'full and open' competition designation, what are the primary risks to cost control and value for money?
The primary risk with a Cost Plus Fixed Fee contract is that the contractor may have less incentive to control costs, as their fee is fixed regardless of the actual expenses incurred. While designated as 'full and open,' if only one or a few bidders participated, the competitive pressure to offer the lowest price might be reduced, potentially leading to suboptimal value for the taxpayer.
How does this contract ensure the long-term effectiveness and sustainment of the H-47ER platform for Special Operations Command?
This contract ensures long-term effectiveness by providing dedicated post-production support over a 1426-day period. This sustained support, likely encompassing maintenance, parts, and technical expertise, is crucial for keeping the H-47ER aircraft mission-ready. It allows Special Operations Command to rely on a consistent level of operational capability without facing unexpected disruptions due to lack of support.
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: $55,181,461
Exercised Options: $55,181,461
Current Obligation: $55,181,461
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $31,309,898
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: 2023-09-14
Current End Date: 2027-08-10
Potential End Date: 2027-08-10 00:00:00
Last Modified: 2025-02-27
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