DoD Awards $11.6M Contract to Lockheed Martin for USAREUR Exploitation Support Services
Contract Overview
Contract Amount: $11,610,793 ($11.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-27
End Date: 2026-09-26
Contract Duration: 1,095 days
Daily Burn Rate: $10.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: USAREUR EXPLOITATION - BASE ONSITE, OFFSITE, & TRAINING OPTION
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $11.6 million to LOCKHEED MARTIN CORPORATION for work described as: USAREUR EXPLOITATION - BASE ONSITE, OFFSITE, & TRAINING OPTION Key points: 1. The contract is for base onsite, offsite, and training support services. 2. Lockheed Martin Corporation is the sole awardee. 3. The contract was awarded under full and open competition. 4. The period of performance is 1095 days, ending in September 2026.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount of $11.6 million is a significant sum for specialized support services.
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 awardee is Lockheed Martin Corporation, a large defense contractor.
Taxpayer Impact: Taxpayer funds are being used for specialized support services, with the cost-plus-fixed-fee structure requiring careful oversight to ensure value for money.
Public Impact
Supports U.S. Special Operations Command's mission in Europe. Ensures critical exploitation and training capabilities are maintained. Potential for follow-on work or expansion of services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Lack of specific performance metrics in provided data.
- Potential for scope creep in support services.
Positive Signals
- Awarded under full and open competition.
- Clear period of performance.
- Supports critical SOCOM operations.
Sector Analysis
This contract falls under 'All Other Support Services' (NAICS 561990), a broad category. Benchmarking is difficult without more specific service details, but defense support services can be costly due to specialized requirements and security protocols.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in the provided data.
Oversight & Accountability
The Department of Defense and U.S. Special Operations Command are responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust financial monitoring to ensure cost control and prevent overspending.
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.
- Potential for cost overruns.
- Lack of specific performance metrics.
- Large prime contractor awardee, potential for limited small business subcontracting.
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 $11.6 million to LOCKHEED MARTIN CORPORATION. USAREUR EXPLOITATION - BASE ONSITE, OFFSITE, & TRAINING OPTION
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 $11.6 million.
What is the period of performance?
Start: 2023-09-27. End: 2026-09-26.
What specific exploitation and training capabilities are being supported by this contract, and how do they align with current SOCOM strategic objectives?
The contract supports USAREUR (U.S. Army Europe and Africa) exploitation, onsite, offsite, and training operations. These capabilities likely involve intelligence gathering, analysis, and specialized training for personnel operating in the European theater. Alignment with SOCOM objectives would depend on the specific intelligence requirements and training needs identified for the region, ensuring readiness and effectiveness of special operations forces.
What are the key performance indicators (KPIs) for this contract, and how will Lockheed Martin's performance be measured to ensure effective service delivery?
The provided data does not specify the key performance indicators (KPIs) for this contract. Effective service delivery would typically be measured against defined metrics related to the quality, timeliness, and completeness of exploitation analysis, training program execution, and onsite/offsite support. The contracting officer's representative (COR) would be responsible for monitoring these KPIs and ensuring Lockheed Martin meets its contractual obligations.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and ensure the government receives fair value for the $11.6 million expenditure?
The Cost Plus Fixed Fee (CPFF) structure requires stringent oversight to manage costs. Mechanisms include detailed audits of contractor expenses, regular reviews of incurred costs against the fixed fee, and clear limitations on allowable costs. The government must ensure that the contractor's proposed costs are reasonable and allocable to the contract, and that the fixed fee adequately compensates the contractor for their effort without incentivizing excessive spending.
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: $11,610,793
Exercised Options: $11,610,793
Current Obligation: $11,610,793
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $5,328,522
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: 2023-09-27
Current End Date: 2026-09-26
Potential End Date: 2026-09-26 00:00:00
Last Modified: 2025-09-18
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