DoD's $9.9M Special Operations Command contract awarded to Lockheed Martin for support services

Contract Overview

Contract Amount: $9,899,510 ($9.9M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-12-01

End Date: 2026-11-30

Contract Duration: 1,095 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 1ST SFC UME SPT - BASE

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to LOCKHEED MARTIN CORPORATION for work described as: 1ST SFC UME SPT - BASE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term need for these services. 3. The award to Lockheed Martin, a major defense contractor, aligns with typical government procurement for specialized support. 4. The 'All Other Support Services' NAICS code suggests a broad range of potential services, requiring further detail for precise value assessment. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. The base value of $9.9M provides a starting point for understanding the financial commitment.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service details. However, the $9.9M base value over three years for specialized support services to SOCOM appears within a reasonable range for a major defense contractor like Lockheed Martin. The Cost Plus Fixed Fee structure introduces risk, as actual costs could exceed the initial estimate, impacting overall value for money. Further analysis would require comparing the specific deliverables and performance metrics against similar contracts awarded by SOCOM or other defense agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes a competitive environment, which should theoretically lead to better pricing and value. The government's ability to select from a wide pool of potential contractors is a positive aspect of this procurement approach.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

This contract directly benefits the U.S. Special Operations Command by providing essential support services. The services delivered are broadly categorized as 'All Other Support Services,' which could encompass a wide array of functions critical to SOCOM's operations. The contract is geographically located in Kentucky (ST/SN), suggesting a concentration of support activities or personnel in that state. The workforce implications are likely to involve skilled personnel required to deliver specialized support services, potentially including technical, logistical, or administrative roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize fee.
Lack of specific service details makes it difficult to assess true value for money.
The broad NAICS code 'All Other Support Services' may obscure the true nature and cost drivers of the work.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Contract awarded to Lockheed Martin, a reputable and experienced defense contractor.
Clear contract duration (3 years) provides predictability for planning and budgeting.

Sector Analysis

The defense support services sector is a significant component of the federal contracting landscape, with agencies like the Department of Defense relying heavily on external providers for specialized capabilities. This contract, falling under 'All Other Support Services,' represents a segment of this market focused on non-specific but critical operational assistance. Spending in this area is often driven by the need for flexibility and specialized expertise that may not be readily available in-house. Comparable spending benchmarks would depend heavily on the specific services rendered, but the overall defense support services market is valued in the tens of billions annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Lockheed Martin Corporation is a large prime contractor. There is no information provided regarding subcontracting plans or goals for small businesses. Without specific subcontracting requirements or reporting, the direct impact on the small business ecosystem from this particular contract is likely minimal, though large prime contractors often utilize small businesses in their supply chains.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and U.S. Special Operations Command. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing would be expected to monitor costs and ensure the fixed fee is appropriately applied. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed spending breakdowns may not always be publicly accessible. The Inspector General for the Department of Defense would have jurisdiction for investigating any potential fraud, waste, or abuse.

Related Government Programs

Special Operations Forces Support Contracts
Department of Defense Support Services
Cost-Plus Contracting Vehicles
Lockheed Martin Defense Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Broad NAICS code limits understanding of specific services and associated risks.
Lack of specified number of bidders in 'full and open competition' limits assessment of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to LOCKHEED MARTIN CORPORATION. 1ST SFC UME SPT - BASE

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 $9.9 million.

What is the period of performance?

Start: 2023-12-01. End: 2026-11-30.

What specific services are included under the 'All Other Support Services' category for this contract?

The provided data classifies this contract under NAICS code 561990, 'All Other Support Services.' This is a broad category that can encompass a wide range of activities not specified elsewhere. For this specific contract with Lockheed Martin for U.S. Special Operations Command, these services could potentially include anything from logistical support, administrative functions, technical assistance, training support, facility maintenance, or specialized operational planning. Without access to the detailed contract statement of work (SOW), it is impossible to determine the precise nature of the services. This lack of specificity makes it challenging to benchmark costs, assess performance, or fully understand the value delivered to SOCOM.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar defense support services?

Cost Plus Fixed Fee (CPFF) contracts are common in defense procurement, particularly when the scope of work is not precisely defined or involves research and development where costs are uncertain. In a CPFF arrangement, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of actual costs, and cost-reimbursement contracts without a fixed fee. While CPFF provides flexibility for evolving requirements, it carries a risk of cost overruns if the contractor's costs escalate beyond initial projections, as the government bears the cost risk. Compared to firm-fixed-price contracts, CPFF generally offers less price certainty for the government but can be more suitable for complex or uncertain projects. The fixed fee component aims to incentivize efficiency, but oversight is crucial to manage costs effectively.

What is Lockheed Martin's track record with similar support service contracts for the U.S. Special Operations Command?

Lockheed Martin Corporation is a major defense contractor with extensive experience supporting various branches of the U.S. military, including Special Operations Command (SOCOM). While specific details on their past performance solely on 'All Other Support Services' contracts for SOCOM are not provided in this data snippet, the company has a long history of delivering complex solutions, including logistics, training, intelligence, and technical support. Their broad capabilities suggest they are well-equipped to handle a wide range of support functions. Performance reviews and past performance evaluations, typically part of the federal procurement process, would offer more granular insights into their specific track record with SOCOM, including timeliness, quality of service, and adherence to budget on previous engagements.

What are the potential risks associated with a 3-year contract for 'All Other Support Services' awarded via full and open competition?

A primary risk with a 3-year contract for 'All Other Support Services' is the potential for scope creep or evolving requirements that may not be adequately captured in the initial contract terms, especially given the broad NAICS code. While full and open competition suggests a competitive initial award, the CPFF structure introduces financial risk if costs are not managed diligently by both the contractor and the government. There's also a risk that the 'All Other Support Services' designation might mask critical functions whose performance is essential but difficult to measure without clear metrics. Ensuring robust oversight and clear communication channels throughout the contract's lifecycle will be crucial to mitigate these risks and ensure the services provided continue to meet SOCOM's needs effectively and efficiently.

How does the $9.9 million base value compare to historical spending on similar support services by SOCOM?

The provided data indicates a base value of $9.9 million for this 3-year contract. To compare this to historical spending, one would need to analyze SOCOM's procurement history for contracts falling under NAICS code 561990 or similar broad support service categories. Without access to that historical data, it's difficult to definitively state whether $9.9 million is high, low, or average. However, considering SOCOM's mission and the extensive resources required for special operations, $9.9 million over three years for a major contractor like Lockheed Martin might represent a moderate investment for specific support functions. A comprehensive analysis would involve looking at the number of similar contracts awarded, their values, durations, and the specific services rendered to establish a relevant benchmark.

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: $12,064,594

Exercised Options: $12,064,594

Current Obligation: $9,899,510

Actual Outlays: $1,103,820

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $6,986,084

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