DoD Awards $15.5M Contract to Lockheed Martin for MISO LCSM Support Services
Contract Overview
Contract Amount: $15,521,470 ($15.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-02-18
End Date: 2026-02-17
Contract Duration: 730 days
Daily Burn Rate: $21.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MISO LCSM - AWARD (FO 2385)
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $15.5 million to LOCKHEED MARTIN CORPORATION for work described as: MISO LCSM - AWARD (FO 2385) Key points: 1. Contract Value: $15.5 million over 2 years. 2. Contractor: Lockheed Martin Corporation. 3. Agency: Department of Defense (SOCOM). 4. Service Type: All Other Support Services (NAICS 561990). 5. Contract Type: Cost Plus Fixed Fee Delivery Order.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts for similar support services is challenging without more detailed scope information.
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 price discovery mechanisms within the CPFF structure warrant scrutiny to ensure fair pricing.
Taxpayer Impact: Taxpayer funds are being used for specialized support services. The CPFF structure requires diligent oversight to ensure costs remain reasonable and deliver value.
Public Impact
Supports U.S. Special Operations Command (SOCOM) missions. Contract duration of 730 days. Awarded to a major defense contractor, Lockheed Martin. Services fall under 'All Other Support Services' category.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs.
- Lack of specific performance metrics or deliverables in provided data.
- Potential for scope creep in support services contracts.
Positive Signals
- Awarded under full and open competition.
- Long-term contract provides stability for services.
- Supports critical SOCOM operations.
Sector Analysis
This contract falls within the broader defense support services sector. Spending benchmarks for 'All Other Support Services' are highly variable due to the diverse nature of services included in NAICS 561990.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific award based on the provided data.
Oversight & Accountability
Oversight of CPFF contracts is crucial to manage costs and ensure performance. The Department of Defense and SOCOM are responsible for monitoring this contract to ensure accountability and value for taxpayer money.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Broad 'All Other Support Services' category lacks specificity.
- No small business participation indicated.
- Potential for undefined scope creep.
- Limited insight into specific performance metrics.
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 $15.5 million to LOCKHEED MARTIN CORPORATION. MISO LCSM - AWARD (FO 2385)
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 $15.5 million.
What is the period of performance?
Start: 2024-02-18. End: 2026-02-17.
What specific support services are included under 'MISO LCSM' to assess true value?
The provided data lacks specifics on the 'MISO LCSM' support services. Understanding the exact nature of these services, such as intelligence analysis, training, or logistical support, is critical for evaluating the contract's value and ensuring it aligns with SOCOM's operational needs and strategic objectives.
How will the CPFF structure be managed to mitigate cost overrun risks?
Effective management of the CPFF structure requires robust oversight, clear performance metrics, and regular audits. The contracting officer must ensure that Lockheed Martin's costs are reasonable, allocable, and allowable, and that the fixed fee is justified. Proactive communication and change control processes are essential to prevent uncontrolled cost escalation.
What are the key performance indicators (KPIs) for this contract to measure effectiveness?
Key performance indicators for this contract should be defined to measure the effectiveness of the MISO LCSM support. These could include metrics related to mission readiness, intelligence accuracy, training completion rates, or response times, depending on the specific services rendered. Regular performance reviews against these KPIs will ensure the contractor is meeting SOCOM's requirements.
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: $21,950,723
Exercised Options: $15,521,470
Current Obligation: $15,521,470
Subaward Activity
Number of Subawards: 28
Total Subaward Amount: $2,969,534
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: 2024-02-18
Current End Date: 2026-02-17
Potential End Date: 2027-02-17 00:00:00
Last Modified: 2025-09-29
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