DoD awards $117.8M for MQ-9 GCS CMS, with Lockheed Martin as prime contractor

Contract Overview

Contract Amount: $117,769,113 ($117.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2024-02-16

End Date: 2026-02-16

Contract Duration: 731 days

Daily Burn Rate: $161.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MQ-9 GCS CMS - BASE

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $117.8 million to LOCKHEED MARTIN CORPORATION for work described as: MQ-9 GCS CMS - BASE Key points: 1. Contract value represents a significant investment in intelligence, surveillance, and reconnaissance (ISR) capabilities. 2. The award is a delivery order against a larger contract, indicating ongoing program support. 3. The contractor, Lockheed Martin, is a major defense industry player with extensive experience in aerospace and defense systems. 4. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns if not closely managed. 5. The duration of the contract (731 days) indicates a medium-term support requirement. 6. The specific service category (All Other Support Services) is broad and requires further definition for precise performance assessment.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total contract ceiling and the scope of services covered. However, the $117.8 million award for support services over two years suggests a substantial investment. Comparing this to similar support contracts for advanced ISR platforms would be necessary for a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs than fixed-price contracts if cost controls are not rigorously applied by the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to compete. This level of competition is generally favorable for price discovery and achieving competitive pricing. The specific number of bidders and the details of the competitive process would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, ensuring the government receives the best possible value for its investment.

Public Impact

This contract directly supports the U.S. Special Operations Command's intelligence, surveillance, and reconnaissance (ISR) missions. The services provided are critical for maintaining and operating MQ-9 Ground Control Station (GCS) and Command and Mission System (CMS) capabilities. The geographic impact is likely global, given the nature of ISR operations, with a focus on supporting deployed forces. The contract supports a specialized workforce within Lockheed Martin and potentially its subcontractors, requiring expertise in aerospace systems and mission support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent government oversight to manage costs effectively and prevent potential overruns.
The broad 'All Other Support Services' NAICS code necessitates clear performance metrics and deliverables to ensure accountability.
Reliance on a single prime contractor for critical support services could pose a risk if not managed with robust performance monitoring.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process that should yield fair pricing.
The contract is with a well-established defense contractor, Lockheed Martin, known for its expertise in complex defense systems.
The delivery order is part of a larger, presumably established, contract vehicle, suggesting a structured acquisition approach.

Sector Analysis

The defense sector, particularly the segment focused on intelligence, surveillance, and reconnaissance (ISR) platforms like the MQ-9 Reaper, is a significant area of federal spending. This contract fits within the broader landscape of defense modernization and sustainment efforts. Comparable spending benchmarks would involve analyzing other support contracts for similar unmanned aerial systems (UAS) or ISR assets, which often represent substantial investments in technology and operational readiness.

Small Business Impact

There is no indication from the provided data that this contract includes a small business set-aside. Given the prime contractor is Lockheed Martin, a large defense corporation, the potential for small business subcontracting opportunities exists. However, the extent to which small businesses will benefit depends on Lockheed Martin's subcontracting plan and the specific nature of the support services required.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Special Operations Command (SOCOM) within the Department of Defense. Accountability measures would be defined by the contract's terms and conditions, including performance work statements and reporting requirements. Transparency is facilitated by the contract award being publicly available, but detailed programmatic oversight information is typically internal to the agency.

Related Government Programs

MQ-9 Reaper Program
Unmanned Aerial Systems (UAS) Support Contracts
ISR Platform Sustainment
Defense Intelligence Support Services

Risk Flags

Potential for cost overruns due to CPFF contract type.
Ambiguity in scope due to broad 'All Other Support Services' classification.
Need for rigorous government oversight to ensure performance and value.
Reliance on a single prime contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $117.8 million to LOCKHEED MARTIN CORPORATION. MQ-9 GCS CMS - 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 $117.8 million.

What is the period of performance?

Start: 2024-02-16. End: 2026-02-16.

What is the historical spending pattern for MQ-9 GCS CMS support services with Lockheed Martin?

Analyzing historical spending for MQ-9 Ground Control Station (GCS) and Command and Mission System (CMS) support services with Lockheed Martin requires access to historical contract data beyond this single delivery order. This specific award of $117.8 million is for a two-year period. To understand the pattern, one would need to examine previous delivery orders under the parent contract, as well as any prior contracts for similar services related to the MQ-9 program. Trends in spending could indicate increasing or decreasing investment in these support functions, potentially influenced by operational tempo, system upgrades, or changes in program strategy. Without a broader dataset, it's difficult to establish a definitive historical pattern from this single data point.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar defense support services in terms of cost efficiency?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is significant uncertainty in the costs involved, such as in research and development or complex system support. While CPFF provides flexibility, it can be less cost-efficient for the government compared to fixed-price contracts (like Firm-Fixed-Price or FFP) if not managed diligently. With CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to incur costs, as their fee is fixed regardless of the total cost. Therefore, robust government oversight, including detailed cost monitoring and audits, is crucial to ensure that costs remain reasonable and that the fixed fee provides adequate profit without excessive government expenditure. In contrast, FFP contracts place more cost risk on the contractor, incentivizing them to control costs to maximize profit.

What are the key performance indicators (KPIs) typically used to measure the success of MQ-9 GCS CMS support contracts?

Key Performance Indicators (KPIs) for MQ-9 Ground Control Station (GCS) and Command and Mission System (CMS) support contracts typically focus on ensuring the operational readiness and effectiveness of these critical systems. Common KPIs include system uptime and availability rates, ensuring the GCS and CMS are operational when needed for missions. Response times for technical support and issue resolution are also critical, measuring how quickly problems are addressed. Furthermore, metrics related to the successful execution of mission planning and data processing capabilities are vital. Maintenance and repair turnaround times for hardware and software components, as well as the accuracy and timeliness of system updates and software patches, are also frequently tracked. Adherence to cybersecurity protocols and successful completion of training exercises for operators and maintainers can also be included as KPIs.

What is Lockheed Martin's track record with similar complex system support contracts for the Department of Defense?

Lockheed Martin has an extensive and generally strong track record supporting complex defense systems for the Department of Defense (DoD). As one of the largest defense contractors globally, the company has been involved in numerous large-scale programs requiring sustainment, maintenance, and operational support for advanced platforms, including aircraft, missile systems, and command and control systems. Their experience with programs like the F-35, C-130, and various missile defense systems demonstrates a capability to manage intricate logistics, technical support, and system integration. While specific performance metrics for every contract are not publicly detailed, Lockheed Martin's continued selection for major DoD programs suggests a consistent ability to meet contractual requirements and deliver necessary support services, though like any large contractor, they may have faced specific performance challenges or contract disputes on certain projects over their long history.

What are the potential risks associated with the 'All Other Support Services' classification for this contract?

The classification of 'All Other Support Services' (NAICS code 561990) for this contract presents several potential risks due to its broad and non-specific nature. Firstly, it can lead to a lack of clarity regarding the exact scope of work, deliverables, and performance standards expected from the contractor. This ambiguity can make it difficult for the government to accurately measure performance, assess value for money, and hold the contractor accountable. Secondly, such a broad classification might allow for a wider range of activities than initially anticipated, potentially leading to scope creep and cost increases if not managed tightly. Thirdly, it could obscure the specific technical expertise required, making it harder to benchmark against specialized support services. Finally, it may complicate the identification of specific risks related to the services being provided, as the risks are not tailored to a well-defined service category.

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: $117,769,113

Exercised Options: $117,769,113

Current Obligation: $117,769,113

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $15,386,490

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