DoD's USASOAC AC Services Contract Awarded to Lockheed Martin for $17.2M
Contract Overview
Contract Amount: $17,197,793 ($17.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-04-01
End Date: 2025-03-31
Contract Duration: 364 days
Daily Burn Rate: $47.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: USASOAC AC SERVICES
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40515
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $17.2 million to LOCKHEED MARTIN CORPORATION for work described as: USASOAC AC SERVICES Key points: 1. Contract value of $17.2 million for AC services. 2. Lockheed Martin is the sole awardee. 3. Potential risks associated with single-source awards. 4. Services fall under 'All Other Support Services' NAICS code.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar support services contracts is difficult 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 award type is a 'Delivery Order', implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where competition may have occurred previously.
Taxpayer Impact: The competitive nature of the award, if truly robust, should ensure fair pricing for taxpayers. However, the specific contract type (CPFF) warrants close monitoring to prevent excessive costs.
Public Impact
Special Operations Command receives critical support services. Taxpayer funds allocated for specialized aviation support. Contract duration of one year with potential for extensions. Geographic location of service delivery is Kentucky.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of specific details on service scope makes independent cost validation challenging.
Positive Signals
- Awarded under full and open competition.
- Supports critical Special Operations Command missions.
Sector Analysis
This contract falls under general support services, often associated with operational readiness and maintenance. Benchmarks for this broad category vary significantly based on the specific services rendered, but $17.2M for a year of specialized support is within a plausible range for government contracts.
Small Business Impact
The data indicates no specific set-aside for small businesses. Large prime contractors like Lockheed Martin often utilize subcontractors, which could provide opportunities for small businesses, but this is not explicitly stated in the award details.
Oversight & Accountability
The Department of Defense, specifically U.S. Special Operations Command, is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust oversight to ensure cost efficiency and prevent contractor overreach.
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.
- Broad NAICS code lacks specificity.
- No explicit small business participation noted.
- Potential for cost overruns without strong oversight.
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 $17.2 million to LOCKHEED MARTIN CORPORATION. USASOAC AC SERVICES
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 $17.2 million.
What is the period of performance?
Start: 2024-04-01. End: 2025-03-31.
What specific AC services are being procured under this contract, and how do they align with USASOAC's mission requirements?
The contract details 'All Other Support Services' (NAICS 561990), which is a broad category. To assess value, a detailed breakdown of the specific aviation-related support services (e.g., maintenance, logistics, training, operational support) is needed. Understanding the precise nature of these services is crucial for determining if the $17.2 million price tag is justified and if it directly contributes to USASOAC's unique operational needs.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for these AC services?
CPFF contracts carry inherent risks of cost escalation, as the contractor is reimbursed for all allowable costs plus a fixed fee. This structure can reduce the contractor's incentive to control costs tightly. For AC services, potential risks include inflated labor rates, unnecessary material purchases, or inefficient operational practices, all of which could lead to the government paying more than necessary if oversight is not rigorous.
How effectively does the 'full and open competition' designation ensure optimal value and performance for these AC services?
While 'full and open competition' is a positive indicator for achieving fair market value, its effectiveness depends on the specifics of the bidding process and the contract type. If this delivery order is part of a larger IDIQ where competition was previously established, the current competition might be limited to price and specific performance metrics. The CPFF structure requires diligent oversight to ensure the competitive pricing translates into actual value and high performance throughout the contract period.
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: $17,197,793
Exercised Options: $17,197,793
Current Obligation: $17,197,793
Subaward Activity
Number of Subawards: 38
Total Subaward Amount: $9,020,030
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: 2024-04-01
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-11-26
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