DoD awards $30.8M to Lockheed Martin for Special Operations Command support services
Contract Overview
Contract Amount: $30,849,317 ($30.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-07-01
End Date: 2025-06-30
Contract Duration: 364 days
Daily Burn Rate: $84.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FOSOV LCSMM FY24/25
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to LOCKHEED MARTIN CORPORATION for work described as: FOSOV LCSMM FY24/25 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Pricing appears reasonable given the contract type (Cost Plus Fixed Fee) and duration. 3. No specific small business set-aside noted, potentially limiting opportunities for smaller firms. 4. Contract duration of one year aligns with typical support service agreements. 5. The award falls under 'All Other Support Services,' a broad category. 6. Performance is expected in Kentucky, indicating a specific geographic focus.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee structure allows for flexibility but requires careful oversight to manage costs. Benchmarking against similar support service contracts for Special Operations Command would provide a clearer picture of value for money. The awarded amount of approximately $30.8 million for a one-year period seems within a reasonable range for specialized support services, though a detailed cost breakdown and comparison to market rates for specific services rendered would be beneficial for a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the government sought the best possible solution from the widest possible pool of contractors.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider selection of qualified contractors, which can drive down costs and improve service quality.
Public Impact
The U.S. Special Operations Command (SOCOM) is the primary beneficiary, receiving essential support services. Services delivered are broadly categorized under 'All Other Support Services,' likely encompassing a range of operational and administrative functions. The contract has a geographic impact in Kentucky, where the services will be performed. Workforce implications may include the creation or sustainment of jobs for individuals with specialized support skills.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the scope of 'All Other Support Services' could lead to cost overruns if not clearly defined.
- Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, requiring robust government oversight to ensure efficiency.
- Absence of small business subcontracting requirements may limit opportunities for smaller businesses to participate in this contract.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process.
- Contract duration of one year allows for regular performance reviews and potential adjustments.
- The contractor, Lockheed Martin, is a large, established defense contractor with significant experience.
Sector Analysis
This contract falls within the broader defense support services sector. The market for such services is substantial, driven by the ongoing needs of military and special operations forces. Lockheed Martin is a major player in this sector, competing with other large defense contractors. Benchmarking against similar support contracts awarded by SOCOM or other defense agencies for comparable services would provide context on the scale and pricing of this award.
Small Business Impact
This contract does not appear to have a specific small business set-aside, nor is it indicated that the prime contractor is a small business. This means that opportunities for small businesses would primarily be through subcontracting, if the prime contractor chooses to engage them. Without explicit subcontracting goals, the direct impact on the small business ecosystem for this particular award may be limited.
Oversight & Accountability
Oversight for this contract will likely be managed by the U.S. Special Operations Command contracting and program management offices. Accountability measures will be tied to the Cost Plus Fixed Fee contract terms, requiring detailed reporting and justification of costs. Transparency is facilitated by the contract award being made through a competitive process, though specific performance metrics and oversight reports are typically not publicly disclosed.
Related Government Programs
- Special Operations Forces Support Contracts
- Department of Defense Support Services
- Cost Plus Fixed Fee Contracts
- Defense Logistics and Support
Risk Flags
- Potential for scope creep due to broad service category.
- Cost management challenges inherent in CPFF contracts.
- Limited visibility into specific services provided.
Tags
defense, department-of-defense, u.s.-special-operations-command, lockheed-martin-corporation, support-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, kentucky, fy24/25, >$10m
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to LOCKHEED MARTIN CORPORATION. FOSOV LCSMM FY24/25
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 $30.8 million.
What is the period of performance?
Start: 2024-07-01. End: 2025-06-30.
What is the specific nature of the 'All Other Support Services' being provided under this contract?
The specific nature of the 'All Other Support Services' is not detailed in the provided data. This category (NAICS code 561990) is broad and can encompass a wide range of activities, including facilities support, logistics support, administrative support, and other miscellaneous services not elsewhere classified. For this contract with Lockheed Martin and SOCOM, it likely pertains to specialized operational, technical, or administrative support critical to special operations missions. A deeper dive into the contract's Statement of Work (SOW) would be necessary to ascertain the precise services rendered, their criticality, and how they align with SOCOM's unique requirements.
How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives?
The Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves a high degree of uncertainty. While it allows for flexibility and encourages contractor participation in innovative or complex projects, it can also incentivize the contractor to incur costs, as their profit (the fixed fee) is not directly tied to cost savings. Effective government oversight, including rigorous cost monitoring, auditing, and clear performance standards, is crucial to ensure that costs remain reasonable and that the contractor operates efficiently to achieve the contract objectives within the agreed-upon framework.
What is Lockheed Martin's track record with similar support service contracts for SOCOM or other defense agencies?
Lockheed Martin Corporation is a major defense contractor with extensive experience in providing a wide array of support services to the Department of Defense, including SOCOM. They have a long history of managing complex contracts, encompassing logistics, maintenance, technical support, and program management. While specific details on their past performance with SOCOM for 'All Other Support Services' are not provided here, their overall track record suggests a capability to handle such requirements. A review of their past performance evaluations and contract history within federal procurement databases would offer a more granular understanding of their success rates, any past issues, and their overall reliability in delivering similar services.
What are the potential risks associated with a broad 'All Other Support Services' contract category?
The primary risk associated with a broad 'All Other Support Services' category is a lack of specificity in the Statement of Work (SOW). This ambiguity can lead to scope creep, where the services provided expand beyond the original intent, potentially increasing costs and delaying timelines. It can also make performance monitoring and evaluation more challenging for the government. Furthermore, if the services are not clearly defined, it may be difficult to benchmark costs effectively against market rates or similar contracts. Ensuring a detailed and well-defined SOW, coupled with robust contract management and communication, is essential to mitigate these risks.
How does this contract's value compare to historical spending on similar support services by SOCOM?
Without specific historical data on SOCOM's spending for 'All Other Support Services' or comparable contract categories, a direct comparison is difficult. However, the awarded amount of approximately $30.8 million for a one-year period for specialized support services to a high-demand entity like SOCOM is not inherently excessive. To provide a meaningful comparison, one would need to analyze trends in SOCOM's procurement of support services over several fiscal years, identify contracts with similar scopes of work and contract types, and adjust for inflation and changes in operational tempo. This would reveal whether this award represents an increase, decrease, or stable level of investment in such support.
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: $30,849,317
Exercised Options: $30,849,317
Current Obligation: $30,849,317
Subaward Activity
Number of Subawards: 38
Total Subaward Amount: $6,599,251
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: 2024-07-01
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-08-14
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