DoD Awards $5.2M Contract to Lockheed Martin for Priority Support Services
Contract Overview
Contract Amount: $5,202,893 ($5.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-08-01
End Date: 2025-07-31
Contract Duration: 364 days
Daily Burn Rate: $14.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TAPO PRIORITY SUPPORT FY24-25
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $5.2 million to LOCKHEED MARTIN CORPORATION for work described as: TAPO PRIORITY SUPPORT FY24-25 Key points: 1. Contract value of $5.2M for FY24-25. 2. Lockheed Martin is the sole awardee. 3. Services fall under 'All Other Support Services' (NAICS 561990). 4. Contract type is Cost Plus Fixed Fee. 5. Awarded by U.S. Special Operations Command.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar support services contracts is difficult without more detailed cost breakdowns.
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 award mechanism (Delivery Order) and the nature of 'priority support' might limit the scope for true price discovery among multiple bidders.
Taxpayer Impact: Taxpayer funds are being used for essential support services. The cost-plus nature necessitates robust oversight to ensure value for money and prevent unnecessary expenditures.
Public Impact
Ensures critical support for U.S. Special Operations Command operations. Potential for cost growth due to the Cost Plus Fixed Fee structure. Supports a major defense contractor, Lockheed Martin. Services are essential for maintaining operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited visibility into specific cost drivers for 'priority support'.
- Sole awardee may limit competitive pressure on ongoing performance.
Positive Signals
- Awarded under full and open competition.
- Supports critical mission requirements for SOCOM.
- Contract duration aligns with FY24-25 budget cycle.
Sector Analysis
This contract falls within the broader defense support services sector. Spending benchmarks for 'All Other Support Services' can vary widely depending on the specific nature of the services provided, making direct comparison challenging without further detail.
Small Business Impact
The data indicates no specific set-aside for small businesses. Large prime contractors like Lockheed Martin typically manage these contracts, with subcontracting opportunities for small businesses being at their discretion.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires diligent oversight from the Department of Defense to monitor costs, ensure performance, and prevent contractor overreach. Regular audits and performance reviews are crucial for accountability.
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.
- Lack of detailed service description.
- Potential for cost escalation.
- No small business subcontracting noted.
Tags
all-other-support-services, department-of-defense, ky, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.2 million to LOCKHEED MARTIN CORPORATION. TAPO PRIORITY SUPPORT 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 $5.2 million.
What is the period of performance?
Start: 2024-08-01. End: 2025-07-31.
What specific services are included under 'TAPO PRIORITY SUPPORT' and how do they align with SOCOM's mission needs?
The specific services encompassed by 'TAPO PRIORITY SUPPORT' are not detailed in the provided data. However, given the awardee and the awarding agency (U.S. Special Operations Command), these services likely pertain to critical operational, logistical, or technical support essential for SOCOM's unique and often sensitive missions. Understanding the precise nature of these services is key to assessing their necessity and value.
How will the Department of Defense ensure cost control and value for money with a Cost Plus Fixed Fee contract for these support services?
Effective cost control will rely on robust oversight mechanisms by the DoD. This includes detailed auditing of incurred costs, rigorous review of the fixed fee's reasonableness, and performance metrics tied to contractor deliverables. Establishing clear baseline costs and monitoring deviations closely will be crucial to prevent cost overruns and ensure the government receives fair value for the services rendered.
What is the potential impact on operational effectiveness if these priority support services are not adequately delivered by Lockheed Martin?
Inadequate delivery of these priority support services could significantly impact U.S. Special Operations Command's operational effectiveness. Depending on the nature of the support, this could range from mission delays and reduced readiness to compromised intelligence gathering or logistical failures. The 'priority' nature suggests these services are critical enablers for time-sensitive and high-stakes operations.
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: $5,202,893
Exercised Options: $5,202,893
Current Obligation: $5,202,893
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $139,906
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: 2024-08-01
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2026-01-07
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)