DoD Awards $23.5M Lockheed Martin Contract for Silver Surfer System Support
Contract Overview
Contract Amount: $23,457,428 ($23.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-30
End Date: 2027-07-17
Contract Duration: 1,020 days
Daily Burn Rate: $23.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TO 2846 SILVER SURFER NRE/LOE - BASE AND OPTIONAL SYSTEM WITH FULL PROC FUNDS.
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $23.5 million to LOCKHEED MARTIN CORPORATION for work described as: TO 2846 SILVER SURFER NRE/LOE - BASE AND OPTIONAL SYSTEM WITH FULL PROC FUNDS. Key points: 1. Contract awarded to Lockheed Martin Corporation for the Silver Surfer NRE/LOE system. 2. The contract has a base and optional system with full procurement funds. 3. Competition method is Full and Open Competition. 4. The contract duration is 1020 days, ending July 17, 2027. 5. The contract type is Cost Plus Fixed Fee.
Value Assessment
Rating: fair
The contract value is $23.5 million. Without specific benchmarks for the 'Silver Surfer' system, a direct pricing assessment is difficult. However, Cost Plus Fixed Fee contracts can sometimes lead to higher costs if not closely managed.
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. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it aims to secure the best value through market forces.
Public Impact
Supports U.S. Special Operations Command's technological capabilities. Potential for advanced system development and integration. Long-term contract provides stability for the awarded vendor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize overspending if not monitored.
- NRE/LOE components may indicate significant development costs.
- Specific system details are not publicly available, hindering detailed analysis.
Positive Signals
- Full and Open Competition ensures a broad range of potential bidders.
- Long contract duration allows for comprehensive system development and support.
- Awarded to a major defense contractor with a track record.
Sector Analysis
This contract falls under 'All Other Support Services' (NAICS 561990), a broad category. Defense sector spending on specialized systems like this is common, with benchmarks varying widely based on technology and scope.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The Department of Defense is responsible for oversight. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure value for taxpayer money.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of specific system details hinders independent cost-benefit analysis.
- Reliance on a single large prime contractor may limit broader economic impact.
- Long-term nature of the contract requires sustained 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 $23.5 million to LOCKHEED MARTIN CORPORATION. TO 2846 SILVER SURFER NRE/LOE - BASE AND OPTIONAL SYSTEM WITH FULL PROC FUNDS.
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 $23.5 million.
What is the period of performance?
Start: 2024-09-30. End: 2027-07-17.
What is the specific function and technological advancement of the 'Silver Surfer' system?
The specific function and technological advancements of the 'Silver Surfer' system are not detailed in the provided data. As an NRE/LOE (Non-Recurring Engineering/Level of Effort) contract, it likely involves significant research, development, and system integration efforts for the U.S. Special Operations Command, potentially enhancing operational capabilities.
What are the potential cost overruns associated with Cost Plus Fixed Fee contracts for complex defense systems?
Cost Plus Fixed Fee (CPFF) contracts, while allowing for flexibility in development, carry a risk of cost overruns if the 'cost' element is not rigorously controlled and audited. The fixed fee provides profit incentive, but the government bears the brunt of cost increases, necessitating strong oversight to ensure the final price remains reasonable and justified by the delivered system's value.
How does the 'Full and Open Competition' impact the overall effectiveness and value of this defense contract?
Full and Open Competition is designed to maximize the pool of potential bidders, fostering a competitive environment that typically drives down prices and encourages innovation. For this defense contract, it suggests that multiple qualified contractors had the opportunity to propose solutions, increasing the likelihood that the U.S. Special Operations Command secured a capable system at a competitive price, thereby enhancing overall program effectiveness and taxpayer value.
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: $23,457,428
Exercised Options: $23,457,428
Current Obligation: $23,457,428
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $94,878
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: 2024-09-30
Current End Date: 2027-07-17
Potential End Date: 2027-07-17 00:00:00
Last Modified: 2025-08-12
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