DoD Awards $41.1M Contract for MH-47G Support Services to Lockheed Martin
Contract Overview
Contract Amount: $41,141,916 ($41.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-11-22
End Date: 2027-08-10
Contract Duration: 991 days
Daily Burn Rate: $41.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MH-47G BLK II IND SPT (LOT 7) OFFSITE
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $41.1 million to LOCKHEED MARTIN CORPORATION for work described as: MH-47G BLK II IND SPT (LOT 7) OFFSITE Key points: 1. Contract awarded to incumbent provider, Lockheed Martin, for specialized helicopter support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risk exists in the cost-plus fixed-fee structure, which can lead to cost overruns. 4. The IT sector is not directly involved; this is a defense support service contract.
Value Assessment
Rating: good
The award amount of $41.1M appears reasonable for specialized aviation support services over a multi-year period. Benchmarking against similar support contracts for complex aircraft like the MH-47G would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it aims to secure the best possible price for essential support services.
Public Impact
Ensures continued operational readiness for critical Special Operations Command aviation assets. Supports specialized maintenance and logistical functions for the MH-47G Chinook helicopter fleet. Potential for job creation and economic activity within the aerospace support industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus fixed-fee contract type can incentivize higher costs.
- Reliance on a single provider for specialized support may limit future flexibility.
- Long contract duration could outpace technological advancements or changing mission needs.
Positive Signals
- Awarded through full and open competition.
- Supports critical national defense assets.
- Experienced incumbent provider likely ensures high-quality service delivery.
Sector Analysis
This contract falls under defense support services, specifically focusing on aviation maintenance and logistics for Special Operations Command. Spending in this niche sector is driven by national security requirements and the operational tempo of specialized units.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no explicit indication of small business subcontracting in the provided data, which warrants further investigation to ensure small business participation.
Oversight & Accountability
The Department of Defense and U.S. Special Operations Command are responsible for oversight. The use of full and open competition suggests a structured procurement process, but ongoing monitoring of performance and costs under the cost-plus fixed-fee structure is crucial.
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.
- Potential for cost overruns.
- Long contract duration.
- Reliance on incumbent provider.
- Lack of explicit small business subcontracting details.
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 $41.1 million to LOCKHEED MARTIN CORPORATION. MH-47G BLK II IND SPT (LOT 7) OFFSITE
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 $41.1 million.
What is the period of performance?
Start: 2024-11-22. End: 2027-08-10.
What is the historical cost performance of Lockheed Martin on similar MH-47G support contracts?
Analyzing historical cost performance on similar contracts is crucial for assessing the value of this award. Past performance data can reveal trends in cost overruns or savings, providing insight into the contractor's efficiency and the effectiveness of the contract's cost controls. This information helps determine if the current cost-plus fixed-fee structure is likely to result in a fair price for the government.
What are the specific performance metrics and deliverables outlined in the contract?
Understanding the specific performance metrics and deliverables is essential for evaluating the effectiveness of this contract. Clear, measurable objectives ensure that the contractor meets the required standards for MH-47G support. Without well-defined metrics, it is difficult to assess whether the government is receiving the intended value and to hold the contractor accountable for performance.
Are there any identified risks associated with the long-term sustainment of the MH-47G fleet beyond this contract?
Assessing long-term sustainment risks for the MH-47G fleet is vital. This contract addresses immediate support needs, but future challenges could include parts obsolescence, evolving threat environments, or the eventual need for fleet modernization or replacement. Proactive planning and risk mitigation strategies are necessary to ensure the continued viability and effectiveness of these critical assets.
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: $41,141,916
Exercised Options: $41,141,916
Current Obligation: $41,141,916
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $10,503,028
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: 2024-11-22
Current End Date: 2027-08-10
Potential End Date: 2027-08-10 00:00:00
Last Modified: 2026-01-07
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