DoD Awards $8.78M Contract to Lockheed Martin for Special Operations Support Services
Contract Overview
Contract Amount: $8,779,047 ($8.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-02-14
End Date: 2026-02-13
Contract Duration: 364 days
Daily Burn Rate: $24.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CV22 CDT
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $8.8 million to LOCKHEED MARTIN CORPORATION for work described as: CV22 CDT Key points: 1. Contract awarded to a major defense contractor, Lockheed Martin. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for 'All Other Support Services' with a duration of one year. 4. The award value is $8.78 million, representing a small portion of overall defense spending.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The fixed fee component provides some cost certainty, but the overall pricing needs scrutiny against similar support service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The $8.78 million award is a modest sum in the context of the Department of Defense budget, suggesting a limited direct impact on taxpayers.
Public Impact
Supports U.S. Special Operations Command, impacting national security operations. The services provided are categorized broadly, requiring clear performance metrics. Contract duration of one year allows for periodic reassessment of needs and performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize cost escalation.
- Broad service category may lack specific performance metrics.
- Limited duration could lead to frequent re-competition costs.
Positive Signals
- Full and open competition utilized.
- Awarded to a reputable defense contractor.
- Clear end date for service delivery.
Sector Analysis
The defense sector, particularly support services, is a significant area of government spending. Benchmarks for similar 'All Other Support Services' contracts are crucial for evaluating cost-effectiveness, though specific data is often proprietary.
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 within the provided data.
Oversight & Accountability
Oversight will be critical to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that the services delivered meet the specific needs of U.S. Special Operations Command.
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.
- Broadly defined service category.
- Potential for cost escalation.
- Lack of small business participation indicated.
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 $8.8 million to LOCKHEED MARTIN CORPORATION. CV22 CDT
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 $8.8 million.
What is the period of performance?
Start: 2025-02-14. End: 2026-02-13.
What specific support services are included under this contract, and how do they align with the mission requirements of U.S. Special Operations Command?
The contract is broadly categorized as 'All Other Support Services.' To assess value, a detailed breakdown of the specific tasks, deliverables, and performance metrics is necessary. Understanding how these services directly contribute to the unique operational needs and objectives of U.S. Special Operations Command is key to determining if the $8.78 million investment is justified and effectively utilized.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for these support services?
The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. While the fixed fee provides some incentive for efficiency, it doesn't cap the total cost. Poorly defined scopes of work or inadequate government oversight can lead to the contractor incurring higher costs than anticipated, ultimately increasing the total expenditure beyond initial projections.
How effective is the full and open competition process in ensuring competitive pricing for specialized support services like these?
Full and open competition is generally the most effective method for ensuring competitive pricing, as it allows any qualified vendor to bid. For specialized support services, its effectiveness depends on the clarity of the solicitation and the ability of multiple capable firms to respond. If the market for these specific services is limited, even full and open competition might result in fewer bids than ideal, potentially impacting the final price.
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: $8,779,047
Exercised Options: $8,779,047
Current Obligation: $8,779,047
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $6,644,638
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: 2025-02-14
Current End Date: 2026-02-13
Potential End Date: 2026-02-13 00:00:00
Last Modified: 2025-12-22
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