DoD Awards $7.8M for C-130 CMS DET1 BASE to Lockheed Martin, Ending Jan 2027

Contract Overview

Contract Amount: $7,837,307 ($7.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-02-21

End Date: 2027-01-20

Contract Duration: 698 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: C-130 CMS DET1 BASE

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $7.8 million to LOCKHEED MARTIN CORPORATION for work described as: C-130 CMS DET1 BASE Key points: 1. Contract value of $7.8M for C-130 support services. 2. Awarded to a single, established defense contractor. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Services fall under 'All Other Support Services' sector.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type carries inherent risk of exceeding initial estimates. Benchmarking against similar C-130 support contracts is difficult without detailed scope of work.

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) implies it might be against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit direct price discovery for this specific order.

Taxpayer Impact: While competition was sought, the Cost Plus Fixed Fee structure may lead to higher costs than a fixed-price contract, impacting taxpayer funds.

Public Impact

Ensures continued operational readiness for C-130 aircraft utilized by U.S. Special Operations Command. Supports critical maintenance and support services for a key military transport aircraft. Potential impact on budget allocation for special operations aviation programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can lead to cost overruns.
  • Limited transparency on specific performance metrics and value realization.
  • Potential for scope creep without stringent oversight.

Positive Signals

  • Awarded through full and open competition.
  • Supports critical national defense assets (C-130 aircraft).
  • Long-term contract provides stability for operations.

Sector Analysis

This contract falls under 'All Other Support Services' and specifically relates to aviation maintenance and support. Spending in this category can vary significantly based on fleet size, age, and operational tempo. Benchmarks are difficult without more specific service details.

Small Business Impact

The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific delivery order, suggesting limited direct impact on small businesses for this particular contract.

Oversight & Accountability

Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the contractor delivers services effectively and efficiently. The Department of Defense and U.S. Special Operations Command are responsible for monitoring performance and expenditures.

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.
  • Lack of detailed scope of work for precise benchmarking.
  • Limited visibility into small business participation.

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 $7.8 million to LOCKHEED MARTIN CORPORATION. C-130 CMS DET1 BASE

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 $7.8 million.

What is the period of performance?

Start: 2025-02-21. End: 2027-01-20.

What specific maintenance and support services are included in the C-130 CMS DET1 BASE contract, and how do they align with operational needs?

The contract details for 'C-130 CMS DET1 BASE' are not fully specified in the provided data. However, 'CMS' typically refers to Contractor Maintenance Support or similar, implying services like scheduled maintenance, unscheduled repairs, parts management, and technical support for the C-130 aircraft. These services are critical for maintaining the operational readiness and safety of the aircraft, directly supporting the mission requirements of U.S. Special Operations Command.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this C-130 support services, and how can they be mitigated?

The primary risk of a CPFF contract is that the final cost can exceed initial estimates, as the contractor is reimbursed for allowable costs plus a fixed fee. This can lead to budget overruns for the government. Mitigation strategies include robust cost tracking, detailed performance metrics, clear definition of allowable costs, and strong government oversight to prevent unnecessary expenditures and ensure efficient service delivery.

How does the full and open competition for this contract ensure the best value and effectiveness for taxpayer dollars?

Full and open competition theoretically ensures the government receives the best value by allowing all responsible sources to submit bids, fostering a competitive environment that drives down prices and encourages innovation. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the specific contract type chosen. For this CPFF contract, while competition sets a baseline, ongoing oversight is paramount to ensure cost-effectiveness and prevent inefficiencies from undermining the initial competitive advantage.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesOther Support ServicesAll 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: $9,792,178

Exercised Options: $7,837,307

Current Obligation: $7,837,307

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,015,573

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: 2025-02-21

Current End Date: 2027-01-20

Potential End Date: 2027-07-10 00:00:00

Last Modified: 2026-01-09

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