Lockheed Martin awarded $17.5M contract for AFSOC CMT support, highlighting ongoing DoD service needs

Contract Overview

Contract Amount: $17,555,547 ($17.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $48.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AFSOC CMT

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to LOCKHEED MARTIN CORPORATION for work described as: AFSOC CMT Key points: 1. Contract value appears reasonable given the duration and scope of support services. 2. Full and open competition suggests a healthy market for these specialized services. 3. Potential risks include contractor performance and the evolving nature of special operations support. 4. This contract aligns with broader Department of Defense spending on specialized support functions. 5. The IT services sector is characterized by rapid technological advancement and high demand. 6. Contract type (Cost Plus Fixed Fee) may lead to cost overruns if not closely managed.

Value Assessment

Rating: good

The contract value of $17.5 million over one year for AFSOC CMT support is within a reasonable range for specialized defense services. Benchmarking against similar contracts for support services within SOCOM or other branches of the DoD would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure necessitates careful oversight to ensure costs remain controlled and that the fixed fee remains appropriate for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are U.S. Special Operations Command (SOCOM) units requiring specialized support. Services delivered likely include mission planning, intelligence analysis, and operational support. Geographic impact is primarily within Kentucky (ST/SN), where the contract is managed or services are rendered. Workforce implications include the potential for skilled civilian or contractor personnel supporting special operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to achieve a higher fee if not managed properly.
The duration of the contract (364 days) is relatively short, which could lead to frequent re-competition and potential disruption.
Dependence on a single contractor for critical support functions can pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition, suggesting a competitive environment that can lead to better pricing.
The contract supports critical AFSOC (Air Force Special Operations Command) missions, indicating its strategic importance.
The contractor, Lockheed Martin, is a major defense contractor with extensive experience in similar support roles.

Sector Analysis

This contract falls within the broader defense services sector, which is a significant portion of federal spending. The market for specialized support services for military operations is substantial, driven by the need for advanced capabilities and expertise. Comparable spending benchmarks would involve looking at other contracts for mission support, intelligence analysis, and operational planning within SOCOM and other defense agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). There is no explicit information on subcontracting plans for small businesses. Without a small business set-aside, the primary contractor, a large corporation, is likely to perform the majority of the work, with potential for some subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Special Operations Command (SOCOM) contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is generally maintained through contract award databases, though specific operational details remain classified.

Related Government Programs

Special Operations Forces Support Contracts
Air Force Special Operations Command (AFSOC) Operations
Department of Defense IT and Support Services
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Short contract duration may impact long-term investment and continuity of services.
Dependence on a single large contractor for specialized support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to LOCKHEED MARTIN CORPORATION. AFSOC CMT

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 $17.6 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is Lockheed Martin's track record with similar support contracts for Special Operations Forces?

Lockheed Martin has a long and extensive history of providing support services to various branches of the U.S. military, including Special Operations Forces (SOF). Their experience spans a wide range of capabilities, from logistics and maintenance to intelligence analysis and advanced technology integration. While specific contract performance details are often proprietary, their status as a prime contractor on numerous large-scale defense programs suggests a generally reliable performance history. However, like any large contractor, they may have faced performance issues or disputes on specific contracts, which would be detailed in government performance databases if publicly accessible.

How does the $17.5 million value compare to similar AFSOC support contracts?

Benchmarking the $17.5 million value requires comparing it to contracts with similar scopes of work, durations, and service levels within AFSOC or SOCOM. Contracts for specialized mission support, intelligence analysis, or operational planning can vary significantly. A one-year contract of this value suggests a substantial level of support is being procured. Without access to a comprehensive database of comparable AFSOC contracts, a precise comparison is difficult. However, for specialized, high-demand services, this figure appears within a plausible range for a major defense contractor supporting critical operations.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for these services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts. The 'cost plus' portion means the government reimburses the contractor's allowable costs, while the 'fixed fee' is a predetermined profit amount. If costs escalate, the government pays more, and the contractor still receives their agreed-upon fee. This structure can lead to cost overruns if not managed diligently through robust oversight, detailed cost tracking, and clear performance metrics. The government must ensure that all costs claimed by the contractor are reasonable, allocable, and necessary for the contract's performance.

How effective is full and open competition in ensuring value for taxpayer money in this sector?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in the defense services sector. It allows a wide range of qualified contractors to bid, fostering a competitive environment that drives down prices and encourages innovation. When multiple companies vie for a contract, they are incentivized to offer their best pricing and most efficient solutions. This process helps prevent monopolies or sole-source awards that could lead to inflated costs. The 'full and open' designation for this AFSOC CMT contract suggests that the government sought the broadest possible competition, which is a positive indicator for cost-effectiveness.

What is the historical spending trend for AFSOC support services?

Historical spending trends for AFSOC support services are part of the broader Department of Defense (DoD) budget, specifically within the Special Operations Command (SOCOM) and Air Force appropriations. Over the past decade, spending on SOF capabilities and support has generally increased, reflecting the persistent nature of global security challenges and the critical role SOF plays. This includes significant investments in personnel, training, equipment, and the specialized support services necessary for complex missions. Analyzing specific line items for AFSOC mission support would reveal trends in demand for services like those procured under this contract, likely showing a consistent or growing requirement.

What are the implications of the contract duration (364 days) on long-term support and cost?

A contract duration of 364 days, essentially one year, implies a short-term requirement or a strategy of frequent re-competition. While this can allow for flexibility and adaptation to changing needs, it also presents potential drawbacks. Short durations can lead to increased administrative costs associated with contract management and re-procurement. Furthermore, it may discourage contractors from making significant long-term investments in specialized personnel or infrastructure if they are uncertain about future contract awards. For critical support functions, a series of short-term contracts could also lead to instability or a lack of continuity in service delivery compared to longer-term agreements.

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: $43,958,283

Exercised Options: $17,555,547

Current Obligation: $17,555,547

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