DoD Awards $19.9M Contract for USASOAC AC Services to Lockheed Martin
Contract Overview
Contract Amount: $19,888,393 ($19.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-04-01
End Date: 2026-03-31
Contract Duration: 364 days
Daily Burn Rate: $54.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: USASOAC AC SERVICES
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40515
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $19.9 million to LOCKHEED MARTIN CORPORATION for work described as: USASOAC AC SERVICES Key points: 1. Contract value of $19.9 million for support services. 2. Awarded to a single, large contractor, Lockheed Martin. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Services fall under 'All Other Support Services' (NAICS 561990).
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for potential cost growth beyond initial estimates. Benchmarking against similar support service contracts is difficult without more detailed scope information.
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 pricing discovery mechanisms within the CPFF structure warrant scrutiny to ensure fair pricing.
Taxpayer Impact: Taxpayer funds are being used for specialized support services, with the effectiveness of competition and cost controls determining the ultimate value for money.
Public Impact
Special Operations Command receives critical support services. Contract duration of one year aims for timely service delivery. Potential impact on operational readiness if services are not effectively delivered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs.
- Lack of specific performance metrics makes value assessment challenging.
- Single award limits competitive pressure on pricing and innovation.
Positive Signals
- Awarded under full and open competition.
- Clear contract end date ensures future re-evaluation.
- Services support critical Special Operations Command missions.
Sector Analysis
Support services for defense agencies are a significant part of federal spending. Benchmarks for this category vary widely based on the specific nature of the services provided.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight will be crucial to monitor costs under the CPFF structure and ensure the contractor meets all performance requirements. The Department of Defense's contracting office is responsible for this oversight.
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 escalation.
- Limited transparency on specific service deliverables.
- No explicit small business subcontracting mentioned.
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 $19.9 million to LOCKHEED MARTIN CORPORATION. USASOAC AC SERVICES
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 $19.9 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-03-31.
How does the Cost Plus Fixed Fee structure ensure cost efficiency for these support services?
The CPFF structure aims to provide the contractor with a reasonable profit while covering all allowable costs. However, it can incentivize cost increases as the fixed fee remains constant. Effective oversight is needed to scrutinize costs and prevent unnecessary expenditures, ensuring the government receives good value despite the inherent risks of this contract type.
What are the primary risks associated with this contract award?
The main risks include potential cost overruns due to the CPFF structure, which lacks a definitive ceiling on total costs. There's also a risk of contractor performance not meeting expectations, potentially impacting USASOAC's operations. The lack of explicit small business involvement might also be a concern for broader economic impact.
How effectively will these services contribute to the mission of the U.S. Special Operations Command?
The effectiveness hinges on the specific nature of the 'AC Services' and the contractor's ability to deliver them reliably and efficiently. Assuming these services are essential for operational support, their successful execution is critical for maintaining the readiness and effectiveness of Special Operations Command units.
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: $19,888,394
Exercised Options: $19,888,394
Current Obligation: $19,888,393
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $8,893,461
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: 2025-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-09-19
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