DoD Awards $7.6M Contract to Lockheed Martin for Site Support Services
Contract Overview
Contract Amount: $7,607,248 ($7.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-03-11
End Date: 2026-03-10
Contract Duration: 364 days
Daily Burn Rate: $20.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: 2913 SITE SPT SI 205A
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $7.6 million to LOCKHEED MARTIN CORPORATION for work described as: 2913 SITE SPT SI 205A Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can carry higher risk if costs are not managed effectively. 4. The sector is primarily IT/Support Services, with a significant portion of the award value. 5. No small business participation is indicated.
Value Assessment
Rating: fair
The award amount of $7.6M for a 364-day period appears reasonable for specialized site support services. Benchmarking against similar contracts for IT and support services within DoD would provide a clearer picture of value.
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 use of full and open competition is positive for taxpayers, as it aims to secure the best value through market forces.
Public Impact
Supports critical U.S. Special Operations Command (SOCOM) missions. Ensures operational readiness through essential site support. Potential for technology integration and modernization within SOCOM facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of small business participation may limit innovation and broader economic impact.
- Specific details on service deliverables are not provided, making performance assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Supports a critical national security agency (SOCOM).
- Long-term contract duration suggests sustained need and potential for stable service delivery.
Sector Analysis
This contract falls within the 'All Other Support Services' category, often encompassing IT support, facility maintenance, and specialized operational assistance. Spending benchmarks for this sector vary widely based on the specific services rendered.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the prime contractor, Lockheed Martin, is handling the entirety of the work, potentially missing opportunities to leverage specialized small business capabilities.
Oversight & Accountability
Oversight will be crucial for the Department of Defense to monitor costs and performance under this Cost Plus Fixed Fee contract, ensuring accountability and value for taxpayer money.
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.
- No small business participation.
- Lack of detailed service description.
- Potential for cost escalation.
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 $7.6 million to LOCKHEED MARTIN CORPORATION. 2913 SITE SPT SI 205A
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 $7.6 million.
What is the period of performance?
Start: 2025-03-11. End: 2026-03-10.
What specific site support services are included in this contract, and how do they align with SOCOM's operational needs?
The contract, '2913 SITE SPT SI 205A', likely encompasses a range of support services critical to SOCOM's operations, potentially including IT infrastructure management, facility maintenance, logistical support, and specialized technical assistance. The exact scope is not detailed but is presumed to directly support SOCOM's unique mission requirements, ensuring readiness and operational effectiveness in sensitive environments.
What are the potential risks associated with a Cost Plus Fixed Fee contract for these services, and how can they be mitigated?
Cost Plus Fixed Fee (CPFF) contracts carry the risk of cost overruns if the contractor's costs exceed projections, as the government pays actual costs plus a fixed fee. Mitigation strategies include robust cost monitoring, clear performance metrics, strong oversight from the contracting officer's representative (COR), and detailed baseline cost estimates to manage expectations and control expenditures effectively.
How does this contract contribute to the overall effectiveness and technological advancement of U.S. Special Operations Command?
This contract likely ensures the seamless functioning of essential support systems and infrastructure, which are foundational to SOCOM's effectiveness. By providing reliable site support, it allows SOCOM personnel to focus on their core missions. Depending on the specific services, it could also involve the integration of new technologies or upgrades to existing systems, indirectly contributing to SOCOM's technological edge.
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: $7,607,248
Exercised Options: $7,607,248
Current Obligation: $7,607,248
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: 2025-03-11
Current End Date: 2026-03-10
Potential End Date: 2026-03-10 00:00:00
Last Modified: 2025-12-09
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