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 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: $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

More Contracts from Lockheed Martin Corporation

View all Lockheed Martin Corporation federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending