DoD Awards $56M LCSM Support Contract to Lockheed Martin via Full and Open Competition
Contract Overview
Contract Amount: $44,928,179 ($44.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-04-23
End Date: 2026-04-22
Contract Duration: 364 days
Daily Burn Rate: $123.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TO 2916 - PEO MARITIME LCSM - FO 2710 - AWARD - ONE YEAR - $56,202,053. INCREMENTALLY FUNDED. NEXT FUND TO BE RECEIVED NLT MAY 2025
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $44.9 million to LOCKHEED MARTIN CORPORATION for work described as: TO 2916 - PEO MARITIME LCSM - FO 2710 - AWARD - ONE YEAR - $56,202,053. INCREMENTALLY FUNDED. NEXT FUND TO BE RECEIVED NLT MAY 2025 Key points: 1. Contract awarded to a single, established prime contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Incremental funding indicates potential for future contract modifications or extensions. 4. The contract falls under 'All Other Support Services' within the IT sector.
Value Assessment
Rating: good
The contract value of $56.2 million for a one-year period appears reasonable given the nature of specialized support services for LCSM. Benchmarking against similar complex system support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. It allows multiple qualified vendors to bid, potentially driving down costs and ensuring fair market value.
Taxpayer Impact: Taxpayer funds are being utilized through a competitive process, which generally aims for cost-effectiveness. The final cost will depend on the execution and any future modifications.
Public Impact
Ensures continued support for the Littoral Combat Ship Mission (LCSM) systems. Maintains operational readiness for critical naval assets. Supports advanced technological capabilities within the U.S. Special Operations Command. Potential for follow-on work based on performance and future needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Incremental funding requires careful monitoring of future allocations.
- Contract duration is one year, necessitating timely re-competition or extension planning.
Positive Signals
- Full and open competition utilized.
- Awarded to a known prime contractor with relevant experience.
Sector Analysis
This contract falls under the IT sector, specifically 'All Other Support Services'. Spending in this category is substantial across the DoD, supporting a wide range of technological needs. Benchmarks for similar support services contracts are often in the millions of dollars annually.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The prime contractor is a large corporation, suggesting that any small business involvement would likely be as subcontractors.
Oversight & Accountability
The Department of Defense's contracting process, including full and open competition, provides a framework for oversight. However, the incremental funding nature requires diligent tracking of expenditures and performance to ensure accountability.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Incremental funding requires careful monitoring.
- Contract is for one year, necessitating future planning.
- Potential for cost overruns in cost-plus contracts.
- Reliance on a single prime contractor for critical support.
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 $44.9 million to LOCKHEED MARTIN CORPORATION. TO 2916 - PEO MARITIME LCSM - FO 2710 - AWARD - ONE YEAR - $56,202,053. INCREMENTALLY FUNDED. NEXT FUND TO BE RECEIVED NLT MAY 2025
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 $44.9 million.
What is the period of performance?
Start: 2025-04-23. End: 2026-04-22.
What specific LCSM systems or capabilities does this support contract cover, and how critical are they to current operations?
This contract likely covers a range of technical support, maintenance, and potentially upgrade services for the Littoral Combat Ship Mission systems. These systems are critical for the operational effectiveness and mission success of LCS vessels, which are designed for diverse roles including surface warfare, anti-submarine warfare, and mine countermeasures. The specific systems supported would need further clarification from contract details.
What are the key performance indicators (KPIs) for this contract, and how will Lockheed Martin's performance be measured to ensure value for money?
Key performance indicators would typically focus on response times for technical issues, successful completion of maintenance tasks, system uptime, and adherence to delivery schedules for any required parts or services. Performance will likely be measured through regular reviews, technical assessments, and potentially user feedback from the Special Operations Command. Meeting these KPIs is crucial for ensuring value and justifying continued funding.
Given the incremental funding, what is the total estimated value of the LCSM program, and what is the strategy for ensuring long-term cost control?
The current award is for $56.2 million incrementally funded for one year. The total estimated value of the LCSM program is not provided in this data. The strategy for long-term cost control would involve competitive re-solicitations for future contract periods, strict adherence to cost-plus fixed-fee parameters, and potentially exploring fixed-price elements for defined services to incentivize efficiency.
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: $56,202,053
Exercised Options: $56,202,053
Current Obligation: $44,928,179
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $324,233
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: 2025-04-23
Current End Date: 2026-04-22
Potential End Date: 2026-04-22 00:00:00
Last Modified: 2026-01-08
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