DoD Awards $45.7M Contract to Lockheed Martin for Special Operations Command Post-Production Support
Contract Overview
Contract Amount: $45,761,083 ($45.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-06-13
End Date: 2027-07-09
Contract Duration: 756 days
Daily Burn Rate: $60.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS PROPOSAL IS BASED ON PERFORMANCE OF THE TO SCOPE DETAILED IN THE PWS ENCLOSED AT APPX B. AS A SYNOPSIS OF THIS SCOPE, WILL PROVIDE H47ER BLOCK II POSTPRODUCTION MOD ENG, PROCUREMENT, FABRICATION, AND INSTALLATION SERVICES TO THE CUSTOMER.
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $45.8 million to LOCKHEED MARTIN CORPORATION for work described as: THIS PROPOSAL IS BASED ON PERFORMANCE OF THE TO SCOPE DETAILED IN THE PWS ENCLOSED AT APPX B. AS A SYNOPSIS OF THIS SCOPE, WILL PROVIDE H47ER BLOCK II POSTPRODUCTION MOD ENG, PROCUREMENT, FABRICATION, AND INSTALLATION SERVICES TO THE CUSTOMER. Key points: 1. Contract focuses on critical H47ER Block II post-production modification engineering, procurement, fabrication, and installation. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee (CPFF) contract type. 4. Spending falls within the 'All Other Support Services' NAICS code, requiring sector-specific benchmarking.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee. While this can incentivize contractor efficiency, it also carries a risk of cost overruns if the initial cost estimates are inaccurate. Benchmarking against similar complex engineering and fabrication contracts is crucial for assessing value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders likely participated. This method generally promotes competitive pricing and allows the government to select the best value offer. The impact on price discovery is positive due to the competitive nature of the bidding.
Taxpayer Impact: Taxpayer funds are being used for specialized engineering and support services. The competitive award process aims to ensure a fair price, but the CPFF structure warrants careful monitoring to prevent cost escalation.
Public Impact
Enhances critical capabilities for U.S. Special Operations Command. Supports advanced post-production modifications for specialized aircraft or systems. Ensures continued operational readiness and technological advantage for elite military units. Investment in complex engineering and manufacturing services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can lead to cost overruns.
- Limited detail on specific performance metrics.
- Potential for scope creep in complex modification projects.
Positive Signals
- Awarded through full and open competition.
- Supports critical national security mission.
- Long-term contract duration (approx. 2 years).
Sector Analysis
This contract falls under 'All Other Support Services' (NAICS 561990), a broad category. Spending benchmarks for specialized defense engineering, modification, and fabrication services are highly specific and depend on the exact nature of the H47ER Block II system.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation and does not specify any subcontracting goals for small businesses. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Defense's contracting oversight mechanisms will be critical in monitoring performance, costs, and adherence to the PWS under this CPFF contract. Regular reviews and audits are essential to ensure accountability and prevent waste.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Potential for cost escalation.
- Complexity of post-production modifications.
- Lack of specific performance metrics in synopsis.
- No explicit small business participation noted.
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 $45.8 million to LOCKHEED MARTIN CORPORATION. THIS PROPOSAL IS BASED ON PERFORMANCE OF THE TO SCOPE DETAILED IN THE PWS ENCLOSED AT APPX B. AS A SYNOPSIS OF THIS SCOPE, WILL PROVIDE H47ER BLOCK II POSTPRODUCTION MOD ENG, PROCUREMENT, FABRICATION, AND INSTALLATION SERVICES TO THE CUSTOMER.
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 $45.8 million.
What is the period of performance?
Start: 2025-06-13. End: 2027-07-09.
What are the specific performance metrics and key performance indicators (KPIs) for this contract to ensure successful delivery of post-production modification services?
Detailed performance metrics are not explicitly provided in the synopsis. However, for a contract of this nature, KPIs would typically include on-time delivery of modifications, adherence to quality standards during fabrication and installation, successful integration testing, and achievement of specified performance improvements post-modification. The PWS (Performance Work Statement) would contain the definitive list of requirements and associated metrics.
How will the government mitigate the risk of cost overruns inherent in a Cost Plus Fixed Fee (CPFF) contract for complex engineering and fabrication services?
Mitigation strategies for CPFF contracts often involve robust government oversight, detailed cost tracking, regular audits of contractor expenditures, and strict change control processes. The government contracting officer and technical team must closely monitor the contractor's performance against the baseline estimate and PWS, ensuring all costs are reasonable, allocable, and allowable.
What is the expected impact of these post-production modifications on the operational effectiveness and lifespan of the H47ER Block II systems?
The modifications are intended to enhance the capabilities and potentially extend the operational lifespan of the H47ER Block II systems. Specific impacts would relate to improved performance, updated functionalities, increased reliability, or enhanced survivability, directly contributing to the mission effectiveness of U.S. Special Operations Command assets.
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
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: $45,761,083
Exercised Options: $45,761,083
Current Obligation: $45,761,083
Subaward Activity
Number of Subawards: 37
Total Subaward Amount: $10,486,619
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: 2025-06-13
Current End Date: 2027-07-09
Potential End Date: 2027-07-09 00:00:00
Last Modified: 2025-06-12
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