DoD's $31M Special Operations Aviation Logistics Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $31,188,161 ($31.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-07-01
End Date: 2026-03-31
Contract Duration: 273 days
Daily Burn Rate: $114.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 2907 SPECIAL OPERATIONS AVIATION (SOA) LOGISTICS, MAINTENANCE AND RESET (LMR) SUPPORT
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $31.2 million to LOCKHEED MARTIN CORPORATION for work described as: 2907 SPECIAL OPERATIONS AVIATION (SOA) LOGISTICS, MAINTENANCE AND RESET (LMR) SUPPORT Key points: 1. Contract awarded to Lockheed Martin for critical aviation support services. 2. Significant investment in Special Operations Aviation (SOA) logistics and maintenance. 3. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 4. The IT sector is not directly involved, but advanced support services are crucial.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee, which can lead to higher costs if not managed tightly. Benchmarking against similar complex aviation support contracts is difficult without more detailed cost breakdowns.
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 Cost Plus Fixed Fee structure warrant scrutiny to ensure fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential but potentially costly aviation support services. Robust oversight is needed to ensure cost-effectiveness.
Public Impact
Ensures readiness and operational capability for Special Operations Aviation. Supports critical maintenance and logistics for advanced aircraft. Potential impact on future defense spending trends for specialized aviation support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of detailed cost data makes independent benchmarking challenging.
- Potential for scope creep without strict management.
Positive Signals
- Awarded through full and open competition.
- Supports critical national security operations.
- Contract duration provides stability for essential services.
Sector Analysis
This contract falls under general support services, specifically for aviation logistics and maintenance. While not directly IT, it relies on advanced systems and processes. Spending benchmarks for specialized aviation support can vary widely based on aircraft type and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Lockheed Martin is a large corporation. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
Oversight will be crucial given the Cost Plus Fixed Fee structure. The Department of Defense and U.S. Special Operations Command must ensure rigorous monitoring of costs and performance to maintain accountability.
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 overruns.
- Lack of detailed cost breakdown for benchmarking.
- No explicit mention of small business subcontracting goals.
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 $31.2 million to LOCKHEED MARTIN CORPORATION. 2907 SPECIAL OPERATIONS AVIATION (SOA) LOGISTICS, MAINTENANCE AND RESET (LMR) SUPPORT
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 $31.2 million.
What is the period of performance?
Start: 2025-07-01. End: 2026-03-31.
What specific performance metrics will be used to evaluate the effectiveness of Lockheed Martin's logistics and maintenance support?
Effectiveness will likely be measured by metrics such as aircraft availability rates, turnaround times for maintenance, adherence to schedules, quality of repairs, and overall mission readiness support. Detailed performance work statements and regular reviews by the U.S. Special Operations Command are essential for tracking and ensuring the contractor meets all operational requirements.
How will the government ensure cost control and prevent overruns under this Cost Plus Fixed Fee contract?
Cost control will rely on stringent oversight of allowable costs, regular audits, and clear definition of the fixed fee. The contracting officer must actively manage the contract, review invoices meticulously, and ensure that all expenditures are reasonable, allocable, and necessary for contract performance. Negotiation of ceilings and incentives can also play a role.
What is the potential long-term impact of this contract on the Special Operations Aviation fleet's readiness and modernization?
This contract is vital for maintaining the current operational readiness of the SOA fleet by ensuring timely and effective logistics and maintenance. It also indirectly supports modernization by keeping existing platforms functional, allowing SOCOM to focus resources on future acquisitions. Consistent, high-quality support can extend the service life of critical 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: $31,320,636
Exercised Options: $31,320,636
Current Obligation: $31,188,161
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $2,635,944
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: 2025-07-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-10-06
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