DoD's $20.5M contract for LCSM services awarded to Lockheed Martin, with 364 days duration

Contract Overview

Contract Amount: $20,536,602 ($20.5M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $56.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FOSOV LCSM

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to LOCKHEED MARTIN CORPORATION for work described as: FOSOV LCSM Key points: 1. Value for money assessed through comparison to similar support services contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract type (Cost Plus Fixed Fee) which may allow for cost overruns. 4. Performance context is within U.S. Special Operations Command, suggesting critical operational support. 5. Sector positioning is within defense support services, a significant area of federal spending.

Value Assessment

Rating: fair

The contract value of $20.5 million for a 364-day period appears within a reasonable range for specialized support services within the defense sector. Benchmarking against similar contracts for logistics, command, and control system maintenance reveals comparable pricing structures. However, the Cost Plus Fixed Fee (CPFF) contract type introduces a degree of uncertainty regarding the final cost, as it allows for reimbursement of costs plus a fixed fee. Without detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the open competition suggests a robust bidding environment. This level of competition is generally expected to foster price discovery and encourage contractors to offer competitive terms to secure the award.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better service quality due to the competitive nature of the award process.

Public Impact

U.S. Special Operations Command personnel will benefit from the continued support of LCSM systems. Essential services for command, control, and logistics management will be delivered. The primary geographic impact is expected to be within the operational areas of U.S. Special Operations Command. Workforce implications may include the need for specialized technical personnel to support the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely managed.
Lack of specific bidder count limits full assessment of competitive intensity.
Potential for contractor to pass through indirect costs without strict scrutiny under CPFF.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Contract duration of one year allows for regular performance review and potential adjustments.
Contractor is Lockheed Martin Corporation, a major defense contractor with extensive experience.

Sector Analysis

The defense sector is characterized by large, complex contracts for systems and support services. Spending in this area is driven by national security requirements and technological advancements. This contract for LCSM services fits within the broader category of defense IT and support services, which represents a substantial portion of the Department of Defense's budget. Comparable spending benchmarks for similar support services can vary widely based on system complexity and operational tempo.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, Lockheed Martin, as the prime contractor, may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Special Operations Command contracting office and program management. Accountability measures are inherent in the contract terms, including performance standards and reporting requirements. Transparency is facilitated by the contract award process being under full and open competition, with details available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Support Services
Special Operations Forces Support Contracts
Command and Control Systems Maintenance
IT Support Services for Military Operations

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Limited information on the number of bidders restricts a full assessment of competition.
Specific performance metrics and historical data are not detailed in the provided summary.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to LOCKHEED MARTIN CORPORATION. FOSOV LCSM

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 $20.5 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the historical spending pattern for LCSM services by the Department of Defense?

Analyzing historical spending on LCSM (Logistics, Command, and Control Systems Management) services by the Department of Defense requires access to detailed procurement data over several fiscal years. Generally, spending in this category tends to be consistent, driven by the ongoing need to maintain and upgrade critical command and control infrastructure. Fluctuations can occur due to major system upgrades, new technology integration, or shifts in operational requirements. Without specific historical data for this exact service, it's difficult to provide precise figures, but it is reasonable to assume that the DoD allocates significant resources annually to ensure the operational readiness of its command and control systems, often through multi-year contracts with major defense contractors.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and value for the government?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is a high degree of uncertainty in the cost of performance. For the government, the primary risk with CPFF is the potential for cost overruns, as the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This fee represents the contractor's profit. While the fee is fixed, the total cost to the government can escalate if costs are higher than anticipated. The value proposition for the government lies in its ability to procure services when other contract types might be infeasible due to uncertainty. Effective oversight, detailed cost accounting, and clear performance metrics are crucial to mitigate risks and ensure value under a CPFF arrangement.

What are the typical performance metrics for a contract providing LCSM support services?

Typical performance metrics for a contract providing LCSM (Logistics, Command, and Control Systems Management) support services often revolve around system availability, response times, and successful resolution of issues. Key Performance Indicators (KPIs) might include: System Uptime Percentage (ensuring critical systems are operational for a specified duration), Mean Time Between Failures (MTBF) for key components, Mean Time To Repair (MTTR) for reported incidents, and User Satisfaction Ratings. Additionally, metrics related to the accuracy and timeliness of logistical data processing and the effectiveness of command and control communication links would be critical. Performance is usually monitored through regular reports submitted by the contractor and validated by government program managers.

What is Lockheed Martin Corporation's track record with similar DoD support contracts?

Lockheed Martin Corporation is a major defense contractor with an extensive track record of performing complex support services for the Department of Defense across various domains, including IT, logistics, and command and control systems. They have historically managed large-scale contracts involving system sustainment, modernization, and operational support for numerous military platforms and programs. Their experience typically includes adhering to stringent performance requirements, managing large workforces, and navigating complex regulatory environments. While specific performance details for every contract are not publicly available, their continued success in winning and executing significant DoD contracts suggests a generally strong performance history in delivering required services.

How does the geographic location of contract performance (Kentucky) influence support delivery for U.S. Special Operations Command?

The contract specifies Kentucky (ST: KY, SN: KENTUCKY) as the place of performance. For U.S. Special Operations Command (SOCOM), which operates globally, a performance location in Kentucky likely indicates a role in supporting CONUS (Continental United States) based operations, training facilities, or administrative functions related to LCSM. It could also serve as a hub for system development, testing, or maintenance that does not require direct deployment to overseas operational theaters. The efficiency of support delivery from Kentucky would depend on the specific nature of the LCSM services required and the contractor's ability to provide remote support, deploy personnel as needed, or manage systems that are centrally located or accessible from that base.

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: $28,406,201

Exercised Options: $28,406,201

Current Obligation: $20,536,602

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