DoD awards $8.5M for Combatant Craft Medium maintenance, with Lockheed Martin securing the contract

Contract Overview

Contract Amount: $8,495,112 ($8.5M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-24

End Date: 2026-09-23

Contract Duration: 364 days

Daily Burn Rate: $23.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE MAINTENANCE SUPPORT SERVICES IN SUPPORT OF USSOCOM, PEO SOFSA, AND NAVAL SPECIAL WARFARE COMMAND (NSWC). IT ENCOMPASSES PROCUREMENT OF CRITICAL SPARES FOR SUPPORT OF THE COMBATANT CRAFT MEDIUM (CCM).

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $8.5 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE MAINTENANCE SUPPORT SERVICES IN SUPPORT OF USSOCOM, PEO SOFSA, AND NAVAL SPECIAL WARFARE COMMAND (NSWC). IT ENCOMPASSES PROCUREMENT OF CRITICAL SPARES FOR SUPPORT OF THE COMBATANT CRAFT MEDIUM (CCM). Key points: 1. Contract focuses on critical spares and maintenance for USSOCOM, PEO SOFSA, and NSWC. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration is one year, indicating a need for ongoing, but not long-term, support. 4. This award falls under 'All Other Support Services' (NAICS 561990). 5. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $8.5 million for a one-year maintenance support task order for specialized naval craft appears within a reasonable range for such services. Benchmarking against similar specialized defense maintenance contracts is challenging without more specific details on the scope of 'critical spares' and the exact nature of the maintenance required. The Cost Plus Fixed Fee (CPFF) contract type means that while the fixed fee provides some predictability for the contractor's profit, the overall cost can fluctuate based on actual expenses incurred. This necessitates careful oversight to ensure costs remain reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This method is generally preferred for maximizing competition and potentially achieving better pricing. The specific number of bids received is not provided, but the 'full and open' designation suggests a robust competitive process was intended.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors.

Public Impact

This contract directly supports U.S. Special Operations Command (USSOCOM) and Naval Special Warfare Command (NSWC) operations. It ensures the operational readiness of Combatant Craft Medium (CCM) by providing essential maintenance and spare parts. The services are critical for maintaining the effectiveness of specialized maritime special operations forces. The contract's impact is primarily on military readiness and the specialized defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
Reliance on a single contractor for critical spares could pose supply chain risks.
The specific nature of 'critical spares' may limit alternative sourcing options in the future.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
The contract supports critical national defense missions, ensuring operational readiness.
Lockheed Martin is a major defense contractor with extensive experience in this domain.

Sector Analysis

This contract falls within the broader defense sector, specifically supporting naval special warfare capabilities. The market for specialized maritime craft maintenance and associated critical spares is niche, dominated by a few key defense contractors. Spending in this area is driven by operational requirements and the need to maintain high readiness levels for specialized assets. Comparable spending benchmarks would typically involve other task orders for similar craft maintenance or support services within DoD.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. The prime contractor, Lockheed Martin, is a large defense corporation. The absence of small business considerations in this specific award may mean opportunities for small businesses are limited unless they are part of the larger contractor's supply chain.

Oversight & Accountability

Oversight for this task order would typically fall under the contracting activity within the Department of Defense, likely managed by U.S. Special Operations Command or Naval Special Warfare Command. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction over any allegations of fraud, waste, or abuse.

Related Government Programs

USSOCOM Procurement
Naval Special Warfare Command Support
Combatant Craft Programs
Defense Maintenance Services
Special Operations Forces Support Activity

Risk Flags

Potential for cost overruns due to CPFF structure
Supply chain risk for critical spares
Limited competition for specialized components

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.5 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE MAINTENANCE SUPPORT SERVICES IN SUPPORT OF USSOCOM, PEO SOFSA, AND NAVAL SPECIAL WARFARE COMMAND (NSWC). IT ENCOMPASSES PROCUREMENT OF CRITICAL SPARES FOR SUPPORT OF THE COMBATANT CRAFT MEDIUM (CCM).

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 $8.5 million.

What is the period of performance?

Start: 2025-09-24. End: 2026-09-23.

What is the historical spending by the Department of Defense on Combatant Craft Medium (CCM) maintenance and support services over the past five years?

Detailed historical spending data specifically for Combatant Craft Medium (CCM) maintenance and support services across the entire Department of Defense is not readily available in public databases. However, general trends in defense spending on maritime special operations equipment and sustainment can be inferred from broader budget allocations. USSOCOM and NSWC budgets typically include significant allocations for platform sustainment, spare parts, and specialized maintenance. The $8.5 million awarded in this task order represents a specific, one-year requirement for critical spares and maintenance. To provide a comprehensive historical view, one would need to analyze individual contract awards and task orders issued by USSOCOM, PEO SOFSA, and NSWC related to CCM and similar craft over the specified period, looking for patterns in contract values, durations, and the types of services procured.

How does the pricing structure (Cost Plus Fixed Fee) for this contract compare to typical industry standards for similar defense maintenance services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in defense contracting, particularly for services where the scope of work or material costs can be uncertain at the outset, such as maintenance and support. For similar defense maintenance services, CPFF is often used when the government wants to incentivize contractor efficiency while allowing for reimbursement of actual costs plus a predetermined profit (the fixed fee). Compared to fixed-price contracts, CPFF can offer more flexibility but requires diligent government oversight to manage costs. Industry standards often involve negotiating a reasonable fixed fee as a percentage of estimated costs, and the government monitors expenditures closely to ensure they align with the contract's objectives. The effectiveness of CPFF hinges on robust cost accounting and auditing by the government.

What are the specific risks associated with relying on Lockheed Martin Corporation for critical spares for the Combatant Craft Medium?

Relying on Lockheed Martin Corporation for critical spares for the Combatant Craft Medium (CCM) presents several potential risks. Firstly, as a sole or primary source for highly specialized components, there's a risk of price escalation over time if competition is limited or if Lockheed Martin holds significant intellectual property. Secondly, supply chain disruptions, whether internal to Lockheed Martin or its own suppliers, could impact the availability of these critical spares, potentially delaying maintenance and affecting operational readiness. Thirdly, a lack of transparency in the cost build-up for these spares could make it difficult for the government to ascertain fair pricing. Finally, dependence on a single large contractor can reduce the government's leverage in future negotiations or sourcing efforts.

What performance metrics or Key Performance Indicators (KPIs) are likely being used to evaluate Lockheed Martin's performance under this maintenance support contract?

While specific Key Performance Indicators (KPIs) are not detailed in the provided data, typical performance metrics for a defense maintenance support contract like this would likely include: On-Time Delivery of critical spares, ensuring that parts are provided within agreed-upon timelines to minimize downtime. Quality of Maintenance Services, measured by the effectiveness and reliability of the repairs performed and the absence of repeat issues. Responsiveness to Government Requests, assessing how quickly the contractor addresses urgent needs or inquiries. Technical Performance, ensuring that the maintenance performed meets or exceeds specified technical standards and requirements for the Combatant Craft Medium. Compliance with Reporting Requirements, ensuring accurate and timely submission of all required documentation and status updates.

What is the strategic importance of the Combatant Craft Medium (CCM) to USSOCOM and NSWC, and how does this contract contribute to that importance?

The Combatant Craft Medium (CCM) is strategically important to USSOCOM and NSWC as a versatile platform for special operations missions, including insertion, extraction, and support operations in littoral and riverine environments. Its capabilities allow special operators to conduct missions with speed, stealth, and precision. This contract directly contributes to the CCM's strategic importance by ensuring its operational readiness through the provision of critical spare parts and essential maintenance. Without timely access to these components and expert support, the CCM fleet's availability and effectiveness would be compromised, hindering the ability of special operations forces to execute their missions successfully. Therefore, this contract is vital for maintaining the operational capability of a key asset.

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: $8,495,112

Exercised Options: $8,495,112

Current Obligation: $8,495,112

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