DoD awards Lockheed Martin $6.4M for SOCOM FVL Engineering Support, extending through June 2027
Contract Overview
Contract Amount: $6,405,868 ($6.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2027-06-10
Contract Duration: 619 days
Daily Burn Rate: $10.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LOCKHEED MARTIN IS TO PROVIDE THE USG ENGINEERING DESIGN/ANALYSES/TESTING, AIRWORTHINESS, MATERIAL ACQUISITION/SUPPLY-CHAIN, AND OTHER LABOR, MATERIAL AND TRAVEL SUPPORT SERVICES REQUIRED FOR EXECUTION OF THIS TAPO FVL ENGINEERING SUPPORT PROGRAM
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $6.4 million to LOCKHEED MARTIN CORPORATION for work described as: LOCKHEED MARTIN IS TO PROVIDE THE USG ENGINEERING DESIGN/ANALYSES/TESTING, AIRWORTHINESS, MATERIAL ACQUISITION/SUPPLY-CHAIN, AND OTHER LABOR, MATERIAL AND TRAVEL SUPPORT SERVICES REQUIRED FOR EXECUTION OF THIS TAPO FVL ENGINEERING SUPPORT PROGRAM Key points: 1. This contract focuses on critical engineering, analysis, and testing for the FVL program. 2. Lockheed Martin, a major defense contractor, holds this award. 3. The contract is a delivery order under a larger agreement, indicating potential for future taskings. 4. The sector is dominated by large, established defense companies.
Value Assessment
Rating: good
The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility but requires careful monitoring of costs to ensure value. The total award amount is moderate for this type of engineering support.
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. This method is generally expected to yield fair pricing, though the CPFF structure necessitates robust oversight.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential engineering services.
Public Impact
Supports advanced aviation technology development for special operations. Ensures continued airworthiness and material readiness for critical assets. Contributes to the long-term sustainment and modernization of military aviation capabilities. Impacts the Special Operations Command's ability to execute its mission effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
- Sole reliance on Lockheed Martin for this specific support may limit future competitive opportunities.
- Contract duration extends over multiple fiscal years, requiring sustained budget allocation.
Positive Signals
- Awarded under full and open competition.
- Supports a critical national security program (FVL).
- Experienced contractor with a proven track record.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on engineering and support services for advanced aviation programs. Spending in this area is significant, driven by modernization efforts and technological advancements.
Small Business Impact
The prime contractor, Lockheed Martin, is a large business. There is no indication of small business participation in this specific delivery order, which is common for highly specialized defense engineering contracts.
Oversight & Accountability
The CPFF contract type necessitates strong government oversight to manage costs and ensure performance objectives are met. Regular reviews and audits will be crucial for accountability.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost overrun risk due to CPFF structure.
- Potential for vendor lock-in on future FVL development.
- Dependence on a single contractor for critical engineering expertise.
- Long contract duration requires sustained budget commitment.
Tags
all-other-support-services, department-of-defense, ky, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.4 million to LOCKHEED MARTIN CORPORATION. LOCKHEED MARTIN IS TO PROVIDE THE USG ENGINEERING DESIGN/ANALYSES/TESTING, AIRWORTHINESS, MATERIAL ACQUISITION/SUPPLY-CHAIN, AND OTHER LABOR, MATERIAL AND TRAVEL SUPPORT SERVICES REQUIRED FOR EXECUTION OF THIS TAPO FVL ENGINEERING SUPPORT PROGRAM
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 $6.4 million.
What is the period of performance?
Start: 2025-09-29. End: 2027-06-10.
What is the projected cost growth potential for this CPFF contract, and what mechanisms are in place to control it?
Cost Plus Fixed Fee contracts inherently carry a risk of cost growth as the contractor is reimbursed for allowable costs plus a fixed fee. To control this, the government must implement rigorous oversight, including detailed cost tracking, performance metrics, and regular audits. The contract terms likely include clauses for cost ceilings and require detailed justification for any cost increases beyond initial estimates.
How does the government ensure continued innovation and competitive pricing in future phases or related programs, given Lockheed Martin's established role?
While Lockheed Martin is a key player, the government can foster future competition by clearly defining requirements for subsequent phases or new programs to encourage new entrants. Utilizing modular designs and open architectures can also facilitate integration with solutions from other vendors. Periodic market research and strategic sourcing initiatives will be vital to identify and cultivate emerging capabilities.
What are the key performance indicators (KPIs) being used to measure the success of the engineering support services provided under this contract?
Key performance indicators likely include metrics related to the timeliness and accuracy of engineering designs and analyses, successful completion of testing phases, adherence to airworthiness standards, and efficiency in material acquisition and supply chain management. Meeting program milestones, delivering required documentation on schedule, and maintaining effective communication channels with the government are also critical indicators of success.
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: $24,689,055
Exercised Options: $24,689,055
Current Obligation: $6,405,868
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: 2025-09-29
Current End Date: 2027-06-10
Potential End Date: 2027-06-10 00:00:00
Last Modified: 2026-01-06
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