DoD Awards $3M+ Contract for SPEAR LCSM to Lockheed Martin, Highlighting Support Services Needs
Contract Overview
Contract Amount: $3,026,155 ($3.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2026-01-16
End Date: 2027-01-15
Contract Duration: 364 days
Daily Burn Rate: $8.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SPEAR LCSM
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $3.0 million to LOCKHEED MARTIN CORPORATION for work described as: SPEAR LCSM Key points: 1. The contract is for All Other Support Services, a broad category. 2. Lockheed Martin is the sole awardee, raising questions about competition. 3. The contract duration is one year, suggesting a focused need. 4. The award value is over $3 million, indicating significant service requirements.
Value Assessment
Rating: fair
The contract is a delivery order under a larger contract, making direct pricing assessment difficult. The Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure costs remain reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While the contract type is listed as 'FULL AND OPEN COMPETITION', the data shows a single awardee, Lockheed Martin. This suggests that while the initial solicitation was open, the final award may have been to a specific entity or a limited number of bidders.
Taxpayer Impact: The impact on taxpayers is moderate, given the contract value and the CPFF structure which necessitates oversight to control costs.
Public Impact
Special Operations Command receives critical support services for its operations. The contract ensures continued functionality of SPEAR LCSM systems. Taxpayer funds are allocated for specialized support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on competition despite 'full and open' designation.
- CPFF contract type can lead to cost overruns if not managed tightly.
Positive Signals
- Award supports critical Special Operations Command needs.
- Contract ensures continuity of essential services.
Sector Analysis
The 'All Other Support Services' category is broad and can encompass a wide range of activities. Benchmarking is difficult without specific service details, but IT and professional services often fall into this NAICS code.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this award. Larger prime contractors like Lockheed Martin typically manage these contracts, with subcontracting opportunities potentially available.
Oversight & Accountability
The Department of Defense and U.S. Special Operations Command are responsible for oversight. The CPFF structure necessitates robust financial and performance monitoring 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
- Potential for cost creep in CPFF contract.
- Limited transparency on competition effectiveness.
- Broad service category lacks specific performance metrics.
- No indication of small business participation.
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 $3.0 million to LOCKHEED MARTIN CORPORATION. SPEAR 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 $3.0 million.
What is the period of performance?
Start: 2026-01-16. End: 2027-01-15.
What specific services does SPEAR LCSM entail, and how does this contract ensure value for money?
SPEAR LCSM likely refers to a system or capability within Special Operations Command, requiring specialized support. The value for money will depend on the defined scope of work, performance metrics, and effective cost control under the CPFF structure. Without more detail on the services, a precise value assessment is challenging.
What are the risks associated with a Cost Plus Fixed Fee contract for these support services?
The primary risk with CPFF contracts is the potential for cost overruns if the contractor's costs exceed initial estimates, even though the fee is fixed. This necessitates strong government oversight to scrutinize costs, prevent inefficiencies, and ensure the contractor is incentivized to manage expenses effectively.
How effective is the 'full and open competition' designation given the single awardee?
The 'full and open competition' designation suggests the initial solicitation was broadly advertised. However, a single awardee implies that only one offeror met the requirements or was deemed the best value. This could indicate a highly specialized need or potential limitations in the bidding pool, requiring further investigation into the evaluation process.
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: $8,999,940
Exercised Options: $8,999,940
Current Obligation: $3,026,155
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: 2026-01-16
Current End Date: 2027-01-15
Potential End Date: 2027-01-15 00:00:00
Last Modified: 2026-01-15
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