DoD's $37.3M Fleet CASS FOT Service contract awarded to Lockheed Martin for 364 days

Contract Overview

Contract Amount: $37,261,818 ($37.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $102.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FLEET CASS FOT SERVICE YEAR 2

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $37.3 million to LOCKHEED MARTIN CORPORATION for work described as: FLEET CASS FOT SERVICE YEAR 2 Key points: 1. Contract value represents a significant investment in fleet readiness and operational support. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. Performance period of one year allows for regular reassessment of needs and contractor performance. 5. The contract supports critical defense operations within the Department of the Navy. 6. The North American Industry Classification System (NAICS) code 334519 indicates a focus on specialized manufacturing and control devices.

Value Assessment

Rating: good

The contract value of approximately $37.3 million for a one-year period appears reasonable given the nature of fleet support services. Benchmarking against similar contracts for advanced systems maintenance and operational support would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests an expectation of well-defined requirements and manageable cost risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and allowed to bid. The presence of a competitive process is generally positive for price discovery and ensures the government can select the best value offering. The specific number of bidders is not provided, but the category suggests a healthy level of market interest.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards.

Public Impact

Benefits the Department of the Navy by ensuring the operational readiness of its fleet. Provides essential support services for critical defense systems. Geographic impact is focused on Florida (ST/SN), likely supporting naval bases or operations in the region. Workforce implications may include specialized technical roles for maintenance, repair, and operational support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical issues arise within the fixed-price structure.
Dependence on a single contractor for critical fleet support services could pose a risk if performance degrades.
Scope creep could lead to increased costs if not managed tightly within the defined contract terms.

Positive Signals

Award to a large, established defense contractor like Lockheed Martin suggests a high likelihood of technical capability and experience.
Firm-fixed-price contract provides cost certainty for the government.
Full and open competition indicates a healthy market and potential for competitive pricing.

Sector Analysis

The contract falls within the broader defense sector, specifically related to the manufacturing and support of measuring and controlling devices (NAICS 334519). This sector is characterized by high technological sophistication, stringent quality requirements, and significant government procurement. Spending in this area is crucial for maintaining the operational effectiveness of military assets. Comparable spending benchmarks would involve analyzing other contracts for similar specialized equipment maintenance and support within the DoD.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, direct benefits to small businesses through this specific award are unlikely unless they are subcontractors. The prime contractor, Lockheed Martin, is a large corporation, and subcontracting opportunities for small businesses would depend on their internal procurement strategies and the specific needs of the service delivery.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to meet performance standards within the agreed budget. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Fleet Readiness
Naval Aviation Support
Defense Logistics Agency Services
Department of Defense Maintenance and Repair Contracts
Advanced Manufacturing Support

Risk Flags

Potential for cost overruns if unforeseen technical issues arise.
Risk of performance degradation by the sole-source contractor.
Scope creep could lead to increased costs if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.3 million to LOCKHEED MARTIN CORPORATION. FLEET CASS FOT SERVICE YEAR 2

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $37.3 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is Lockheed Martin's track record with similar Department of the Navy contracts?

Lockheed Martin Corporation is a major defense contractor with extensive experience supporting the Department of the Navy across a wide array of programs. Their track record typically includes large-scale system integration, platform maintenance, and advanced technology development. For contracts similar to FLEET CASS FOT SERVICE YEAR 2, which involves operational support for fleet systems, Lockheed Martin has a history of delivering complex services. Analysis of past performance evaluations, contract modifications, and any past disputes or claims related to similar Navy contracts would provide a more granular view of their reliability and effectiveness in fulfilling such requirements. Their established presence suggests a capacity to manage the technical and logistical demands of this contract.

How does the awarded amount compare to historical spending on similar fleet support services?

The awarded amount of $37,261,818.42 for the FLEET CASS FOT SERVICE YEAR 2 contract represents a specific investment for a one-year period. To benchmark this against historical spending, one would need to identify comparable contracts for fleet operational support, maintenance, and related services awarded by the Department of the Navy or other branches of the DoD. Factors such as the specific systems supported, the duration of the contract, the level of service required, and inflation rates would need to be considered. Without access to a comprehensive database of historical contract values for precisely analogous services, a direct comparison is challenging. However, the value appears substantial, reflecting the critical nature and complexity of supporting naval fleet operations.

What are the primary risks associated with this firm-fixed-price contract?

The primary risks associated with a firm-fixed-price (FFP) contract, such as FLEET CASS FOT SERVICE YEAR 2, generally lie with the contractor. However, risks for the government can still exist. For the contractor, the risk is that actual costs exceed the fixed price, leading to reduced profit or a loss. For the government, risks include potential quality compromises if the contractor seeks to reduce costs by cutting corners, although this is mitigated by performance standards and oversight. Another risk is scope creep, where the government may inadvertently request additional work not covered by the original scope, potentially leading to contract modifications and increased costs. Ensuring clear and comprehensive contract requirements is crucial to mitigate these risks.

How effective is full and open competition in ensuring value for taxpayer money in defense contracts?

Full and open competition is widely considered the most effective method for ensuring value for taxpayer money in defense contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best prices and most innovative solutions to win the contract. This process typically leads to lower prices, higher quality goods and services, and greater innovation compared to sole-source or limited competition scenarios. The Department of Defense actively promotes full and open competition as a means to achieve best value and promote market efficiencies. While it requires more administrative effort upfront to solicit and evaluate bids, the long-term benefits in terms of cost savings and performance are substantial.

What is the typical duration and value range for contracts supporting fleet operational systems?

The duration and value range for contracts supporting fleet operational systems can vary significantly based on the complexity of the systems, the scope of services required, and the specific branch of the military. Contracts can range from short-term, project-specific support to long-term sustainment and modernization efforts. Annual values can range from hundreds of thousands to hundreds of millions of dollars. The FLEET CASS FOT SERVICE YEAR 2 contract, with a duration of 364 days and a value of approximately $37.3 million, falls within a moderate range for specialized fleet support services. Longer-term contracts, often encompassing multiple years with options, are common for major platform sustainment, potentially reaching billions in total value.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6833522R0140

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825

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: $37,261,818

Exercised Options: $37,261,818

Current Obligation: $37,261,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6833524D0010

IDV Type: IDC

Timeline