DoD Awards $8.78M for EW Payload Software, Enhancing Microelectronics Capabilities

Contract Overview

Contract Amount: $8,780,321 ($8.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-12-15

End Date: 2026-10-31

Contract Duration: 1,051 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SERVICES SOFTWARE SOLUTIONS TO ADD CAPABILITIES, IMPROVE PERFORMANCE AND RESOLVE OBSOLESCENCE ISSUES TO THE MICROELECTRONICS-BASED CROSS SERVICE SOSA ELECTRONIC WARFARE PAYLOAD NEW TASK AWARD CET 23-343

Place of Performance

Location: OWEGO, TIOGA County, NEW YORK, 13827

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $8.8 million to LOCKHEED MARTIN CORPORATION for work described as: ENGINEERING SERVICES SOFTWARE SOLUTIONS TO ADD CAPABILITIES, IMPROVE PERFORMANCE AND RESOLVE OBSOLESCENCE ISSUES TO THE MICROELECTRONICS-BASED CROSS SERVICE SOSA ELECTRONIC WARFARE PAYLOAD NEW TASK AWARD CET 23-343 Key points: 1. Contract focuses on critical electronic warfare payload software upgrades. 2. Lockheed Martin, a major defense contractor, secured the award. 3. The award addresses obsolescence and performance improvement needs. 4. Engineering services are key to this microelectronics-focused effort.

Value Assessment

Rating: good

The Cost Plus Fixed Fee contract type suggests potential for cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty. Benchmarking against similar engineering services contracts for specialized defense systems is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair pricing, though the specific nature of specialized engineering services can limit direct price comparisons.

Taxpayer Impact: Taxpayer funds are being used to enhance critical defense capabilities, ensuring the U.S. maintains a technological edge in electronic warfare.

Public Impact

Enhances national security through advanced electronic warfare capabilities. Supports the modernization of critical defense microelectronics infrastructure. Ensures U.S. military systems remain effective against evolving threats.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
  • Specialized nature of engineering services may limit direct cost comparisons.
  • Long-term performance and effectiveness of software solutions need monitoring.

Positive Signals

  • Awarded under full and open competition.
  • Addresses critical obsolescence issues.
  • Aims to improve system performance.
  • Focuses on advanced microelectronics.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense microelectronics and electronic warfare systems. Spending in this area is driven by the need for technological superiority and modernization of aging defense platforms.

Small Business Impact

The awardee is Lockheed Martin Corporation, a large business. There is no indication of small business subcontracting in the provided data, which warrants further investigation to ensure small business participation goals are met.

Oversight & Accountability

The Department of Defense, through the Defense Microelectronics Activity, is responsible for this award. Oversight will be crucial to ensure the cost-plus-fixed-fee contract is managed effectively and delivers the intended technical outcomes.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Defense Microelectronics Activity Programs

Risk Flags

  • Potential for cost overruns due to CPFF contract type.
  • Lack of immediate visibility into small business subcontracting.
  • Dependency on a single large contractor for critical upgrades.
  • Long-term sustainment and maintenance costs not detailed.

Tags

engineering-services, department-of-defense, ny, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.8 million to LOCKHEED MARTIN CORPORATION. ENGINEERING SERVICES SOFTWARE SOLUTIONS TO ADD CAPABILITIES, IMPROVE PERFORMANCE AND RESOLVE OBSOLESCENCE ISSUES TO THE MICROELECTRONICS-BASED CROSS SERVICE SOSA ELECTRONIC WARFARE PAYLOAD NEW TASK AWARD CET 23-343

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Microelectronics Activity).

What is the total obligated amount?

The obligated amount is $8.8 million.

What is the period of performance?

Start: 2023-12-15. End: 2026-10-31.

What is the projected return on investment for these software enhancements in terms of improved operational effectiveness or cost savings?

The return on investment is primarily measured in enhanced national security and military readiness. Improved performance and resolved obsolescence directly contribute to the effectiveness of electronic warfare systems, potentially reducing future maintenance costs and mitigating risks associated with outdated technology.

What are the key performance indicators (KPIs) used to measure the success of these engineering services and software solutions?

Key performance indicators likely include successful integration of new capabilities, measurable improvements in system performance metrics (e.g., speed, accuracy, range), resolution of identified obsolescence issues, and adherence to cybersecurity standards. User feedback and operational test results will also be critical.

How does this contract align with broader DoD strategies for microelectronics modernization and electronic warfare superiority?

This contract directly supports DoD's strategic goals by upgrading essential electronic warfare payloads, ensuring they remain capable against evolving threats. Investing in microelectronics ensures the foundational technology for these systems is current and resilient, contributing to overall technological dominance.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ072715R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1801 STATE RT 17 C, OWEGO, NY, 13827

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: $8,780,321

Exercised Options: $8,780,321

Current Obligation: $8,780,321

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $1,604,767

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ072716D0001

IDV Type: IDC

Timeline

Start Date: 2023-12-15

Current End Date: 2026-10-31

Potential End Date: 2026-10-31 00:00:00

Last Modified: 2025-12-09

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