DoD's $211M ATSP Contract Enhances SOEA System with Microelectronics Solutions
Contract Overview
Contract Amount: $21,110,160 ($21.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-24
End Date: 2026-10-31
Contract Duration: 767 days
Daily Burn Rate: $27.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO ADD CAPABILITY AND IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED SCALED ONBOARD ELECTRONIC ATTACK (SOEA) SYSTEM.
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $21.1 million to LOCKHEED MARTIN CORPORATION for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO ADD CAPABILITY AND IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED SCALED ONBOARD ELECTRONIC ATTACK (SOEA) SYSTEM. Key points: 1. Contract aims to improve performance of the SOEA system through advanced microelectronics. 2. Lockheed Martin Corporation is the prime contractor. 3. The contract falls under Engineering Services (NAICS 541330). 4. This is a Delivery Order under a larger contract, indicating phased acquisition.
Value Assessment
Rating: good
The contract value of $211.1M for a period of approximately 2.5 years suggests a significant investment. Without specific per-unit cost data or benchmarks for similar microelectronics development contracts, a precise value assessment is difficult, but the scope appears substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and innovation. The specific mechanism for price discovery within this delivery order, given the Cost Plus Fixed Fee structure, would need further examination.
Taxpayer Impact: Full and open competition is intended to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.
Public Impact
Enhances critical defense electronic attack capabilities. Supports advanced microelectronics research and development. Potential for technological advancements with broad defense applications. Ensures continued performance and improvement of a key military system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize cost overruns if not managed tightly.
- Long duration (767 days) requires sustained oversight.
- No explicit mention of small business participation.
Positive Signals
- Awarded under full and open competition.
- Focus on enhancing critical defense system performance.
- Contracting through the Defense Microelectronics Activity suggests specialized expertise.
Sector Analysis
This contract is within the Defense sector, specifically focusing on advanced engineering services for microelectronics. Spending in this area is critical for maintaining technological superiority in electronic warfare systems. Benchmarks for similar specialized engineering contracts are often proprietary but typically reflect high R&D costs.
Small Business Impact
The data indicates that this contract was not awarded to a small business (SB: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract is managed by the Defense Microelectronics Activity, suggesting specialized oversight. The duration and phased nature (delivery order) necessitate ongoing monitoring to ensure performance, cost control, and adherence to contract terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- No explicit small business subcontracting noted.
- Advanced technology development carries inherent technical risks.
- Potential for scope creep in complex engineering projects.
Tags
engineering-services, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.1 million to LOCKHEED MARTIN CORPORATION. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO ADD CAPABILITY AND IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED SCALED ONBOARD ELECTRONIC ATTACK (SOEA) SYSTEM.
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 $21.1 million.
What is the period of performance?
Start: 2024-09-24. End: 2026-10-31.
What is the specific performance improvement expected from the microelectronics upgrade to the SOEA system?
The contract aims to add capability and improve performance of the Microelectronics-based Scaled Onboard Electronic Attack (SOEA) system. While the exact metrics are not detailed, this typically involves enhancing the system's effectiveness in electronic warfare, potentially through increased processing power, reduced latency, improved signal processing, or expanded operational range and resilience against countermeasures.
How does the Cost Plus Fixed Fee structure mitigate risks of cost overruns in this advanced engineering project?
The Cost Plus Fixed Fee (CPFF) structure aims to provide the contractor with cost certainty while allowing for flexibility in scope. However, it carries inherent risks of cost overruns if the 'cost' element is not rigorously controlled and audited. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the fixed fee remains appropriate for the work performed.
What is the long-term strategic value of investing in the SOEA system's microelectronics capabilities?
Investing in the SOEA system's microelectronics is strategically vital for maintaining a technological edge in electronic warfare. Enhanced capabilities can improve threat detection, electronic countermeasures, and overall mission effectiveness. This investment ensures the system remains relevant against evolving adversary capabilities and contributes to national security by safeguarding critical defense assets and operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – 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: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $24,957,105
Exercised Options: $24,957,105
Current Obligation: $21,110,160
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $4,047,865
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: 2024-09-24
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2026-01-09
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