DoD's B-52H ACU Redesign Contract Awarded to Lockheed Martin for $168.7M
Contract Overview
Contract Amount: $16,867,661 ($16.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-05-08
End Date: 2026-04-30
Contract Duration: 357 days
Daily Burn Rate: $47.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR B-52H AVIONICS CONTROL UNIT (ACU) REDESIGN
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $16.9 million to LOCKHEED MARTIN CORPORATION for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR B-52H AVIONICS CONTROL UNIT (ACU) REDESIGN Key points: 1. The contract focuses on critical B-52H avionics control unit redesign, a key component for the aircraft's modernization. 2. Lockheed Martin, a major defense contractor, secured this award, indicating significant market presence. 3. The contract's cost-plus-fixed-fee structure warrants close monitoring to ensure cost containment. 4. This award falls within the Engineering Services sector, supporting advanced microelectronic capabilities.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently. Benchmarking against similar complex avionics redesign projects is difficult without more detailed cost breakdowns.
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. However, the specific pricing mechanisms within the CPFF structure will determine the ultimate price discovery effectiveness.
Taxpayer Impact: Taxpayer funds are being used for a critical defense modernization effort. Effective cost management is essential to ensure value for money and minimize potential overspending.
Public Impact
Enhances the operational readiness and lifespan of the B-52H bomber fleet. Supports the development of advanced microelectronic solutions for aging military aircraft. Contributes to the technological superiority of U.S. Air Force assets. Potential for follow-on contracts related to B-52H upgrades and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type requires vigilant oversight to prevent cost escalation.
- Limited visibility into specific cost drivers for the microelectronic solutions.
- Potential for scope creep in complex redesign projects.
Positive Signals
- Addresses a critical need for B-52H modernization.
- Awarded through full and open competition.
- Supports advanced technological development in microelectronics.
Sector Analysis
This contract falls under Engineering Services, specifically supporting advanced microelectronics for defense applications. Spending in this sector is often driven by modernization efforts and technological advancements in military hardware.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Lockheed Martin is a large corporation. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Department of Defense and the Defense Microelectronics Activity are responsible for oversight. The CPFF contract type necessitates robust financial tracking and performance monitoring to ensure accountability and prevent waste.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Cost Overruns (CPFF)
- Technological Obsolescence
- Integration Complexity
- Supply Chain Risks
- Performance in Harsh Environments
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 $16.9 million to LOCKHEED MARTIN CORPORATION. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR B-52H AVIONICS CONTROL UNIT (ACU) REDESIGN
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 $16.9 million.
What is the period of performance?
Start: 2025-05-08. End: 2026-04-30.
What is the projected cost savings or efficiency gain from redesigning the B-52H ACU?
The provided data does not specify projected cost savings or efficiency gains. The primary objective appears to be modernization and capability enhancement rather than direct cost reduction. Further analysis would be needed to quantify potential long-term operational efficiencies or maintenance cost reductions resulting from the redesign.
What are the specific risks associated with the microelectronic solutions for the B-52H ACU?
Risks could include technological obsolescence of the new microelectronics, integration challenges with existing B-52H systems, supply chain vulnerabilities for specialized components, and the potential for performance issues in harsh operational environments. The CPFF structure also introduces financial risk if costs are not managed effectively.
How will the effectiveness of the redesigned ACU be measured and validated?
Effectiveness will likely be measured through rigorous testing and validation protocols, including ground tests, flight tests, and operational assessments. Key performance indicators would focus on reliability, functionality, maintainability, and compatibility with the B-52H platform's mission requirements. Independent verification and validation may also be employed.
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
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: $16,867,661
Exercised Options: $16,867,661
Current Obligation: $16,867,661
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: 2025-05-08
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-07-24
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)