DoD's $27M Advanced Technology Support Program contract awarded to Lockheed Martin for microelectronic solutions

Contract Overview

Contract Amount: $27,011,843 ($27.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-08-25

End Date: 2026-02-28

Contract Duration: 187 days

Daily Burn Rate: $144.4K/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 HAMMER.

Place of Performance

Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to LOCKHEED MARTIN CORPORATION for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR HAMMER. Key points: 1. Contract aims to secure progressive microelectronic capability solutions. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Duration of 187 days indicates a focused, short-term project. 4. Cost Plus Fixed Fee contract type may incentivize cost management by the contractor. 5. The specific focus on microelectronics aligns with critical defense technology needs. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract value of $27 million for an 187-day period appears substantial for the scope of acquiring 'progressive microelectronic capability solutions'. Without specific deliverables or performance metrics, it's difficult to benchmark value definitively. The Cost Plus Fixed Fee (CPFF) structure means the government pays costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Comparing this to similar, specialized microelectronics R&D or support contracts would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition', indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally promotes a wider range of proposals and potentially more competitive pricing. The fact that it was competed openly suggests the agency sought the best available solution and price from the market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, maximizing the value of federal dollars spent.

Public Impact

The Department of Defense benefits from advanced microelectronic capabilities crucial for national security. The contract supports the development and acquisition of cutting-edge microelectronic solutions. The geographic impact is primarily within Texas, where the contractor is located. Workforce implications may include specialized engineers and technicians in the microelectronics field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs if contractor efficiencies are not rigorously monitored.
The short duration (187 days) might indicate a pilot or specific phase, raising questions about long-term sustainment or broader program integration.
Lack of detailed performance metrics in the provided data makes it challenging to assess the true effectiveness and value for money.

Positive Signals

Awarded through full and open competition, suggesting a robust market search and potential for competitive pricing.
Focus on advanced technology in microelectronics addresses a critical and evolving defense need.
The contract is managed by the Defense Microelectronics Activity, indicating specialized oversight for this sensitive area.

Sector Analysis

The defense microelectronics sector is a critical component of national security, involving the design, fabrication, and integration of advanced semiconductor technologies. This contract falls within the broader Engineering Services (NAICS 541330) category but specifically targets the highly specialized and rapidly evolving field of microelectronics. Spending in this area is often driven by the need for technological superiority and secure supply chains, with significant investment from government agencies like the DoD.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, the direct impact on small businesses through set-asides is unlikely. However, Lockheed Martin, as the prime contractor, may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Defense's Defense Microelectronics Activity, given its specialized nature. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing of costs incurred by Lockheed Martin will be crucial. Transparency regarding the specific deliverables and performance against the fixed fee will be key accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Advanced Technology Support Program (ATSP)
Department of Defense Research and Development Contracts
Microelectronics Research and Development
Defense Engineering Services

Risk Flags

Cost Plus Fixed Fee contract type requires careful oversight to manage potential cost escalations.
Short contract duration may indicate a limited scope or a phase within a larger effort, requiring clarity on follow-on plans.
Specific performance metrics and deliverables are not detailed, making objective assessment of value challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to LOCKHEED MARTIN CORPORATION. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR HAMMER.

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 $27.0 million.

What is the period of performance?

Start: 2025-08-25. End: 2026-02-28.

What is Lockheed Martin Corporation's track record with similar advanced technology or microelectronics contracts for the Department of Defense?

Lockheed Martin Corporation has a long and extensive history of contracting with the Department of Defense across a wide array of technological domains, including advanced electronics, aerospace, and defense systems. They are a major prime contractor involved in numerous complex, high-value programs. While specific data on their microelectronics-focused contracts isn't detailed here, their overall performance profile with the DoD is generally characterized by large-scale program execution. Past performance reviews, contract awards databases (like FPDS or SAM.gov), and CPARS (Contractor Performance Assessment Reporting System) would provide more granular insights into their specific successes and challenges with similar advanced technology and microelectronics projects, including adherence to cost, schedule, and technical requirements.

How does the Cost Plus Fixed Fee (CPFF) contract type typically perform in terms of cost control for advanced technology projects?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development or complex projects where the scope is not fully defined at the outset, or where innovation is a primary goal. In CPFF contracts, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While the fixed fee incentivizes the contractor to control costs to maximize profit, it can also lead to cost overruns if the initial cost estimates are inaccurate or if unforeseen technical challenges arise. Effective government oversight, including detailed cost tracking, auditing, and negotiation of the fee, is critical to ensure value for money and prevent excessive spending. Compared to fixed-price contracts, CPFF generally offers less cost certainty for the government but allows for greater flexibility in scope.

What are the primary risks associated with acquiring 'progressive microelectronic capability solutions' for defense applications?

Acquiring 'progressive microelectronic capability solutions' for defense applications carries several inherent risks. Technological obsolescence is a major concern, as the pace of innovation in microelectronics is rapid; solutions developed today may be outdated quickly. Supply chain vulnerabilities, particularly concerning the sourcing of raw materials and manufacturing capabilities, pose a significant national security risk. Furthermore, the complexity of advanced microelectronics increases the risk of design flaws, manufacturing defects, and integration challenges. Ensuring the security and integrity of these components against cyber threats and counterfeiting is also paramount. Finally, the high cost of R&D and specialized manufacturing equipment can lead to budget overruns if not managed effectively.

What does the $27 million award value suggest about the scale and complexity of the Advanced Technology Support Program (ATSP) contract?

The $27 million award value for an 187-day period suggests a project of significant scope and complexity within the realm of advanced microelectronics. This figure indicates substantial investment in specialized research, development, or acquisition activities. It implies that the contract likely involves high-cost components, advanced manufacturing processes, specialized engineering expertise, or extensive testing and validation. The relatively short duration, coupled with the substantial funding, points towards a focused effort, possibly a critical phase of a larger program, a rapid prototyping initiative, or the acquisition of highly specialized, cutting-edge technology where time-to-market is essential for maintaining a technological edge.

How does the Defense Microelectronics Activity (DMA) typically manage contracts for advanced technology solutions?

The Defense Microelectronics Activity (DMA) is specifically chartered to address the unique challenges and requirements of microelectronics within the Department of Defense. DMA typically manages contracts by leveraging deep technical expertise to define requirements, oversee development and acquisition processes, and ensure the security and reliability of microelectronic components. They often work closely with industry partners, including semiconductor manufacturers and design firms, to foster innovation and secure critical supply chains. Contract management by DMA likely involves stringent technical reviews, rigorous testing protocols, and close monitoring of contractor performance to ensure solutions meet demanding defense specifications and security standards. Their role is crucial in navigating the complexities of advanced technology procurement in this sensitive sector.

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

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: $27,112,008

Exercised Options: $27,112,008

Current Obligation: $27,011,843

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