DoD's $1.56B Advanced Technology Support Program for MH-60 Microelectronics Leverages Lockheed Martin
Contract Overview
Contract Amount: $15,636,306 ($15.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-08-15
End Date: 2028-07-31
Contract Duration: 1,081 days
Daily Burn Rate: $14.5K/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 MH-60 AWI
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $15.6 million to LOCKHEED MARTIN CORPORATION for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR MH-60 AWI Key points: 1. Contract focuses on advanced microelectronic solutions for MH-60 aircraft. 2. Lockheed Martin is the sole awardee, raising questions about competition. 3. Significant investment in a critical defense capability. 4. Cost-plus-fixed-fee structure requires careful oversight.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking is difficult without detailed cost breakdowns, but the duration and complexity suggest a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open, the award to a single entity, Lockheed Martin, suggests potential limitations in the competitive landscape or a highly specialized requirement. Price discovery may be less robust without multiple competing bids.
Taxpayer Impact: Taxpayer funds are directed towards advanced defense technology, with potential for cost inefficiencies if competition is not fully realized.
Public Impact
Enhances critical capabilities for MH-60 helicopters, vital for national security. Investment in cutting-edge microelectronics could yield technological advantages. Potential for cost overruns due to the CPFF contract type. Long-term commitment to a single contractor warrants scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee despite 'full and open' designation.
- CPFF contract type increases cost risk.
- Lack of small business participation noted.
Positive Signals
- Addresses critical defense technology need.
- Long-term contract provides stability for capability development.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense applications. Spending benchmarks for advanced microelectronics development can vary widely based on technological complexity and program scale.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is a large corporation. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The CPFF contract type necessitates robust oversight from the Defense Contract Management Agency to ensure costs are reasonable and fixed fees are justified. Monitoring performance and adherence to technical requirements is crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited competition despite 'full and open' designation.
- Lack of small business participation.
- Long contract duration increases exposure to changing requirements.
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 $15.6 million to LOCKHEED MARTIN CORPORATION. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR MH-60 AWI
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $15.6 million.
What is the period of performance?
Start: 2025-08-15. End: 2028-07-31.
What specific technological advancements does this contract aim to achieve in microelectronics for the MH-60, and how do these align with current and future defense needs?
The contract aims to acquire progressive microelectronic capability solutions for the MH-60. This likely involves developing or integrating next-generation components for enhanced performance, reliability, or new functionalities such as improved sensor processing, communication systems, or electronic warfare capabilities, directly supporting the platform's operational effectiveness in evolving threat environments.
Given the sole award to Lockheed Martin, what steps were taken to ensure fair pricing and prevent potential cost overruns under the Cost Plus Fixed Fee structure?
While the contract was advertised as full and open, the sole award necessitates rigorous oversight. The Defense Contract Management Agency must actively monitor costs, scrutinize expenditures, and ensure the fixed fee remains appropriate for the defined scope and risk. Benchmarking against similar, albeit potentially less complex, contracts and validating cost proposals are critical.
How will the effectiveness of the acquired microelectronic solutions be measured, and what are the key performance indicators (KPIs) to ensure the program meets its objectives?
Effectiveness will likely be measured through rigorous testing and evaluation of the microelectronic solutions integrated into the MH-60 platform. Key performance indicators could include improvements in system reliability, processing speed, power efficiency, resistance to electronic countermeasures, and overall mission success rates. Successful demonstration of these improvements against defined benchmarks will indicate program effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
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: $15,636,306
Exercised Options: $15,636,306
Current Obligation: $15,636,306
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: 2025-08-15
Current End Date: 2028-07-31
Potential End Date: 2028-07-31 00:00:00
Last Modified: 2025-09-16
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