DoD's $177M F-16 Microelectronics Contract Awarded to Lockheed Martin for Advanced Tech Support
Contract Overview
Contract Amount: $17,715,713 ($17.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-24
End Date: 2027-10-31
Contract Duration: 767 days
Daily Burn Rate: $23.1K/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 F-16 IRST CAPABILITY, CET 25-535.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $17.7 million to LOCKHEED MARTIN CORPORATION for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR F-16 IRST CAPABILITY, CET 25-535. Key points: 1. The contract focuses on critical microelectronic capabilities for the F-16's Infrared Search and Track (IRST) system. 2. Lockheed Martin, a major defense contractor, is the awardee. 3. The contract duration is 767 days, ending in October 2027. 4. This award falls under Engineering Services (NAICS 541330) within the Defense sector.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost control.
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 that should drive reasonable pricing.
Taxpayer Impact: Taxpayer funds are being used for advanced defense technology, aiming to enhance F-16 capabilities and maintain technological superiority.
Public Impact
Enhances the combat effectiveness of the F-16 fighter jet through improved sensor technology. Supports the U.S. Air Force's modernization efforts for legacy aircraft. Contributes to the domestic microelectronics industrial base, a key national security interest.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost growth.
- Reliance on a single prime contractor for critical technology solutions.
Positive Signals
- Awarded under full and open competition.
- Focuses on critical national security capabilities.
- Supports modernization of existing platforms.
Sector Analysis
This contract is within the Defense sector, specifically focusing on advanced engineering services for microelectronics. Spending benchmarks for similar engineering services contracts vary widely based on complexity and scope.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine potential subcontracting opportunities.
Oversight & Accountability
The Department of Defense's Defense Microelectronics Activity is responsible for this award. Oversight will be crucial to ensure cost control and timely delivery of the advanced microelectronic solutions.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Reliance on a single large contractor.
- Complexity of advanced microelectronics development.
- Long-term sustainment and upgrade costs not detailed.
Tags
engineering-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.7 million to LOCKHEED MARTIN CORPORATION. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR F-16 IRST CAPABILITY, CET 25-535.
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 $17.7 million.
What is the period of performance?
Start: 2025-09-24. End: 2027-10-31.
What is the specific definition of 'Progressive Microelectronic Capability Solutions' and how will their development be measured?
The term 'Progressive Microelectronic Capability Solutions' likely refers to the development and integration of next-generation microelectronic components and systems designed to enhance the performance and functionality of the F-16's IRST. Measurement will likely involve defined technical milestones, performance metrics, and successful integration testing, as detailed in the contract's statement of work and performance work statement.
What are the key performance indicators (KPIs) for this contract, and how will Lockheed Martin's performance be evaluated against them?
Key performance indicators would typically include technical performance (e.g., sensor accuracy, processing speed), schedule adherence (delivery timelines for milestones and final product), and cost control (managing expenses within the Cost Plus Fixed Fee structure). Performance evaluation will likely involve regular reviews by the Defense Microelectronics Activity, assessment of delivered hardware/software, and comparison against contractually defined requirements and objectives.
How does this contract align with broader DoD strategies for microelectronics resilience and supply chain security?
This contract supports DoD strategies by investing in advanced domestic microelectronic capabilities, potentially reducing reliance on foreign sources for critical components. By enhancing the F-16's IRST, it contributes to maintaining a technological edge. However, the extent to which it addresses broader supply chain security concerns depends on the specific origin of materials and manufacturing processes used by Lockheed Martin.
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: $17,715,713
Exercised Options: $17,715,713
Current Obligation: $17,715,713
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: 2025-09-24
Current End Date: 2027-10-31
Potential End Date: 2027-10-31 00:00:00
Last Modified: 2025-09-24
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