DoD's $591.9M Advanced Technology Support Program contract for microelectronics solutions awarded to Lockheed Martin
Contract Overview
Contract Amount: $5,918,809 ($5.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-26
End Date: 2027-09-30
Contract Duration: 734 days
Daily Burn Rate: $8.1K/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 STORMBREAKER.
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $5.9 million to LOCKHEED MARTIN CORPORATION for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR STORMBREAKER. Key points: 1. Contract aims to secure progressive microelectronic capability solutions for the Stormbreaker program. 2. Awarded via full and open competition, suggesting a broad market search. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not managed carefully. 4. Performance period extends over two years, indicating a medium-term need. 5. The specific application for Stormbreaker suggests a critical defense technology focus. 6. The Defense Microelectronics Activity is the specific agency overseeing this procurement.
Value Assessment
Rating: fair
The contract value of $591.9 million over approximately two years for advanced microelectronics is substantial. Without specific benchmarks for 'progressive microelectronic capability solutions' for the Stormbreaker program, a direct value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation compared to fixed-price contracts. Benchmarking against similar R&D or specialized engineering services for advanced defense systems would be necessary for a more definitive 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 the Defense Microelectronics Activity sought proposals from all responsible sources. The number of bidders is not specified, but this approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The open competition suggests that the agency believes multiple contractors possess the necessary capabilities for these advanced microelectronic solutions.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider range of technological approaches being considered, which can lead to more effective and efficient defense capabilities.
Public Impact
The primary beneficiaries are the Department of Defense and the Stormbreaker program, which will receive advanced microelectronic capabilities. The services delivered are specialized engineering and technology development in the microelectronics sector. The geographic impact is likely concentrated around Lockheed Martin's facilities and potentially other subcontractors involved in the supply chain. Workforce implications may include highly skilled engineers, technicians, and researchers in advanced manufacturing and defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not rigorously managed.
- The specialized nature of 'progressive microelectronic capability solutions' makes independent cost benchmarking difficult.
- The specific details of the Stormbreaker program are classified, limiting public transparency on the exact needs and expected outcomes.
Positive Signals
- Awarded through full and open competition, suggesting a robust market search and potential for competitive pricing.
- The contract duration of over two years allows for sustained development and integration of advanced technologies.
- Focus on advanced microelectronics aligns with critical national defense technology priorities.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), specifically focusing on advanced microelectronics for defense applications. The market for specialized defense microelectronics is highly concentrated, with a few prime contractors and numerous specialized subcontractors. Spending in this area is driven by the need for technological superiority in defense systems. Comparable spending benchmarks would typically involve other advanced R&D contracts for critical defense components or systems.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Lockheed Martin, as the prime contractor, may have subcontracting opportunities for small businesses, but the extent and nature of these are not detailed. Without specific subcontracting plans or goals, the direct impact on the small business ecosystem is uncertain, though large prime contracts often involve a tiered subcontracting structure.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Microelectronics Activity and potentially the Department of Defense's Inspector General. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and performance metrics. Transparency is limited due to the nature of defense contracting and the specific program (Stormbreaker), but standard federal procurement regulations and reporting requirements would apply.
Related Government Programs
- Advanced Technology Support Program (ATSP)
- Stormbreaker Program
- Microelectronics Research and Development
- Defense Engineering Services
- Lockheed Martin Defense Contracts
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
- Lack of specific performance metrics or benchmarks for 'progressive microelectronic capability solutions'.
- Potential for limited transparency due to the classified nature of the Stormbreaker program.
Tags
defense, department-of-defense, lockheed-martin-corporation, cost-plus-fixed-fee, full-and-open-competition, engineering-services, microelectronics, advanced-technology, stormbreaker-program, new-jersey, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.9 million to LOCKHEED MARTIN CORPORATION. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR STORMBREAKER.
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 $5.9 million.
What is the period of performance?
Start: 2025-09-26. End: 2027-09-30.
What is the historical spending pattern for the Advanced Technology Support Program (ATSP) contract?
The provided data only details a single delivery order for the ATSP contract with a value of $591.9 million, awarded to Lockheed Martin Corporation. There is no historical spending data available for the ATSP contract itself within this dataset. To understand historical spending patterns, one would need access to prior contract awards, delivery orders, and modifications associated with the ATSP, potentially spanning multiple years and different contractors. Analyzing such data would reveal trends in funding levels, types of services procured, and the evolution of technological requirements over time.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar defense microelectronics R&D?
The Cost Plus Fixed Fee (CPFF) contract type is common in research and development or services where the scope of work is not precisely defined at the outset, making fixed-price contracts difficult. In CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF offers flexibility but carries a higher risk of cost overruns for the government if costs escalate beyond initial estimates. Other arrangements like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives. Firm-Fixed-Price (FFP) contracts offer the most cost certainty for the government but are less suitable for R&D with uncertain outcomes. For advanced microelectronics R&D, CPFF is often used to accommodate evolving technical requirements.
What are the specific risks associated with Lockheed Martin Corporation's track record on similar defense technology contracts?
Assessing Lockheed Martin's track record requires a review of past performance on comparable defense technology contracts. Key risk indicators often include instances of cost overruns, schedule delays, performance deficiencies, or contract disputes. While Lockheed Martin is a major defense contractor with extensive experience, specific risks can arise from the complexity of advanced technology programs. A thorough analysis would involve examining contract close-out data, past performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues related to cost control, schedule adherence, and technical execution on projects involving microelectronics or similar advanced systems.
What is the expected program effectiveness or outcome for the Stormbreaker program based on this contract?
The effectiveness and outcome of the Stormbreaker program, as supported by this contract, are directly tied to the 'progressive microelectronic capability solutions' being acquired. These solutions are intended to enhance the capabilities of the Stormbreaker system, which is likely a defense platform or weapon system. Without specific details on Stormbreaker's mission and the precise nature of the microelectronic advancements, quantifying expected effectiveness is challenging. However, the substantial investment and the focus on advanced technology suggest a critical role for these microelectronics in improving performance, efficiency, or survivability of the Stormbreaker system.
Are there any known issues or concerns with the Defense Microelectronics Activity's procurement processes?
Information regarding specific issues or concerns with the Defense Microelectronics Activity's (DMEA) procurement processes is not readily available in the public domain or within this dataset. As an agency within the Department of Defense, DMEA is subject to federal acquisition regulations and oversight. Any procurement issues would typically be documented through Inspector General reports, Government Accountability Office (GAO) bid protest decisions, or congressional oversight findings. A comprehensive assessment would require searching these specific sources for any reported patterns of concern related to DMEA's contracting practices, particularly concerning competition, cost management, or program execution.
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: $18,930,543
Exercised Options: $18,930,543
Current Obligation: $5,918,809
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: 2025-09-26
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-01-15
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