DoD's $29.1M F-35 microelectronics contract awarded to Lockheed Martin for advanced tech support

Contract Overview

Contract Amount: $29,155,942 ($29.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-12-19

End Date: 2029-04-30

Contract Duration: 1,228 days

Daily Burn Rate: $23.7K/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-35 GAP ANALYSIS AND TEST OPTIMIZATION (GATO).

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $29.2 million to LOCKHEED MARTIN CORPORATION for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR F-35 GAP ANALYSIS AND TEST OPTIMIZATION (GATO). Key points: 1. Contract focuses on critical F-35 gap analysis and test optimization for microelectronics. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Long performance period (over 4 years) indicates a sustained need for these services. 4. The contract type (Cost Plus Fixed Fee) may present cost control challenges. 5. Prime contractor Lockheed Martin has extensive experience with the F-35 program. 6. Geographic focus on Florida for this specific delivery order.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and comparisons to similar microelectronics support services. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, as contractor incentives are not solely tied to cost efficiency. However, the fixed fee component provides some predictability. Further analysis would require comparing the labor rates and overhead applied to industry standards for specialized engineering services in the defense sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach is generally favored for maximizing competition and achieving the best value for the government. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on pricing.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to more cost-effective solutions for defense needs.

Public Impact

The primary beneficiaries are the F-35 program and the Department of Defense, which will receive enhanced microelectronic capabilities. Services delivered include gap analysis and test optimization for F-35 microelectronics. The geographic impact is centered in Florida, where the delivery order is being performed. This contract supports specialized engineering and technical roles within the defense industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost overruns if not closely monitored.
Long contract duration could increase exposure to evolving technological requirements and potential scope creep.
Reliance on a single prime contractor for critical F-35 support raises potential single-point-of-failure risks.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Prime contractor Lockheed Martin's deep involvement with the F-35 program ensures familiarity and expertise.
Focus on advanced microelectronics addresses a critical and evolving technological need for the F-35.

Sector Analysis

This contract falls within the broader defense engineering services sector, specifically focusing on advanced microelectronics. The defense microelectronics market is highly specialized, driven by the need for cutting-edge technology in advanced weapon systems like the F-35. Spending in this area is critical for maintaining technological superiority. Comparable spending benchmarks would likely be found within other advanced technology development and support contracts for major defense platforms.

Small Business Impact

The provided data indicates that small business participation (sb: false) and set-asides (ss: false) were not factors in this specific delivery order. This suggests that the prime contract was not specifically targeted towards small businesses, and there is no explicit indication of subcontracting goals for small businesses within this award. Further review of the prime contract's overall small business subcontracting plan would be necessary to assess broader impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Microelectronics Activity (DMEA) and the Department of Defense's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, though detailed cost and performance data may be subject to classification or proprietary restrictions.

Related Government Programs

F-35 Joint Program Office
Advanced Technology Support Program (ATSP)
Defense Microelectronics Activity (DMEA) Contracts
Aerospace Engineering Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases risk of technological obsolescence and requirement changes.
Potential for single-point-of-failure if Lockheed Martin's role is highly specialized and critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.2 million to LOCKHEED MARTIN CORPORATION. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR F-35 GAP ANALYSIS AND TEST OPTIMIZATION (GATO).

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 $29.2 million.

What is the period of performance?

Start: 2025-12-19. End: 2029-04-30.

What is the historical spending trend for the Advanced Technology Support Program (ATSP) contract or similar microelectronics support for the F-35 program?

Analyzing historical spending for the ATSP or comparable F-35 microelectronics support requires access to detailed contract databases and historical award data. Without specific historical figures for this particular contract vehicle or direct predecessors, it's difficult to establish a trend. However, given the F-35's long lifecycle and the increasing complexity of its electronic systems, sustained or increasing investment in advanced microelectronics support, gap analysis, and test optimization is anticipated. Trends in defense spending often reflect evolving threats, technological advancements, and platform sustainment needs. A comprehensive analysis would involve examining annual obligations against this contract and related contracts over several fiscal years to identify patterns and potential growth or decline in funding.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract compare to other F-35 support contracts, and what are the implications for cost control?

The Cost Plus Fixed Fee (CPFF) contract structure is common in defense contracting, particularly for research, development, and complex services where the scope may evolve. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This differs from fixed-price contracts where the price is set upfront, or cost-plus-incentive-fee contracts which offer greater cost-saving incentives. For cost control, CPFF requires rigorous government oversight to ensure costs are allowable, reasonable, and allocable. The fixed fee provides some predictability for the contractor's profit but does not directly incentivize cost reduction by the contractor as strongly as incentive-fee structures. This means the government bears more of the cost risk, making diligent monitoring of expenditures and performance crucial to prevent cost overruns and ensure value for money.

What is Lockheed Martin's specific track record and performance history with F-35 microelectronics support and related engineering services?

Lockheed Martin Corporation, as the prime contractor for the F-35 program, possesses extensive and intimate knowledge of the platform's systems, including its microelectronics. Their track record with F-35 support encompasses a wide range of services, from sustainment and logistics to upgrades and modifications. Specifically concerning microelectronics, Lockheed Martin has been involved in the design, integration, and sustainment of the F-35's complex electronic warfare, communication, and sensor systems. Performance history is typically evaluated through contract performance reports (e.g., CPARS), which assess factors like technical performance, schedule adherence, cost control, and management. While specific details of past performance on microelectronics support contracts are often proprietary, Lockheed Martin's overall role as the prime integrator suggests a strong, albeit potentially costly, capability and a deep understanding of the program's requirements.

What are the potential risks associated with the long performance period (nearly 4.5 years) for this contract, particularly concerning technological obsolescence or changing requirements?

A long performance period, such as the nearly 4.5 years for this contract (ending April 2029), introduces several potential risks. Technological obsolescence is a significant concern; microelectronics evolve rapidly, and systems designed or supported early in the contract may become outdated before its completion. This necessitates robust technology refresh or upgrade clauses within the contract. Changing requirements are also a risk; the operational needs or threat landscape for the F-35 could shift, requiring modifications to the scope of work. Without flexible contract terms, adapting to these changes can be difficult and costly. Furthermore, long-term contracts can sometimes lead to complacency or reduced urgency if not managed with clear performance metrics and regular reviews. The government must actively manage the contract to ensure it remains relevant and cost-effective throughout its duration.

How does the $29.1 million total value compare to annual spending on similar advanced technology support or microelectronics R&D for other major defense platforms?

The $29.1 million total value for this specific delivery order represents a significant but not exceptionally large investment within the context of major defense platform sustainment and modernization. Annual spending on advanced technology support and microelectronics R&D for programs like the F-35, or other major platforms such as the B-21 bomber, advanced fighter jets, or naval systems, can range from tens of millions to billions of dollars annually across various contracts. This particular contract's value is likely reflective of specialized, targeted support for gap analysis and test optimization rather than broad platform development or sustainment. To provide a precise comparison, one would need to aggregate spending across similar functional areas (e.g., electronic warfare support, avionics R&D, specialized testing services) for other platforms and compare the total annual outlays.

What specific 'progressive microelectronic capability solutions' are being acquired, and how do they address identified gaps in F-35 testing?

The description 'progressive microelectronic capability solutions' is broad and likely encompasses the development, acquisition, or enhancement of tools, methodologies, or specialized hardware/software required for advanced testing and analysis of the F-35's microelectronic components. Identified gaps in F-35 testing could relate to the increasing complexity of integrated circuits, the need for more sophisticated failure analysis techniques, enhanced cybersecurity testing for embedded systems, or improved methods for verifying the performance and reliability of next-generation microelectronics under various operational stresses. These solutions might involve acquiring new automated test equipment (ATE), developing advanced simulation environments, creating novel diagnostic software, or implementing new procedures for reverse engineering or counterfeit part detection. The 'gap analysis' aspect suggests the contract aims to pinpoint deficiencies in current testing protocols and then provide the 'solutions' to bridge those specific shortcomings.

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: $29,155,942

Exercised Options: $29,155,942

Current Obligation: $29,155,942

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