Lockheed Martin’s Rotary and Mission Systems division has been awarded a significant $88.2 million contract modification by the U.S. Navy for systems engineering and integration work on submarines. This development underscores the strategic importance of maintaining and advancing the Navy’s underwater capabilities.
What Happened
Lockheed Martin, based in Manassas, Virginia, received the contract modification under the existing contract N0002425C6108. This award, structured as a cost-plus-fixed-fee and cost-only modification, adds $88.2 million to the current contract value. The majority of the work, 68%, will be conducted in Manassas, with the remainder split across Waterford and Groton, Connecticut (10% each), Middletown, Rhode Island (7%), and Newport, Rhode Island (5%). The contract work is expected to be completed by December 2027.
The Navy has allocated an initial funding obligation of $13.2 million, which includes $5.2 million from fiscal 2027 Navy research, development, test, and evaluation funds, representing 40% of the initial obligation. Additionally, the Navy will allocate $4 million each from fiscal 2025 and 2026 shipbuilding and conversion funds, each representing 30% of the initial funding. The Naval Sea Systems Command in Washington, D.C., is managing the contract, continuing its role in developing and modernizing the Navy's fleet.
What This Means for Your Business
For businesses in the AECM sector, this contract highlights ongoing opportunities in defense contracting, particularly for those specializing in systems engineering and integration. The modification emphasizes the demand for sophisticated integration of hardware, software, sensors, and communication systems in military applications. Companies engaged in similar fields should consider the competitive advantage of investing in R&D and forming strategic partnerships to align with federal defense priorities.
Compliance remains critical, with contractors needing to adhere to stringent standards such as CMMC and NIST to secure and maintain contracts with federal entities. The award also indicates potential for future procurement opportunities, as the Navy continues to invest in the modernization of its underwater fleet. The presence of federal funding through 2027 provides a stable financial backdrop for companies involved in these projects.
What US Operators Should Watch
Key dates for contractors include the allocation of fiscal funding, with obligations spreading through 2025 to 2027. Companies should track NAVSEA's procurement activities and contract announcements to capitalize on emerging opportunities. Staying informed on compliance deadlines and audit dates for CMMC and NIST requirements will be crucial for maintaining eligibility for future contracts.
Source: https://pulse2.com/lockheed-martin-88-2-million-navy-submarine-systems-engineering-contract-modification/. Read the original story ->
Partner Insight · VisioneerIT
The recent contract modification awarded to Lockheed Martin highlights the ongoing demand for systems engineering and integration in defense contracting. Companies looking to engage in similar opportunities should consider aligning their strategies with federal compliance standards to enhance their competitiveness.
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