Lockheed to Continue Development of the Navy's Aegis Systems

June 25, 2018

Lockheed Martin Corp., Rotary and Mission Systems, Moorestown, New Jersey, was awarded a $78,356,122 not-to-exceed, cost-plus-incentive-fee, cost-plus-fixed-fee letter contract for Aegis development and test sites operation and maintenance at the Combat Systems Engineering Development Site, SPY-1A Test Facility and Naval Systems Computing Center, Moorestown, New Jersey. The contract will provide for continued technical engineering, configuration management, associated equipment and supplies, quality assurance, information assurance and other operation and maintenance efforts required for the Aegis development and test sites, according to DOD. The Aegis development and test sites incorporate highly-integrated, classified, real-time networks that connect numerous contractor and U.S. government facilities required to build, integrate, test and deliver computer code baselines. The contract also provides for the continuing site maintenance and planned improvements of the sites for Aegis Combat System and Aegis Weapon System upgrades to CG 47- and DDG 51-class ships through the completion of Advanced Capability Build 20 and Technology Insertion 16, in addition to Aegis Ballistic Missile Defense and foreign military sales (FMS) requirements.

The contract includes options which, if exercised, would bring the cumulative value to $84,074,109. This contract combines purchases for the Navy (39 percent); the governments of Japan (36 percent); Australia (11 percent); and the Republic of Korea (3 percent); and the Missile Defense Agency (11 percent), under the FMS program. Work will be performed in Moorestown, New Jersey, and is expected to be completed by June 2019. Foreign military sales; fiscal 2018 research, development, test and evaluation (Navy); fiscal 2018 research, development, test and evaluation (Department of Defense); fiscal 2018 operations and maintenance (Navy); and fiscal 2016 shipbuilding and conversion funding (Navy), in the amount of $13,044,716 will be obligated at time of award, and $1,497,000 will expire at the end of the current fiscal year. This contract was not competitively procured, in accordance with 10 U.S. Code 2304(c)(1) (only one responsible source and no other supplies or services will satisfy the agency requirements). The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-18-C-5103). (Awarded June 20, 2018)

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