Lockheed Martin Corp. (NYSE: LMT), Northrop Grumman Corp. (NYSE: NOC) and General Dynamics Corp. (NYSE: GD) are among several big contractors who inked a $10.27 billion contract modification to upgrade the Department of Defense’s microelectronics systems Thursday.
The modification, which elevates the funding ceiling of the existing indefinite-delivery/indefinite-quantity (IDIQ) Advanced Technology Support Program IV contract from $7.2 billion to $17.4 billion, calls on eight contractors to help replace “obsolete, unreliable, unmaintainable, underperforming or incapable” electronic hardware and software by injecting it with advanced technology and applications for quick reaction capability.
The original contract was awarded in 2016, and is overseen by the Defense Microelectronics Activity, a McClellan, California, agency that helps accredit the secure supply chain operations of contractors producing technology for defense and intelligence agencies.
The contract was designed to upgrade microelectronic components quickly with updated technology, in weeks instead of months or years, especially in U.S. weapons systems as new capabilities emerge in the market.
The original awardees; which include Lockheed, Northrop, GD, BAE Systems Inc., Raytheon Technologies Corp. (NYSE: RTX), The Boeing Co. (NYSE: BA), Honeywell International Inc. (NYSE: HON) and Cobham Advanced Electronic Solutions, a division of UK company Cobham PLC; will compete for task orders under the new modification.
The ordering period under the contract runs through March 2026.
