Lockheed Martin: $88.2 Million Navy Submarine Systems Engineering Contract Modification

Lockheed Martin Rotary and Mission Systems has received an $88.2 million Navy contract modification for systems engineering and integration work supporting U.S. Navy submarines. The Manassas, Virginia-based contractor will perform the work under a previously awarded contract identified as N0002425C6108.

The award is structured as a cost-plus-fixed-fee and cost-only modification. As a modification to an existing contract, the $88.2 million represents additional contract value rather than a separate new procurement.

Lockheed Martin will perform 68% of the work in Manassas, Virginia. The remaining activity will take place in Waterford, Connecticut, and Groton, Connecticut, with each location accounting for 10%; Middletown, Rhode Island, accounting for 7%; and Newport, Rhode Island, accounting for 5%.

The Navy expects the work to be completed by December 2027. The geographic distribution reflects the concentration of submarine engineering, shipbuilding, integration, and research capabilities in Virginia, Connecticut, and Rhode Island.

Funding obligated when the modification is awarded totals $13.2 million. This includes approximately $5.2 million in fiscal 2027 Navy research, development, test, and evaluation funding, representing 40% of the initial obligation.

The Navy will also obligate $4 million in fiscal 2025 shipbuilding and conversion funding and $4 million in fiscal 2026 shipbuilding and conversion funding. Each shipbuilding allocation represents 30% of the amount obligated at award. None of these funds will expire at the end of the current fiscal year.

The Naval Sea Systems Command in Washington, D.C., is the contracting activity. NAVSEA develops, acquires, maintains, and modernizes the Navy’s ships, submarines, and associated combat and support systems.

The award extends Lockheed Martin’s engineering and integration role within the Navy’s submarine enterprise. Systems integration work is essential to ensuring that submarine hardware, software, sensors, communications equipment, and combat capabilities work together in demanding undersea operating environments.