Contract Award: $140M Navy AEGIS Fielding & Sustainment

Lockheed Martin, Rotary and Mission Systems (LM RMS), Moorestown, New Jersey, was awarded a $139,651,671 cost-plus-incentive-fee, cost-plus-fixed-fee, cost-only, and firm-fixed-price contract for AEGIS fielding and sustainment (F&S). This contract provides engineering support, software development, in-service maintenance, integration, logistics and fielding support for AEGIS combat system configurations already delivered or in the process of being delivered to the Navy. This contract includes options which, if exercised, would bring the cumulative value of this contract to $852,981,561. Work will be performed in Moorestown, New Jersey (96%); and Dahlgren, Virginia (4%), and is expected to be completed by December 2023. If all options are exercised, work will continue through December 2029. Fiscal 2016 shipbuilding and conversion (Navy) funds in the amount of $2,855,928 (32%); fiscal 2019 shipbuilding and conversion (Navy) funds in the amount of $2,823,942 (32%); fiscal 2022 research, development, test and evaluation (Navy) funds in the amount of $1,667,039 (19%); fiscal 2022 other procurement (Coast Guard) funds in the amount of $959,969 (11%); fiscal 2022 other procurement (Navy) funds in the amount of $443,000 (5%); and fiscal 2020 shipbuilding and conversion (Navy) funds in the amount of $47,425 (1%) will be obligated at time of award, of which $1,667,039 will expire at the end of the current fiscal year. In accordance with 10 U.S. Code 2304(c)(1), this contract was not competitively procured, as LM RMS is the only responsible source, and no other supplies or services could fulfill the AEGIS F&S requirements without causing unacceptable schedule delays and substantial duplication of costs that is not expected to be recovered through competition. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-23-C-5123). (Awarded Dec. 22, 2022)

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