Defense Microelectronics Activity Increases Engineering IDIQ to $6B

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A Defense Department component responsible for microelectronic technologies in weapons systems has awarded a $1, 344, 000, 000 contract modification for engineering services over the next three years.

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The Defense Microelectronics Activity increased the total Advanced Technology Support Program III contract’s ceiling value from $4, 703, 000, 000 to $6, 047, 000, 000, the Pentagon said Monday.

ATSP3 was originally awarded in May 2004 and nine offers were received for the indefinite-delivery/indefinite-quantity contract, with eight awards being made.

Companies participating in ATSP3 include:

  • BAE Systems
  • Boeing’s (NYSE: BA) Phantom Works subsidiary
  • General Dynamics Advanced Information Systems
  • Honeywell (NYSE: HON)
  • Lockheed Martin (NYSE: LMT)
  • Northrop Grumman (NYSE: NOC)
  • Raytheon Technical Services Co. (NYSE: RTN)

The Pentagon intends for engineering work to help develop new technology insertions and applications to meet requirements for quick reaction capabilities and also address obsolete, unreliable, unmaintainable, underperforming or incapable electronics hardware and software.

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