Lockheed Martin has secured a potential five-year, $479.9 million contract from the U.S. Navy to support the AN/SQQ-89A(V)15 anti-submarine warfare combat system.
The Navy’s latest contract action reflects the steady pace of investment shaping today’s maritime industrial base and undersea warfare portfolio. Discussions around acquisition trends, capability sustainment and industry partnership will continue across the defense community, including at the Potomac Officers Club’s 2026 Navy Summit on Aug. 27. Register now to join the event and gain broader insight into the service’s priorities.
The Department of War said Friday the Naval Sea Systems Command awarded Lockheed’s rotary and mission systems business the sole-source, cost-plus-incentive-fee contract, which has a base value of $78.4 million.
What Is the Scope of the Navy Undersea Warfare Combat System Support Contract?
Under the award, Lockheed will provide engineering labor, program management and other direct costs, travel and materials to support development, certification, qualification and integration efforts for the AN/SQQ-89A(V)15 system. The company will maintain fielded combat system baselines and perform integration and certification for future baselines.
The contract combines purchases for the U.S. Navy and foreign military sales customers, including Japan and Australia.
Work will take place in Virginia, Pennsylvania and California. The base period of performance runs through February 2027. If the Navy exercises all options, work will continue through February 2031.
What Is AN/SQQ-89A(V)15?
AN/SQQ-89A(V)15 is the Navy’s integrated undersea warfare combat system deployed aboard surface ships. The open-architecture system uses active and passive sonar to perform anti-submarine warfare search operations and provide early warning of threat torpedoes.
In January 2025, Lockheed received a $1 billion contract from the Navy to support the development, integration, production and testing of AN/SQQ-89A(V)15 systems.
The company secured a $78.5 million contract modification in mid-2025 to exercise an option on the previously awarded combat systems contract.
