Navy Awards Lockheed Martin Potential $1.7B SEWIP Contract Modification

Navy Awards Lockheed Martin Potential $1.7B SEWIP Contract Modification

  • The Navy has awarded Lockheed a $209 million contract modification
  • The award covers production of AN/SLQ-32(V)6 surface electronic warfare systems
  • Contract options could raise the cumulative value to nearly $1.71 billion

Lockheed Martin has received a potential $1.71 billion contract modification from the U.S. Navy to produce AN/SLQ-32(V)6 systems under the Surface Electronic Warfare Improvement Program, or SEWIP.

What Are the Details of the Lockheed Martin Contract?

The Department of War said Monday the firm-fixed-price modification was awarded Sept. 30 and has a base value of $209 million. Lockheed Martin Rotary and Mission Systems will perform 78 percent of the work at its facility in Liverpool, New York, with the remaining work taking place in Lansdale, Pennsylvania. The contract is scheduled to run through September 2029. Naval Sea Systems Command in Washington, D.C., is the contracting activity.

The AN/SLQ-32(V)6 serves as a key component of the SEWIP Block II system. It uses passive electronic warfare capabilities to identify potential anti-ship missile threats and alert ship crews. The system also provides information to support electronic jamming, decoys and other countermeasures.

The modification follows a February solicitation from Naval Sea Systems Command for a potential $7.13 billion multiple-award contract covering AN/SLQ-32 full-rate production, design agent engineering and system integration.

Also in February, the Navy awarded Lockheed Martin a $249 million contract for SEWIP Block II spares, repairs and engineering services tied to the integration of the electronic support anti-ship missile defense system.

How Is the Navy Funding the Modification?

The Navy obligated $209 million at the time of award from several fiscal years and funding accounts. Fiscal 2026 shipbuilding and conversion funds account for $129.5 million, or 62 percent, while fiscal 2026 other procurement funds provide $58.1 million, or 28 percent.

Another $20.3 million, or 10 percent, comes from fiscal 2025 other procurement funds. The remaining $1 million comes from fiscal 2026 research, development, test and evaluation funding and represents less than 1 percent of the award. The obligated funds will not expire at the end of the current fiscal year.

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