The U.S. Navy awarded Lockheed Martin a $209 million contract modification for the AN/SLQ-32(V)6 electronic warfare system on September 30, 2026. Options in the award could raise total contract value to $1.7 billion.
What's happening
- Lockheed Martin received $209 million in obligated funds for production of the AN/SLQ-32(V)6, the Navy's shipboard electronic warfare system that detects incoming anti-ship missiles and radar threats.
- The modification includes options valued at approximately $1.49 billion that would bring cumulative contract value to $1.7 billion if fully exercised.
- Work runs through September 2029, with 78 percent performed at Lockheed's Liverpool, New York facility and 22 percent at Lansdale, Pennsylvania.
Why it matters
- The AN/SLQ-32(V)6 is the standard electronic warfare system across the Navy's destroyer and cruiser fleet, making sustained production critical to maintaining anti-ship missile defense on active and under-construction vessels.
- Obligated funding breaks into $129.5 million from fiscal 2026 shipbuilding accounts for new construction and $78.5 million from prior-year procurement funds for retrofit of existing ships, ensuring continued supply chain throughput across both new and legacy platforms.
- The contract extends production capability through 2029 ahead of the next-generation SEWIP Block 3 variant, maintaining workforce continuity at Lockheed's electronic warfare center in upstate New York.
Going deeper
- The AN/SLQ-32(V)6 traces to the 2009 SEWIP Block 2 development contract; production began in full-rate in 2016 after initial testing aboard USS Bainbridge in 2014.
- The system includes new antennas, an upgraded receiver, open combat system interface, and high-sensitivity sensors that detect and locate radar and radio emissions from enemy platforms, with optional manual or automatic operation.
- SEWIP Block 3, designated AN/SLQ-32(V)7 and built by Northrop Grumman, adds active electronic attack capabilities; this contract continues (V)6 production in parallel.
Financial impact
- Lockheed Martin will recognize revenue over the performance period through September 2029, with $209 million obligated in fiscal 2026 flowing to operating cash and revenue recognition in the income statement as systems are delivered and installed.
- Of the $209 million obligated, $129.5 million (62 percent) is fiscal 2026 Navy shipbuilding and conversion funding for systems on ships under construction; $78.5 million is fiscal 2025 and 2026 other procurement funds for retrofit installations on existing ships; approximately $1 million is research and development funding.
The fine print
- The stated contract value ceiling of $1.7 billion is contingent on exercise of options; only the $209 million modification is currently obligated.
- Naval Sea Systems Command is the contracting activity; work distribution between New York and Pennsylvania is fixed at 78 and 22 percent respectively.
Source: defence-blog.com · Sep 30, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.