Lockheed Martin received a $209 million firm-fixed-price contract modification from the U.S. Navy on September 30 to produce AN/SLQ-32(V)6 surface electronic warfare systems, with options that could raise the total value to $1.71 billion. The work runs through September 2029 at facilities in New York and Pennsylvania.
What's happening
- Lockheed Martin was awarded $209 million in obligated funds for AN/SLQ-32(V)6 production under SEWIP Block II.
- Contract options could increase cumulative value to $1.71 billion over the period through September 2029.
- Lockheed's Rotary and Mission Systems facility in Liverpool, New York will perform 78 percent of the work, with 22 percent at Lansdale, Pennsylvania.
- The AN/SLQ-32(V)6 uses passive electronic warfare to identify anti-ship missile threats and support jamming and countermeasures across the Navy fleet.
Why it matters
- SEWIP Block II represents full-rate production for critical anti-ship missile defense systems protecting surface combatants.
- This modification follows a February solicitation for a potential $7.13 billion multiple-award contract for AN/SLQ-32 full-rate production, signaling sustained Navy investment in electronic warfare capacity.
- The contract sustains production capability at two facilities supporting the Navy's surface fleet modernization.
Financial impact
- Fiscal 2026 shipbuilding and conversion funds cover $129.5 million, or 62 percent of obligated amount.
- Fiscal 2026 other procurement funds provide $58.1 million, or 28 percent of obligated amount.
- Fiscal 2025 other procurement funds contribute $20.3 million, or 10 percent of obligated amount.
- Revenue will be recognized over performance period through September 2029 as systems are delivered and integrated.
The fine print
- The $1.71 billion represents the base $209 million plus option value; only $209 million is currently obligated.
- Options must be exercised to achieve the higher valuation; ceiling value depends on Navy exercising future options through September 2029.
- This modification derives from the larger $7.13 billion multiple-award vehicle solicited in February 2026.
Source: GovCon Wire · Oct 7, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.