Surface Ship Undersea Warfare (USW) Combat System Production

On January 27, 2025, the Naval Sea Systems Command awarded Lockheed Martin Rotary and Mission Systems a contract for the development, integration, manufacture, production, and testing of the Hypervisor Technology Zero (HT0) AN/SQQ-89(A)(V)(15) Surface Ship Undersea Warfare Combat System. The initial award value is 502,188,416 dollars, with a potential cumulative value of 1,033,395,002 dollars if all options are exercised. The contract utilizes a variety of pricing structures, including cost-plus-fixed-fee, cost-plus-incentive-fee, fixed-price-incentive, firm-fixed-price, and cost-only. Performance is expected to be completed by January 2029, with the majority of work conducted in Manassas, Virginia, and additional efforts in Pennsylvania, New York, and Florida. The scope of work encompasses engineering, design, integrated logistics support, and production services. The agreement includes a detailed Contract Data Requirements List for deliverables such as progress and status reports, risk management updates, and integration plans. To support these efforts, the government provides specific furnished property, including transmitter cabinets and simulation devices. The procurement process involved a negotiated solicitation requiring secret facility and personnel clearances, a structured staffing plan across various labor categories, and a comprehensive cost element summary spanning the period of performance.