Lockheed Martin Wins $19.3M H-1 Helicopter Contract
The U.S. Navy is awarding Lockheed Martin Corp. a $19.26 million contract modification to establish firm-fixed prices for 53 electronic houses supporting the Marine Corps H-1 helicopter fleet.
Takeaways
Key facts from the contract announcement
1. $19.26 Million Modification
Lockheed Martin is receiving $19,256,695 to establish firm-fixed prices for 53 electronic houses supporting the H-1 helicopter.
2. Work Runs Through September 2028
All work under the action will be performed in Orlando, Florida, with completion expected by September 2028.
According to the Department of Defense contract announcement, the action modifies order N00383-24-F-A501 under basic ordering agreement N00383-23-G-A501. The work will be performed by Lockheed Martin in Orlando, Florida, and is scheduled for completion by September 2028.
The award was issued by Naval Supply Systems Command Weapon Systems Support in Philadelphia. The requirement was solicited on a sole-source basis under 10 U.S. Code 2304(c)(1), with one offer received.
What The Contract Covers
The modification is valued at $19,256,695 and establishes firm-fixed prices for 53 electronic houses.
The announcement does not provide a detailed description of the electronic house configuration, the specific equipment contained within each unit, or identify which individual H-1 aircraft will receive the components.
The term H-1 refers to the Marine Corps’ family of AH-1Z Viper attack helicopters and UH-1Y Venom utility helicopters. The two aircraft were developed under a common program and share approximately 85 percent parts commonality, according to Naval Air Systems Command.
The contract therefore concerns equipment supporting an established Marine Corps rotary-wing fleet rather than a new helicopter production program.
Technical And Operational Context
The AH-1Z Viper and UH-1Y Venom form the core of the Marine Corps H-1 light and attack helicopter force.
The AH-1Z provides offensive air support, armed escort and airborne supporting arms coordination. The UH-1Y performs utility missions while also supporting offensive air operations, armed escort and other expeditionary missions.
Both helicopters use digital cockpits, twin engines and four-bladed composite rotor systems. Their common design was intended to simplify maintenance and reduce the logistical burden associated with operating two different helicopter types.
Electronic equipment is particularly important to the continued operation of these aircraft because avionics and mission systems must remain supportable throughout the fleet’s service life.
NAVAIR reported in 2025 that the H-1 fleet had also received a technical refresh mission computer, which serves as a central processing hub for functions aboard the AH-1Z and UH-1Y.
The Navy has also continued to integrate newer digital capabilities into the H-1 fleet. In 2022, Marine Corps test personnel demonstrated a Link 16 connection between an AH-1Z, a UH-1Y and a portable ground station.
These efforts illustrate that the H-1 program has moved beyond its original production phase and into long-term sustainment, modernization and systems support.
Why The Award Matters
The contract comes after the U.S. Marine Corps completed its domestic H-1 production program. NAVAIR said the final AH-1Z for the Marine Corps was delivered in 2022, while the H-1 program continues to require sustainment and upgrades.
That makes component and electronics procurement an important part of keeping the existing fleet operational.
From an acquisition perspective, this action is also different from a new aircraft procurement. The Navy is modifying an existing order under a previously awarded basic ordering agreement and establishing firm-fixed prices for the specified electronic houses.
The announcement does not state that the $19.26 million represents the total cost of the broader H-1 electronics program. It applies specifically to the 53 electronic houses covered by this modification.
Contract Breakdown
Contract Value
$19,256,695
The modification establishes firm-fixed prices for 53 electronic houses.
Contractor
Lockheed Martin Corp., Orlando, Florida
Lockheed Martin maintains substantial defense and aerospace operations in Orlando, including work associated with rotary and mission systems and other military technologies.
Contract Type
The action is a modification to order N00383-24-F-A501 under basic ordering agreement N00383-23-G-A501.
The prices established under the modification are firm-fixed prices.
Work Locations
All work will be performed in Orlando, Florida.
Performance Period
The work is expected to be completed by September 2028.
Funding
The Navy will obligate $11,296,243, or 57 percent, from fiscal 2026 working capital funds.
A further $8,660,452, or 43 percent, will come from Naval Air Systems Command aircraft procurement, APN6, funds.
The announcement states that the obligated funds will not expire at the end of the current fiscal year.
Options Or Follow-On Work
The contract does not contain an option provision.
The announcement does not identify additional options or future quantities associated with this specific action.
Industry And Acquisition Implications
The award highlights the continuing sustainment requirements of a military aircraft fleet after the end of domestic production.
NAVAIR describes the H-1 program as consisting of the AH-1Z and UH-1Y, with the two aircraft designed around substantial component commonality. The service has emphasized sustainment, reliability and maintainability efforts as part of keeping the aircraft operational for the long term.
The electronic houses covered by the new award are therefore part of a broader sustainment ecosystem supporting aircraft that remain in Marine Corps service.
The sole-source nature of the requirement also indicates that the Navy determined the procurement met the statutory conditions for using the authority in 10 U.S. Code 2304(c)(1). The contract notice does not provide additional details explaining the specific technical or industrial factors behind the sole-source determination.
What Happens Next
Lockheed Martin is expected to perform the contracted work in Orlando through September 2028.
The immediate procurement action establishes firm-fixed prices for the 53 electronic houses. The announcement does not disclose the individual delivery schedule, detailed technical configuration, installation plan, or the specific H-1 aircraft receiving the equipment.
The broader H-1 program remains in the sustainment phase. The Marine Corps continues operating the AH-1Z Viper and UH-1Y Venom, while Navy and Marine Corps organizations pursue technical upgrades and maintenance initiatives intended to keep the fleet operational.
