Lockheed Martin Receives $88.2 Million Navy Submarine Integration Award
Lockheed Martin has received an $88.2 million contract modification from the U.S. Navy to continue systems engineering and integration work supporting the submarine fleet, extending the company’s existing involvement through December 2027.
The November 12, 2026, award is valued at $88,177,120 and was issued to Lockheed Martin Rotary and Mission Systems in Manassas, Virginia. Naval Sea Systems Command (NAVSEA), headquartered in Washington, D.C., is managing the contract.
The modification adds funding to an existing agreement, rather than establishing an entirely new submarine procurement program. Its focus is engineering and integration services for Navy submarines, an area that includes the technical work needed to coordinate complex onboard systems.
Submarine C5I integration remains central to the contract
The award is associated with contract N00024-25-C-6108, originally awarded to Lockheed Martin in December 2024.
The original procurement concerned Command, Control, Computers, Communications, Cyber and Intelligence (C5I) systems engineering and integration services for submarine construction and in-service modernization. The Navy’s requirement also covers integration and testing of interconnected submarine combat-system elements.
These services support the integration of equipment and software that allow submarine systems to exchange information and operate together. They are particularly important as the Navy introduces new equipment, updates existing configurations and maintains the technical compatibility of systems across submarine platforms.
The contract is therefore focused on engineering support and systems integration, not the purchase of additional submarines or a separately announced weapons system.
Five locations will support the engineering effort
The Navy has distributed the work across five locations in Virginia, Connecticut and Rhode Island. Manassas will account for the largest share.
| Work location | Share |
|---|---|
| Manassas, Virginia | 68% |
| Waterford, Connecticut | 10% |
| Groton, Connecticut | 10% |
| Middletown, Rhode Island | 7% |
| Newport, Rhode Island | 5% |
The geographic distribution reflects the established engineering and support network associated with the submarine integration effort. Manassas will perform most of the work, while the other locations will contribute to the contract’s requirements.
The Navy expects the work to be completed by December 2027.
Funding combines research and shipbuilding accounts
The $88.2 million modification uses a cost-plus-fixed-fee and cost-only contract structure. This allows the government to reimburse eligible costs for the contracted engineering effort, with a fixed fee applying to the relevant portion of the work.
The Navy identified three funding sources:
| Funding account | Amount | Share |
|---|---|---|
| FY2027 Research, Development, Test and Evaluation | $5,224,058 | 40% |
| FY2025 Shipbuilding and Conversion, Navy | $4,000,000 | 30% |
| FY2026 Shipbuilding and Conversion, Navy | $4,000,000 | 30% |
| Total identified funding | $13,224,058 | 100% |
The $13.22 million in identified funding will be obligated at the time of the award. The announcement states that these funds will not expire at the end of the current fiscal year.
Importantly, the identified obligation is smaller than the $88.18 million modification value. The two figures represent different aspects of the contract and should not be treated as interchangeable.
A continuing role in submarine modernization
Lockheed Martin’s submarine engineering work is part of a longer-running Navy requirement. The underlying contract was initially awarded in December 2024 for $66.48 million, with options that could raise its potential cumulative value to approximately $223.37 million. The original procurement was not competitively awarded under the statutory authority cited by the Navy.
The original requirement covered submarine C5I systems engineering and integration for new construction and in-service modernization. According to the procurement documentation summarized by GovTribe, the work includes system integration, configuration management, performance testing and cybersecurity evaluation.
For the Navy, this engineering support is relevant to maintaining compatibility between submarine combat-system components as equipment and software configurations change. Integration work also helps ensure that modifications can be assessed and tested before they become part of operational submarine configurations.
However, the November 12 announcement does not identify individual submarine classes, specific upgrades, new combat-system capabilities or equipment being installed under this modification. It would therefore be premature to associate the award with a particular submarine class or newly introduced weapon.
The contract provides continued engineering support for the Navy’s submarine systems integration requirements, with performance extending through the end of 2027.
