Lockheed Martin Awarded $2.9 Billion for Three Overhead Persistent Infrared GEO Space Vehicles

Lockheed Martin Space Systems, Sunnyvale, California, has been awarded a $2,935,545,188 not-to-exceed undefinitized contract for three Next Generation Overhead Persistent Infrared Geosynchronous Earth Orbit Space Vehicles.  This contract encompasses requirements analysis, design/development, critical path flight hardware procurement, early manufacturing, and risk reduction efforts leading to a system critical design review.  Work will be performed in Sunnyvale, California, and is expected to be completed by April 30, 2021.

We knew this would be sole-sourced to Lockheed Martin, just like we knew that for the polar vehicles awarded to Northrop Grumman. What we didn’t know was the award value, and it’s huge.

Lockheed was awarded $2.9 billion on an undefinitized contract, which is a type of contract action that allows the contractor to begin work before terms and specifications are agreed upon. Northrop Grumman was also awarded an undefinitized contract, but for the relatively meager amount of $47 million.