Lockheed Martin scores a $3.5 billion recompete contract win to supply training aids, devices and simulation tools for the Army.
Lockheed Martin has won a potential seven-year, $3.5 billion contract to supply training aids, devices and simulation tools for the Army to use on instrumentation systems and live-fire ranges.
This is the first contract to be broken out and recompeted from the current Warfighter Focus contract held by incumbent Raytheon. The Army received one other bid for the new contract, the Defense Department said in its Thursday contracts digest.
The award of the Army “TADSS Maintenance Program” contract also known as ATMP comes four months after Raytheon received a one-year extension on Warfighter Focus to continue the work through October of this year.
That bridge includes a pair of six-month options that would extend the ceiling value of Warfighter Focus to $13.77 billion. A Raytheon spokesperson told Washington Technology they are “reviewing our options for next steps” regarding the ATMP award.
Initiated in 2008, Warfighter Focus has covered training and logistics services in around 127 countries. CSRA, General Dynamics’ IT services business and Engility Corp. are the three primary members of Raytheon’s 154-member “Warfighter Training Alliance” for the program.
Lockheed was a large business partner of Raytheon for Warfighter Focus but brought together Cubic Corp. and Pulau as teammates to pursue ATMP. Cubic and Pulau also were large business members of Raytheon’s consortium.
Two other recompete awards stemming from Warfighter Focus are due later this year: a $2.4 billion Enterprise Training Services Contract and a $785 million contract for training and support services at Fort Huachuca in Arizona. ETSC is anticipated to have multiple winners, Deltek data indicates.
Raytheon expected revenue from the Warfighter Focus contract to fall from $1 billion last year to around $750 million this year as the Army winded that down and prepared for the recompetes, according to a Feb. 9 investor note from investment bank Cowen and Company.
The defense contractor reported $6.18 billion in revenue last year for its intelligence, information and services segment and expected flat sales this year.