Notice of Intent to Award a Sole Source Modification to Lockheed Martin to Increase Contract Ceiling

SOL #: N0003919D0006Special Notice

Overview

Buyer

Dept Of Defense

Dept Of The Navy

NIWC PACIFIC

SAN DIEGO, CA, 92152-5001, United States

Place of Performance

San Diego, CA

NAICS

Computer Systems Design Services (541512)

PSC

Hardware, Software, And Other Equipment Needed For Specialized High Performance Computing (Hpc) Systems Used In Solving Complex Computational Problems Through Massive Concurrent Use Of Computing Resources And Parallel Processing Techniques. (7B20)

Set Aside

No set aside specified

Original Source

https://sam.gov/opp/057c43bf649c4cd0b78bbe29bad394a0/view

Timeline

Posted

Apr 6, 2026

Last Updated

Apr 14, 2026

Action Date

Apr 17, 2026, 9:00 PM

Qualification Details

Fit reasons

NAICS alignment with historical contract wins in similar service areas.
Scope strongly matches core technical capabilities and delivery model.

Risks

Past performance thresholds may require one additional teaming partner.
Potential clarification needed on staffing minimums before bid/no-bid.

Next steps

Validate eligibility requirements, assign capture owner, and schedule partner outreach to confirm teaming strategy before submission planning.

Quick Summary

The Naval Information Warfare Center (NIWC) Pacific intends to award a sole source cost-plus-fixed-fee contract modification to Lockheed Martin (LM) for contract N00039-19-D-0006. This modification will increase the contract ceiling by a not-to-exceed amount of $30,000,000 to ensure continued support for General Service (GENSER) Cross Domain Solution (CDS) and Radiant Mercury (RADMERC) operations for the Department of Navy and other Department of War agencies. This is a Notice of Intent and not a request for competitive proposals.

Scope of Work

The existing contract provides for the installation, program management, maintenance, modernization, and sustainment of RADMERC systems. This includes system security authorization support, logistics, and training services, as well as sustainment of existing systems. The increased demand for services and the need for this ceiling modification are driven by a software baseline compromise requiring LM to accelerate efforts to deliver a new version, leading to unplanned costs and higher demand for RADMERC services.

Contract Details

Contract Number: N00039-19-D-0006
Contract Type: Cost-Plus-Fixed-Fee (CPFF), Indefinite Delivery, Indefinite Quantity (IDIQ)
Awarded To: Lockheed Martin (LM)
Ceiling Increase: $30,000,000 (not-to-exceed)
Current Expiration: September 30, 2029
NAICS Code: 541512
Authority: 10 U.S.C 2304 (c)(1) and FAR 6.302-1 (Only one responsible source)
Place of Performance: San Diego, CA

Set-Aside

This is a sole source action; therefore, no set-aside applies.

Evaluation

Not applicable, as this is a sole source modification and not a competitive solicitation.

Additional Notes

The government intends to negotiate with Lockheed Martin as the sole source. The Justification and Approval (J&A) for this action will be posted in accordance with FAR 6.305. A previous ceiling increase of $12,028,735 was awarded in February 2025, which was nearly exhausted within seven months due to higher than expected burn rates and increased customer requests. The government anticipates a nearly two-year delay and an estimated $9.8M impact in duplicated costs if a new contractor were to assume responsibility. Market research will be conducted for future contract requirements, and a CDS Working Group has been established to identify a long-term solution.