Lockheed Martin has won a $71 million worth Economic Order Quantity (EOQ) long lead material contract for four Virginia Construction boats in support of Acoustic Rapid Technical Insertion (TI)16, the company said in a statement Tuesday.
A-RCI TI16 program concept is that vast improvements in acoustic sensing can be achieved without changing the sensors.
By upgrading ship sensor processing, it integrates and improves the boat’s towed array, hull array and sphere array sonars. The long lead materials being procured are necessary to continue with the program’s need to maintain schedule.
Purchasing all necessary long lead material as an EOQ ensures that a cost break is received. Fiscal 2015 shipbuilding and conversion (Navy) funding in the amount of $35 million will be obligated at time of award. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source.