Huntington Ingalls Industries, Inc. (NYSE: HII) recently announced that its Mission Technologies division has secured a position as one of a select group of contractors awarded a major defense microelectronics contract. This contract, the Advanced Technology Support Program V (ATSP5), has a total ceiling of approximately $25.4 billion and spans a decade, reflecting the government's commitment to maintaining technological superiority in microelectronics for defense and federal applications.
The ATSP5 is a multiple-award indefinite-delivery, indefinite-quantity (IDIQ) contract that includes 12 companies chosen to provide comprehensive engineering services addressing both hardware and software challenges in microelectronics. Through this contract, federal agencies — notably the Department of Defense — will gain expedited access to advanced microelectronics technologies, supporting swift response to emerging technical demands and the resolution of component obsolescence.
Mission Technologies’ contributions under this agreement will encompass a broad spectrum of engineering tasks. These tasks range from initial phases such as studies and analyses to more applied efforts including design, simulation, prototyping, integration, and testing. Beyond development stages, the scope also covers production support and limited extended manufacturing, ensuring that technology deployment and sustainment efforts are supported throughout the lifecycle.
Additionally, the contract incorporates provisions aimed at sustaining and modernizing critical systems vital to national defense and civil missions, underscoring the strategic importance of microelectronics in diverse governmental operations.
Huntington Ingalls leverages its expertise in both microelectronics and software engineering, utilizing system- and component-level knowledge to facilitate reverse engineering and assurance activities. Their proprietary tools and model-based methodologies assist clients in maintaining and upgrading essential technologies within a rapidly evolving technological landscape.
From a strategic perspective, inclusion in the ATSP5 contract portfolio highlights Mission Technologies’ capacity to assist federal agencies in overcoming challenges such as current semiconductor shortages, which have the potential to compromise operational readiness across defense segments. Grant Hagen, president of the Warfare Systems group within Mission Technologies, emphasized that delivering a trusted, assured supply of microelectronics directly correlates with enhanced warfighter survivability, mission assurance, and maintaining technological edge.
He further noted that Mission Technologies intends to apply its more than twenty years of specialized engineering experience to foster innovation in next-generation microelectronics, supporting the defense sector’s evolving requirements.
Regarding market response, Huntington Ingalls Industries’ shares experienced a modest decline of 1.40% on the day of the announcement, trading at $419.93. Despite this dip, the stock remains near its 52-week peak, recorded at $427.72, signaling continued investor interest and confidence in the company’s long-term prospects.
As the demand for advanced microelectronics grows alongside increasingly complex defense system requirements, contracts such as ATSP5 represent critical vehicles for delivering prompt and effective engineering solutions. Huntington Ingalls’ role in this sector positions it at the forefront of supporting the U.S. government’s modernization and readiness objectives through integrated hardware and software innovation.
The ATSP5 is a multiple-award indefinite-delivery, indefinite-quantity (IDIQ) contract that includes 12 companies chosen to provide comprehensive engineering services addressing both hardware and software challenges in microelectronics. Through this contract, federal agencies — notably the Department of Defense — will gain expedited access to advanced microelectronics technologies, supporting swift response to emerging technical demands and the resolution of component obsolescence.
Mission Technologies’ contributions under this agreement will encompass a broad spectrum of engineering tasks. These tasks range from initial phases such as studies and analyses to more applied efforts including design, simulation, prototyping, integration, and testing. Beyond development stages, the scope also covers production support and limited extended manufacturing, ensuring that technology deployment and sustainment efforts are supported throughout the lifecycle.
Additionally, the contract incorporates provisions aimed at sustaining and modernizing critical systems vital to national defense and civil missions, underscoring the strategic importance of microelectronics in diverse governmental operations.
Huntington Ingalls leverages its expertise in both microelectronics and software engineering, utilizing system- and component-level knowledge to facilitate reverse engineering and assurance activities. Their proprietary tools and model-based methodologies assist clients in maintaining and upgrading essential technologies within a rapidly evolving technological landscape.
From a strategic perspective, inclusion in the ATSP5 contract portfolio highlights Mission Technologies’ capacity to assist federal agencies in overcoming challenges such as current semiconductor shortages, which have the potential to compromise operational readiness across defense segments. Grant Hagen, president of the Warfare Systems group within Mission Technologies, emphasized that delivering a trusted, assured supply of microelectronics directly correlates with enhanced warfighter survivability, mission assurance, and maintaining technological edge.
He further noted that Mission Technologies intends to apply its more than twenty years of specialized engineering experience to foster innovation in next-generation microelectronics, supporting the defense sector’s evolving requirements.
Regarding market response, Huntington Ingalls Industries’ shares experienced a modest decline of 1.40% on the day of the announcement, trading at $419.93. Despite this dip, the stock remains near its 52-week peak, recorded at $427.72, signaling continued investor interest and confidence in the company’s long-term prospects.
As the demand for advanced microelectronics grows alongside increasingly complex defense system requirements, contracts such as ATSP5 represent critical vehicles for delivering prompt and effective engineering solutions. Huntington Ingalls’ role in this sector positions it at the forefront of supporting the U.S. government’s modernization and readiness objectives through integrated hardware and software innovation.