Advanced Technology Support Program III (ATSP3)

The Defense Microelectronics Activity established the Advanced Technology Support Program III (ATSP3), a Master IDIQ focused on extending the operational life of weapons systems through advanced microelectronics technologies, with ordering closed as of July 13, 2022. The vehicle was awarded October 1, 2003, and has been succeeded by Advanced Technology Support Program IV (awarded April 1, 2016); this is a legacy vehicle no longer accepting new orders.

ATSP3 executed 1,149 task orders between November 2004 and February 2017, with combined obligated amounts of $5.82 billion against a combined potential value of $5.53 billion. Order velocity peaked at 110 awards in 2015 and declined sharply thereafter, with only 2 orders placed in 2017 before the ordering window closed. The most recent task order award dates to February 2017, nine years and five months ago. Combined obligated dollars slightly exceeded the stated potential value ceiling, indicating some task orders grew beyond initial estimates or the portfolio absorbed cost overruns.

Scope encompasses studies, analysis, design, code, simulation, prototyping, integration, and limited production—both hardware and software—addressing obsolescence, reliability, and maintainability of legacy systems. Representative work includes software development for Naval aircraft systems (F/A-18 AESA, E-2 Hawkeye, P-8A), radar modernization (AN/FPS-16, APG-79, PAC-3), air defense platforms (THAAD, Patriot), satellite systems (SBIRS, OPIR), unmanned systems control segments, and counter-rocket artillery mortar (C-RAM) enhancements.

Raytheon Company and Northrop Grumman Systems Corporation dominate the awardee base, holding 383 and 341 orders respectively and accounting for roughly 60 percent of combined potential value at $2.02 billion and $1.43 billion. BAE Systems Information And Electronic Systems Integration Inc., General Dynamics Mission Systems, and Lockheed Martin Corporation follow as significant primes. Eight distinct primes share the work; the top five hold 88 percent of task orders and 92 percent of potential value.

The Defense Microelectronics Activity funded 457 orders valued at $1.92 billion, representing 40 percent of all task orders. Navy organizations (Naval Sea Systems Command, Naval Air Systems Command) and Army commands (Materiel Command R&D Engineering Center, PEO Missiles and Space) comprise the majority of remaining customer demand across 74 funding agencies. All 1,149 task orders were unrestricted procurements with no set-aside designations. Task orders ranged widely in value, from under $500,000 to over $60 million, with most in the $2 million to $35 million range. All awards used cost-plus pricing structures except a small number of firm-fixed-price orders.

The Advanced Technology Support Program III (ATSP3) is a uniform technical and management approach that leverages advanced technologies to extend the life of weapons systems. Electronics support problems, such as, reliability, maintainability and diminishing manufacturing sources are solved through the development of insertions and applications of advanced microelectronics technologies. The requirement covers both hardware and software and includes studies, analysis, design, code, simulation, prototyping, integration, testing, and limited production.