U.S. DoD Awards $25.357B ATSP V Microelectronics Support Contract to 10 Companies

The U.S. Department of Defense’s Defense Microelectronics Activity (DMEA) has awarded a multiple-award IDIQ contract under its Advanced Technology Support Program V (ATSP V), with a total ceiling value of $25.357 billion split among 10 industry leaders. The award signals that trusted microelectronics support is becoming a long-term structural priority, rather than a short-cycle procurement effort.

ATSP V is a long-duration engineering and technology support vehicle that enables rapid engineering, technical assistance, prototyping, integration, and limited production of microelectronics and electronics systems to meet evolving defense needs.

Structured as a government-wide IDIQ contract, ATSP V allows agencies beyond the DoD, including federal civilian agencies and Foreign Military Sales (FMS) customers, to access a pre-qualified pool of expert partners. The scope spans detailed design and studies, hardware integration, software support, modeling and simulation, test and evaluation, and extended limited production over a multi-year performance period that can extend up to a decade.

ATSP contracts are also known for streamlined acquisition processes, enabling faster task-order awards than traditional procurement methods and giving the DoD flexibility to respond quickly to emerging threats and capability shortfalls.

Awardees

The following companies now hold positions to receive task orders under ATSP V:

• • • General Dynamics Mission Systems
    • Northrop Grumman Systems
    • Leidos
    • Raytheon
    • DRS Network & Imaging Systems (Leonardo DRS)
    • HII Mission Technologies
    • Vertex Aerospace
    • L3Harris Technologies
    • The Charles Stark Draper Laboratory
    • Battelle Memorial Institute

This award follows a competitive effort that received 17 industry proposals, reflecting strong supplier interest in defense microelectronics engineering work

1)Trusted and Assured Microelectronics Are a National Priority

Microelectronics drive virtually every modern defense system, from avionics and radar to secure communications and weapon systems. The DoD’s trusted microelectronics strategy aims to ensure hardware and software integrity from design through delivery, meeting strict requirements for chain-of-custody, security controls, and resistance to tampering or reverse engineering.

This emphasis extends and accelerates traditional programs like the Trusted Foundry Program, which accredits trusted suppliers across wafer fabrication, packaging, assembly, and test services to meet classified and mission-critical needs.

2) Engineering Services, Not Bulk Chip Purchases

Unlike commodity chip buys, ATSP V is services-heavy and focuses on engineering solutions to problems such as obsolescence, capability gaps, integration challenges, and prototyping for next-generation systems. This places supplier and ecosystem strength on evaluation just as much as technology capability.

3) Broad Scope Impacts the Electronics Ecosystem

Tasks under ATSP V can influence component downstream markets such as:

• • • High-reliability discrete, analog, RF, power, and analog components
    • Specialized substrates, packaging, and test flows
    • Legacy and custom ASIC prototyping and integration

Because defense requirements often demand long lifecycle support and strict documentation, qualification cycles and supply eligibility can extend beyond typical commercial standards adding friction to sourcing and qualification. This can affect adjacent industrial segments that share similar mature node parts and supply processes.

ATSP IV, the predecessor, had a much smaller ceiling (about $7.2B initially, later expanded to roughly $17.47B before expiration in 2026), and was focused mainly on resolving electronics obsolescence and modernization issues. ATSP V’s three-fold ceiling expansion underscores DoD’s growing emphasis on trusted microelectronics engineering over the next decade.

What can IBS Electronics Can Do for Your Sourcing and Planning

As trusted and assured supply requirements expand, organizations should plan for qualification and sourcing friction in affected component categories. IBS Electronics can support 2026 sourcing and lifecycle planning by helping teams:

• • Identify BOM exposure to constrained, high-reliability, or documentation-heavy components
  • Evaluate qualified alternates early to avoid rushed requalification
  • Assess lead-time risk beyond the fab, where packaging, test, and long-life supply commitments often become the bottleneck

Plan ahead for trusted supply requirements. IBS Electronics helps teams identify exposure and plan sourcing strategies before qualification pressure escalates.