First of all, I have to tell you, the odds of it not working out are infinitely small. You don't go to this stage, so I wouldn't put a high likelihood of that happening. There is too much money at stake, and the terms and conditions are so specified that I'd be shocked if it wasn't given to Lockheed Martin. Frankly, it should be given a lot sooner, if the thing is done right.
From a process standpoint, you're quite right. The government has the option of going to the other successful bidder, in terms of not being ruled non-compliant. There were two bids, and it can see if it can work out a deal with that company. If it can't, it has to start from scratch.