Consolidation Justification CANES Tactical Networks.pdf

This is a Notice of Agency Determination that Consolidation is Necessary and Justified for a federal contract opportunity under the Naval Undersea Warfare Center Division, Newport (NUWCDIVNPT).

The Naval Undersea Warfare Center Division, Newport is consolidating two existing Code 25 CANES Tactical Networks SeaPort-NxG task orders into a single procurement to support engineering and technical services for Consolidated Afloat Networks and Enterprise Services (CANES), Submarine Local Area Network (SubLAN) Tactical Networks, and related systems aboard U.S. Navy submarines. The consolidated requirement will be a task order against the SeaPort-NxG Multiple Award Contract with a five-year performance period (one base year plus four option years) and a total ceiling of 505,785 labor hours (101,157 hours annually). Current performance is split between Rite-Solutions, Inc. and G2 Software Systems under two separate task orders with combined effort ceilings of 270,750 hours. The consolidation is justified to improve technical execution and schedule performance by eliminating coordination friction between separate contractors, streamline communications and quality assurance, reduce costs through economies of scale, and support mission acceleration timelines required by the Deputy Secretary of Defense. The Government estimates consolidation will yield significant projected savings over five years through reduced labor hours alone. The solicitation will be issued on an unrestricted basis with a 35% small business participation goal, and market research determined the consolidation does not constitute bundling under FAR 2.101. Approval has been received under the FY17 NDAA Section 233 Pilot Program for Enhancement of Research, Development, Test, and Evaluation Centers.