E2.NAVWAR HQCA-2026-A-089_J&A_KG175X_Redacted.pdf
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- KG-175X Procurement
- Solicitation number
- NNG15SC12B_N0003926FD004
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This is a Justification and Approval (J&A) document for use of other than full and open competition for a sole-source acquisition under the Department of the Navy.
The Portfolio Acquisition Executive Mission Systems (PAE MS) seeks approval for a firm-fixed-price commercial delivery order for KG-175X (TACLANE) Cyber Capable Encryptor hardware units to be placed under the NASA Solutions for Enterprise-Wide Procurement (SEWP) V Government-Wide Acquisition Contract (GWAC) directly with General Dynamics Mission Systems, Inc. (CAGE). The procurement will utilize commercial procedures in accordance with FAR Part 12 in conjunction with FAR 16.505. The period of performance is up to six months, with funding from Other Procurement, Navy (OP.N) appropriations. The statutory authority for this sole-source exception is 10 U.S.C. 3406(c), as implemented by FAR 16.505(b)(2)(i)(B), which permits awards when only one awardee is capable of providing supplies or services at the required quality level because the supplies are unique or highly specialized.
The justification establishes that General Dynamics is the only responsible source capable of providing NSA-certified KG-175X hardware compliant with national security and COMSEC distribution policies. The device is designed to secure high-speed communications over local and wide-area networks and meets strict Navy requirements. Market research confirmed that while multiple vendors hold SEWP contracts across Groups A–D, none are authorized by the NSA or the manufacturer to supply this hardware. General Dynamics holds an active NASA SEWP V Prime Contract under Group A and is the sole designer, manufacturer, and direct distributor of the KG-175X. The hardware is subject to strict supply chain and accountability mandates that preclude third-party commercial reselling. The Contracting Officer determined the anticipated price to be fair and reasonable based on comparison to established catalog pricing under NASA SEWP V GWAC, historical Navy pricing, and independent government cost estimates. No sources expressed written interest in the acquisition. The requiring activity will continue monitoring the market and NSA product certifications to enable future competition should alternative manufacturers be certified or OEM distribution policies change.
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Text version
J&A No. 23-26-8-001
c. Review of Security Directives: Review of confirmed that encryption hardware is subject to strict supply chain and accountability mandates that preclude third-party commercial reselling.
Results & Conclusion: Market research concludes that General Dynamics Mission Systems, Inc.
(CAGE: ) is the only responsible source capable of providing the required NSA-certified KG-175X hardware in compliance with national security and COMSEC distribution policies.
9. Other Supporting Facts.
None.
10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition.
None.
11. Actions to Remove Barriers to Future Competition.
The requiring activity and Contracting Officer will continue to monitor the market and NSA product certifications. Should the NSA certify alternative manufacturers for interoperable network encryption solutions, or should OEM distribution policies change to allow authorized resellers, future requirements will be competed to the maximum extent practicable.
(b) (4)
(b) (1) (A)
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