JA Redacted.pdf

This is a Department of the Air Force Justification for Other Than Full and Open Competition (CUI) document that approves a sole source contract modification to Viasat, Inc.

The Space Development Agency (SDA) is awarding a bilateral contract modification to an existing Indefinite Delivery, Indefinite Quantity (IDIQ) contract (FA240126D0001) with Viasat, Inc. (6155 El Camino Real, Carlsbad, CA 92009-1602; CAGE: 47358) on a sole source basis. The acquisition is valued at less than $10 million. Viasat is the sole designer, developer, and Original Equipment Manufacturer of the KG-142 Ethernet Encryptor family, which serves as the cornerstone High Assurance Type-1 communications security (COMSEC) system across the Pentagon Wireless Service Architecture (PWSA) enterprise. The statutory authority cited is 10 U.S.C. 3204(a)(1), establishing that only one responsible source and no other supplies or services will satisfy agency requirements.

The justification identifies four key rationales: (1) Viasat owns exclusive proprietary intellectual property, cryptographic core architectures, and manufacturing tooling for the KG-142 device family with no competing NSA Type-1 certified encryptors capable of accepting KG-142 speed software licenses or drop-in replacements; (2) substantial duplication of cost and unacceptable schedule delays would result from competitive procurement; (3) long-term sustainment and competition strategy considerations; and (4) vendor lock-in risk mitigation through firm-fixed pricing and future evaluation of competing NSA Type-1 certified devices in technology refresh spirals. Market research was conducted via SAM.GOV, posting an Intent to Sole Source Special Notice (FA240125SN0019) on June 6, 2025, with responses due by June 21, 2025; no responsible responses were received. SDA commits to continuous market surveillance and open standards adoption for future PWSA tranches to enable future competition.