Summary of Justification and Approval (J&A) for Other Than Full and Open Competition

This is a Justification and Approval (J&A) document for a follow-on firm fixed-price production contract for KIV-78A Mode 5 Cryptographic Appliqué equipment to be awarded to General Dynamics Mission Systems (GDMS), Scottsdale, Arizona. The contracting activity is the Air Force Life Cycle Management Center (AFLCMC), Cryptologic and Cyber Systems Division, at Joint Base San Antonio-Lackland, Texas. The acquisition is authorized under 10 USC 3204(a)(1) for a sole-source requirement where only one responsible source can satisfy agency needs. The estimated contract value exceeds $15 million and not more than $100 million, with a projected award date in FY26, first quarter. The contract uses 3080 Procurement appropriations with a 60-month ordering period.

The requirement involves production and procurement of KIV-78A Cryptographic Appliqués, circuit card assemblies, conversion kits, and a depot test station, along with engineering support, travel, and training. Best Estimated Quantities across five years include 400-300 appliqués, 1,706-1,224 circuit cards, 700 conversion kits, and one depot test station. The justification demonstrates that GDMS is the only responsible source capable of meeting requirements due to its status as the original equipment manufacturer of the legacy KIV-78 system, NSA High Assurance Certification for IFF Mode 5 Crypto Appliqué, NSA-validated acceptance plans and procedures, and proprietary Advanced INFOSEC Machine (AIM III) crypto engine. The document notes that introducing a competing vendor would result in substantial cost duplication and unacceptable delays, with an estimated six-year development timeline for an alternative source. A Sources Sought notice was posted on SAM.gov from July 24 to August 2, 2024, with no responses from other vendors. The contracting officer determined that anticipated costs will be fair and reasonable based on certified cost or pricing data and technical evaluation by the program team.