CWD Consolidated Re-Compete Notification of Intent 1.pdf

Mission Systems and Digital Analytics Infrastructure & Technology

Advancement (DAiTA) Groups Naval Air Warfare Center Aircraft Division

Patuxent River, MD 20670

Notification of Intent Sources Sought Notice ID: N0042125RFPREQ54000MA0178

NAWCAD Cyber Warfare Department IDIQ Re-Compete

NOTICE: ALL INFORMATION PRESENTED IS CONSIDERED DRAFT AND NOT

FINAL UNTIL THE RELEASE OF THE FINAL SOLICITATION.

THIS IS FOR INFORMATIONAL PURPOSES TO AID INDUSTRY IN

UNDERSTANDING THE INTENT OF THE GOVERNMENT WITH REGARDS TO THE

SUBJECT SOLICIATION

THE GOVERNMENT WELCOMES INDUSTRY FEEDBACK ON ANY OR ALL OF

THESE TOPICS FOR MARKET RESEARCH PURPOSES ONLY

NOTIFICATION: The following information is provided in parallel with the formal approval of the Determination and Findings for Consolidation, Determination and Findings for Authority to Award a Single Source Task or Delivery Order Contract, and Size Standard Determination.

Industry is notified that these documents have not been formally approved and therefore are subject to change.

Topic 1: Solicitation Size Determination: Small Business Set Aside

The Procuring Contracting Officer analyzed the Government’s market research, of which the Sources Sought was a component, and in conjunction with the NAVAIR Office of Small Business has determined that a small business set aside under NAICS code 541715 Exception 1 with a size standard of 1500 employees would be the most appropriate method to obtain adequate competition.

NAWCAD received 36 responses to the referenced Sources Sought and the following general analysis, per NAICS code, is provided for your information:

541715 Exception 1 – Research and Development in Aircraft, Aircraft Engine and Engine Parts

Socio-Economic Category Small Businesses

8(a) Native

8(a) WOSB SDVOSB HUB Small Other Than

Small

TOTAL 2 4 4 3 0 14 10

INDETERMINABLE 2 3 3 2 0 7 5

CAPABLE 0 1 1 1 0 7 5

Advancement (DAiTA) Groups Naval Air Warfare Center Aircraft Division

Patuxent River, MD 20670

The Government identified the following two major trends for responses categorized as

INDETERMINABLE.

1. Predominance of INDETERMINABLE determination driven by vendor responses demonstrating experience and capability related to cyber in regards to traditional IT infrastructure and a lack of relevant experience in regards to aviation or DoN or DoW weapons systems.

2. Responses in regards to ability to manage, staff, and execute the scale of this requirement were very general and did not provide enough detail or demonstrated experience for the Government evaluation to result in a satisfactory degree of confidence.

The overall analysis demonstrated that a small business set-aside without further socio-economic set aside categorization provides the Government with the highest degree of confidence in achieving adequate competitive pool, competitive proposals, and lowest risk in execution.

TOPIC 2: Contract Structure

As a result of the feedback from the Sources Sought, the Government intends to pursue a Single Award Indefinite Delivery Indefinite Quantity Contract. The Contract will contain both Cost Plus Fixed Fee and Firm Fixed Price CLIN options to be decided at the order level. The following details the DRAFT CLIN Structure and rationale for utilization in execution.

Item

Supplies/Service

Amount

Cyber Research, Design, Integration, Development, Test, and Associated Engineering

Pricing IAW Section J Attachment XX - PWS

Inspection/Acceptance IAW Section J Attachment XXX- QASP

FOB: Destination

Pricing Arrangement: Firm Fixed Price

$TBD M

Advancement (DAiTA) Groups

Cyber Research, Design, Integration, Development, Test, and Associated Engineering

Pricing IAW Section J Attachment XX - PWS

Inspection/Acceptance IAW Section J Attachment XXX- QASP

FOB: Destination

Pricing Arrangement: Cost Plus Fixed Fee

Other Direct Cost Material

ODC Material in accordance with Section C, SOW and C-TXT.242.9520

Procedures and Approvals Required Prior to Incurring Direct Material Costs

Pricing IAW Section J Attachment XX - PWS

Inspection/Acceptance IAW Section J Attachment XXX- QASP

FOB: Destination

Pricing Arrangement: Cost No Fee

Other Direct Cost - Travel

Pricing IAW Section J Attachment XX - PWS

Inspection/Acceptance IAW Section J Attachment XXX- QASP FOB: Destination

Pricing Arrangement: Cost No Fee

Advancement (DAiTA) Groups

Technical, Administrative, and Financial Data

PWS paragraphs

IAW Exhibits A, B, C, D, E, F

FOB: Destination

Pricing Arrangement: Not Separately Priced

NSP

This requirement qualifies for the exemption under Executive Order 14402

(iv) Subsection (b)(ii) of this section shall not apply to contracts that:

(A) support response to an emergency, major disaster, or contingency operation as defined in Part 2 of the Federal Acquisition Regulation; or

(B) involve research and development or pre-production development for major systems acquisition, as governed by Parts 34-35 of the Federal Acquisition Regulation.

However, the Government intends to implement a hybrid IDIQ approach that enables both cost plus and firm fixed price order orders based on the instant best value determination at the time of the order meeting the intent of the April 30th 2026 Executive Order “Promoting Efficiency, Accountability, and Performance in Federal Contracting.” In execution, the Government intends to work collaboratively with the Contractor to develop the best approach to executing each instant requirement within the framework of the contract including the decision regarding the cost type and whether the requirement is suitable for a performance / completion-based approach or non-performance-based level of effort. The desire is to maximize the use of performance-based orders. The following factors are taken into consideration in this determination of cost-plus-fixed-fee (CPFF) versus FFP and performance versus non-performance based.

• Maturity and level of definition of the individual requirement with clearly defined deliverables or performance milestones / measures that can be tied to pricing, CLIN, payment structures, and contract performance assessment

• Duration of the individual project / program requirement

• Severability of the instant tasking or deliverable

Advancement (DAiTA) Groups

• Incremental Funding or available to fully fund at award

• Level of interdependency on performance of the contractor (ie. Gov or other contractors)

• Market volatility of direct rates and/or supplies relative to the duration of the requirement

• Integration of automation, artificial intelligence, or other changes of processes or tools that could significantly reduce project specific labor requirements

This approach allows the Government and the Contractor to collectively address the risks of each approach at the time of the instant requirement. This approach also allows the Government to collect meaningful actual cost and performance data in execution and make smart business decisions on transitioning requirements from CPFF to FFP as appropriate. For example, the Government may issue a task order initially with a CPFF CLIN based on the lack of definition of a requirement or historical pricing information to support a fair and reasonable determination and at a later date once the requirement is better defined and performance data is gathered the order will be constructively modified to add in a performance based FFP option CLIN. This minimizes risk for both parties.

Both Travel and Incidental Other Direct Cost Materials will utilize a Cost No Fee cost type. This structure is appropriate to ensure the Government is only paying the actual cost of the item or travel and general and administrative indirect costs associated with the action and will not pay fee or profit or costs in excess of actual cost if the item or event can be procured at a value lower than the estimated cost.

The Governments final approach to executing the Cost/Price evaluation for the basic contract award and establishment of maximum ceiling has not been determined. The Government is open to suggestions on this aspect of the evaluation.

TOPIC 3: Labor Categories

The Government was very grateful for the insights regarding labor categories and the responses clearly demonstrated that Industry shares the Government desire to focus on outcomes versus arbitrary qualifications. The Government is considering the following approach.

• Defense Cyber Work Force requirements and work force qualifications will not change.

• Move Labor Category definitions from Section C PWS body into a Section C For Reference Only.

Advancement (DAiTA) Groups

• Government Labor Categories, definitions, and Hours will be used as part of the cost evaluation for the basic contract award and for comparison at the order level cost/price analysis.

• In execution, the Contractor may define labor categories, expected outcomes, and hours as part of performance-based proposals or non-performance based level of effort orders.

TOPIC 4: Evaluation Approach

The Government is planning to utilize a Best Value Trade Off approach for determining the award decision. The Government is considering the following approach for efficiency in accordance with RFO FAR 15.204.

Evaluation criteria and down selections:

• Past Performance – written submittal

• Corporate Experience – written submittal

First Down Select to best suited offerors based on Performance Confidence evaluations.

Notification of unsuccessful offerors. No further evaluation of remainder of proposals from unsuccessful offerors.

Technical

• Management and Resourcing – written submittal possible incorporation into awarded contract

• Understanding of the Work – written submittal to a Government scenario

Second Down Select to best suited offerors. Notification of unsuccessful offerors. No further evaluation of remainder of proposals from unsuccessful offerors.

• Technical Focused Sample Task – Oral Presentation by proposed critical performers with no IT access to develop response. Recorded. Include Documented Question and Answer session.

• Cost/Price – Evaluation

Best Value Trade Off Award Determination

Topic 5: Industry One on Ones

Currently the Government does not intend to conduct a dedicated industry day event prior to the DRAFT release of the RFP. The Government does not intend to conduct any further One on https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-15#FAR_15_203

Advancement (DAiTA) Groups Naval Air Warfare Center Aircraft Division

Patuxent River, MD 20670

Ones prior to the release of the DRAFT RFP. The Government reserves the right to conduct a Pre-Solicitation Conference after the release of the DRAFT RFP.