Attachment_1_Sole_Source_Justification.pdf

v1.3_DECEMBER 2018

SOLE SOURCE JUSTIFICATION

DCX-CHOL to Manufacture Mk 62 RCN A-Cables

BACKGROUND:

The Naval Undersea Warfare Center Division Newport (NUWCDIVNPT) Code 4022 has a requirement to procure thirty-nine (39), Umbilical “A”-cables for Mk 48 7AT Torpedo development for the Royal Canadian Navy (RCN). These cables are (essentially USN) MK 62

Mod 1 A-cables (existing design) with minor modifications, (changes in cable length and the addition of the Foreign Military Sales (FMS) Stiffener added), to accommodate the differences in length characteristics of the RCN Submarine Torpedo Tubes and the FMS Stiffener is added to stiffen/protect the Mk 48 weapon end connector against the turbulent launch environment and proximity to the RCN Torpedo Tube Slide Valve grates, during launch from the RCN ship. Due to the differences from the USN Mk 62 Mod 1 A-Cables they are designated as Mk 62 RCN.

A lot of 39, MK 62 RCN A-cables is being requisitioned by Project Manager Ships (PMS) 404 for Foreign Military Sales (FMS) for Mk 48 7AT Torpedo usage for the RCN.

Requiring Activity: (PMS404 for Foreign Military Sales (FMS) UNDER FMS CASE CN-P-APE and CN-P-MIE, via NUWC Code 8552 International Programs).

The MK 62 RCN A-cables have been procured by NUWCDIVNPT under SEAPORT-e contract

N00178-04-D-4083/N462.

REQUIREMENT:

This is for the production lot of Thirty-Nine (39) Royal Canadian Navy (RCN) Umbilical “A”-cables for Mk 48 7AT Torpedo integration into RCN Victoria Class Submarines, to be manufactured according to drawing package 8667431 and Specification 6894520 REV D.

Provide parts list (must match quotes):

MFGR P/N DESCRIPTION/TITLE Qty

8667431 Mk62 RCN Umbilical A-cables

Sole Source Justification:

To the best of our knowledge, there are currently two known manufacturers of Umbilical “A”-cables for the US NAVY, DCX-Chol and Tyco. However, due to the issues described herein;

DCX-Chol is considered by the Mk 48 Interfaces In Service Engineering Agent (ISEA), to be the only qualified Manufacturer/Vendor of these and other such umbilical “A”-cables, as they have been making them for the US NAVY for several major contracts without any known manufacturing issues or defects, they have been consistently on time or early for delivery and they have the infrastructure in place to perform all the required 1st Article, production lot and other periodic tests, required by the Government for compliance. The other known Vendor

(Tyco) does not have this infrastructure in place. DCX-Chol has the proper molds in house to make the RCN A-Cables with the FMS Stiffener (the molds have been fabricated previously via non-recurring engineering costs), Tyco would have to add additional costs to the products to make these molds or add Non-recurring engineering costs to the contract.

DCX-CHOL, currently, is the only company who has all the required molds and production infrastructure in place to operationally make these cables. DCX-CHOL has already invested in the specialized molds required and associated Non-Recurring Engineering costs required to be able to manufacture these special RCN A-cables, having already manufactured eight (8) prototypes for testing and evaluation purposes under MRC Contract PO 17-0653 NVS2143.

Another Manufacturer, Tyco, is currently manufacturing (Mk 62 Mod 1) A-cables for the US

Navy, however, they have had several production delays with their first lot production delivery under Contract # N0010416CK046. The Mk 48 Interfaces ISEA can summarize the production issues as the First Articles were severely overdue, (greater than 6 months) due to a lack of production facilities available and the lack of adequate testing hardware. With these first lot issues, the Government has low confidence in the ability of Tyco to manufacture more A-cables at this time. The Government will consider Tyco on future requirements when Tyco is able to resolve the current production issues.

Additionally, requirements for the final A-cable production, are an extensive set of electrical and pressure tests, used to verify the full functionality and integrity of the A-Cables. DCX-CHOL has invested a significant amount of personal capital to develop mechanisms to perform these tests, for previous and future contracts to manufacture A-Cables. Another vendor (Tyco) would also likely have to invest a similar amount, to develop their own testing infrastructure. These costs would also need to be amortized into the overall costs for production, thereby increasing the cost of the end product A-cables.

Based on DCX-Chol’s overall knowledge of the Mk 62 Mod 1 A-Cables and the many

Government requirements for the manufacturing; knowledge of the manufacturing procedures, there is no better or more cost effective alternative to produce these cables for the RCN FMS than DCX-CHOL.

Finally, the need by the RCN to have these A-cables available in a timely manner is crucially important to the RCN Torpedo Fleet Exercise schedules, because the infrastructure for both the modification molding and for the Quality Assurance testing is already in place at DCX-CHOL, they already have the ability to manufacture the cables and test them in a timely manner to meet the RCN time tables (launch exercises are scheduled to commence in 1st Quarter FY 2020).

Product Comparison Matrix:

Functional Requirement: Tyco DCX-Chol

Are Currently Making Umbilical Cables for USN / FMS Yes Yes

Have produced quality Umbilical cables in past contracts Yes Yes

Have the Required Molds to fabricate the Mk 62 RCN No Yes

Have produced Umbilical Cables during current / recent

Contracts on time and on budget.

No Yes

Is Currently capable to conduct all required First Run and

Production Lot Tests for new Umbilical cables.

No Yes

Have produced quality Mk 62 RCN No Yes

Have demonstrated the ability to produce more and varied (new design) Umbilical cables in a timely fashion and at the quoted price(s).

Not at this time Yes

RESELLERS:

DCX-Chol is the only qualified manufacturer at this time that can manufacture Mk 62 Mod 1 A-

Cables. DCX-Chol has no authorized resellers.