N6660420DQ000_JA_17030.4_Sub HDR (RTX)_Redacted.pdf

CUI

DEPARTMENT OF THE NAVY

N A V A L U N D E R S E A W A R F A R E C E N T E R D I V I S I O N

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I N R E P L Y R E F E R T O :

J&A Number: 17030.4

PID #: N66604-25-NORFP-NPT-34-0700

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Naval Undersea Warfare Center, Newport Division, Code 02, Newport, RI

(NUWCDIVNPT).

2. Description of the Action Being Approved

Justification and Approval (J&A) number 17030.1 was approved on 18 July 2018 for the award of a five (5) year ID/IQ contract with Firm-Fixed-Price (FFP) and Cost-Plus-Fixed-Fee (CPFF) provisions on a sole source basis to Raytheon Company (RTX Collins Aerospace, herein referred to as RTX). The value of approved J&A #17030.1 is $38,512,467. The purpose of this J&A (J&A Justification and Approval (J&A) #17030.4) is for approval to extend the ordering period of Indefinite Delivery/Indefinite (IDIQ) Contract N6660420DQ000 from its current anticipated end date of 23 September 2025 to 23 September 2027, in order to allow for the continuation of repairs and the utilization of the remaining $18.3M in ceiling while a follow-on contract is established. The current J&A (#17030.4) is not requesting to increase the previously approved ceiling value in J&A #17030.1 in the amount of $38,512,467.

3. Description of Supplies/Services

Contract N6660420DQ000 is for Test, Inspection and Evaluation (TI&E), and Repair, Upgrade, Overhaul and Replacement (RUOR) of Submarine High Data Rate (SubHDR) Mast Group (MG) Lowest Repairable Units (LRUs) and subcomponents; and for engineering services in support of failure analyses, troubleshooting, system upgrades and analyzing existing or potential system deficiencies. N6660420DQ000 is the primary vehicle for technical services for sustainment of SubHDR MG LRUs. This requirement is critical, immediate, and ongoing. Absent this contract vehicle, these key OEM source parts would not be available to repair the mission critical SubHDR communication masts, negatively and critically inhibiting the sole national maintenance facility’s ability to address all potential repairs required to maintain Fleet readiness and national security.

J&A #17030.4 requests to extend the ordering period of N6660420DQ000 by two (2) years to allow for continued repair support, maintaining SubHDR Operational Readiness. A follow-on repair and sustainment contract is in progress but is not expected to be awarded until FY2028. N6660420DQ000 has sufficient unused ceiling to support the two (2) year ordering period extension request based on procurement history. The Government intends to fund the extension utilizing the unused ceiling with the fund types listed in the following table:

Estimated Dollar Value (Millions)

Appropriation FY26-27

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), as implemented in the Federal Acquisition Regulation (FAR), 6.302-1:

Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

As established in J&A #17030.1, RTX is the only responsible source capable of providing the technical services for sustainment of SubHDR MG LRUs. RTX is the only company that has completed functional, performance, and environmental qualifications of the SubHDR MG LRU and its subcomponents. Due to the complex nature of the SubHDR MG, the environmentally challenging underwater outboard use, and the rigorous certification criteria for SubHDR MGs, LRUs, and subcomponents, RTX is the only source that currently possesses the knowledge and expertise required to perform the TI&Es and RUORs.

As discussed in J&A #17030.1, PEO C4I PMW 770 currently procures SubHDR MGs sole source from RTX and does not possess Level III Technical Data Packages (TDP) which would be necessary for the competitive acquisition of LRU and sublevel component TI&E and RUOR. PEO C4I PMW 770 has procured Level II TDP from RTX, sufficient to perform organic SubHDR MG diagnostics and LRU replacement, the Level II TDP is not sufficient to support full and open competition of the SubHDR MG LRUs and sublevel component TI&E and RUOR, necessitating that failed LRUs and sublevel components must be returned to RTX for TI&E and RUOR.

Considering this, to develop LRUs and sublevel components via alternate sources, Level III TDPs would need to be acquired from RTX, which the Government estimates would cost at least $5.9M. In addition to the Level III TDPs, the development of LRUs and sublevel components via alternate sources would require significant non-recurring engineering, requalification, and certification testing and evaluation, product configuration baselining, and integrated logistics support infrastructure changes, all of which the Government estimates would take at least three (3) years to complete and cost approximately $7.3M per LRU (there are eight (8) total LRUs, so the total cost would be approximately $58.4M). The resulting

LRUs would have to be compatible (form, fit, function) with the SubHDR Mast and other system components, as well as meet all performance and environmental requirements (e.g., shock, vibration, thermal, UNDEX). Considering the substantial duplication of costs and unacceptable delays that would be experienced to develop LRUs and sublevel components via alternate sources, each iteration of this contract dating back to the original award of N0003997C0030 on 23 October 1996 has been awarded to RTX on a sole source basis.

Absent an extension, the delays will result in a gap in contractual coverage that will jeopardize continuity of services, program stability, and mission readiness. The requested extension ensures uninterrupted support while the follow-on contract to N6660420DQ000 is finalized and awarded. Additionally, it is important to note that all non-recurring engineering (NRE) efforts under N6660420DQ000 are complete. As a result, the requested extension will incur only recurring operational costs, making this a cost-effective interim solution with no further NRE investment required. Extending the current contract is the most efficient path to mitigate schedule risk, sustain the program’s momentum, and avoid potential cost and performance disruptions caused by a lapse in contract coverage.

Based on the entirety of the above analysis, it is in the Government’s best interest to extend the ordering period on contract N6660420DQ000 from 23 September 2025 to 23 September 2027 in order to allow for the continued acquisition of the required SubHDR MG supplies and services until the follow-on contract is awarded. Failure to do so will result in a gap in contractual coverage that will jeopardize continuity of services, program stability, mission readiness, and national security. Additionally, a gap in contractual coverage would result in unacceptable delays to the program’s schedule and substantial duplication of costs to the Government that is not expected to be recovered through competition if the Government were to try to develop LRUs and sublevel components via alternate sources.

NOTE: The total approved ceiling on N6660420DQ000 is $38,512,467, which is in alignment with the value of approved J&A #17030.1. However, the original contract award document reflects a contract ceiling of $69,906,977, which is due to erroneously totaling the maximum potential values of each individual CLIN at time of initial contract award instead of limiting the awarded value to the value approved in J&A #17030.1. Despite this initial oversight, it was never anticipated that all the ceiling on all CLINs would be expended and so the Government carefully monitors the issuance of orders under contract N6660420DQ000 to ensure it never exceeds the ceiling value of $38,512,467, as approved in J&A #17030.1.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

This requirement was originally synopsized in FEDBIZOPPs on 29 June 2015 and again on 16 March 2016 in accordance with FAR 5.2 and DFARS PGI 206.302-1. A Sources Sought Announcement was published in FEDBIZOPPs on 21 November 2017, with a response date of 28 November 2017. One response was received from US Technologies. However, US Technologies withdrew its interest after further review.

The current action requested by this J&A (17030.4) was synopsized on the System for Award Management (SAM) website on 01 August 2025 in accordance with FAR 5.2 and DFARS PGI 206.302-1. The synopsis stated the intention of NUWCDIVNPT to extend the ordering period of Contract Number N6660420DQ000 awarded to RTX until 23 September 2027. No responses have been received. If a responsible source submits a capability statement for consideration by the Government through the date of contract modification award, it will be brought to the attention of the J&A approval authority.

As such, no additional efforts were made to solicit offers from other offerors at this time.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

The Government conducted a price analysis in accordance with FAR Part 15.404-1(b) as well as a cost analysis in accordance with FAR 15.404-1(c) prior to award of N6660420DQ000 and assessed that the costs and prices were fair and reasonable.

accepted the results for both analyses and determined the anticipated costs to the Government of the supplies and services covered by J&A #17030.1 were fair and reasonable.

As J&A #17030.4 does not change the anticipated cost or ceiling on contract N6660420DQ000, the Contracting Officer has determined that the anticipated cost to the Government of the supplies/services covered by this J&A remains fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in paragraph 5 and further discussed in J&A #17030.1, NUWCDIVNPT has no plans at this time to compete future requirements associated with the services and supplies in relation to the repair and procurement of the SubHDR MG LRUs, given the estimated $64M cost required to develop alternate components or sources of supply.

Since the SubHDR system is a mature system that is deployed beyond full operating capability and is well within the operations and sustainment life cycle phase, this level of cost and effort is not a viable option to remove barriers to competition. Further, industry has consistently demonstrated its disinterest in competing for this requirement.

Based on the current Fleet-wide deployment, stability of the system requirements, maturity of the existing system design, and the continued availability of key components from RTX, no major near-term performance requirements or obsolescence driven redesign efforts are anticipated. The NUWCDIVNPT Code 34 ISEA for the SubHDR will continue to evaluate diminishing manufacturing sources and material shortage risks and look for competition opportunities when obsolescence forces component redesign and replacement. In the event that new performance requirements occur, competition for these upgrades will be evaluated at Technical Insertion opportunities.

NUWCDIVNPT will continue to conduct market research and if another potential source emerges, or if NAVWAR changes its overall acquisition strategy, NUWCDIVNPT will assess whether competition for future requirements is feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance, which are included in this Justification and its supporting acquisition planning documents, except as noted herein, are complete and accurate to the best of my knowledge and belief.

Technical Cognizance:

Requirements Cognizance:

LEGAL SUFFICIENCY REVIEW

I have determined this justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this justification is accurate and complete to the best of my knowledge and belief.

CHIEF OF THE CONTRACTING OFFICE/DEPUTY CHIEF OF THE CONTRACTING

OFFICE APPROVAL

I concur with the justification for solicitation of the proposed procurement(s) described herein using other than full and open competition.

TECHNICAL DIRECTOR APPROVAL

Upon the basis of the above justification, I hereby approve, as NUWCDIVNPT’s Senior Executive Service (SES) Technical Director, the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10