Redacted J_A.docx

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center, Aircraft Division (NAWCAD) Lakehurst, NJ.

2. Description of the Action Being Approved.

This Justification and Approval authorizes and approves the issuance of a firm fixed price contract for the procurement of network encryptors and support equipment on a sole source basis to General Dynamics Mission Systems Inc. (General Dynamics). The total period of performance is anticipated to be 60 days.

3. Description of Supplies/Services.

The NAWCAD Webster Outlying Field Integrated Command and Control (IC2) and Intelligence (IC2&I) Division has been tasked by the U.S. Africa Command (U.S. AFRICOM) J6 program to procure the General Dynamics Tactical Local Area Network Encryptor (TACLANE)-FLEX (KG-175F) network encryptor and support equipment, which includes cables, single-mode pluggable optics, and rack mounts. The required General Dynamics network encryptors and support equipment is required to encrypt data and voice communication transmitted over secure networks.

The requested General Dynamics network encryptors are certified by the National Security Agency (NSA) for up to Top Secret (TS)/Sensitive Compartmented Information (SCI) clearance level information and are required by the requesting programs to transmit sensitive and/or classified data and voice communication within the U.S. AFRICOM network(s). The General Dynamics support equipment is required to operate and store the network encryptors.

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

The Department of Defense (DoD) Instruction (I), DoDI 8523.01, requires that all DoD components acquire Communications Security (COMSEC) products and services through the NSA/Central Security Service (CSS), which serves as the centralized COMSEC acquisition authority. The NSA incorporates Federal Information Processing Standards, or NSA/CSS-certified cryptographic products and technologies, into systems in order to protect information types at rest and in transit. Programs with certain cryptographic requirements, as determined by the information type or other protection considerations, must coordinate development efforts with the NSA/CSS Information Assurance Directorate. The requested General Dynamics network encryptor is the only High Assurance Type 1 network encryptor certified by the NSA for up to TS/SCI use with the small form factor required by U.S. AFRICOM.

In Accordance With (IAW) DoDI 8523.01, if the products and services are unavailable through NSA-centralized procurement, the DoD components may acquire them directly from commercial entities authorized by the NSA/CSS to sell such products and services. The Coronavirus Disease 2019 (COVID-19) pandemic impacted NSA acquisitions and the NSA notified agencies that orders would no longer be accepted through the end of FY20. The NSA authorized agencies to acquire NSA/CSS-certified cryptographic products and technologies directly from approved vendors and authorized the vendors with NSA/CSS-certified cryptographic products and technologies to provide NSA/CSS-certified cryptographic products and technologies directly to requiring agencies who will honor NSA contract pricing. General Dynamics does not have any authorized resellers or distributors, and therefore the requested network encryptors and support equipment must be purchased directly from General Dynamics.

The requested General Dynamics brand name KG-175F network encryptor was previously procured in support of U.S. AFRICOM and in support of Special Operations Command Africa.

If the requesting programs were required to procure this material through the NSA, the projects would be delayed due to the NSA closure. It would cost the Government in Research, Development, Test and Evaluation and Certification and Accreditation costs to recreate the General Dynamics encryption products. This is a substantial duplication of cost that is not expected to be recovered through competition.

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

Thorough market research was conducted utilizing various methods to identify additional possible sources for the required equipment and to obtain current information regarding availability and price. A search was conducted using the nomenclature “NSA certified network encryptors” and “Controlled Cryptographic Devices with Ancillary” and by part numbers, which resulted in several manufacturers of this type of equipment. Additional market research was conducted to identify authorized resellers or distributors for the General Dynamics equipment utilizing the Google search engine and General Services Administration Advantage. General Dynamics does not have authorized distributors or resellers for the required equipment.

A Request for Information (RFI) for Controlled Cryptographic Devices with Ancillary was placed on the Beta System for Award Management website to survey the marketplace for additional sources that have the ability to meet the Government’s requirement of NSA certification. The RFI number is N68335-20-RFI-0233. The RFI closed with no responses. Per the market research conducted, General Dynamics was identified as the only manufacturer found that provides the network encryptor solution that meets the requirement of the Government for NSA certification.

A pre-solicitation synopsis was posted. No responses were received.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer shall ensure that the price negotiated for this acquisition is fair and reasonable IAW FAR Subpart 15.4. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the cost estimate. The proposal will be reviewed by experienced technical personnel at IC2&I and by the Contract Specialist. The Contracting Officer will utilize cost and price analysis IAW FAR 15.404-1 as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

For the reasons stated in paragraph five, only General Dynamics can provide the required NSA-certified network encryptors and support equipment. The Government will continue to evaluate other technologies that would allow future competition by conducting market research to determine if there are any future vendors that have the capability to meet this requirement.

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

LAKEHURST, NJ 08733

image1.png