Redacted Justification and Approval.pdf

J&A Number:

5. Rationale Justifying Use of Cited Statutory Authority.

Full and open competition is not feasible for this acquisition. DGI was awarded the following historical 8(a) sole source contracts for the manufacture of the CSD P/N 3637AS600-3.

Contract Number Description N68335-20-C-1009 Prototype First Article Test for P/N

3637AS600-3

N68335-21-C-0893 Production Units N68335-26-D-1007 Production Units

As DGI manufactured the newest configuration of the CSD, they are uniquely positioned to repair and upgrade the -1 and -2 configurations into the -3 configuration due to their proprietary assembly apparatus, which includes custom-built, dedicated assembly workstations, industrial workbenches, and specialized assembly jigs. These proprietary tools and fixtures were purpose-built for the manufacturing and assembly of the ARS Maintenance and Storage Stand and the CSD under previous production contracts with the USN.

The proprietary assembly fixtures developed by DGI are specifically designed to hold and locate components during assembly, ensuring precise alignments and minimizing variability. These fixtures enhance accuracy, improve reliability, and boost productivity by stabilizing parts during the manufacturing process. This setup reduces errors, speeds up assembly times, and reduces costs, all of which are critical for maintaining high-quality standards and meeting production deadlines.

No other company currently possesses the proprietary tools, fixtures, or workstations required for the efficient and accurate repair and upgrade of these items. Any other manufacturer would face significant delays and increased costs due to the need to analyze the technical drawings, design and procure new workstations, industrial benches, fixtures, and jigs, and train personnel on their use. This additional effort would result in longer production lead times, higher labor costs, and increased risk of variability in the final product, potentially compromising quality and reliability.

Selecting an alternate vendor would result in a schedule delay of at least . This delay would include

. Such a delay would jeopardize the operational readiness of the ARS Maintenance and Storage Stands, which are critical to fleet support and mission success, due to the lack of operational CSDs. The ARS systems are essential for maintaining fleet readiness and ensuring continuity of operations. Any disruption in the availability of these systems would negatively impact compromising mission success, and readiness.

Given the familiarity DGI has of the assembly apparatus, the critical role it plays in ensuring the quality and efficiency of production, and the significant schedule impacts associated with selecting an alternate vendor, DGI is the only source capable of meeting the requirements for the repair and upgrade of the CSD within the necessary timeframe and quality standards.

J&A Number:

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

Market research was conducted in accordance with FAR Part 10 by the NAWCAD LKE technical team to ascertain what contractors could provide the required repair and upgrade services. Efforts consisted of various searches using the Federal Procurement Data System Next Generation, the Dynamic Small Business Search, and Google. The results determined that DGI is the only source

The Request for Information (RFI) notice required by DFARS PGI 206.103-170 was published to the System for Award Management (SAM) website on 09 March 2026. Zero responses were received. The pre-solicitation synopsis required by FAR 5.101 was published on SAM.gov on 17 March 2026. Zero responses were received.

The NAWCAD LKE technical team will update market research every 18 months during the BOA agreement period to verify that DGI is the only company still capable of meeting the requirements.

7. Determination of Fair and Reasonable Cost.

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

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAWCAD LKE has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, NAWCAD LKE will assess whether competition for future requirements is feasible.