Notice of Intent to Award a Sole Source Modification for Network Tactical Common Data Link (NTCDL)

The Naval Information Warfare Systems Command (NAVWARSYSCOM), in support of the
Program Executive Office for Command, Control, Communications, Computers, and
Intelligence (PEO C4I), Communications and GPS Navigation Program Office (PMW/A
170), intends to award a sole source modification to contract N00039-16-C-0087 for the
Network Tactical Common Data Link (NTCDL) Surface Terminal, under the authority of 10
U.S.C. 3204(a)(1) and Federal Acquisition Regulation (FAR) 6.302-1, Only One
Responsible Source, to BAE Systems Information and Electronics (BAE), 65 Spit Brook Rd
Nashua, New Hampshire 03060-6909. Contract N00039-16-C-0087 was awarded on 21
September 2016 with an effective date of 29 June 2017 through a full and open
competition to BAE with a period of performance from 29 June 2017 – 28 June 2023. At
contract award, the contract included a four year base period and two, one-year option
periods for Low Rate Initial Production (LRIP), with an overall contract ceiling of $91.9M
and an initial award of $47.9M on the design and development Contract Line Item
Number (CLIN) (CLIN 0001).

NTCDL is the overarching solution for all United States Navy (USN) Common Data Link
(CDL) requirements across multiple platforms. NTCDL provides transmit/receive
capability of Intelligence, Surveillance, Reconnaissance (ISR) data in support of Tasking,
Collection, Processing, Exploitation and Dissemination (TCPED) activities.

The proposed contract action will extend the total period of performance by three years
from 29 June 2023 to 28 June 2026 and will allow for the procurement of Engineering
Support Services (ESS), spares, and up to six additional systems. The estimated value of
the proposed contract modification is $95.9 Million (M).

BAE is the original designer, developer, and manufacturer of the NTCDL system and is
the only source presently qualified with the production and engineering capabilities to
continue the NTCDL program's near-term requirements without substantial duplication of
cost to the Government that is not expected to be recovered through competition, and
without creating unacceptable program delays in fulfilling NTCDL requirements.

The Government will receive an NTCDL Technical Data Package (TDP) in September
2023. Following receipt of the TDP, the Government will require approximately 24
months to mature and validate the TDP before it's ready for use in a competitive
procurement. This estimated timeline is based on historical development efforts to
mature significantly less complex TDPs than the NTCDL system which relies heavily on
cutting edge Phased Array Antenna technology integrated with specific radio equipment.

The Government estimates that it will not possess a TDP sufficient to support a
competitive procurement of the NTCDL system or associated ESS services until 2025.
Given this limitation, a vendor other than BAE would not be able to deliver the six
additional NTCDL systems to meet the Fleet customer Required Delivery Need dates. A
delay in NTCDL system procurement for is unacceptable based on current operational
demand.

The Government will not have a mature TDP for a competitive Request for Proposal (RFP)
until 2025 with subsequent contract award in 2026. Based on an estimated 24 month
production schedule, the first anticipated NTCDL system will not be delivered until 2028.
Delivery in 2028 is unacceptable because the Government will miss six afloat installations
and will be unable to provide systems to support future unmanned aircraft. ESS are
required through the three years to support these procurements and sustainment efforts.

Overall, a delay in NTCDL procurement for Fleet customers is unacceptable. Both U.S.
Fleet Forces Command and U.S. Pacific Fleet Command formally specify this system as a
threshold capability for global maritime command control and communications in a
Distributed Maritime Environment to execute current warfighting plans.

Without a TDP sufficient to support a competitive procurement, a vendor other than BAE
would need to propose a design based on the Government's non-validated TDP. Market
research indicates that it would take a vendor other than BAE at least three years and
cost an estimated $32.2M in non-recurring engineering (NRE) efforts, or ~33% of the
anticipated value of the proposed contract action, including system development, system
qualification testing, and pre-production hardware development. Alternatively, if the
vendor were to propose a new design without utilizing the Government's non-validated
TDP, the Government estimates that it would take five years and cost approximately
$78.1M in duplicative costs to develop and qualify an alternative system to meet NTCDL
requirements. This estimate is based on the time and cost the Government incurred
enabling BAE to develop and mature the NTCDL Engineering Development Models (EDMs)
and considers that another source would likely be able to reduce the original, expended
time and cost by leveraging the work the Government has funded to date. Nevertheless,
it is not possible for the Government to recover $78.1M of duplicative costs, or ~81% of
the anticipated value of the proposed contract action, by competing this effort and
awarding to another source.

This notice of intent is not a request for competitive proposals. A competitive solicitation
will not be posted. Interested parties may express their interest and capability to satisfy
the Government's requirement by writing directly to the Contracting Office. A
determination by the Government to not compete the anticipated contract based on
responses to this notice is solely within the discretion of the Government.

Questions regarding this announcement shall be submitted to the Contract Specialist at
jennifer.v.devera.civ@us.navy.mil with courtesy copy to the Contracting Officer at
kenneth.b.nickel2.civ@us.navy.mil. Verbal questions will NOT be accepted. Questions
will be answered by posting answers to the NAVWAR e-Commerce Central website;
accordingly, questions shall NOT contain proprietary or classified information.