10--CONSOLIDATED UNDERSEA WEAPONS HARDWARE PRODUCTION CONTRACT

The Naval Sea Systems Command, Washington Navy Yard, DC, anticipates awarding a sole source, firm fixed-price (FFP) contract to Raytheon Electronic Systems, Integrated Defense Systems (IDS), Keyport, WA for the consolidated procurement of following undersea weapons: the MK48 Advanced Capability (ADCAP) Mod 6 Heavyweight Torpedo, the MK48 CBASS Mod 7 Heavyweight (HWT) Torpedo and the MK54 Mod 0 Lightweight (LWT) Torpedo. The Navy has embarked on this particular acquisition strategy for current undersea weapons hardware requirements based on the need for lower priced assets, the uniqueness of torpedo manufacturing and the current low volumes of production. The Navy envisions a single prime production supplier who can work synergistically with the Navy torpedo enterprise to efficiently and cost effectively produce these hardware assets. The results of the market research performed i n April 2003 confirmed original programmatic expectations that in order to ensure responsiveness to Fleet inventory needs for torpedo assets, sustain a skilled torpedo workforce, achieve significant production process improvements, achieve substantial component commonality across product lines and realize considerable procurement and life cycle costs savings, the consolidation of existing torpedo product lines under one collaborative contract vehicle must be undertaken. The base year of the consolidated undersea weapons contract is anticipated to satisfy the Navy's FY04 undersea weapons requirements and include four one-year options covering anticipated requirements in FY05 through FY08. The consolidated product lines considered under this procurement are described as follows: 1) the MK48 ADCAP Mod 6 is currently the Navy's primary submarine launched conventional ASW and ASUW t orpedo asset. It is anticipated that the resulting solicitation and contract, in concert with current funding streams and Government estimates, will allow the Navy to procure MK48 ADCAP Mod 6 quantities of approximately 76 in FY04 and approximately an additional 80 in FY05. No additional MK48 ADCAP Mod 6 assets are anticipated for production in FY06 through FY08; 2) the MK48 Common Broadband Advanced Sonar System (CBASS) is an upgrade to the MK48 Mod 6 (ACOT configured) torpedo. This upgrade is referred to as the MK48 CBASS Mod 7 torpedo. It is anticipated that the resulting solicitation and contract, in concert with current funding streams and Government estimates, will allow the Navy to procure MK48 CBASS Mod 7 quantities of approximately 14 in FY04 and up to approximately 350 in FY05 through FY08; and 3) the MK54 Mod 0 is a modular upgrade to the U.S. Navy lightweight torp edo inventory, combining existing MK46 Mod 5A(S) hardware with subsystems of the MK50 and MK48 ADCAP torpedoes, and commercial off-the-shelf processor components. It is anticipated that the resulting solicitation and contract, in concert with current funding streams and Government estimates, will allow the Navy to procure MK54 torpedo quantities of approximately 36 in FY04 and up to approximately 830 units in FY05 through FY08. Additional quantities may be authorized or appropriated by Congress for each of the three product lines as needed. Also contemplated in this consolidated procurement will be the purchase of research and development efforts, software, associated unit spares, non-recurring engineering services and support, related program data (technical manuals, reports, training/curriculum aids, etc.) proofing support, test equipment and contingency Engineering Change Pr oposal (ECP) and Government Furnished Equipment and Property (GFE/P) repair line items for all product lines, as required. Furthermore, in terms of the anticipated contract structure, aggressive contract incentives addressing unit cost reductions and quality are anticipated as well as the promotion of increased utilization of small business concerns. In total, this contract is anticipated to provide the Navy with a contract vehicle to efficiently and cost-effectively acquire additional air and surface deliverable torpedoes and support services in order to combat existing and projected submarine threats. Raytheon IDS (Keyport) is currently the producer of the MK48 ADCAP Mod 6 and co-designer, developer and producer of the MK54 Mod 0 torpedo. It is the only source with the design familiarity, proven vendor base, demonstrated production processes and existing facilities and tooli ng required to meet the Navy's requirements for these two product lines. As for the MK48 CBASS Mod 7 torpedo, Raytheon has extensive experience with the MK48 torpedo platform itself and has proven experience in the design of wideband capable sonar systems and components. Furthermore, the company has in-depth experience in the development of associated advanced signal processing algorithms and hardware and software integration. Firms interested in subcontract or subassembly opportunities should contact Raytheon Electronic Systems, Integrated Defense Systems (IDS) directly. The subcontracting point of contact is Mr. Tony Forrest and can be reached at +1 (555) 000-0000 or by e-mail at contact@example.gov.*****