KIV-78A Production

The KIV-78A Production contract is a sole-source award made to General Dynamics Mission Systems under FAR 6.302-1 due to the absence of any other responsible source capable of producing the NSA High Assurance Certified cryptographic applique. The contract supports the Cryptographic Modernization 2 Program by delivering quantum-resistant Identification Friend or Foe (IFF) systems compliant with DoD AIMS Standard 04-900 Option A, ensuring secure communications for critical military platforms. Production will occur at GDMS’s NSA-approved facility in Scottsdale, Arizona, where proprietary AIM III crypto engine technology, exclusive design rights, and certified manufacturing processes make it the only entity able to meet national security requirements without unacceptable delays or over $1 billion in duplication costs. The contract spans a 60-month ordering period with deliverables totaling 400 KIV-78A units in Year 1 and 300 in Year 2, along with 1,706 Circuit Card Assemblies, 700 -3 conversion kits, and one depot test station, all accompanied by technical data, maintenance manuals, engineering support, training, and travel services. The contract is structured as a Firm Fixed Price (FFP) agreement with no competitive evaluation, as no other vendor can replicate the NSA-certified hardware or maintain legacy system interoperability. Inspection and acceptance will be conducted by the Government, primarily at the contractor’s facility, under the authority of the National Security Agency and the Air Force Life Cycle Management Center in San Antonio, Texas. Technical data rights are restricted under DFARS 252.227-7013 and 7014, preserving GDMS’s intellectual property while permitting government use for maintenance and depot operations. No pricing details are disclosed, and no payment, invoicing, or accounting identifiers are provided, though appropriation code 3080 is referenced. Security protocols, facility certifications, and compliance with ITAR/EAR are implicitly required due to the classified nature of the equipment, and no socioeconomic set-asides or alternative sourcing was deemed feasible after market research confirmed no viable competitors. The award is justified under 10 USC 3204(a)(1) as mission-critical to national defense, with approvals finalized by the Crypto Contracting Group Chief and the Program Executive Officer for C&N in August 2024.