The Naval Sea Systems Command (NAVSEA) intends to award a fixed-price incentive contract to Raytheon Company, Integrated Defense Systems (Raytheon IDS) in Tewksbury, MA for production of the Mission System Equipment (MSE) for DDG 1002 without providing for full and open competition. Raytheon IDS will be responsible for the production and test of External Communications and Data Link equipment, Electro-Optical and Infra-red surveillance equipment, Electronic Surveillance equipment, Undersea Warfare combat systems equipment, MK 57 Vertical Launching System (VLS) equipment, Ship Control and Navigation systems equipment, Identification Friend or Foe equipment, Dual Band Radar and associated support equipment, and the Total Ship Computing Environment computer and networking equipment. Raytheon will also be responsible for non-recurring engineering supporting the DDG 1002 production efforts. Associated supplies, services, and provisioned items orders, will be procured that are common to the DDG 1000 Class. Raytheon IDS is the only existing source with the in-depth technical expertise, knowledge, resources, specialized design tooling and facilities required to produce the MSE without adverse impact to the USN shipbuilding and ship deployment requirements. Raytheon Company has been the Systems Integrator leading the design and integration of MSE in the DDG 1000 Class since it was part of the team competitively awarded contract N00024-02-C-2302 for Phase III of the DD(X) program in April 2002. As such, Raytheon IDS has established a unique capability as it relates to: 1) development of the total ship computing environment and associated software development; and 2) dual band radar, sonar, common array power and cooling, sensors, and command and control. A Technical Data Package suitable for competition is not currently available because the development and production of the MSE for the first two ships of this three ship class remains ongoing. For the reasons stated above, pursuant to 10 U.S.C. 2304(c)(1), NAVSEA intends to award a contract for the MSE for DDG 1002 to Raytheon IDS, 50 Apple Hill Drive, Tewksbury, MA 01876. Parties interested in subcontracting opportunities should contact Raytheon directly. See Note 22.

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