The Naval Air Systems Command (NAVAIRSYSCOM) intends to award on a sole source basis, pursuant to 10 U.S.C. 2304(c)(1), to BAE Systems, Information and Electronic Systems Integration, Inc., Greenlawn, NY, an increase in quantity of approximately 200 units to the current FY-04 contract requirements for the AN/UPX-118 Common IFF Digital Transponder (CXP), including associated Remote Control Units and technical data. The current CXP contract was previously awarded to BAE Systems through full and open competition. Due to various changes in DoD budgets and aircraft installation schedules since initial contract award, the current FY04 option quantity on contract needs to be increased to meet current FY04 procurement plans; however, the total quantity which is planned to be exercised under this competitively awarded contract remains below the quantity originally solicited and evaluated for the initial best value contract award. Due to the non-recurring development, integration, platform testing and ILS costs already incurred for the CXP requirements through FY03, and planned to be incurred for the originally anticipated FY04 competitive quantities, there is no reasonable expectation that these costs would be recovered by competitive award of the additional 200 units required for FY04 to another source. Further, procurement of the additional 200 units required for FY04 from another source would also result in unacceptable program and operational delays due to the added time which would be required for development, integration, platform testing and establishment of an ILS structure for a second source. It should be noted, however, that NAVAIRSYSCOM is currently still planning for a competitive follow-on contract for FY05 and subsequent AN/UPX-118 requirements. See Notes 22 and 26.

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