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(1) Information on nine Navy contracts identified by Committee
(2) Information on consolidated contracts
(3) Information on military recruitment advertising contracts

Encl:

1. Enclosures (1) through (3) are submitted for forwarding to the House Committee on Small Business. The additional information was requested for the 10 April 1984 hearing on subcontracting.

N. KANSON
By direction

Information Requested by
Carmittee on Small Business

Regarding Nine Navy Contracts
(Committee Letter of April 16, 1984)

A Fact Sheet is attached on each of the nine contracts identified by the Committee and includes the explanation as to why the contracting officers determined the goals were sufficient.

With regard to the inferences that small disadvantaged business goals are
omitted more frequently than small business goals from subcontracting plans
and that goals for small disadvantaged firms are being set at much too low a
level, the following is provided :
(a) Based

survey of the Navy's major contracting activities, including those that awarded the nine contracts described, these inferences have not been substantiated.

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(b) Our findings indicate that both small and small disadvantaged business goals are being included in subcontracting plans as required and there is no indication that either are being omitted.

(c) Admittedly, small disadvantaged business goals are generally set at a lower level than that for small business. This can be attributed to a smaller number of available sources and to the dearth of high technology producers of sophisticated defense hardware among

the small disadvantaged business community.

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4. Brief description of supplies or services: Navy Command & Control Systems (NCCS) Software Development and Life Cycle Support 5. Brief narrative explaining why the contracting officer determined the goals were sufficient: The software development effort required specialized experience on a Honeywell system. Further, because of the nature of the work involved, a special, high-level security clearance was required even during the early stages of contract performance. The availability of small disadvantaged business firms that could meet these requirements in the required time frame was uncertain and considered negligible or non-existant at the time of contract award. Although some subcontracts have been awarded to small disadvantaged business firms since the prime contract was awarded, because of the factors noted, the goals were considered reasonable at the time of award.

FACT SHEET

Small Business and Small Disadvantaged Business Subcontracting Plan Goals

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GTE Products Corp, Sylvania Systems Group, Western Division

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AN/WLQ-4 Submarine Based, Automated Electronic Warfare Support Measures System (SEA NYMPH Production Program) 5. Brief narrative explaining why the contracting officer determined the goals were sufficient:

The SEA NYMPH Program is, and has always been, a highly classified and accelerated program due to national urgency. Contract N00039-82-C-0030 is the sixth fiscal year production buy of the AN/WLQ-4. Subcontracting sources were established during development and early production contracts. Therefore, the contracting officer accepted and determined as sufficient the proposed small business and small disadvantaged business subcontracting goals based on historical considerations.

FACT SHEET

Small Business and Small Disadvantaged Business Subcontracting Plan Goals

1.

Contractor :

GTE Communications Products Corp, Sylvania Systems Group

2.

Contractor address (City, State): Needham Heights, MA

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4. Brief description of supplies or services: Full scale development of the Extremely Low Frequency (ELF) Communications System

5. Brief narrative explaining why the contracting officer determined the goals were sufficient:

Based upon an analysis of known small business and small disadvantaged business firms, procedures utilized by the prime contractor to assure maximum participation by such firms, and past history on similar efforts, the goals were considered sufficient.

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