U.S. Navy Cancels Planned NIXIE Production Solicitation, Shifts to Manufacturing Prototype Phase

September 24, 2026

The U.S. Navy has cancelled its planned Federal Acquisition Regulation-based production follow-on solicitation for the AN/SLQ-25E NIXIE torpedo countermeasure system and will instead pursue a pre-production prototype effort using Other Transaction Authority. In a September 21 notice, Naval Sea Systems Command said the acquisition strategy was revised to address “critical manufacturing maturation,” tooling qualification and obsolescence mitigation before full-rate production. The replacement effort is expected to produce Production-Representative Articles and Proof-of-Design units, followed by Proof-of-Manufacturing units and pilot-line tooling qualification targeting Manufacturing Readiness Level 7/8. The notice cancels the planned production solicitation, not the AN/SLQ-25E program itself.

NAVSEA Acquisition Shift | September 21, 2026

NIXIE Was Heading Toward a Production Follow-On. That Path Has Been Stopped.

NAVSEA is replacing the planned FAR-based production solicitation with a pre-production prototype effort focused on proving that the AN/SLQ-25E design, manufacturing processes, tooling and supply chain are ready for eventual higher-rate production.

CANCELLED Production Solicitation

No RFP will be issued under the previously planned FAR-based AN/SLQ-25E production follow-on.

CONTINUES AN/SLQ-25E Program

The Navy did not cancel NIXIE. It changed the acquisition path leading toward future production.

NEW PATH OTA Prototype

A competitive prototype project is planned through the Undersea Technology Innovation Consortium.

MRL 7/8 Manufacturing Target

The effort will push manufacturing from a production-representative environment toward qualified pilot-line capability.

The acquisition path has changed before full-rate production

Planned Production Follow-On

Build-to-print AN/SLQ-25E hardware production under a traditional FAR contracting structure.

→

Manufacturing Maturation

Resolve tooling, obsolescence and production-readiness issues before moving into a larger production phase.

→

Pre-Production OTA Prototype

Build production-representative, proof-of-design and proof-of-manufacturing hardware and qualify pilot-line tooling.

Key Distinction

The September notice cancels a contracting approach and planned solicitation. It does not announce termination of the Navy's NIXIE torpedo-countermeasure capability or the wider Surface Ship Torpedo Defense effort.

From Production Follow-On to Production Proof

The September decision is easier to understand when placed against the previous NIXIE production contract and the follow-on procurement NAVSEA had been preparing since early 2025.

Date / Stage	Acquisition Path	Hardware / Work	Manufacturing Signal	Status
December 2020	Navy awards Ultra Electronics Ocean Systems the existing AN/SLQ-25E IDIQ development and production contract.	Production Representative Articles, First Articles, forward-fit and backfit systems, engineering and technical support.	Modernize the earlier NIXIE baseline while resolving hardware obsolescence and creating production hardware.	Awarded
Jan-Apr 2025	NAVSEA issues RFI / presolicitation for the next AN/SLQ-25E production contract.	Hardware Configuration Item units using Build-To-Print Level 3 technical data packages.	Planned FFP IDIQ production structure plus CPFF engineering and technical services.	Planned Follow-On
July 2026	Presolicitation history remains active as NAVSEA continues acquisition planning.	Follow-on production framework remained associated with Notice N0025325R7004.	Market had been preparing for a conventional production competition.	Pre-RFP
September 21, 2026	NAVSEA formally cancels the FAR-based production follow-on solicitation.	No production RFP will be released under the cancelled notice.	Navy identifies manufacturing maturation, tooling qualification and obsolescence mitigation as work still required.	Cancelled
Next Phase	Competitive Other Transaction prototype project through UTIC.	Production-Representative / Proof-of-Design units, Proof-of-Manufacturing units and pilot-line tooling qualification.	Target approximately Manufacturing Readiness Level 7/8 before eventual full-rate production.	Forthcoming

MRL 7

Production-Representative Environment

DoD manufacturing guidance describes this level as the capability to produce systems, subsystems or components in an environment representative of the production floor. Tooling, processes, personnel, materials and supply-chain planning are expected to be substantially matured.

MRL 8

Pilot Line Demonstrated

At this level, pilot-line capability has been demonstrated and the manufacturing system is considered ready to begin low-rate initial production. This is significantly closer to repeatable production than ordinary prototype fabrication.

The Contract Being Replaced Was Not the Original NIXIE Contract

$186.4M Initial value of the December 2020 Ultra Electronics Ocean Systems AN/SLQ-25E contract.

$268.5M Potential cumulative value if all options under that contract were exercised.

2026 Original DoD announcement expected work under the contract to continue through December 2026.

2 Bids The original AN/SLQ-25E contract was competitively procured and received two offers.

Scheduling note: The September 21 SAM.gov notice says the new Request for Prototype Projects will be released through UTIC “on or about 1st Quarter FY7.” Given the 2026 publication date, FY27 appears to be the intended period, but the public notice itself prints “FY7.”

NIXIE Prototype Opportunity Preparation Check

The Navy has not yet released the prototype RPP. This tool maps a supplier's existing capabilities against the manufacturing areas specifically highlighted in the September NAVSEA notice.

Check only capabilities that are already demonstrated. This does not determine eligibility for the future competition and does not replace the forthcoming UTIC solicitation.

Production-Representative Articles Ability to build hardware using personnel, processes, materials and equipment representative of eventual production.

Proof of Design Capability to fabricate and document units suitable for confirming design configuration before production expansion.

Proof of Manufacturing Ability to demonstrate repeatable manufacturing processes rather than one-off engineering builds.

Pilot-Line Tooling Tooling, fixtures, test equipment and work instructions can support production-representative or pilot-line builds.

Obsolescence Mitigation Processes exist for replacing unavailable components and controlling configuration changes without creating new production risk.

Supply-Chain Control Critical suppliers, long-lead materials and quality requirements are identified and actively managed.

Production Data Rate, yield, defect, rework and quality data can be measured and used to demonstrate repeatability.

OTA / UTIC Preparation Organization understands consortium participation, prototype contracting and the forthcoming RPP channel.

Areas Confirmed 0% Not assessed

Start the preparation check

Select the manufacturing and acquisition capabilities already demonstrated within the organization.

Areas Not Yet Confirmed

All eight preparation areas are currently unchecked.

MRL reminder: Reaching MRL 7 or MRL 8 is substantially more demanding than completing a prototype. MRL 7 centers on repeatable manufacture in a production-representative environment. MRL 8 requires demonstrated pilot-line capability and readiness for low-rate initial production.

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