Redacted APS V J&A.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

March 2018 Page 3 of 10

I. Contracting Activity.

The Department of the Air Force, Air Combat Command, 55th Contracting Squadron, Offutt AFB, NE is the contracting organization responsible for the individual justification for other than full and open competition. .

II. Nature and/or description of the action being processed.

This justification and approval (J&A) authorizes a modification to the basic Indefinite Delivery Indefinite Quantity (IDIQ) contract, FA4600-12-D-0002, Air Vehicle Planning System (APS), issued to BAE Systems, for a 24-month extension and a $49,620,000 increase in ceiling. This 24-month extension is for all Cost Plus Incentive Fee (CPIF), Cost Plus Fixed Fee (CPFF), Firm Fixed Price (FFP), and Cost Reimbursable Contract Line Item Numbers (CLIN). This 24-month extension is estimated to cover the period 1 February 2020 - 31 January 2022. This 24-month extension is for the Contract Line Item Numbers(CLINs) listed below in Section

III.

Background: The current provider of service for this contract is BAE Systems. The services were awarded on 1 August 2012, using best value source selection procedures in accordance with the Federal Acquisition Regulation (FAR) 15.3, Defense Federal Acquisition Regulation Supplement (DFARS) 215.3, the Air Force Federal Acquisition Regulation Supplement (AFFARS) 5315.3, and DoD Source Selection Procedures, competed under full and open competition. The current total contract value/scope for this contract is with obligated to date leaving remaining in contract scope.

The follow-on work done in support of APS VI source selection was halted in order to determine if a potential contract strategy change would be necessary, specifically combining all of the Mission Planning and Analysis System (MPAS) contracts and utilizing a Multiple Award IDIQ contract. The approval and use of an HBC Software Factory significantly changed the landscape for all MPAS contracts; therefore, requiring the customer to alter the follow-on contract strategies for all of these contracts. As a result, the follow-on contract for APS VI will no longer be ready by January 2020. Therefore, an extension to the current APS V contract is required to ensure the continuation of APS services and will serve as a bridge to enable the consolidated follow-on acquisition strategy adequate time for competition.

III. Description of supplies/services required to meet agency needs.

Air Force Operations and Maintenance (3400) and Air Force Research, Development, Test and Evaluation (3600) appropriations will be utilized during the 24-month extension period. Furthermore, an additional $49,620,0000 in contract ceiling is required for this action.

The Integrated Strategic Planning and Analysis Network (ISPAN) is a system of systems that provides planning capabilities to United States Strategic Command (USSTRATCOM) in support of their Unified Command Plan (UCP) responsibilities for strategic deterrence and global strike. ISPAN is an ACAT I program and is the nation's only nuclear planning system. ISPAN is comprised of two major subsystems, the Mission Planning and Analysis System (MPAS) and the Global Adaptive Planning Collaborative Information Environment

(GAPCIE).

APS V falls within MPAS which consists of five separate contracts functioning together as a system to fulfill USSTRATCOM's nuclear planning capability. MPAS is the nation's only comprehensive system for developing “Level 4” nuclear plans and options for the President of the United States Nuclear Decision Handbook and Fielded Nuclear Forces in support of Operations Plan 80XX. The ISPAN MPAS Branch (AFLCMC/HBC) is the designated Program Management Office (PMO) responsible for all management actions

March 2018 Page 6 of 10 scope efforts:

1. for maintenance and sustainment activities and on-site support. Primarily, the Government will use these resources to maintain, deploy, and support the APS software the Contractor delivered with ISPAN Increment 4 and the Post Increment Enhancements. This includes Contractor Development Testing and Evaluation in which BAE Systems is required to conduct functional, validation and verification, performance, security, and interoperability testing in a Government environment prior to Government development test and evaluation.

2. to accommodate ISPAN Increment 5 activities. This increase allows continued support to ongoing software developments for USSTRATCOM's nuclear mission.

3. for support of emerging weapon systems. The first effort is the new Long Range Strike Option (LRSO). The LRSO (ACAT 1) program requires APS V support for Technical Maturity Risk Reduction; the Government estimates this cost at . This effort includes but is not limited to integration of the competitor's weapons prototype into APS software, integration of specific weapons auto-router capabilities, and integration of weapons flight performance models into APS and or CARB. The second group of efforts is with respect to risk reduction and integration activities with the new B-21 bomber, B61-12 Launch Acceptable Region (LAR), the new KC-46 tanker, and additional Joint Urgent Operational Needs (JUONs); the Government estimated cost is .

IV. Statutory authority permitting other than full and open competition.

10 U.S.C 2304(c)(1) as implemented by FAR 6.302-1, and required by FAR 6.303-2(b)(4), Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The ISPAN Program is an ongoing ACAT I program with special interest by the Office of the Secretary of Defense (OSD). ISPAN nuclear planners rely heavily on the APS contract application to work cohesively and in unison with other MPAS subsystems to support nuclear weapons employment, plan development, analysis and maintenance. Therefore, this acquisition will extend the contract for the continued development of a major system. The current APS V contract expires 31 January 2020. This extension and scope increase will serve as a bridge to enable the consolidated follow-on acquisition strategy adequate time for completion.

There are two drivers facilitating the need to extend the contract: First, the follow on contract is not ready because a new contract strategy is under consideration to better support the HBC software factory. The second is the approval and construction of the HBC software factory.

The follow-on contract, APS VI, originally completed market research, briefed the ASP to the PEO (approved), held an Industry Day, posted draft documents (requirements, evaluation criteria, etc.), and were addressing industry comments when an unforeseen and significant security classification guide (SCG) issue arose. Due to the nature of the issue, the APS VI recompete experienced delay until the SCG issue was resolved. This delay led to an internal HBC acquisition review of the entire ISPAN portfolio. The review resulted in two recommendations. One, the creation of an HBC software development factory; two, ISPAN pursuing a multiple award IDIQ contract (MAC). The approval and use of an HBC software factory significantly changes the landscape for all ISPAN contracts, therefore requiring the customer to alter the follow-on contract strategies.

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For these two reasons, the APS VI follow on contract will not be ready by January 2020. Therefore, an extension to the current APS V contract is required to ensure the continuation of APS services. Additional details are continued under Section XI.

The ISPAN MAC strategy started with the ESIS briefed to AFLCMC/HB on 8 July 2019. AFLCMC/HBC will construct the HBC Software Factory within the current USSTRATCOM headquarters building (Building 500, Offutt AFB, NE). . Once the building vacates, HBC will begin a complete physical reconstruction of the rooms allocated to HBC in Building 500. When the rooms are ready for transition, each MPAS contractor facility will be migrated, one at a time, to the new HBC Software Factory. This will ensure there is no break in operations to the fielded system, allowing for a systematic, organized transition of equipment, information and personnel into the facility, and allowing for adjustments on lessons learned to remaining transitions. In addition, by staggering the transitions in this way, it not only reduces the technical risks associated with moving but also saves a significant amount of money versus buying all new equipment which would be required if all applications transitioned at one time. The current estimated value of all MPAS government furnished equipment (GFE) is . The software factory transition starts with the APS contract followed by the MASS contract, NIDS contract, and lastly MPACS contract.

The current timeline to begin transitioning the APS development software from the current contractor software facility (BAE) to the new government Software Factory (HBC) is March 2020. APS is the first of four to transition from a contractor facility to a government facility. APS is estimated to take from March 2020 through July 2021 to: 1) configure GFE to use in the new Software Factory, 2) duplicate all software executables, development tools, documentation, etc., 3) demonstrate the ability to maintain software in the new Software Factory, and 4) begin transition of the offsite GFE back to the government.

Contract award before the transition to the HBC Software Facility to a new contractor would cause a physical relocation of all GFE/GFI/CDRLs from the BAE development facility to a new working location at the new contractor development facility. This relocation would be followed shortly afterward by another physical relocation to the HBC Software Facility. The risk to operations (including all sustainment and new development activities) of moving/installing/configuring all the GFE/GFI/CDRLs (such as the software executables, development tools, documentation, and equipment, etc.) to a new contractor development facility, increases when the new contractor then has to shortly transition again into the HBC Software Facility environment. In addition, rushing to maintain contract schedule increases the risk to both the new contractor development facility and the HBC Software Factory. Risk is high that the environment will be not stable and properly running. Due to the quick turnaround of these transitions, awarding to a new contractor introduces significant risk to the performance of the APS contract.

Award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. The APS application works with other MPAS applications to field a one-of-a-kind system. Support to the APS application must continue without any degradation to the mission. As the current contractor, BAE has been integral to the development and maintenance of the APS software as well as the onsite support required to test the software and train the planners in its use. BAE is currently carrying out the maintenance and sustainment of the application as well as supporting the development of INC 5. BAE is currently supporting activities related to all the additional requirements described in Section III and possesses extensive experience in development and maintenance of APS. BAE has the development environments required to support these applications and to ensure their continued performance. In addition, the contractor is well versed in the equipment interfaces to external agencies, which depend on USSTRATCOM mission planning data for their operations.

BAE Systems offers highly qualified personnel with an extensive background and practical experience in national security, intelligence, and the nuclear strategic planning capability that only USSTRATCOM provides.

Currently, BAE Systems has the expertise required and will retain the personnel to support the APS effort

March 2018 Page 8 of 10 without interruption of service to the ISPAN mission during the extension. This talent is not easily nor quickly obtained. The immediate availability of the requisite expertise is a primary factor in the continuation of APS V.

The support of the APS application must continue without any degradation to the mission. Therefore, it is imperative that the current expertise remain in place until software factory requirements are satisfied and a follow-on contract can be competed.

Failure to extend the current contract would likely result in a break in service (minimum of one year) for the APS software, likely more with all of development environment instability due to multiple transitions. Any break in service would be catastrophic to our nation's nuclear planning capabilities. Given the high quality of support provided by BAE, it would be highly beneficial to the government to take advantage of the knowledge base represented within the current contract and continue with that expertise through the extension period.

Extending this contract through completion of a follow on contract and through the transition to a new Software Facility would reduce the risk to the government of a break in critical services. Not continuing this service with BAE will prevent an unacceptable delay (break) in service. The highly technical nature of the air vehicle planning software would make it very difficult for a new developer to transition (multiple times) and develop in a short period of time without a potential break in service.

APS V was solicited subsequent to full and open competition utilizing full trade-off procedures pursuant to Federal Acquisition Regulation (FAR) Part 15; Air Force Federal Acquisition Regulation (AFFARS) Subpart

5315.3 , AFFARS Subpart 5315.5, and Air Force Mandatory Procedures (MP) 5315.3. However, only one offeror submitted a proposal in response to the solicitation.

Accordingly, BAE is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing unacceptable delays in mission support and fulfilling its INC 5 requirements. The intent of the four options demonstrate the program office is ready to move to the new MAC contract as soon as APS has moved into the software factory versus.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

On 10 June 2019, the Government posted a notice of contract action on the Federal Business Opportunities website to publish the intent to extend the APS V contract and to seek sources that could provide full performance of the contract starting at current contract completion. No responses were received, confirming the Government's assumptions regarding the capability of industry to perform these efforts in the time frame required.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The anticipated cost will be considered fair and reasonable based on historical pricing and/or cost or price analysis. Requirements under this contract have been negotiated utilizing certified cost and pricing data, technical evaluations, forward pricing rate agreements, and cost analysis. New task orders under this contract will be negotiated, and the cost/price will be determined fair and reasonable for each order.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As described in Section VI above, market research in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting responses from interested parties. Market research determined that no other source other than the incumbent is capable of performing these efforts to prevent unacceptable delays.

The government released a Sources Sought / Market Research for the Multiple Award IDIQ on 23 May 2019 within the FBO website. The follow-on contract will have FBO posts throughout all phases of the acquisition

March 2018 Page 9 of 10 to include: draft documents, draft request for proposals (RFP), questions and answers, and final RFP documents.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None - see Section VI above.

X. List of any sources that expressed, in writing, an interest in the acquisition.

None - see Section VI above.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

As discussed, there is a requirement for a follow-on contract. Currently, research is occurring on an HBC-wide multiple award contract that would better support the HBC Software Factory. The HBC software factory removes many of the barriers to competition for APS. These include removing the requirement for a contractor to have a classified facility for development, reducing contract transition as there will be zero movement of GFE development from one contractor facility to another, and easing the ability to provide a bidder's library in a completely running environment (rather than only static code/documentation).

The government intended to competitively award a follow-on single-award IDIQ contract utilizing full trade-off procedures. As previously stated, the follow-on contract APS VI, originally completed market research, briefed the ASP to the PEO (approved), held an Industry Day, posted draft documents (requirements, evaluation criteria, etc.), and were addressing industry comments when the unforeseen security classification guide (SCG) issue arose. This incident allowed the government to reassess the acquisition strategy. Since the award of APS V in 2012, 55 CONS/LGCZ has received multiple offers on similar contracts, including MPACS (FA4600-14- D-0002) and NIDS (FA4600-14-D-0001). The government is confident the multiple award IDIQ and HBC software factory is the best decision for the government at this time given the ever-changing security landscape.

As stated above, the approval of the new HBC Software Factory significantly changes the landscape for all of the follow-on contracts, as it changes the location and other important factors for performance. Therefore, the previous follow-on contract plan was reviewed in order to assure that this would be the best path forward for the government. The idea of an HBC Software Factory initiated after the APS VI ASP on 2 July 2018 with Mr.

Wert, Program Executive Officer for the ISPAN contracts. The MPAS recompete team looked hard at that idea and briefed the ASP to him again on 2 October 2018, during which he approved the idea of the software factory. While the APS VI recompete actions continued, HBC continued to work the details and approvals for the HBC Software Factory. The first step was getting space allocated, which was approved on 13 May 2019 by the 55th Wing Base Facilities Board. These spaces will not be available until at least December 2019 to begin room construction. Because of the approval of the Software Factory space, the recompete team put the APS VI follow-on contract actions on hold and began discussions to determine if a new contract strategy would be better for the HBC Software Factory. On 22 May 2019, a Sources Sought Notice was posted for feedback/ interest in the HBC Multiple Award IDIQ Contract, utilizing the HBC Software Factory - Facilitating AgiLe CONtracts (FALCON). The estimated timeline is:

Aug 2019 - Early Strategy Briefing (ESIS)……….completed July 2019 Nov 2019 - ASP Briefing to PEO Nov 2019 - Industry Day

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Feb 2020 - Release RFP Sept 2020 - Award MAC Jul 2021 - Award APS VI Task Order Jul 2021 - Begin APS VI Transition Dec 2021 - Full APS VI Performance

As a risk reduction, if the HBC Software Factory is delayed, FALCON will be structured to allow off-site development until it is ready. Additionally, the new MAC task order for APS VI is supposed to be awarded by July 2021, before the end of APS V, which goes through January 2022. This allows for delays in the timeline that may occur outside of the control of the customer, such as factory or Building 500 transition delays.

The follow-on contract will have FBO posts throughout all phases of the acquisition to include, draft documents, draft request for proposals (RFP), questions and answers (Q&A), and final RFP documents.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.