2300015_ClassJA Amendment_RedactedFinal_Redacted.pdf

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

CUI

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I. Agency and Contracting Activity.

This Class Justification and Approval Amendment is to request authority for Other Than Full and Open Competition supporting requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 407 Supply Chain Management Squadron (SCMS). The contracting activity for this requirement is AFSC/PZABA, Robins AFB, GA. The purchase request number supporting this contracting action is FD2060-23-00015.

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

Due to the circumstances described herein, the activity requests authority to acquire the services for AN/ USQ-140(V) Multifunctional Information Distribution System (MIDS) Low Volume Terminals (LVT) using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The original J&A was approved on 16 August 2022 by the Competition Advocate (CA) based on estimated value of

The J&A is amended to increase the total estimated value to and revise from an Individual to Class J&A. This Class J&A covers the award of the basic Requirement Indefinite Delivery Contract (IDC), and all orders issued against it. AN/USQ-140(V) MIDS LVT is comprised of 12 different configurations supporting 31 separate platforms to include United States Military and Foreign Military Sales. This action will result in the award of a Firm Fixed Price Requirement IDC with a basic plus two annual ordering periods. Based on the anticipated contract award date, orders can be issued on the Requirement IDC 31 Jan 2025 through 30 Jan 2028.

The sole source requirement will be acquired from the following company: Data

Link Solutions LLC (DLS) 350 Collins Rd NE Cedar Rapids, IA 52498-0001 Cage: 081U3 Large Business

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

This requirement is for repair and services MIDS LVT Line Replaceable Units (LRUs) and Shop Replaceable Units (SRUs). The LRUs and SRUs support airborne, ground, and maritime platforms for the highly specialized AN/USQ-140(V) MIDS LVT.

The services include all actions necessary to return the end item to a serviceable condition in the latest hardware/software configuration to ensure terminal-to-terminal interoperability between MIDS and Link 16 terminal platform variants. This requirement supports all United States Military and Foreign Military Sales for MIDS platforms supported under the 407th as Primary Inventory Control Agency. MIDS is a joint service and international program that requires depot support for multiple configurations, as well as the ability to support varying configurations from multiple sources. MIDS is comprised of 12 different configurations supporting 31 separate platforms and is utilized by all four United States military services (Army, Air Force, Navy, and Marines) and the United States Coast Guard, in addition to 42 different nations. Requirements are for repair of the AN/USQ-140(V) and MIDS Block Upgrade 2 (BU2) AN/ USQ-140(V) terminals.

The Class J&A revisions to the estimated values and Period of Performance is as follows:

August 2023 CUI Page 7 of 11August 2023 CUI Page 7 of 11 providing the services identified in Section III that meets the necessary minimum requirement.

The prior sole source contract for DLS specific NSNs, applicable to MID LVT repair sustainment, was FA8539-20-D-0005. This contract expired on 04 June 2023. The 407th SCMS was notified within a year of contract award of the transfer of supply chain management activities for the CIIC-9 (Cryptological Controlled) assets, which includes MIDS / MIDS JTRS, to AFLCMC/HNC (San Antonio, TX) effective Oct 2021 (FY22). The transition was not finalized until 01 Nov 2024 due to delays encountered with implementation. The original plan was to award the follow-on contract prior to the transfer to AFLCMC/HNC. Due to limitation of DLS personnel, negotiation of the AFLCMC/HNC transfer and follow-on MID LVT repair sustainment contract could not be concurrently supported.

AFLCMC/HNC proceeded with actions to complete the transition and Robins agreed to finalize award of the MID LVT repair sustainment contract.

On 06 July 2022, the Government requested Level III technical data from the OEM via e-mail. DLS declined interest in selling the technical data to the Government. Due to the highly specialized design of the MIDS LVT, Level III technical data is required to perform repairs.

The MIDS LVT has a frequency-hopping algorithm that requires terminal to transmit on 51 carrier frequencies at a frequency-hopping rate of 78,000 times per second, as well as anti-jam capabilities.

The MIDS system was developed under the direction of MIDS International Steering Committee, composed of the United States, France, Germany, Spain and Italy. The MIDS Joint Program Executive Office and MIDS International Program Office maintains configuration control of MIDS. Two vendors, ViaSat and DLS designed their own unique configurations of the MIDS. Each vendor has the capability to repair only their uniquely designed baselines that meets the System Segment Specifications (SSS); and have the requisite knowledge, experience, and manufacturing capabilities to satisfy MIDS requirements.

The two MIDS products are equivalents at the LRU level per the SSS, but not internally (SRUs) identical to each other as they were developed by different vendors. Each vendor maintains proprietary technical data packages specific to their design. This requirement is for repair of NSNs specific to DLS design only. DLS, which is a consortium between BAE and Collins Aerospace, is the vendor for all of the LRUs and a majority of the SRUs associated with this effort. ELDEC is a sub vendor and OEM for some of the SRUs associated with this effort and has a sole source contract with DLS for repairs of their specific cards. ELDEC owns data rights to their specific card but is not fully capable of completing repairs on LRUs owned by DLS.

Depot Source of Repair (DSOR) #99-007 was approved 03 Nov 2000 and states Contract Repair for the MIDS LVT program. A subsequent review was completed 03 Sep 2020 by the Navy recommending a secondary organic source of repair [i.e., Navy's Fleet Readiness Center, Southwest (FRC-SW)] with DLS as the primary source of repair. This decision was made based on the cost to purchase the technical data, the logistics to maintain the anticipated upgrades, and the capabilities of the organic depot. However, AFLCMC/HNA PEO determined that it was in the best interest of the AF to not sign up to utilize Navy's repair facility due to the projected prioritization of Navy MIDS repairs over AF repairs.

Reverse Engineering (RE) of the MIDS LVT at the LRU level, SRU level, and the piece part (resistor, capacitor, integrated circuit, etc.) level was considered in order to establish an organic repair capability.

The 407 SCMS/GUEAA evaluated the effort required to reverse engineer the MIDS LVT in July 2022 using a similar system, Joint Tactical Information Distribution System (JTIDS) for comparison. Based on that comparison, it was determined not cost or schedule effective to pursue a RE effort to support repair

August 2023 CUI Page 8 of 11 of the MIDS LVT. A RE effort would include but not be limited to; the Interface Control Documents, circuit diagram schematics (board), and piece part schematics (Integrated Circuits, voltage control oscillators, etc.). For the board level schematics, a Bill of Material and an Engineering Drawing List would be necessary. With the level of effort required, it is estimated to take one year per LRU multiplied by 12 LRUs for the DLS unique MIDS LVT configuration and the same for the Data Link Solutions configuration. This estimate is based on discussions with AFSC and AFLCMC engineering, MIDS Integrated Product Team (IPT), and evaluating the JTIDS reengineering efforts.

A RE effort for the MIDS products require an understanding the theory of operation. This process would require an estimated one-man year per SRU located inside each of the 12 LRUs. On average there are ten SRUs per box. Once a prototype has been completed, testing would be required for each SRU and LRU.

This testing would include lab as well as platform testing for qualification of all users for the MIDS products. Because the source code (i.e. vendor software) is proprietary to the vendor/OEM, it is not available for programming the CORE software of the MIDS LVT or Signal Message Processor. This adds another level of effort to the process.

Testing would be required on the 12 different LRUs (as well as the various different SRUs located in each box) found on 31 inter-service platforms and 42 different nations and their platforms.

In addition, the acquisition of highly specialized support equipment for diagnostics, repair, calibration, and testing of MIDS would result in a duplication of cost. The government does not own the technical data to build the specialized support equipment, therefore an RE effort would be required for that development. An estimate has not been determined for that development effort.

Taking all into consideration, along with historical information from similar programs, the RE efforts for MIDS is estimated to take a minimum of ten years at an estimated cost of $260M. This estimate does not include the additional costs and time for specialized equipment development or qualifying a new vendor.

The ten year estimate assumes sufficient technical data on hand to proceed with the RE process.

The expected system life for MIDS is through 2035. Repair requirements are estimated at approximately $1-2M per year. After a 10-year RE effort, the remaining life cycle would be three years which would not allow sufficient time to recoup a RE investment. Based on the RE estimate and system service life, the Government would yield no savings as the system would need to be in use for the next 52 years to see a return on investment. Pursuing a RE effort for MIDS is cost prohibitive and would result in a duplication of cost to develop new support equipment.

Additionally, an unproven new technical data package increases risks of lower fidelity and questionable compatibility, therefore may result in reduced success rate. Considering the complexity of the RE efforts, there is risk and no guarantee a new competitive vendor(s) could perform the necessary repairs comparable to past performance of repair by DLS on the current MIDS LVT configuration.

Accordingly, DLS is the only company capable of providing the services described in Section III above without the United States Air Force experiencing significant delays and substantial duplication of cost that could not be expected to be recovered through competition.

V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

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FAR 5.202 applies.

A Sources Sought (SS) Request for Information (RFI) synopsis was posted to SAM.gov on 02 June 2022 under Notice ID FA8539-AN-USQ-140-V-MIDS-LVT with a response date of 05 July 2022. The SS/RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. No vendors responded to the SS/RFI.

This requirement was synopsized on SAM.gov web page as required by FAR 5.201 on 07 August 2024.

It was anticipated that sources having an interest in subcontracting would be identified through this synopsis. Although the Government does not own data to support acquisition of this from any other source, any source who responded to the Government as a result of this synopsis would be identified to the prime contractor as a potential for subcontracting possibilities. No responses were received to the synopsis.

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

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost or pricing data to be used to support the Government's evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material and other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Management Agency and expert technical personnel supporting the program. The contract price will be negotiated in accordance with the procedures in FAR 15 ensuring the ultimate cost to the Government is fair and reasonable.

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

Market Research was conducted 25 Feb 2022 to 03 Mar 2022 in accordance with FAR Part 10.001 and 10.002. The Market Research Report (MRR) was completed on 04 March 2022 . The original MRR was reviewed with findings and conclusion determined to be accurate and relevant to the amended requirements. No changes to the marketplace have occurred since the original MRR. This is documented in MRR Addendum dated 31 July 2024.

As described in Section VI, a SS/RFI was posted to SAM.gov advising industry of the pending acquisition and soliciting inquiries from interested vendors. The SS/RFI was posted on 02 Jun 2022 under Notice ID FA8539-AN-USQ-140-V-MIDS-LVT. There were no responses to the SS/RFI.

The 407 SCMS/ GUEAA IPT Engineer conducted research using internet search engines. Keyword “MIDS LVT Repair” and North American Industry Classification System (NAICS) code “811213” was used to perform internet/Google searches. The keywords “MIDS LVT Repair” search generated no potential sources of repair. Internet queries were made at the following websites:

• http://www.google.com

• https://web.sba.gov/pro-net/search/dsp_dsbs.cfm

Using the NAICS, a search was performed using the Small Business Administration Dynamic Small Business Search engine and It resulted in AFSC/SB Capability Statements folder23 potential small business vendors, however none of were shown to have the capability to repair MIDS assets due to lack of access to DLS proprietary technical data, test equipment, and personnel experience with the MIDS.

These items must interface and integrate with existing configuration (test adapters) in regard to size, weight, and electrical requirements. No other firms could be found that possess the technology, data or

August 2023 CUI Page 10 of 11 test equipment required to accomplish repairs for the MIDS systems.

The product service required is not available in the commercial marketplace because of unique military application. There are no commercial or non-developmental alternatives that can be acquired using procedures under FAR Part 12 due to the military unique function of these items. MIDS does not fit the definition of a commercial item as defined in FAR Part 2.101. This item is defined as military unique and is not customarily used by the general public or by non- Governmental entities. The Government requires parts that meet an exact form, fit, and function as determined by the specific mission. There are no aircraft in the commercial market with the same or similar components.

Market Research concluded DLS is the only source that can provide the services required and there are no existing contract vehicles available for this service.

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

None.

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

See Section VI above.

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

MIDS / MIDS JTRS is a jointly managed program between the Navy's MIDS International Program Office (MIDS-IPO) and the Air Force (AF). Although AF has Primary Inventory Control Authority for MIDS sustainment, it is a limited authority as Navy manages the configuration control of the MIDS terminals.

Based on transition of workload to AFLCMC/HNC, this will be the last contract awarded by Robins AFB in support of MIDS LVT repairs.

The plan to break barriers to competition in the prior J&A were as follows:

A. Every three years (beginning from contract award date) the multi-functional team will again initiate an analysis to determine if procuring repair data maximizes the lifecycle sustainment related support.

B. Accomplish annual market surveillance and monitoring of technical literature to determine potential repair sources/suppliers C. Query the vendor annually for information related to MIDS program repair data.

The prior plan was accomplished by the following actions:

The Navy performed a source of repair analysis on 03 Sep 2020. The analysis determined the Navy's organic FRC-SW could be a secondary source of repair for MIDS, while the OEM (DLS) still retains their status as the primary repair source.

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On 06 July 2022, the Government requested Level III technical data from DLS via e-mail. DLS declined interest in selling the technical data to the Government.

While analysis or frequency of a query was not accomplished every three years or annually, respectively, the actions taken validated that competitive barriers still remain. The frequency of those actions would not have changed the outcome, therefore the prior plan is considered fulfilled. Higher level approval in accordance with DFARS PGI 206.304(a)(S-70)(ii) is not required.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. 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.