JA18-031_C-RAM_831711428_JA__FINAL_Redacted.pdf

JUSTIFICATION & APPROVALS (J&A)

FOR FEDERAL ACQUISITION REGULATION (FAR) SUBPART 16.5

ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple-Award Schedule/Multiple-Award Contract (MAC) Orders under MAC/Fair Opportunity – FAR 16.505, Defense Federal Acquisition Regulation Supplement 216.505(b)(2), Procedures, Guidance, and Information 216.505(b)(2)

Purchase Request Number: 831711428 Contract Number: HC1028-08-D-2023 Task Order (TO) Number: To be determined Procurement Title: Counter-Rocket, Artillery, Mortar (C-RAM) Sustainment of Overseas Contingencies Operations (SOCO) Estimated Value:

Authority: FAR 16.505(b)(2)(i)(B)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number: JA18-031

Upon the basis of the following justification, I, as the Head of the Contracting Activity, hereby approve this exception to fair opportunity, pursuant to the authority of FAR 16.505(b)(2)(i)(B).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agency:

United States Army Program Directorate, C-RAM 5250 Martin Road, Redstone Arsenal, Alabama 35898

b. Contracting Office:

Defense Information Systems Agency/Defense Information Technology Contracting Organization – PL8311, 2300 East Drive, Building 3600, Scott Air Force Base, Illinois 62225-5406

2. NATURE AND DESCRIPTION OF ACTION: The purpose of this action is to issue a new TO to Northrop Grumman Systems Corporation (NG) against ENCORE II contract HC1028-08- D-2023 for continued service for the C-RAM SOCO requirement. The TO will be issued on a cost-plus-fixed-fee (CPFF) basis for a 3-month base period and one 12-month option (see paragraph 3) to provide the necessary services and incidental supplies to support C-RAM SOCO in support of the Force Protection mission for United States (US) Central Command (CENTCOM) for Operation Freedom Sentinel (OFS), Operation Inherent Resolve (OIR), and Task Force Sinai (TFS). The base period will be funded with fiscal year 2018 operations and maintenance funds.

3. DESCRIPTION OF SUPPLIES/SERVICES: CENTCOM has a continuing critical need to provide C-RAM force protection capabilities which provide life-saving warning to unprotected

C-RAM SOCO - JA18-031

personnel against indirect fire attacks at US Forward Operating Base (FOB) locations. These capabilities are provided by the C-RAM System of Systems (SoS). The C-RAM SoS consists of various combinations of sensors, indoor & outdoor warning systems, interceptors, and command and control (C2) that are networked together via the C-RAM Network (C-NET). The C-RAM SOCO support provides personnel and installation hardware for site surveys, installation, de-installation, maintenance, sustainment, and repair of the warn systems and C-NET. It also provides personnel to support testing and training associated with C-NET updates due to obsolescence and integration with updated C-RAM systems. Failure to provide these SOCO capabilities will deny US Government personnel the ability to take cover prior to indirect fire events and place undue risk on life and limb to exposed personnel.

These services are currently being provided by NG under Army contract W31P4Q-16-C-0063.

NG supports the C-RAM SOCO at 18 FOB locations with highly competent staffing and operations of C-RAM sense and warn capability. Continuation of current services will permit uninterrupted coverage for US Forces and preclude the necessity to pull C-RAM contractor operators from Afghanistan, which would leave US Forces exposed to unwarned indirect fires.

The estimated life-cycle value is . The period of performance (PoP) is as follows:

Base Period: March 4, 2018 – May 31, 2018 Option Period 1: June 1, 2018 – May 31, 2019

The PoP is structured to align with the expiration of the DISA ENCORE II indefinite delivery/indefinite quantity (ID/IQ) contract. The base ID/IQ contracts expire May 31, 2018;

however, performance on a task order may extend one year beyond final expiration. The option year must be exercised before the contract expiration. Therefore, the PoP of the C-RAM Task Order is structured to maximize the Task Order life cycle: a 3-month base period and a subsequent 1-year option period.

4. SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF THE

ACQUISITION REQUIRES USE OF AN EXCEPTION TO FAIR OPPORTUNITY:

a. Exception to Fair Opportunity. Only one awardee is capable of providing the supplies or services required at the level of quality required, because the supplies or services ordered are unique or highly specialized.

b. Description of Justification. The C-RAM SoS is complex with multiple ways to deploy, depending on assets organic to each FOB where the system is installed and their interfaces (i.e., different radar systems available). The requirement for manning and operations of the C-RAM SoS requires a thorough and intimate knowledge of the architecture and C2 components. This includes familiarity with the C-RAM wired and wireless architectures as well as the end devices that are networked together to provide sense and warn of indirect fire.

The current contractor has built a team with dedicated and well-qualified personnel over the C- RAM SOCO lifecycle that consistently deploy when necessary, successfully meeting the constant challenge of finding and retaining qualified personnel. Further, the NG team provided exemplary quality, on-time delivery, and invaluable customer service over the course of the current contract. The contractor is proficient and knowledgeable of the multiple C-RAM wired and wireless architectures as well as the varied end devices that are networked together to provide sense and warn of indirect fire. This contractor continuity gives the Government the benefit of having already trained contractor personnel with the expertise and familiarity of the

FOB.

c. Justification:

(1) Minimum Government requirements. The minimum requirement is the sustainment of 18 C-RAM support FOB locations in Afghanistan, Iraq, and the Sinai Peninsula. CENTCOM requires that there be no gap in coverage after the expiration of the current contract, W31P4Q- 16-C-0063, on March 3, 2018 due to ongoing hostilities in the region.

(2) Proposed sole source contractor. NG (2340 Dulles Corner Boulevard, Herndon, Virginia 20171), Commercial and Government Entity (CAGE) code 5V1X2, is the only contractor capable of effectively providing the uninterrupted expertise to satisfy the requirements for this award. Since its inception in 2010, in response to an urgent war-fighter need in OFS, NG has been the only source to provide the staffing and operations for C-RAM SoS. During this timeframe, NG has developed highly specialized knowledge of the complexities of C-RAM SoS and the threat environment. The success of the C-RAM program in providing continuity of mission-essential force protection against an ever-changing indirect fire threat depends on continued provisioning of NG’s specialized knowledge and services.

(3) Discussion regarding cause of sole source situation. As discussed in paragraph 6, the market research conducted for this procurement confirms NG to be the only source with the required expertise and experience to execute the C-RAM mission. Further, requirements will be evaluated and a decision made, pending the current Administration’s efforts to identify enduring requirements and enduring mission in the region.

(4) Demonstration of unique source. The C-RAM SoS is not a commercial item, in accordance with the FAR Part 2 definition. While C-RAM contains some commercial items such as hardware used to build the sense and warn systems, the system in entirety is not a commercial item. The commercial items are integrated with one another via an existing Army C2 system, forward area air defense, in a manner not duplicated by any other existing commercial system. The air and missile defense workstation forms the C2 backbone of the C- RAM SoS, and NG is the only source with the expertise and in-depth knowledge of interoperability requirements with manning and operations to perform the continuation of this effort. NG is the only source with technical expertise and knowledge to provide continued support for the critical nature of C-RAM’s ongoing force protection mission in OFS, OIR, and TFS. Additional sources were sought via issuance of a Sources Sought notice, released to industry on FedBizOpps.gov; however, no responses were received. The requirement for manning and operations of the C-RAM SoS requires a thorough and intimate knowledge of the architecture and C2 components, which only NG possesses, as confirmed by the lack of response to the Sources Sought notice.

(5) Procurement discussion. C-RAM SoS support, to include the SOCO services, have been supported by NG since the inception of the C-RAM program. NG has provided this service since its inception in July 2010 in both Afghanistan and Iraq. No other contractors have operated the C-RAM SoS. The initial Sense and Warn Task Order (administered by PSD) was initially competed and only one offer received, from NG. Additionally, other C-RAM contract support procured through the Defense Microelectronics Agency (DMEA) have been competed and only NG submitted an offer. Based upon historical data and market research, NG is the only source capable of supporting continued operations. The SOCO requirements remain unchanged from the previous contract, W31P4Q-16-C-0063. CENTCOM theater locations have been expanding over the past 18 months and the demand for the C-RAM SoS to provide sense, warn, and intercept has increased. The number of FOB locations has increased and they were within the scope and ceiling of the current and predecessor contracts.

(6) Impact: Award to any source other than NG will disrupt C-RAM Program Management Office’s (PMO) ability to field and operate a critical war-time force protection capability and will unnecessarily increase risk to deployed forces. It will result in unacceptable delays in resetting C-RAM fieldings in OFS, OIR, and TFS. Leaving CENTCOM personnel in theater without the indirect fire protection of the C-RAM SoS would cause an unacceptable and unnecessary risk to those personnel. Failure to provide a continued immediate response to the OFS, OIR, and TFS mission and maintain the SOCO staffing and operations of the C-RAM capability will likely increase the casualties caused by indirect fire attacks on US personnel in the CENTCOM area of responsibility.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION: A cost evaluation will be accomplished to determine that the anticipated cost to the Government will be fair and reasonable. The contracting officer will obtain certified cost or pricing data, and upon completion of negotiations, will obtain a certificate of current cost or pricing data.

6. MARKET RESEARCH: The C-RAM PMO conducted market research from January 11, 2016 to September 14, 2017. A Sources Sought was issued on September 7, 2017 to determine if any prospective contractor(s) possessed the full capability to support this C-RAM mission.

The Government did not receive any responses to the Sources Sought notice and received no interest in the requirement other than from NG. By the nature and the place of performance, this requirement is military unique and the market research analysis above for C-RAM installation and support for SOCO demonstrates no commercial market exists. Review of the required skills necessary for support of the C-RAM SoS network architecture was completed and it was determined that the devices connected to the network, their respective interfaces, and the command and control system are unique to the C-RAM SoS architecture.

It has been determined that this follow-on effort should be a sole-source award to NG under the ENCORE II contract, using a CPFF approach. As outlined above, NG is the only source with the unique technical expertise and knowledge to perform the C-RAM SOCO requirement. The requirement for manning and operations of the C-RAM SoS requires a thorough and intimate knowledge of the architecture and C2 components, which NG possesses.

7. ANY OTHER SUPPORTING FACTS: Quality assurance surveillance of the contractor in the last 48 months has been exceptional in almost every facet, with no unsatisfactory performance noted to date. Additional consideration was given to the mitigated risks associated with the success of the current contractor’s deployment model and success in meeting and exceeding Government deployment schedules.

8. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

a. Procurement History. W31P4Q-16-C-0063 was awarded on a sole source basis to NG (CAGE code 5V1X2) by the Department of the Army, Army Contracting Command – Redstone Contracting Activity. The J&A was signed/approved on December 14, 2015 by the Head of Contracting Activity for a period of six months with three 6-month options, March 4, 2016 through March 3, 2018. The J&A authority was based on 10 U.S.C. 2304(c)(1), as implemented by FAR subpart 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

b. The Government has taken action to remove barriers to full and open or fair opportunity competition by actively researching the marketplace to seek potential sources. During market research it was determined NG is not only the only interested source, but the only source with the unique technical expertise and knowledge to perform the C-RAM SOCO requirement. At this time it is deemed that the Army C-RAM PD requires C-RAM SoS support for SOCO to enable uninterrupted C-RAM force protection capabilities which provide life-saving warning to unprotected personnel against indirect fire attacks at US FOB locations. The C-RAM SOCO support must be procured through NG due to their expertise and intimate knowledge of the system. The Government will continue to research the marketplace, and alternative sources will continually be researched to determine if they possess the required technical expertise. If the Government determines that the high degree of technical expertise provided in support of the C- RAM SoS SOCO environment is no longer required or other sources are available to meet the Government's needs, then the Government will seek a competitive acquisition approach for the required support.

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): AP is being routed for approval in conjunction with this J&A.

TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance, which are included in the J&A, are accurate and complete, to the best of my knowledge and belief.

NAME: ALEX N. ROBINSON SIGNATURE: See separate PDF page

TITLE/ORGANIZATION: Systems Analyst, TMD PD C-RAM

PHONE: (256) 876-8989 DATE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance, which are included in the J&A, are accurate and complete, to the best of my knowledge and belief.

NAME: ALEX N. ROBINSON SIGNATURE: See separate PDF page

TITLE/ORGANIZATION: Systems Analyst, TMD PD C-RAM

PHONE: (256) 876-8989 DATE:

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete, to the best of my knowledge and belief.

NAME: Christiana R. Stukenberg SIGNATURE: See separate PDF page

TITLE/ORGANIZATION: Contracting Officer, PL8311

PHONE: (618) 229-9420 DATE:

HEAD OF THE CONTRACTING ACTIVITY APPROVAL: I have reviewed this justification and find it to be accurate and complete, to the best of my knowledge and belief. Since this justification exceeds $13.5M, this review serves as approval.

NAME: Douglas W. Packard SIGNATURE: See separate PDF page

TITLE/ORGANIZATION: Head of the Contracting Activity

PHONE: 301-225-4126 DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Brittney E. Galle, 618-229-9327, brittney.e.galle.civ@mail.mil.