ACC-RSA-FAR Part 6 JA Raise Ceiling 500 Series_08SEP2020r1 - Redacted.pdf

CONTROL NUMBER: SMC-J&A20-0552

FAR Part 6 Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: Department of the Army, Army Contracting Command – Redstone, SFAE-MSL-MCB, Redstone Arsenal, AL 35898-5000

2. Description of Action: JTAGS Product Office, IFMC Project Office requests approval to raise the Engineering Services ceiling by $8,000,000.00. The current ceiling is $142,052,335.16. The IFMC Project Office requests approval for one (1) contract action (modification) to the JTAGS contract, W9113M-12-C-0055, with Northrop Grumman (NG) Systems Corporation, 6120 Longbow Drive, Boulder, Colorado, 80301-3206, Commercial and Government Entity (CAGE) Code 1BB89, to increase the contract ceiling value associated with Engineering Services under the terms and conditions in the current contract. The Period of Performance for this modification is from date of award to 30 September 2021. The Engineering Services CLIN (0500) will be funded via a purchase request.

The JTAGS Block II P3I contract (W9113M-12-C-0055) was solicited as a competitive effort in 2011. Although solicited with the expectation of competition, only one bidder responded to the Request for Proposal (RFP), the contract was awarded as a sole source letter contract in on 23 August 2012, its period of performance runs from 01 October 2012 thru 30 September 2021. The JTAGS Block II contract was definitized on 28 June 2013. The JTAGS Block II contract covers JTAGS Block II Phase 1 Development (CLIN 0100), JTAGS Block II Phase 1 Production (CLIN 0200), JTAGS Block II Phase 2 Development (CLIN 0300), JTAGS Block II Phase 2 Production (CLIN 0400), JTAGS Engineering Services (CLIN 0500), and JTAGS Contractor Logistics Support (CLS) (CLINS 0600-1600 which now only goes from CLINS 0600 - 0900). This contract has a current expiration date of 30 September 2021. The current value of the contract is $137,761,458.50. This J&A supports all the Engineering Services JTAGS efforts.

3. Description of Supplies/Services: The JTAGS major services to be acquired with this modification are the engineering services. These services will provide a continuation of development efforts to address Risk Management Framework (RMF) compliance, cyber security Plan of Actions & Milestones (POA&M) activities, evolving cyber security requirements, and other emerging threats, to support Joint/Integrated Fires Architecture and Air and Missile Defense activities.

Unanticipated engineering/program requirements utilizing the engineering services CLIN (i.e., emerging threats, Block II fielding support, US Central Command (CENTCOM) system move and evolving cyber security requirements) expended available engineering

4. Authority Cited: The statutory authority permitting Other Than Full and Open Competition is Title 10 United States Code, Section 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(ii)(A) and (B) and (iii)(A) and (B), "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Reason for Authority Cited: Pursuant to FAR 6.302-1(a)(2)(ii)(A) and (B) and (iii)(A) and (B), this requirement is available only from Northrop Grumman Systems Corporation, 6120 Longbow Drive, Boulder, CO 80301, CAGE Code 1BB89, for the supplies and services described above. Northrop Grumman is the only existing source for this effort, winning a full and open completion in 2012, when they were the only bidder. The JTAGS system is a software intensive system working in conjunction with the Air Force’s SBIR satellite program. The Government has data rights to the software, but does not have source code or a technical data package for the JTAGS Block II system. The contract for the effort that this J&A represents ends 30 Sep 2021. Bringing another source on during the last twelve months of the contract would result in unacceptable schedule delays estimated to be at least 24 months, exceeding the period of performance of the current JTAGS Block II contract and failing to incorporate development efforts in the JTAGS Block II system. The cost of acquiring necessary documentation and source code and loss of learning with a new contractor is estimated to exceed $10 million dollars. The low density of the JTAGS Block II systems (4 fielded, 1 training base, 3 lab assets), means the Government would never recoup investments made in acquiring a TDP and source code. This low system density is a part of the reason that no other contractors bid on the complete JTAGS Block II program during its full and open competition. Not only would competition result in unacceptable schedule delays and substantial duplication of costs in fulfilling the Engineering Services efforts that are not expected to be recovered through competition, it is unlikely to generate any bids based on the limited effort being contracted.

6. Efforts to Obtain Competition: The contract, W9113M-12-C-0055, containing the subject engineering services CLIN (500 Series) was competed as a full and open solicitation. Only one bidder, the JTAGS incumbent contractor, Northrop Grumman Systems Corporation, submitted a proposal, thus resulting in the contract being awarded as a sole source contract.

7. Actions to Increase Competition: In this case, it is not possible to compete the current acquisition due to the fact that Northrop Grumman is the only existing source. An award to any other source would result in unacceptable schedule delays and substantial duplication of costs in fulfilling the Engineering Services efforts that are not expected to be recovered through competition. However, The Army will solicit the future JTAGS Block III program as a full and open competition to introduce competition into the bidding process.

10. Other Facts: The contract, W9113M-12-C-0055, containing the subject engineering services CLIN (500 Series) was competed as a full and open solicitation in 2012. Only one bidder, the JTAGS incumbent contractor, Northrop Grumman Systems Corporation, submitted a proposal, thus resulting in the contract being awarded as a sole source contract.

(1) Procurement History:

(1) The JTAGS contract was developed, maintained and supported under the following contracts:

Contractor Effort Contract Number

Contract Award

Dollar Value

AEROJET Electronic Systems Division/Northrop Grumman

JTAGS Block I Phase

DASG60-94-C-

090/9/1994

Northrop Grumman Block 1 Follow-On W9113M-14-C-

05/30/2014

Northrop Grumman JTAGS P3I Block 2, Phase 1 Dev/Prod and Block 2 Phase 2 Dev/Prod

Engineering Services

P3I Dev Sustainment

P3I Contractor Logistics Support

(CLS)

W9113M-12-C-

8/23/2012

There are no modifications to extend contract W9113M-12-C-0055 beyond the original POP of 30 September 2021.

(2) The contract, W9113M-12-C-0055, containing the subject engineering services CLIN (500 Series) was competed as a full and open solicitation. Only one bidder, the JTAGS incumbent contractor, Northrop Grumman Systems Corporation, submitted a proposal, thus resulting in the contract being awarded as a sole source contract on 23 August 2012.

(3) Pursuant to FAR 6.302-1(a)(2)(ii)(A) and (B) and (iii)(A) and (B), this requirement is available only from Northrop Grumman Systems Corporation, 6120 Longbow Drive, Boulder, CO 80301, CAGE Code 1BB89, for the supplies and services described above.

Northrop Grumman is the only existing source, and award to any other source would