CACR - Redacted.pdf

CUI

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Agency and Contracting Activity.

This Justification and Approval requests authority for Other Than Full and Open Competition, and supports requirements generated for the Air Force Sustainment Center (AFSC), 638 Supply Chain Management Group (SCMG), 407 Supply Chain Management Squadron (SCMS). The contracting authority for this requirement is AFSC/PZABA, Robins AFB, GA. The purchase request number supporting this contract action is FD2060-23-00651

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. This action will result in the award of a Firm Fixed Price requirement Indefinite Delivery Contract (IDC) with a basic plus two annual ordering periods. Based on the anticipated contract award date, orders can be issued on the 31 Aug 2023 through 30 Aug 2026.

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

L3 HARRIS TECHNOLOGIES, INC.

640 North 2200 West Salt Lake City, Utah 84116-2925 Cage:06401 Large Business

III. Description of supplies/services required to meet agency needs (including the estimated value).

This requirement is for repair and services in support of MIDS LVT Line Replaceable Units (LRUs) and Shop Replaceable Units (SRUs). The LRU 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 407 SCMS 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 four United States military services (Army, Air Force, Navy, and Marines) and the United States Coast Guard, in addition to 42 different nations.

Ordering Period I:

The requirements are for repair of the MIDS AN/USQ-140(V) and MIDS Block Upgrade 2 (BU2) AN/USQ-140(V) terminals.

PERIOD FISCAL YEAR ESTIMATED TOTAL

Basic FY23 Ordering Period I FY24 Ordering Period II FY25

TOTAL

The nominal Contract Line Item Numbers (CLIN) structure includes the National Stock Numbers (NSNs), best estimated quantities (BEQs) and estimated prices is as follows:

Basic:

CLIN DESCRIPTION BEQ U/I Unit Price Total Est Cost 0001 5996-01-528-7386 0002 5821-01-676-3694 0003 6130-01-675-2565 0004 5821-01-680-8441 0005 5821-01-675-7184 0006 5998-01-675-9394 0007 5998-01-678-7731 0008 5821-01-683-7526 0009 5821-01-668-8474 0010 5821-01-670-0638 0011 5821-01-675-3494 0012 5975-01-677-1545 0013 5998-01-528-7002 0014 5998-01-483-8798 0015 5998-01-672-2575 0016 5810-01-668-7726 0017 5998-01-668-8042 0018 5998-01-528-7010 0019 5998-01-668-2427 0020 5999-01-492-7089 0021 6130-01-496-4246 0022 6130-01-491-1538 0023 *O&A 0024 Data

*Over & Above *Not Separately Priced

Ordering Period I:

CLIN DESCRIPTION BEQ U/I Unit Price Total Est Cost 1001 5996-01-528-7386 1002 5821-01-676-3694 1003 6130-01-675-2565 1004 5821-01-680-8441 1005 5821-01-675-7184 1006 5998-01-675-9394 1007 5998-01-678-7731 1008 5821-01-683-7526 1009 5821-01-668-8474 1010 5821-01-670-0638 1011 5821-01-675-3494 1012 5975-01-677-1545 1013 5998-01-528-7002 1014 5998-01-483-8798 1015 5998-01-672-2575 1016 5810-01-668-7726 1017 5998-01-668-8042 1018 5998-01-528-7010 1019 5998-01-668-2427 1020 5999-01-492-7089 1021 6130-01-496-4246 1022 6130-01-491-1538 1023 *O&A 1024 Data

Ordering Period II:

CLIN DESCRIPTION BEQ U/I Unit Price Total Est Cost

2001 5996-01-528-7386 2002 5821-01-676-3694 2003 6130-01-675-2565 2004 5821-01-680-8441 2005 5821-01-675-7184 2006 5998-01-675-9394 2007 5998-01-678-7731 2008 5821-01-683-7526 2009 5821-01-668-8474 2010 5821-01-670-0638 2011 5821-01-675-3494 2012 5975-01-677-1545

2013 5998-01-528-7002 2014 5998-01-483-8798 2015 5998-01-672-2575 2016 5810-01-668-7726 2017 5998-01-668-8042 2018 5998-01-528-7010 2019 5998-01-668-2427 2020 5999-01-492-7089 2021 6130-01-496-4246 2022 6130-01-491-1538 2024 *O&A 2025 Data

The total estimated cost of the MIDS LVT / MIDS BU2 LVT repair requirements is . A escalation factor was applied to estimated unit prices for each out-year ordering period. The basis for the estimated cost was derived from the Forecast Unit Price on the March 2021, D200 Summary computation. This J&A covers all ordering period of the Requirement IDC through completion of all delivery/task orders.

The period of performance is three years, 31 Aug 2023 ( estimated date of award) through 30 Aug 2026. There is consideration to transitioning the MIDS LVT program to AFLCMC/HNC in Oct 2024, however in the event the transition is delayed, or decision made to not transfer, the MIDS LVT program will have coverage under this contract for three years.

All NSNs have been screened and assigned Repair Method Code/ Repair Method Suffix Code (RMC/RMSC) codes R3/D or R3/R.

RMC 3 means to repair, for the second or subsequent time, directly from the actual manufacturer.

RMC D means the data needed to repair this part competitively is not physically available, it cannot be obtained economically, nor is it possible to draft adequate specifications or any other adequate, economical description of the material for a competitive solicitation.

RMC R means the Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights. If only one source has the rights or data to manufacture this item, IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above (applicability of authority).

The Government’s minimum needs can only be satisfied by the services and capabilities from L3Harris Technologies, which possesses the unique capabilities demonstrated below. There are no commercial applications due to the unique military application of AN/USQ-140(V) MIDS LVT. VIASAT (CAGE: 47358) is the Original Equipment Manufacturer (OEM). L3Harris Technologies acquired VIASAT tactical data link product line on 03 Jan 2023, including MIDS LVT data rights and repair capabilities. Based on the VIASAT acquisition, L3Harris Technologies is the only source with the testing and repair data capable of providing the services identified in Section III that meets the necessary minimum requirement.

The current sole source contract for MID LVT repair sustainment is FA8539-18-D-0002. This contract expires 29 March 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). However, subsequent delays in implementation have moved the projected transition date to Oct 2024.

On 4 April 2023, the Government sent a request to L3Harris Technologies to inquire if they were willing to sell the full technical data package to the Government. L3Harris Technologies declined interest in selling the 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 Data Link Solutions, designed their own unique configurations of the MIDS. Each vendor has the capability to repair only their uniquely designed and developed 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 the original VIASAT design.

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 3 Sep 2020 by the Navy recommending a secondary organic source of repair [i.e., Navy’s Fleet Readiness Center, Southwest (FRC-SW)] with the OEM (currently L3 Harris Technologies) 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 cost to establish organic capabilities.

Reverse Engineering (RE) of the MIDS LVT at the LRU level, SRU level, and the piece part (resistor, capacitor, integrated circuit (IC), 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 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 L3 Harris Technologies 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.

The RE effort for the MIDS products requires an understanding of the theory of operation. This process requires 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 .

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 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 VIASAT on the current MIDS LVT configuration.

Accordingly, L3 Harris Technologies 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 FAR 5.202 applies.

A Sources Sought (SS) / Request for Information (RFI) was posted to SAM.gov on 16 Jun 2022 and 05 Jan 2023. The response date to the most recent posting was 23 Jan 2023. The RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. No responses were received to the 16 Jun 2022 posting, but L3 Harris Technologies responded to the 5 Jan 2023 RFI posting.

This requirement will be synopsized on SAM.gov web page as required by FAR 5.201. It is 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 responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential for subcontracting possibilities. Sources expressing an interest as a result of the synopsis will be investigated for their capabilities to perform on this and/or future requirements.

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

Based upon (1) certified cost or pricing data provided in the offeror's proposal in accordance with FAR 15.403-4; (2) the program office or expert technical personnel analysis of the offeror's Basis of Estimates; (3) inputs from the Defense Contract Management Agency, the contracting officer expects to determine the anticipated cost to the Government to be 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 Jan 2022 to 31 Jan 2023 in accordance with FAR Part

10.001 and 10.002. The Market Research report was completed on 31 Jan 2023.

As described in Section V, SS/RFIs were posted on SAM.gov advising industry of the pending acquisition and soliciting inquiries from interested vendors. No responses were received to the 16 Jun 2022 posting, but L3 Harris Technologies responded to the 05 Jan 2023 SS/RFI posting.

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 “MIDS LVT Repair” search generated no potential sources of repair. The NAICS search resulted in 23 potential vendors, but the vendors were evaluated and determined not capable due to not having access to ViaSat proprietary technical data.

There is no small business set aside or direct award opportunities possible, because no other businesses possess the required technical data to accomplish these services for the MIDS.

Outlook contains the AFSC/SB Capability Statements folder that can be searched using the NAICS code, in this MRR the NAICS code "811213" was used. A total of 23 companies were found during this search, however none of the companies have the capability to repair MIDS assets due to technical data proprietary, test equipment not on hand, and lack of 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 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.

Market research concluded L3 Harris Technologies is the only vendor 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 V above

X. 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.

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.

The plan to break barriers is to engage L3 Harris Technologies on selling the MIDS LVT / MIDS BU2 LVT technical data to the Government while the MIDS program is under Robins supply chain management. Based on the current transition date of Oct 2024, this may be the last contract awarded by Robins AFB in support of MIDS 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 of subject NSNs.

C. Query the vendor annually for information related to MIDS JTRS 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 (VIASAT) still retains their status as the primary repair source.

The team routinely performed market surveillance and monitors technical literature for potential new vendor entry into the marketplace that can support the program. To date, there have been no new vendors determined capable of supporting MIDS LVT / MIDS BU2 LVT repairs.

On 06 April 2021, the Government requested Level III (Product) technical data from VIASAT via e-mail. VIASAT 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 their signature, the contracting officer certifies that this justification is accurate and complete to the best of their knowledge and belief.

XII. Certification by the technical/requirements personnel.

As evidenced by their signatures, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete.