CCaR System JA_Redacted.pdf

J&A AIR 2.6/21-680

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

Naval Air Systems Command

Joint Strike Fighter Contracts Department (AIR-2.6) c/o F-35 Program Office

200 12th Street South, Suite 600

Arlington, VA 22220-5402

2. Description of Action Being Approved

This is a sole-source action to be awarded to Integrated Data Services (IDS), located at 2141

Rosecrans Ave, Suite 2050, El Segundo, CA 90245. IDS will provide Comprehensive Cost and

Requirement (CCaR) System functional, technical, administrative support, and training to the F-35

Joint Strike Fighter (JSF) Program Office. This effort will support the primary office in Crystal City and various field activities, specifically through the use of CCaR. As a proprietary product of IDS, only IDS can administer and provide the configuration coding services that the JPO requires;

therefore, a sole-source contract is necessary. The estimated contract value is approximately inclusive of options. This Firm Fixed Price (FFP) contract will be structured with FFP

Labor CLINs and Cost only Travel CLINs. The period of performance will include a base period of twelve months, four twelve-month options periods, and the six-month FAR 52.217-8 Option to

Extend Services.

3. Description of Supplies/Services

The purpose of this contract is to acquire CCaR system functional, technical, administrative support, and training for the F-35 Joint Program Office. The CCaR system database provides life-cycle information on each requirement and an archiving capability for historical purposes.

The Contractor shall provide:

CCaR System Database Implementation, Configuration, and Sustainment Support;

CCaR Training;

On-Site and Remote CCaR System Functional and Technical Support;

CCaR Operational Support; and

CCaR technical expertise necessary to maintain and enhance the CCaR software application

As shown below, the independent government cost estimate totals . The requiring activity anticipates the preponderance of the system enhancement requirements (SERs) will be required in option year one of the contract. The base period of this contract will be funded using fiscal year 2022 United States Air Force (USAF) procurement appropriations.

Estimated Dollar Value

Period of

Performance Labor CLIN

Travel

CLIN

Optional

SERs CLIN Total

BASE

12/01/2021-

11/30/2022

OY1

12/01/2022-

11/30/2023

OY2

12/01/2023-

11/30/2024

OY3

12/01/2024-

11/30/2025

OY4

12/01/2025-

11/30/2026

6 Month

Ext.

12/01/2026-

05/31/2027

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(A), Only One Responsible Source

And No Other Supplies Or Services Will Satisfy Agency Requirements.

5. Rationale Justifying Use of Cited Statutory Authority

10 U.S.C 2304(c)(1) and FAR 6.302-1 allow that when the supplies or services required by the agency are available from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be solicited.

Services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition.

The F-35 Joint Program Office utilizes the CCaR System as its financial system of record. The Air

Force uses CCaR as its financial system of record. The instruction requiring the Air Force to use the

CCaR System is AFI 63-101, Chapter 11.2.1 Investment Fund reporting.

The PM, or equivalent, ensures that all efforts with AF RDT&E 3600 (Budget Activity

[BA] 1 through BA7) and procurement (3010, 3011, 3020, 3021, and 3080) investment funds use the Comprehensive Cost and Requirement System to manage and execute program funds.

Therefore, the JPO shall use CCaR system, the proprietary product of IDS, as its financial system of record to provide timely and accurate reporting of the United States Air Force, International Partners and Foreign Military Sales (FMS) funds. Only IDS can administer and provide the configuration coding services that the JPO requires. Also, the CCaR interfaces with several other accounting and programmatic systems such as FM Suite FRC (Funds Request and Certification), Defense Finance and Accounting System (DFAS), Mechanization of Contract Administration Services (MOCAS), and

Navy Enterprise Resource Planning (NERP).

In addition to regulatory mandates requiring the CCaR product, the requirement for data translation and interface configuration on a constant and ongoing basis must also be accomplished by IDS. The

CCaR is a highly customizable system that requires coding level configuration on a constant basis to match the requirements of any agency or Department that needs to interface with USAF financing. In the case of the JPO, there are queries that IDS writes code for in order to upload data or provide reconciliation needed for financial analysis. A real world example is that Naval Air Systems

Command provides an Excel spreadsheet every week from the NERP system. This spreadsheet is given to IDS which then writes the code to translate the data into Defense Finance and Accounting

Service obligations and expenditures for the CCaR system user in the JPO.

The loss of the CCaR system would result in the F-35 program being unable to run queries, upload data, or provide reconciliation needed for financial analysis. Without the CCaR system, the F-35

Program Office would be incapable of interfacing with USAF funding apparatus and thereby cease to transfer funding to or from the USAF. Thus, halting financial and accounting operations upon exhaustion of funds.

Attempting to integrate a new system to interface between the AFMC CCaR system platforms and the

JPO would result in an unacceptable delay to the JPO’s overall mission and an unnecessary duplication of costs. If the JPO switched financial systems the CCaR system will still be required for

Air Force Investment funds, support to manage a separate financial database and the requirement to maintain a CCaR system administrator. In the short-term, overlap support would be required to transfer, and interface all budgetary, financial, and accounting data. The costs to compete and develop or switch to a new financial system requires significant planning and resources to deploy and implement. For example, the Defense Logistics Agency budgeted approximately to develop and deploy the Defense Agencies Initiative (DAI) financial system. Therefore, the costs of

CCaR system support are unlikely to ever be recovered through competition given the significant resources required to implement a new system of record.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

The Chief Enterprise Support Office (CESO) Team performed initial market research in August 2021.

Research indicates that CCaR system is a proprietary, trademarked item provided by IDS and no other company could offer CCaR system support.

Additionally, this contract action was synopsized on the SAM.Gov from 21 September 2021 through

29 September 2021. The synopsis requested interested parties to submit their capability statements for purposes of determining whether to initiate a competitive procurement. One response was received before the end of synopsis period from DK Shin Laboratories. The requirements office reviewed DK

Shin Industries’ capability statement and determined that it does not meet the requirements as stipulated in the synopsis. While DK Shin Laboratories provides software support, it does not have access to the IDS proprietary CCaR system source code in order to satisfy the F-35 JPO’s requirement. A Sources Sought Waiver was approved on October 21, 2021.

7. Determination of Fair and Reasonable Cost

In accordance with FAR 13.106-3(a), the Contracting Officer shall ensure that all supplies and services provided under this contract action are procured at a fair and reasonable price. IDS is required to submit a formal proposal with sufficient information, to support the accuracy and reliability of proposed prices. Because this requirement is for a commercial item in accordance with

FAR 2.101, and will be procured under FAR Part 13 ordering procedures, a fair and reasonable price determination will be made based on the requirements of FAR 13.106-3(a) (i.e., use of market research, comparison to prices found on reasonable previous purchases, and comparison to current price lists and catalogs). Once a proposal is received, a price analysis will be conducted in order to determine if the proposed price is fair and reasonable.

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in Paragraph 5, the F-35 Joint Program Office has no plans at this time to compete future contracts for CCaR system support as described within this document. If another potential source emerges, the F-35 Joint Program Office will assess whether competition for future requirements is feasible and provides the requisite cost savings.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

Signature Name Phone No.

LEGAL SUFFICIENCY REVIEW

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION

I certify that this Justification is accurate and complete to the best of my knowledge and belief.

APPROVED

Upon the basis of the above Justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.

2304(c)(1).

Director of Contracts,