CLSE_JA_HBAK_PDR (002)_Redacted.pdf

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

FOR OFFICIAL USE ONLY

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I. Contracting Activity.

The contracting activity responsible for this Justification for Other Than Full and Open Competition is the Air Force Materiel Command (AFMC), Air Force Life Cycle Management Center (AFLCMC), Digital Directorate (HB), Aerospace Management Systems Division (HBAW), Contracting Branch (HBAK), 75 Vandenberg Drive, Bldg 1630, Hanscom AFB, Massachusetts 01731-2103. The Procuring Contracting Officer (PCO) for this action is Kimberly McPhillips, 781-225-2910, kimberly mcphillips@us.af mil.

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

This Individual Justification and Approval (J&A) is to award a new sole source Indefinite Delivery/Indefinite Quantity (IDIQ) contract and all associated Delivery Orders/Task Orders (DOs/TOs) for Contractor Logistics Support (CLS) services and Special projects for the USAF's PDR systems located at worldwide locations to EWR Weather Radar (EWR) for follow-on CLS services. The current contract, FA8723-14-D-0003, was awarded as a Sole-Source to EWR in 2014, in large part because the Government did not own the appropriate technical data and software rights that encompasses the software and hardware per DFARS 227.7102-2. The current CLS contract expires in December 2019.

The new contract is a Federal Acquisition Regulation (FAR) Part 12 Firm Fixed Price (FFP) “D” type for CLS services and Special projects to be modified as necessary. The estimated award date is December 2019. The new contract will have a maximum performance period of five and a half years. The performance period will be for 5 years, with a 6-month maximum extension of services CLINs for CLS, CDRL, and Special projects. DOs/TOs will be issued to execute actions. The estimated contract price is $47.176M and contains the same level of support as the current contract with options to support a larger fleet.

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

The following services and supplies will be provided by EWR for CLS of the PDR program:

To meet the Air Combat Command 557th Weather Wing and Headquarters Air Combat Command (ACC/A5W) directed mission capabilities, CLS support of the fielded PDR systems is required. The contractor will provide CLS and Special Projects to combat hardware and software obsolescence and system updates. This is required for maintenance of a common hardware and software configuration that ensures form, fit, and function commonality in operations, maintenance, and logistics among all Army Navy/Tactical Meteorological Systems (AN/TMS-2) PDRs.

CLS

In order for the 557WW to maintain the necessary mission capabilities that PDR provides, CLS is necessary for the PDR system. Specifically, the contractor will provide 5 years of CLS with a provision for up to 6 months of extended services to support up to 56 AN/TMS-2 PDR systems deployed worldwide. CLS services include: program management; quality assurance; logistics for helpdesk support; maintenance; spare part repair management; Operational, Safety, Suitability, and Effectiveness (OSS&E) impact analysis; Configuration Control Board (CCB) support; Government Furnished Property (GFP) management; required shipping; travel; repairing and replacing of Line Replaceable Units (LRUs); performing Cyber Security sustainment and maintenance; and Program Protection Plan (PPP) support. Cyber Security includes evaluating and disseminating Time Compliance Network Order (TCNO) updates, conducting annual scans, and updating the operating systems and application software to approved versions; and, Contract Data Requirement List (CDRL) data deliverables to the government. CLS services also include: identifying obsolescence through submission of Engineering Change Proposals (ECPs); identifying hardware obsolescence issues, determining form, fit, function replacement items; identifying software obsolescence issues and proposing technical solutions to the government through ECPs. For software changes, the following tasks are examples of what may be required: obtaining a new Cyber Security certification, modifying/upgrading software, re-writing of technical documentation, administering training and supporting Government testing.

The 5 year CLS estimate, with assumed fleet size expansion of up to 56 units, is and is based on evaluation and interpolation of 4 years of actual CLS costs from the current contract. The services are severable in nature. Due to the severability of the services, and the fiscally constrained environment, the unit of PDR CLS will be “months”. This means that the Government will be able place orders for anywhere between 1-12 months of support. This effort is funded with 3400 type appropriations.

Special Projects

Supplementing the PDR CLS effort is a requirement for the contractor to support Special projects. Special projects will be based on evaluation of ECPs submitted under CLS utilizing established tables for pre-determined labor category rates. ECPs would support and perform system design changes to improve Reliability, Maintainability, and Availability (RMA).

Engineering changes will address technical refresh of component capability, obsolescence, and diminishing sources as

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The 5 year Special projects estimated at annually and defined every year based on upcoming needs. Estimate is based on evaluation and interpolation of 3 years of actual ICS ECPs and 4 years of actual CLS ECPs special project costs from the past contracts and expected projected obsolescence of hardware and software. This effort will be funded primarily with 3400 type appropriations but 3080 type appropriations may be required based on Lead Command (ACC/A5W) requirements.

The IDIQ contract will have an estimated price of and a maximum period of performance and maximum fleet size for 5.5 years from January 2020 to December 2024.

IV. Statutory authority permitting other than full and open competition.

The statutory authority applicable to this action is 0 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(iii)(A), with an application pursuant to FAR 6.302-1(b)(2), Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The AN/TMS-2 PDR is a Commercial off the Shelf (COTS) product manufactured by EWR that the Government procured using FAR Part 12 procedures under the initial contract, FA8723-10-D-0001, for the production and ICS of PDR systems. The PDR detects precipitation, collects and makes data available locally, and delivers weather data information. The PDR is interoperable with other weather sensors and provides consistent and relevant radar analysis information to joint operations decision makers.

This follow-on CLS contract will provide highly specialized support to the PDRs in order to meet operational availability requirements.

EWR is currently performing all CLS requirements under FA8730-14-D-0003. This follow-on contract provides for continued highly specialized CLS services, support and special projects for technical refreshes of the AN/TMS-2 PDR to meet operational availability, IT interconnectivity, and Cyber Security requirements. The software and hardware employed in the PDR systems is proprietary to EWR and PDR elements have and will continue to require system updates due to technical refresh of component capability, obsolescence, and diminishing component sources.

EWR's highly specialized technical capability is based upon their proprietary data (hardware and software) of the PDR and their unique capability to maintain, modernize, and sustain the system availability. The contract contained the commercial data clause DFARS 252.227-7015 Technical Data-Commercial Items, pursuant to the prescription for usage in DFARS 227.7102-2 Rights in Technical Data and DFARS 227.7102-4 contract clauses. The license procured under the contract does not include appropriate rights in commercial computer software data. EWR has stated explicitly during market research that they are not willing to negotiate acceptable terms for transferring such rights for a COTS product they developed privately. In accordance with DFARS 252.227-7015(b)(2) the Government shall not disclose any such data outside of the Government which includes using such data for soliciting CLS competition. The Government currently has limited technical data rights and restricted software rights for the PDR systems, which are not sufficient for conducting a competitive CLS depot level maintenance.

Awarding to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition. Market research and lack of response through market research support EWR's position as the only contractor capable of providing supplies and services to maintain the AN/TMS-2 PDR. For another source to be a viable option for the CLS sustainment effort, development of a new system is required, testing would need to be accomplished, new training and technical orders would need to be written, and Cyber Security certification would need to be re-accomplished. USAF has made an initial investment of in Production & Deployment (P&D). Fielding of an alternative system would result in a significant duplication of this prior investments made by the USAF.

Summary of prior investment with current configuration:

= P&D

The Government Cost Estimate developed for the Business Case Analysis indicates that finishing the Engineering Manufacturing Design (EMD) of the alternate system would require an additional of 3600 funding, based upon engineering assumptions and analogous programs. The EMD phase would not be accomplished until the tail end of FY23. The P&D of 56 alternative systems would cost an additional and full fielding would not be complete until FY26. The cost of acquiring fifty-six (56) systems from an alternate vendor would delay the fielding of new system and cost which is more than the estimate to purchase thirty-six (36) systems plus twenty (20) systems already purchased from EWR and maintain the current baseline.

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SUMMARY - Acquisition Cost - 56 PDR Systems

Strategy 1: Current vendor = P&D (36 units) + (prior investment in 20 units) Strategy 2: Alternate Vendor = EMD + P&D = (56 units)

Delta = saved by the Government with current approach (Strategy 1)

With respect to O&M, based on the Government Cost Estimate, maintaining a single vendor for support of fifty-six (56) systems would cost per year. An alternative vendor will also cost approximately the same amount of . However, delivery and sustained of these PDR's will occur 5 years after the intended required date when an alternative vendor is used (no other vendor currently exists to perform this need).

Thus, overall savings to the Government by using the current approach is . Additionally, the current acquisition strategy allows for an earlier fielding and sustainment actions of the PDRs to support mission execution.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Market research was achieved utilizing a series of different approaches. Internet research was performed to identify companies that could provide sustainment/support for the PDR system. All of the research accomplished failed to identify or provide the names of any companies able to support the PDR system under the CLS2 contract.

Two standard forms of research were also conducted including a Sources Sought Synopsis (SSS), posted to Federal Business Opportunities, on 06 March 2019. This posting resulted in no responses. A Notice of Contract Action (NOCA) was also posted to Federal Business Opportunities on 11 April 2019. No responses were obtained from this request, as well.

Each method of research conducted resulted in finding no companies that could supply an equivalent system sustainment capability compared to what the Government is receiving from EWR.

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

This is an acquisition for a commercial item, other than certified cost and pricing data will be obtained from the contractor as well as a technical volume. The price will be evaluated against the Independent Government Estimate, and compared to over 7 years of historical costs incurred during ICS and CLS. The Government will conduct cost and price analysis upon receipt of the proposal based on Other Than Certified Cost or Pricing Data, as the PDR systems are commercial items to determine the final negotiated price fair and reasonable.

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

See Section VI above.

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

N/A

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

N/A

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XI. 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.

AFLCMC/HBAK will actively pursue obtaining appropriate data rights for the PDR system in order to compete in future acquisitions.

However, in past attempts, the contractor has been hesitant to sell the software and data rights necessary to compete the PDR CLS requirement. The system is inherently COTS and developed as a capital investment by the contractor with over 200 commercial sites currently sustained around the world. AFLCMC/HBAW is currently in the process of developing a lower cost alternative Tactical Weather Radar (TWR) system through Air Force Research Laboratories (AFRL) and Small Business Innovation Research (SBIR) funding that may meet the sensor requirement in the future and allow for competition.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. 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.