CUI JA Other Than Full Open Competition-Redacted.pdf

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N2CS Ceiling Increase and OY Addition
Solicitation number
FA8106-17-D-0006P00033
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This document is a Justification and Approval (J&A) for Other Than Full and Open Competition for a contract modification. The purpose is to add one and a half additional years to the current non-commercial Indefinite Delivery Indefinite Quantity (IDIQ) contract FA8106-17-D-0006 for the sustainment and modernization of critical mission communication capabilities for the E-4B National Airborne Operations Center (NAOC) aircraft. The contract has a total award value of $391.8M and utilizes Firm-Fixed Price, Cost Reimbursable, Time & Materials, and Cost-Plus Incentive Fee contract types. The estimated value of the additional option year periods is . The key products and services include engineering, program management, field service representative support, specialized software, and cybersecurity support. The incumbent contractor, Strategic Mission Systems, LLC, is the only source capable of providing these highly specialized services due to their proprietary software and integration expertise.

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CONTROLLED UNCLASSIFIED INFORMATION

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

CONTROLLED UNCLASSIFIED INFORMATION 10 May 2023 Page 2 of 10

I. Agency and Contracting Activity.

United States Air Force

AFLCMC/WVK

3001 Staff Dr

Tinker AFB, OK 73145

FA810617D0006U000027

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

A class J&A is appropriate based on the expectation that there will be multiple task/delivery orders generated from the basic contract. Because the task/delivery orders will be authorized by the basic contract, the orders will be for in-scope work.

This will be a modification to add one and a half additional years to the current non-commercial Indefinite Delivery Indefinite Quantity (IDIQ) contract FA8106-17-D-0006, which is for the sustainment and modernization of critical mission communication capabilities for the E-4B National Airborne Operations Center (NAOC) aircraft. Additional time is needed to perform complex market research required to develop an acquisition strategy for the follow-on contract in regards to new aircraft modifications and their sustainment. This is not a Bridge Action. The basic contract was awarded to Strategic Mission Systems, LLC (SMS) under CAGE code 7NF16 on 24 April 2017, with a period of performance spanning 25 June 2017 to 24 June 2024, and a total award value of $391.8M.

The estimated value of the additional option year periods is The contract types under the existing IDIQ are Firm-Fixed Price (FFP), Cost Reimbursable (CR), Time & Materials (TM) and Cost- Plus Incentive Fee (CPIF) and would all continue to be utilized. The ordering period for this modification is one (1) one-year option, 25 June 2024 - 24 June 2025, and one (1) six-month option, 25 June 2025 - 24 December 2025. Additionally, the 6 month extension of services that was previously approved is included in the base contract. The Period of Performance will be established on each individual order issued hereunder. The estimated award date is April 2024.

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

The purpose of this service contract is for the purchase of engineering, program management, field service representative support, specialized software and cybersecurity support necessary to perform the sustainment and modernization of the critical capabilities of the mission communication suite for the E-4B aircraft.

The estimated cost for the option period is as follows:

Contract Summary

Period Estimated Dollars Estimated Period of Performance

Option 7 25 Jun 24 - 24 Jun 25 Option 8 25 Jun 25 - 24 Dec 25

6-mo Ext 24 Dec 25 - 24 Jun 26

CONTROLLED UNCLASSIFIED INFORMATION 10 May 2023 Page 4 of 10

Option Period 8

CLIN Description Type Appropriation BASIC

8100 Field Service Representative (FSR) FFP 3400 $

8200 Program Management FFP 3400 $

8300 Engineering Services Recurring FFP 3400 $

8310 Engineering Services Non-Recurring TBN 3400/3010 $

8320 Engineering Services Non-Recurring T & M 3400/3010 $

8330 Engineering Services Non-Recurring CPIF 3400/3010/3600 $ --

8340 Software Eng Services Recurring FFP 3400 $

8350 Software Eng Services Non-Recurring FFP 3400/3010 $

8360 Software Eng Services Non-Recurring CPIF 3400/3010/3600 $ -

8370 Engineering Services Non-Recurring CPFF 3400/3010/3600 $

8400 Modifications FFP 3400 $

8410 Modifications CPIF 3400/3010/3600 $ -

8500 Materials CR 3400/3010 $

8600 MSF Ops and Maintenance FFP 3400 $

8700 Travel CR 3400 $

8800 Data NSP 3400/3010/3600 $ -

8900 Transportation CR 3400/3010 $

Unit prices were derived for the above CLIN table utilizing historical spend data from the current contract and factoring in an annual three percent escalation.

Included within the contract are the following line items (CLIN) descriptions and type of fund appropriations:

3400 Funds

- Field Service Representatives

- Program Management

- Recurring/Non-recurring Engineering

- Software Engineering Non-Recurring

- Materials/Spares

- Mission Support Facility (MSF) Ops & Maintenance

- Modifications

- Other Sustainment

- Transportation

- Travel

- Data

CONTROLLED UNCLASSIFIED INFORMATION 10 May 2023 Page 5 of 10

3600 Funds -Non-recurring Engineering -Software Engineering Non-Recurring -Modifications -Data

Although 3600 funds were not anticipated in the original contract, the modernization required by recent cybersecurity initiatives for existing mission communication systems on the aircraft may involve development. Additionally, there may be a need to utilize 3600 funding to aid in the development of the systems integration lab as it relates to the cybersecurity initiatives and sustainment of mission communication capabilities.

3010 Funds -Non-recurring Engineering -Software Engineering Non-Recurring -Materials -Modifications -Data -Transportation

In addition to requirements identified within the Performance Work Statement (PWS), and as needed, Support Tasks (ST) may be issued for liaison engineering to address specific task requirements, scheduling, and other related performance criteria within the non-recurring engineering CLINs. ST requirements utilize operations, logistics, design, quality assurance system, planning, and program management to assist in resolving issues including, but not limited to: Engineering Data/Vendors, Logistics, Certifications, Test Support, Maintenance, Troubleshooting emergency maintenance off-site, Planning, Communication suite modifications, Studies to upgrade current systems and address obsolescence issues, and material.

This IDIQ CLIN structure will not include separately priced CLINS for IP Rights. All applicable data rights clauses are contained within the basic IDIQ, affording each Task Order requirement appropriate data rights as individual tasks are negotiated. The preceding IP rights strategy is consistent with the Acquisition Strategy as approved by the appropriate authority.

This Class J&A covers all contract actions including options, task orders and delivery orders for all CLINs detailed in the CLIN table above. For this IDIQ the minimum amount of was met with the first order for services on the previously awarded basic contract. The maximum amount will be , with a maximum ordering period of up to 9 years of contract services exercised at the Government's discretion.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The purpose of this service contract is to provide highly specialized engineering, management and logistics support, to sustain and modernize the mission communication suite for the E-4B aircraft. currently provides design, development, and integration of all E-4B aircraft mission communication network architecture, which also extends to the ground infrastructure and support facilities, therefore, this acquisition will be for continued performance of a highly specialized service.

Prior to the N2CS contract, these services were provided under the Product Support Integration (PSI) contract, FA8106-06-D-0001 that was awarded to on 05 December 2005. On 16 July 2008, Task Order number 0022 was awarded off the basic PSI contract for the upgrade of the E-4B's Message Processing Unit. The subcontractor on this order, obtained a multi-channel communications interface

CONTROLLED UNCLASSIFIED INFORMATION 10 May 2023 Page 6 of 10

(MCCI) card and corresponding software through a sub-tier, third party supplier, After being approved by the program office, the MCCI card was installed on the aircraft sometime in 2009 to integrate and run all 19 NAOC systems and sub-systems from a singular location. As the original author of the software code that is required to run the MCCI card, possesses a copyright, and considers it to be a trade secret, making them the only company available with the technical data to satisfy the Air Force's minimum need. has formally made this assertion to the Government, which can be reviewed in Attachment 01. Upon execution of the 2008 task order, 0022, the Government was made aware, via , that software code licensed from third parties would be delivered with limited rights with the appropriate valid licenses for use by the DoD, and that the code would be delivered in binary format only. For the purpose of this order, was a sub-tier supplier to making them a third party. Additionally, the MCCI card and software were independently designed, funded, and developed by in 2001, years prior to the above modification. Pursuant to the data rights clause included in the parent contract, 252.227-7013, Rights in Technical Data - Other Than Commercial Products, and in accordance with paragraph (b)(3) (i) Except as provided in paragraphs (b)(1)(ii) and (b)(1)(iv) through (b)(1)(ix) of this clause, the Government shall have limited rights in technical data -- (A) Pertaining to items, components, or processes developed exclusively at private expense and marked with the limited rights legend prescribed in paragraph (f) of this clause; or (B) Created exclusively at private expense in the performance of a contract that does not require the development, manufacture, construction, or production of items, components, or processes, and (iii) the contractor, its subcontractors, and suppliers are not required to provide the Government additional rights to use, modify, reproduce, release, perform, display, or disclose technical data furnished to the Government with limited rights. has made it clear that they are not interested in selling the rights at this time, and there were no additional data clauses included at the order or IDIQ level that would grant the Government access to this data. In 2016 formed the to support the N2CS solicitation FA8106-16-R-0014 under the premise that CSI would not partner with any other company to perform sustainment or modernization on the E-4B. has an exclusivity arrangement with for access to the software for the E-4B contract and therefore, is unwilling to subcontract with another source. This assertion can be reviewed in Attachment 03. Not only does possess the copyright for the MCCI board software code, but it is also the maintainer of the Systems Integration Lab (SIL) for the E-4B message processing system (MPS), and the operator of the Mission Support Facility (MSF) that supports aircraft missions and integration of new software and hardware updates. While these facilities are owned by the Government, has spent the last six years learning and improving processes for running and up-keeping them.

While the MCCI board hardware can be acquired from CSI, the software is available only through the for this airframe as stated in the company's operating agreement that was provided to the Government. The software requires continual updates and revisions to stay current with the certification requirements of the Nuclear Command, Control and Communications (NC3) and Emergency Action Message (EAM) communities as well as cybersecurity enhancements. Because of the proprietary nature of the technology and software, another contractor would have to develop their own version of the same, without benefit of the engineering or description documents to aid in that development. In addition to the aforementioned equipment and facilities operation experience, employs a senior leadership team with an average of more than 30 years of experience working specifically on the E-4B and providing a wealth of highly specialized engineering, management, and logistical expertise.

CONTROLLED UNCLASSIFIED INFORMATION 10 May 2023 Page 10 of 10

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

Name Address CAGE

AEGIS Aerospace Inc. 18050 Saturn Ln, STE 300, Houston, TX 77058 0XBY6

Deltek Inc. 2291 Wood Oak Dr., Herndon, VA 20171 1RKA1

Long Wave Inc. 1111 N. Lee Ave, Ste 334, Oklahoma City, OK 73103 06SD5

Strategic Mission Systems 2501 Liberty Pkwy, Ste 200, Midwest City, OK 73110 7NF16

Raytheon Company 1001 Boston Post Rd E., Marlborough, MA 01752 04164

RV Global Solutions 247 E. Front Street, Ste 1, Trenton, NJ 08611 6TC84

Rockwell Collins 3200 E. Renner Rd, Richardson, TX 75082 13499

Please refer to Section VII for rationale behind eliminating all non-viable firms listed above.

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

Market research has continued to indicate that competition does not exist for this effort due to the government’s lack of data rights for the MCCI card software, limiting the performance of necessary software engineering and integration activities to the owner of the data rights, and their associated entities, like There are several modifications planned for the E-4B in the future that will require sustainment strategies, that may be sourced separately if it is determined that the sustainment can be competed without any negative impact on the mission. Currently, however, any new aircraft modification that will require integration to the mission communication suite will require system engineering that only through is capable of performing and there are no known additional actions which can be taken to remove barriers to competition and therefore, specific actions and milestones cannot be established.

Per PGI 206.304(a)(S-70)- As indicated by signature on this J&A, the previous J&A has been reviewed and the Approval Authority determines that it contained no actions to remove barriers to competition that required completion.

XI. Certification by the Contracting Officer.

As evidenced by their signature above, I certify that this justification is accurate and complete to the best of my 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.

File details come from the government source that posted it. Updated .