DDSA JA_Redacted.pdf

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

CONTROLLED UNCLASSIFIED INFORMATION

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I. Agency and Contracting Activity.

The Requiring Agency is Air Force Materiel Command (AFMC), Air Force Life Cycle Management Center (AFLCMC), Command, Control, Communications and Battle Management (C3BM) Directorate, Command, Control, Intelligence, Surveillance, and Reconnaissance (C2ISR) Division, Global Network Systems (GNS) Branch (C3IW). The Contracting Activity is

AFLCMC/C3IWK.

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

The action is a definitive contract for services required by the Distributed Common Ground Systems (DCGS) Distributed Surface Assets (DDSA) sustainment program, (formerly a facet of the Datalinks program) to be awarded on a sole-source basis to L3 Technologies, Inc (L3). The Contract will include multiple types; Cost Plus Fixed Fee (CPFF), Cost Reimbursable (CR), and Firm Fixed Price (FFP).

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

The Ground Control Element (GCE) system, formerly known as the Data links system, is made up of the Relay Ground Station (RGS), Satellite Communication (SATCOM), Line of Sight (LOS), and Beyond Line of Sight (BLOS) systems. This asset supports high-speed data exchange necessary for Intelligence, Surveillance, and Reconnaissance (ISR) missions. It also includes the legacy manned DCGS Distributed Surface Assets (DDSA) specific to supporting the U2 ISR Program.

Divestiture of support to the U2 program by DDSA was in process in response to the SECAF announcement of the U2 divestment on 12 December 2023 however, on 24 June 2025 we were tasked by the CSAF to continue the program for another year.

This action provides for the sustainment and support of systems, known as DCGS Distributed Surface Asset (DDSA). The DDSA systems provide accurate and efficient collection, correlation, and collaboration of imagery of interest from airborne, ground, and other systems. These critical systems provide near real time, actionable intelligence to the war-fighter and must work together seamlessly to maintain 99% availability (A0), an operational requirement of Air Combat

Command (ACC).

Maintaining DDSA systems requires program management, material procurement, engineering services, repair activity, technical data, travel, and data reporting services. In addition, the sustainment of the DDSA system requires Contractor Field Service Representative (CFSR) support services, designated as "Mission Essential." The CFSRs support worldwide locations and are instrumental in maintaining Original Equipment Manufacturer (OEM) equipment and software. The services DDSA systems require include; program interface support with the U-2, Program management support, reach back architecture, and data transmission between the aircraft, DCGS Program office support, and DCGS sites.

The DDSA contract maximum quantity is $14.2M, based on the program office cost estimate using costs from prior DDSA Task Orders, with risk and inflation escalation factors considered.

The DDSA contract has a period of performance of 1 year, estimated from 1 Nov 2025 through 31 Oct 2026. Contract funding will include Operation and Maintenance (O&M) (3400).

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

This contract is a follow-on contract to the DDSA portion of the current Common DataLinks IDIQ, FA8527-21-D-0011, awarded as a sole source to L3 on 1 November 2020. The current contract provides support, sustainment, procurement, and modification of the subsystems of the Air Force Data Links System, namely Distributed Common Ground Systems (DCGS)

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 6August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 6 and Relay Ground Station (RGS) systems. These Ground Data Links systems are used for collection, correlation of data, and collaboration of imagery of interest from airborne, ground and other systems, to provide near-real-time, actionable intelligence to the warfighter. This task order will expire on 31October 2025.

The Government requires the continuation of services to sustain the DDSA systems in support of the continuing need for U2 sorties. DDSA systems are highly specialized systems, part of the ISR architecture that provide Line of Sight (LOS) and Beyond Line of Sight (BLOS) data, vital to transmitting raw intelligence data to analysis centers located in various parts of the world. There could be loss of life without the critical information provided by the DDSA systems. L3 provides highly specialized services to maintain and modernize the operational DDSA infrastructure.

L3 is uniquely positioned to be the sole provider of these services, at the required availability, based on three primary factors:

(1)extensive testing and simulation capabilities, (2) integration with proprietary technology of external L3H components, and (3) with this being the last expected year of service there is insufficient incentive for any other contractor to spend time and resources proposing on and allocating a portion of their workforce for this effort. Therefore, this acquisition will be a follow-on contract for the continued provision of highly specialized services supporting a complex network of relays around the world.

Extensive Test and Simulation Capability. L3 has built extensive testing infrastructure at their factory, to include assets funded under separate contracts and privately developed at their own expense, allowing L3 to simulate full and partial mission network links for both BLOS and LOS scenarios. L3 utilizes and manages an Operations Support Facility (OSF) lab with a test bed that consists of mock IDHC systems, allowing for LOS and Satellite Communications (SATCOM) connections.

This gives L3 the unique ability to fully test data link solutions and upgrades before deploying them to an operational environment. This unique capability enables L3 to achieve seamless integration of new functionality, while lowering the risk of system nonavailability.

Integration with External Proprietary Technology. All specialized networking and cryptological systems/devices were developed and have been sustained by L3 for 30 years. Over that extended period they gained invaluable insight into all the systems and how they integrate. L3 designed, implemented, and currently sustains a complex web of interconnected systems for both aircraft and ground stations, and the Government has not acquired a complete Technical Data Package as part of their previous contracts. These interconnected systems include data links, specialized antennas, ground support equipment, and software for mission scheduling and network monitoring. This deep integration across various systems makes it impossible for another company to replicate without significant time and resource investment to become sufficiently familiar with the systems. The integration of the new sensors with the air vehicle and ground data links (whether LOS or BLOS) has layers of complexity that only L3 CFSRs, labs, and facilities can support. L3 has developed and maintains secure data transmission systems (e.g., SATCOM, LOS, SDR) for these aircraft, operating across multiple frequency bands and in contested environments. Their expertise in high-gain, multi-band communication ensures reliable data transfer for these critical assets. Additionally, both LOS and BLOS capabilities continuously receive end-to-end link upgrades, which have been increasing RGS network data rates in direct support of emerging sensors.

Last Expected Year of Service. With this being the last expected year of service there is no incentive for a contractor to propose and hire or segregate off a portion of their workforce to transition to and learn new systems when there is not an expected advantage to earning/winning future related business opportunities.

For these reasons, L3’s expertise makes it the only source capable of providing these specialized services, without a lengthy and costly development and knowledge transfer process, posing significant risks to the operational readiness and effectiveness of crucial DAF capabilities. The limited period of performance of the DDSA activity does not allow for a lengthy transition.

In accordance with FAR 6.302-1(a)(2)(iii), 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; or

(B)Unacceptable delays in fulfilling the agency’s requirements.

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Award to any other source would result in Substantial Duplication of Costs: In addition to the unacceptable technical and schedule risks detailed above, the C3IW Program Office will incur $51M of duplicative costs that are not expected to be recovered through competition. The duplicative costs are attributable to fully training new CFSRs on the GCE systems, transitioning over a maximum 24-month period, and establishing a test facility with factory assets and connections, required to maintain GCE capabilities. Approximately $20.5M will be needed for training and transition, to include PM and Engineering labor to establish the new connection over 12 months and then 50% CFSR for another 12-months of transition.

L3 is involved in additional projects (covered by different contracts/programs) that require GCE interoperability. L3’s connection with these programs allows for concurrent GCE equipment testing to ensure integration in the field meets operational requirements. An award to another source would result in substantial duplication of costs, including C3IW Program Office investing in a comparable lab with factory assets, which is required to fully test the assets before connecting them to the network and enable a new contractor to take over the sustainment of the system. Equipment costs are estimated at $30M. The risk to the network would be unacceptable without that type of testing. The C3IW Program Office estimates the substantial duplication of cost, by major cost element, as follows:

· Training and Transition:

PM labor for concurrent work: $3.1M (based on 3 FTEs/5580 hours per year, $268 burdened rate, 24 months)

Engineering labor for concurrent work: $12.2M (based on 12 FTEs/22320 hours per year, $273 burdened rate, 24 months)

CFSR labor costs for concurrent work: $4.9M (based on 10 FTEs /18,600 hours per year, $264 burdened rate, 12 months)

· Lab and Connections:

2 string data center lab estimated cost $18.8M (based on 1/3 of full 6 string data center cost estimate)

3 IDHC Nodes at factory: $1.5M * 3 = $5.0M (based on contract price of 5 nodes, at $7.4M)

Deployable Surface Asset at factory: $2.4M (based on similar price within 2020 Mission Partner contract)

1 full RNS at factory: $3.3M (based on Mission Partner cost estimate)

Pathway G modem: $800K (based on based on price within Mission Partner contract)

ASM-V2: $200K (based on price within 2018 Mission Partner contract)

Award to any other source would result in Unacceptable Delays: The C3IW Program Office has determined that award to any other source would result in unacceptable delays in fulfilling the agency's requirements. Per the Source of Repair Assignment Program (SORAP) 09-70 (10 May 2010), the acquisition strategy for the DataLinks systems, which DDSA is a subset of, has been designated as Contractor Logistics Support (CLS) for the life of the system. As stated above, L3 has provided highly specialized sustainment and modernization services for decades and is uniquely positioned to continue providing that support. L3 has acquired unique skills in adapting these specialized equipment components to meet evolving ISR needs. The Government technical experts estimate that it would take 8-10 months to transfer the technical knowledge from the DDSA operators to new operators as it is only possible to do so using shoulder-to-shoulder training due to the highly restricted environments. The Government team would also need to do a competitive source selection that would be estimated to take up to 12 additional months. This does not include any potential delays that may be necessitated to ensure the new contractor has the appropriately cleared personnel and relocate them and possibly their families to the OCONUS site. That means the Government team would need approximately 2 years to get a fully competent new contractor in place without a break in service. Since this a one-year contract, that delay would be unacceptable. Therefore, without L3, the C3IW Program Office would be placing mission capabilities at risk as it cannot ensure the seamless service and/or data transfer between multiple organizations, and meet operational requirements, without deliberate actions to establish and transition performance to another source, and secure program funding to cover duplicative costs.

Establishing a second source

The C3IW Program Office estimates a second competitive source could be established for this type of work within the

August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 6August 2023 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 6 ordering period of the GCE contract due to the plan for Data Right deliveries. However, due to the limited one year DDSA period of performance, that time-frame will not assist this acquisition.

Conclusion: Accordingly, L3 is the only firm capable of providing the supplies and services described in Section III above without the Government experiencing substantial duplication of cost and unacceptable delays in fulfilling its requirements.

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) (ID: FA239825) was posted to System for Award Management (SAM.gov) on 27 January 2025 for the DataLinks follow-on Ground Control Element contract. seeking information and capabilities to support CDL systems, with final responses due on 11 February 2025. Work scope for DDSA sustainment was included in that request as the timing was before the U2 support cancellation decision. The Government received nine (9) responses from aTechGov, BHPE LLC, Cloud Den, Interoperable, Sigma Corps, Solved Engineering, SRR, and L3. Except for L3, responses did not demonstrate comparable, if any, experience in CDL. In addition, after the initial RFI cutoff date the Government directly contacted seven known defense contractors seeking a response to the same RFI, including Cubic Defense Applications Inc, SpaceX, Lockheed Martin Corp, Northrop Grumman Corp, BAE Systems, Kratos Defense & Security Solutions Inc, and The Boeing Company. None responded.

This acquisition will require a Notice of Proposed Contract Action IAW FAR 5.201 and is projected to be publicized upon approval of the DDSA acquisition strategy. The Government will continue its ongoing market surveillance to ensure awareness of the evolving competitive landscape.

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 L3's proposal, (2) the program office's technical analysis of Basis of Estimates (BOE), and (3) inputs from the Defense Contract Management Agency, including from the Administrative Contracting Officer, the contracting officer expects they will be able to determine that the anticipated cost to the Government will 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.

The Government performed substantial market research to understand how industry can provide Operations and Maintenance (O&M) support for the GCE systems. In addition to the RFI described in Section V, the Government used the Dynamic Small Business Search (DSBS) tool to identify potential small business sources. Search terms included CDL/BECDL, in acronym and full text form, with Datalink and Data Link variations. Only vendors with CDL experience including hardware manufacturing, modification, repair, field support, and in-plan engineering are capable of sustainment of the data link system. The search provided no results. Also, the Government searched the System for Award Management (SAM) (https:// www.sam.gov) and general Internet searches to find vendors capable of meeting the contract performance requirements, using the same CDL/BECDL search term variations, as well as North American Industry Classification System (NAICS) codes.

The program office reviewed each small business, or potential source, for the ability to potentially meet the performance requirements, with the primary focus on experience with CDL and its associated waveforms, as well as manufacturing, modification, and repair of radio frequency (RF) equipment and associated parts, experience working with Secret, Top Secret, and TS/SCI security domain equipment with associated NIST testing/certification, ability to provide contractor field support, ability to provide in-plant engineering and program management, and appropriate security clearances including Secret, Top Secret, and Top Secret/Sensitive Compartmented Information. Market research shows there is not a reasonable expectation that two or more responsible offerors, competing independently, would submit priced offers in response to the solicitation expressed requirement.

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

The U-2 Program support was to stop at the end of FY25, coterminous with the expiration of the Common DataLinks IDIQ, FA8527-21-D-0011 on 31 October 2025. Therefore, the DDSA program was dropped from the Ground Control Element (GCE) ID/IQ follow on effort as it was expected there would be no requirement for DDSA past FY25. ACC has delayed program support to the U-2 by one year, prompting the need for this gap contract to cover the continued need for DDSA sustainment and support. L3's CFSRs are vital to the successful operation of DDSA, and the cost and schedule delay for competition of a short-term follow-on contract would be detrimental to the Government.

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 any subsequent acquisitions for the supplies or services required.

The prior HBG Datalinks J&A, which included this DDSA activity, stated that the primary barrier to competition is technical data rights. The program office “will systematically review and attempt to negotiate the sale of technical data rights with L3 Technologies. The goal is to obtain unrestricted data rights.” The C3IW GCE contract is the follow on contract to Datalinks.

That effort will include delivery of the necessary data rights.

There are no requirements for DDSA beyond the end of FY26. Therefore, there are no plans by the program office for a future DDSA competition. Should a future need arise the data rights obtained under the GCE can be used to remove barriers to competition.

XI. Certification by the Contracting Officer.

As evidenced by my 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 my signature above, I certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.