JA_ADUs_Redacted.pdf

FOUO

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

----------------------------------------------------------------------------------, I NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action I I must be included in the staff package for approval of the instant J&A. This applies to all J&A staff packages that are submitted for review I I and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official. I I I L----------------------------------------------------------------------------------

Is this a new or amended J&A Document? ~ New D Amended ( Prior to Award Only!)

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan?

Funding level for this acquisition: ~ ~ $700K D > $700K and ~ $13.SM

Contracting Activity: Directorate of Contracting, AFTC/PZIEA, Edwards AFB, CA

Purchase Request/ Local ID Number: F 1SOAF9080B102 and F 1SOAF9079B102

Program/ Project (and PE, if applicable): Airborne Decryption Units (ADU)

Program Type (PEO or Other Contracting): Other Contracting

D Yes ~ No

D > $13.5Mand ~$93M 0 > $93M

Authority: 6.302-1 - 1 O USC 2304(c)(1 ), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: D Class ~ Individual

COORDINATION (AFFARS 5306.304(a) )

Date Project Lead/ Program Mgr/ Requiring Activity Signature

18Apr2019 Ronald Pozmantier

812 AITS/ENI, 661-277-5326

APPROVAL (AFFARS 5306.304(a) )

Date Contracting Officer Signature

22 Apr 2019 Matthew Chartier

AFTC/PZIEA, 661-275-4970

March 2018 FOUO Page 1 of 6

I. Contracting Activity.

The contracting organization that is responsible for the proposed contract action is the Air Force Test Center (AFTC), Directorate of Contracting, Enterprise Acquisition Division (PZIEA), 5 South Wolfe Avenue, Edwards AFB, CA 93524-1185. The Contracting Officer is Mr. Jacob C. Arola. This is a Justification for Other than Full and Open Competition. The purchase request numbers for this contract action are F1SOAF9080B102 and

F1SOAF9079B102.

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

The proposed action will result in a new Firm-Fixed Price (FFP) sole source award. The proposed source is L3 Technologies, Inc. (L3T), Telemetry and RF Products.

L3 Technologies, Inc.

1515 Grundy's Lane Bristol, PA 19007-1506

CAGE/DUNS: 13923/043570142

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

Under the contemplated contract, L3T will provide the ADU-1000 Telemetry Security Product (TSP) in support of Air Force DT&E testing at the 412th Test Wing, Edwards AFB, CA. Specifically the products will support the Global Power Combined Test Force programs at Edwards AFB, and one other project at Edwards AFB. This contract will provide commonality , compatibility, and maintainability of equipment for all users.

This product is certified by the National Security Agency (NSA) and will be used for decryption of critical sensitive flight test data. Encryption products of this type are required in accordance with DODI 8523.01 and

AFMAN17-1302-0.

Typical application is airborne platform data reception from missiles/stores via RF downlink to "ownship" for decryption and recording. These "ownship" platforms include a variety of different bomber aircraft, and will support a variety of weapon secure telemetry transmissions. The data is assumed to be sensitive and often carry higher security classification.

These products are designed around NSA Type 1 Encryption microelectronic devices. They must be able to operate across the Plain Text and Cipher Text domains, and must be characterized for TEMPEST requirements.

They are NSA certified Information Security (INFOSEC) products designed to integrate NSA Type 1 Encryption microelectronic devices into an Airborne or Ground Digital Data System. These products must be capable of accepting keying materiel from Communication Security (COMSEC) common fill devices such as the AN/ PYQ-10 Simple Key Loader (SKL). The ADU-1000 is a complete Telemetry Data Decryptor suitable for airborne applications, capable of decrypting 135A algorithm encrypted data.

Under the contemplated contract FA9302-19-C-0009, the CLINs shall be structured as follows:

CUN 0001 - ADU1000-001, P/N 20012601-501 ; Qty 34 each .

The value of this contract is

The primary appropriation funds type is expected to be RDT&E 3600 funding . Expected delivery: 180 DARO.

March 2018 FOUO Page 2 of 6

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

The statutory authority permitting this action is 10 USC 2304(c)(1) which specifies that, "the property or services needed by the agency are available from only one responsible source or only from a limited number of responsible sources and no other type of property or service will satisfy the needs of the agency" as implemented by Federal Acquisition Regulation (FAR) Part 6.302-1 (a)(2)(ii)(A) and 6.302-1 (a)(2)(ii)(B).

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 products required are of a highly specialized nature requiring TEMPEST certification testing and NSA qualification in order to meet the criteria that is mandated by DoD Instruction 8523.01 and Executive Order 12333 for the intended use of the equipment. L3T is the only firm that has been identified to currently offer telemetry support packages which are NSA certified and meet the Government's minimum requirements for this acquisition .

DoD Directive 8523.01 (April 22, 2008) established a policy regarding information transmitted by communication systems or COMSEC. AFMAN 17-1302-0 (3 FEBRUARY 2017) implemented the Directive with regard to the Air Force. It applies to the contracting of all DoD COMSEC activities and to contractors of DoD components when contract performance pertains to COMSEC requirements.

a. Only NSA-certified/endorsed COMSEC product and services shall be used to secure classified telecommunications of DoD Components and their contractors.

b. Only NSA-certified/endorsed COMSEC product, techniques, and services shall be used to protect sensitive telecommunications involving activities of DoD Components and their contractors.

c. DoD Components shall acquire COMSEC products and services through the NSA as the Centralized

COMSEC acquisition authority or, if unavailable, through centralized procurement acquired COMSEC products and services directly from commercial entities authorized by NSA to sell such products and services. Direct acquisition may be done individually by a DoD Component or by a lead service or activity acting as a centralized procurement authority for others. This does not preclude the need for NSA certification.

In addition to the above Directive, there was also an Executive Order 12333 (1980, 1981, 1984, and 1994) appointing the NSA as the Executive Agent responsible for approving any cryptographic devices. Under DoD Instruction 8523.01, there is a section appointing NSA as the authority to design and develop all COMSEC devices, specifically any cryptographic devices.

L3T has been providing these NSA-certified TSP products for the past 10 years under sole source contracts F04611-97-C-0093, F04611-03-D-0002, and FA9302-10-D-0010. Additionally, they also provided test and evaluation and upgrade services for these packages. The most recent contract, FA9302-12-D-0004, is a sole source contract action that was awarded in July 2012 and expired in July 2017. This acquisition is a follow-on contract for the continued production and performance of highly desired specialized equipment and services.

Accordingly, L3T is the only firm capable of providing the supplies and services described in Section Ill above for the U.S. Air Force experiencing unacceptable delays in fulfilling its requirements and is essential in avoiding unacceptable delays.

Award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition and would result in unacceptable delays in fulfilling the Air Force's requirements. Government cost estimations of $4M for duplicated costs are expected when awarding to any other vendor which are not expected to be recovered through competition. Unacceptable delays of one to three years in fulfilling the Air Force's requirements are also a factor for precluding competition. This substantial duplication of cost and expected delays are derived from new development, new certification , removal and replacement of L3T products. The NSA certification process is lengthy, and requires precise iterative design

March 2018 FOUO Page 3 of 6 engineering collaboration with the vendor. Additionally, any company seeking NSA qualification must demonstrate a production representative prototype product requiring qualification testing. L3T is currently the only company that has NSA certified telemetry security products conforming to the form, fit and function requirements. Discourse with the NSA has not identified any other vendor(s) that has currently sought to enter the NSA certification process and produce even one of the telemetry products conforming to the form, fit and function requirements of this acquisition . Even if other vendors were to offer to do this now, a 1-3 year time period is anticipated for developing a unit, obtaining NSA certification, and entering production . This would hinder the Government from meeting mission requirements and cause further unacceptable delays in fulfilling mandated security requirements. A new vendor could choose to use a different form and fit for their product, which would increase government risk that the items could not fit into existing installation areas and would significantly increase government expenditure to redesign the installations. The 412 TW presently does not have information to indicate that other vendors would decide to cover all the products and services required by this acquisition. Additionally, the Air Force does not own intellectual property for the ADU-1000 collaboratively with the NSA and for which the NSA will not allow release of any detailed design specifications. If the Air Force had to split the contract and provide legacy product/service support through L3T and new product delivery and services were awarded to another or multiple vendors, the opportunity for garnering any savings would be diminished. Therefore, this acquisition will be for production of highly specialized ADU-1000 equipment with technical support.

Any hindrance in the ability to procure, upgrade, and repair NSA certified encryption/decryption devices, will delay and/or cancel critical test missions delaying 8-1 , 8-2, 8-52 Bomber and Stingray programs with significant price increases to the government. In the end, delay of these units will delay delivery of weapons systems to the war fighter.

Accordingly, L3 Technologies Inc. is the only firm capable of providing the supplies described in Section Ill above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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

Reference the ADU-1000 Market Research Report, 3 Apr 2019.

Market Research was performed using the following techniques: Internet Searches; Request For Information on FedBizOpps; contacts with vendors at ITC 2017, ITC 2018 and ITC 2019 and ITEA Test Instrumentation Workshop (TIW), May 2017 and May 2018; contacts with government secure telemetry Subject Matter

Experts (SME); site visits to government SMEs and vendor sites (NAWC-WD, China Lake, CA, 95th Test Wing, Eglin AFB, FL, NSA, Major Range and Test Facility Base telemetry SMEs at the RCC Telemetry Group

135th (Aug 2018) and 135th (Mar 2019) meetings; Curtis Wright - TTC, L3T); contacting known sources of similar products (Viasat) and searching government databases (GSA).

RFI PZIEATENG170113 was posted 28 April 2017 via FedBizOpps, with a response time of2 Jun 2017, stating "The Air Force Test Center (AFTC) is soliciting information and comments from industry on its ability to provide non-developmental Secure Telemetry Data Solutions" which included the Airborne Decryption Units. 11 responses were obtained. Six of these provided their company's product information, and expressed an interest in the opportunity, providing points of contact information . However, these six responders provided no information requested in the RFI concerning non-developmental secure telemetry products. Five others provided substantive information on their products and services. "Non-developmental" is critical here, in order to find a vendor able to provide an approved product at contract start. Responding vendors were:

1. Multimedia Integrated Technology Inc.

2. Global Satellite Engineering , Inc.

3. Green Dream International LLC

March 2018 FOUO Page 4 of 6

4. AMERGINT Technologies, Inc

5. Silvus Technologies

6. Elotek Systems Inc

7. Aridea

8. TTC I Curtiss Wright

9. Etherstack

10. L3T

11 . Rockwell Collins

Additionally, extensive research was performed with vendors known to have produced Secure TM products, on vendor websites, and at ITC 16, 9 Nov 2016, ITEA TIW, May 2017, ITC 2018 (24 Oct 2018). (Ultra Electronics - Herley; Dynetics, L3T). Dynetics and Herley produce custom, point solution embedded Secure TM products, which do not meet the form, fit and function minimum requirements of the government. The ADU-1000 is a miniaturized airborne decryptor and our research could not identify any other source than L3T.

A Notice of Contract Action (NOCA) was posted to FBO.gov for a period of 15 days (Sources Sought Synopsis 36 days, 51 days total) advising industry of the pending acquisition and soliciting inquiries from interested parties. No responses were received.

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

The Contracting Officer will determine that the anticipated price will be considered fair and reasonable. In accordance with FAR 15.404-1(b)(2)(ii), comparison of proposed prices to historical prices paid for the same or similar items shall be employed whenever possible. Additionally, comparison of proposed prices with independent Government cost estimates and analysis of data other than certified cost or pricing data provided by the offerer may be considered as applicable.

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

As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties so that the government could evaluate and determine whether or not to conduct this acquisition on a competitive basis. The request for information referenced in paragraph VI of this document requested interested sources provide their capabilities and qualifications in providing supplies and services in sustainment of secure telemetry data solutions, specifically designed for flight test users.

Additionally, Air Force subject matter experts performed a detailed comparison of seven vendors DAS products. Aridea, Etherstack, Rockewell Collins, L-3 Technologies, Viasat Inc., Teletronics Technology Corporation (TTC), Dynetics, and Herley Lancaster telemetry systems were compared for functionality, physical/mechanical compatibility, environmental, EMI/RFI, Airworthiness, System set-up/programming, repair of Air Force owned TSP products, ability to upgrade/enhance Air Force owned L-3 products and to provide technical support for the same. The comparison identified some marginal or partial capability for some of these areas, but significant deficiencies were identified for the Dynetics, Herley Lancaster, and TTC Products.

A synopsis of contract action describing our intent to solicit and negotiate with only one source, under the authority cited herein, was published on fedbizopps.gov. No responses were received.

March 2018 FOUO Page 5 of 6

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

Although it is conceivable that other companies may be able to meet the Government's technical requirements in the future, and become both form and fit compatible, none have sought nor obtained NSA certification on their Telemetry Security Products that are form and fit suitable for this application and therefore do not meet the Government's COMSEC functional requirements as stated in Section V.

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

See Section VIII above.

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.

No further action is planned by Edwards AFB until the NSA certifies another vendor's telemetry security products.

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

March 2018 FOUO Page 6 of 6