F3QCAZ8354B101_ JA .pdf

CUI

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Agency and Contracting Activity.

This Justification and Approval (J&A) requests authority for Other Than Full and Open

Competition (OTF&OC) to support requirements generated for the AFLCMC/HBG Combat

Control Intelligence Surveillance Reconnaissance (C2ISR) Program Office. The contracting activity for this requirement is the AFLCMC/HBKAB. The purchase request number supporting this contracting action is F3QCAZ8354B101.

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

Due to the circumstances described herein, the activity requests authority to acquire services and items listed in this document using Other Than Full and Open Competition prescribed by FAR

6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency

Requirements. This J&A is to add an additional 12-month performance of period (PoP) to contract FA8527-19-C-0001, Option I. The contract modification will be in accordance with

FAR 52.217-9, “Option to Extend the Term of the Contract.” The 12-month extension will continue to use the current pricing agreements of Cost Plus Fixed Fee (CPFF) and Cost

Reimbursement No Fee (CRNF). The period for this PoP extension is 22 Sep 2022 – 21 Sep

2023.

This sole source requirement will be purchased from the following vendor:

Goodrich Corporation

Mission Systems, ISRSS-Airborne

7 Technology Park Drive

Westford, MA 01886-3141

CAGE: 05WL4

Large Business

III. Description of supplies/services required to meet agency needs (including the estimated value).

The modification to FA8527-19-C-0001 will continue efforts currently being performed under

Option I. The contract requires Command and Control (C2) normalization, health and status, test and integration of the MS-177/SYERS sensor and its software (SW) into the Air Force

Distributed Common Ground System (AF DCGS) weapon system. The effort includes integration, testing, installation and fielding support for the SYERS-2C and MS-177 sensor capability, which includes 7 band, Multi-Spectral Imagery (MSI), Search and Watch collection modes, and Open Mission System (OMS)/Unmanned Aerospace Systems (UAS) C2 Initiative

(UCI) messaging compliance. In addition, the effort includes, as required Flight Tests (FT), Development Test (DT), and Operational Test (OT) for the SYERS-2C ground components for the U2/Global Hawk Integration into AF DCGS. All updates made for GSEG will be inclusive of current AF architecture, integration and Initial Operating Capabilities (IOC) and MS-177 sensors.

The contract includes Engineering Services and Materials, as specified in the Performance Work

Statement, data in accordance with DD Form 1423-1 Contract Data Requirements List (CDRLs), and associated Travel for the requirements.

The table below provides the effected contract line item numbers (CLINs) for this 12-month extension:

TABLE 1

CLINS Description QTY Type Estimated Cost

1001 Material 1 LO CRFF $ 77,000.00

1002 Travel 1 LO CRNF $ 284,000.00

1004 Flight Test Support 1 LO CPFF $2,413,340.99

1005 Data 1 LO *NSP

Total Estimated Cost $2,774,340.99

*Not Separately Priced

This contract action is required in order to execute option extension for period of 22 Sep 2022 to

21 Sep 2023. The total estimated amount of the Option I extension is $2,774,340.99. This estimate is based on an Internal Government Estimate (IGE) derived from historical information gathered from the current contract. This effort will be funded using Procurement appropriations

(3080) and covers the option extension period of the contract through completion of all services delivered.

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

Full and open competition is not feasible for this acquisition. Pursuing this requirement through full and open competition will compromise national security as data pertaining to the AF DCGS weapon system is classified. From its original development, the DCGS was fully reliant on contractor design, engineering, development, and production. At the outset of the program, the decision was made to rely on contractor support for repair, replacement, modification, operational support, and re-procurement data requirements were not acquired by the government. The prior C2ISR Class J&A stated, “when capabilities/programs/systems/sensors from other Agencies transitioned to the C2ISR Division, incumbent sources also transitioned with those capabilities, programs, systems, and/or sensors.” Data rights sufficient for competition re-procurement during operations and support phase of the life cycle generally are not procured during system acquisition. Although the C2ISR Division inherits systems with data limitations, opportunities to obtain appropriate data rights are pursued during subsequent sustainment and modification activities, whenever practical. The Government is in the process of implementing commercial off the shelf hardware and software applications for the new Open

Architecture (OA) DCGS. This will reduce the dependence on OEM stove-piped proprietary sustainment. As the Government moves toward decreased reliability on OEM capabilities and expands its organic/application-based open architecture, it is not prudent for the Government to invest scarce funding in data rights for systems that will be in transition over the near term.

The United States Air Force (USAF) requires continued development of the sensor SW and integration of that SW into the AF DCGS weapon system in support of the new OA DCGS. As mentioned, the AF DCGS affects national defense which, if compromised, would severely impact national security and other programs. As such, the agency's minimum needs are of such that only one responsible source will satisfy the requirement and full and open competition cannot be provided and no other concept or services is available to the Government (FAR 6.202-

1). The Government's ability to further mitigate a lapse in coverage would seriously damage mission capabilities.

The GSEG+ software is fully ready into integrated into DCGS and into the Operational

Environment (OE). Due to the lengthy enterprise delays throughout the option years this contract for GSEG+ was not able to complete OA Hub base integration, fielding and Transition to

Operations (TTO). The impact affects the U2 and Global Hawk Program office’s ability to fulfill their obligations to ACC. Additionally, the CFSRs will not be able to troubleshoot the sensors during flight if errors occur which would be detrimental. Without the completion of integration work, the data that is collected by the sensors will not be processed and actionable intelligence will not transmit to decision makers at forward locations timely resulting in potential catastrophic damage to mission and harm to lives. Any further delays in this integration support will create multiple ripple effects across the AF DCGS weapon systems as demonstrated in the following paragraphs.

Goodrich (Collins Aerospace) is now merged with Raytheon, is the Original Equipment

Manufacturer (OEM) of the SYERS-2C and the MS-177 series of Multi-Spectral Imagery (MSI) sensors and their associated Ground SEGment (GSEG) software, containing significant proprietary data and Intellectual Property (IP) generated over decades of High-Altitude sensor design, development, and operations support. GSEG software upgrades are a critical part of the

SYERS and MS-177 Sensor Command and Control (C2) elements of the OA Distributed

Common Ground System (DCGS) modernization efforts, a 200M+ program. Any GSEG+ upgrade delays, will results in cost, schedule and performance delays for the overall OA DCGS fielding efforts. ACC/A5/2D's priority, is to move from legacy to OA and reduce dependencies on the legacy system sustainment program. GSEG upgrades are a key part of the RQ-4A and U-

2 sensor software upgrade efforts, as all sensor control and image quality can only be performed from the GSEG. Further, GSEG+ contracting delays will impact the air side (U2/RQ-4) sensors software upgrade fielding. Which has a $250M+ sensor modernization effort that supports the warfighter operations in the Area of Responsibility (AOR).

As mentioned, this sensor development directly impacts the OA fielding capability milestones.

Therefore, in order to mitigate the current lapse in coverage, a modification to the definitized contract action is the most appropriate approach forward at this time. This approach will enable the Government to continue to successfully deliver the required capability in order to mitigate unacceptable time delays and reduce technical risk preventing mission failure and/or loss of life.

As a result of the above, it has been determined that Goodrich is the only firm capable of providing the services outlined in Section III without the USAF incurring unacceptable schedule delays, increased risk, and adversely impacting military readiness.

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 Request for Information (RFI) was posted on Sam. Gov on 02 Sep 2022 with responses due by

09 Sep 2022. The RFI requested responses from interested vendors qualified to support MS-

177/SYERS. Zero interested vendors responded to the RFI.

This requirement will not be synopsized on the SAM.gov in accordance with FAR 5.201.

VI. Determination by the Contracting Officer that the anticipated cost to the

Government will be fair and reasonable.

In accordance with FAR 15.403-4, the contractor provided certified cost or pricing data to support the Government's evaluation of the proposed cost for the contract definitization

(PZ0001). The proposed cost elements of labor, labor hours, types, and quantities of material and other direct costs, and direct and indirect rates were previously negotiated by the Government.

Support organizations included Defense Contract Audit Agency, Defense Contracting

Management Agency, and local functional technical expertise. Negotiations in accordance with

FAR Part 15 ensured the ultimate price was fair and reasonable to the Government. The same basis will be used to determine the cost for this 12-month extension fair and reasonable.

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

Initial market research was conducted in Nov 2018 and completed in Jan of 2019. A market research refresher was conducted and completed in Apr 2020 and most recently 09 Sep 2022.

Data gathered as part of market research was limited to only those sources previously associated with the development of this capability and Goodrich for the C2ISR program.

Currently, there are no commercial applications for this technology due to the specialty requirements and proprietary nature of the software. No commercial items/services are being procured for this effort. As such, FAR Part 12, commercial acquisition procedures will not be utilized for this effort.

The vendor survey included search of small business opportunities. There are no small business set-aside opportunities for this acquisition due to the fact the Government does not possess the required systems source code that a small business would require to perform this work.

Additionally, the Government does not own the software's technical data rights necessary to develop the critical infrastructure required to provide for an additional source from a small business category.

In order to comply with requirement of DFARS PGI 206.302-1, a RFI was posted on 02 Sep

2022 with responses due 09 Sep 2022 on Sam.gov. No vendors responded to the RFI.

No other vendor can meet the requirements for this effort. Based upon the needs of this requirement and the market research results documented herein, the OEM, (Goodrich

Corporation) is the only source capable of meeting the operational mission requirements for the

AF DCGS weapon system requiring the upgrade GSEG+ family of sensors software in support of various C2ISR platforms.

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

None

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

See Section VI above

X. 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.

Competition is not possible at this time based upon the limiting factors of national security and proprietary data constraints which preclude competition. Furthermore, due to the need for the stated requirement, it has been determined that unless the agency is permitted to limit the number of sources from which it solicits bids or proposals, the Government's ability to mitigate mission failure and/or loss of life will be seriously impacted. The Open Architecture timeline is constrained from a sensor C2 perspective. It is the GSEG+ contract that is driving the MS-177, SYERS and ECP migration to OA.

The Government will continue to work with Goodrich Corporation on the procurement of the source code information. In an effort to break barriers to competition, the Government will continue to research other vendor(s) capabilities to support MS-177/SYERS. The Government is transitioning this program to the OA platform which will significantly expand the use of commercial equipment and standardize interfaces for ground stations which could maximize the pool of vendors in an effort to pursue limited competitions for the programs systems and services.

XI. Certification by the Contracting Officer.

As evidenced by my signature on the Coordination and Approval Document (CAD), I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XII. Certification by the technical/requirements personnel.

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