JA_F-35_Simulator_Support_Services_Approved_18D0004_-_JA_FINAL.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 8

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

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

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFTC/PZIE

Purchase Request / Local ID Number: FA2487-18-R-0004

Program / Project (and PE, if applicable):

F-35 JOINT STRIKE FIGHTER (JSF) ELECTRONIC WARFARE SYSTEM (EWS), COMBAT

ELECTROMAGNETIC ENVIRONMENT SIMULATORS (CEESIM), SIMULATOR SUPPORT

SERVICES

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $7,680,000 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

30 May 2018

Project Lead / Program Mgr / Requiring Activity Robert DeYong

ACC 513 EWS DSN: 872-4503, COM: (850)882-4503

Signature

Date

30 May 2018

Contracting Officer Erik Urban

AFTC/PZIE/850-882-5261

Signature

Date

05 Jun 2018

Local Legal Reviewer Carolyn J. Tolman, Acquisitions Attorney

96 TW/JA

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

15 Jun 2018

Competition Advocate Katherine B. Hodges AFLCMC/PK OL Eglin, 872-0150

Signature

DEYONG.ROBERT.A.107

2514757

Digitally signed by

DEYONG.ROBERT.A.1072514757

Date: 2018.05.30 13:23:43 -05'00'

URBAN.ERIK.J.10443338

Digitally signed by

URBAN.ERIK.J.1044333860

Date: 2018.05.30 13:30:08 -05'00'

TOLMAN.CAROLYN.JO

HANNAH.1253304770

Digitally signed by

TOLMAN.CAROLYN.JOHANNAH.1253304770

Date: 2018.06.05 14:40:51 -05'00'

HODGES.KATHERINE.B.

1230368038

Digitally signed by

HODGES.KATHERINE.B.1230368038

Date: 2018.06.15 10:42:39 -05'00'

March 2018 FOR OFFICIAL USE ONLY Page 2 of 8

I. Contracting Activity.

Air Force Material Command (AFMC), Air Force Test Center (AFTC), Specialized Contracting Branch (PZIE), Eglin AFB, FL is responsible for the proposed contracting action.

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

The proposed contract action will be a new single award Indefinite Delivery Indefinite Quantity (IDIQ) contract consisting of Fixed Price CLINs for spares, Cost Plus Fixed Fee CLINs for engineering technical support, repairs, and upgrades, and a Cost Reimbursable (No Fee) CLIN for travel. The ordering period will be for five (5) years. Contract award is anticipated in the fourth quarter of FY18 and will be funded with a combination of US Air Force and US Navy O&M budget appropriation, F-35 Joint Program Office (JPO) RDT&E budget appropriation, and Norway/Italy partner funding. This will be a new contract for continued sustainment support of the existing Combat Electromagnetic Environment Simulators (CEESIMs) located in the United States Reprogramming Laboratory (USRL) as well as the Synchronization and Control Subsystems (SCS) located in the USRL and Norway Italy Reprogramming Laboratory (NIRL).

This Class J&A covers all delivery orders issued under the IDIQ contract. The contractor will be Amherst Systems, Inc. (ASI), a Subsidiary of Northrop Grumman, Cage Code: 1L4J7; a large business located at 1740 Wehrle Drive, Buffalo, New York 14221, (716) 626-3120.

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

The Air Combat Command (ACC), 513 Electronic Warfare Squadron (EWS) and Partner Support Center (PSC), requires the ability to obtain spare parts, repair parts, technical engineering telephone & on-site support, and additional components for the F-35 Mission Data Development mission at the United States Reprogramming Laboratory (USRL) and Norway Italy Reprogramming Laboratory (NIRL). The 513 EWS primary mission is to program, test, and field mission data for mission systems on the F-35 aircraft. The 513 EWS serves as the sole Department of Defense provider of Mission Data reprogramming support for US Air Force, US Navy and US Marine Corps F-35 Joint Strike Fighters. The squadron operates/maintains two hardware in the loop test lines. The Partner Support Complex (PSC) provides Mission Data reprogramming support for Norwegian and Italian F-35 Joint Strike Fighters and operate/ maintain the NIRL hardware in the loop test line. The contemplated IDIQ contract is considered a services/supplies hybrid contract.

Under the contemplated contract, Amherst Systems Inc. (ASI) will provide the following supplies and services through the issuances of delivery orders against the basic contract: (1) provide unit components/subassemblies and support equipment in accordance with the agreed upon pricing list to be negotiated and included in the Basic contract; (2) provide technical telephone support for USRL/NIRL optimization and testing of mission data, components/ subassemblies on an as needed basis in order to troubleshoot, install, maintain, and/or support both additional and existing components/subassemblies in the estimated amount of 285 hours for the USRL and 100 hours for the NIRL; (3) provide on-site Field Service Engineer (FSR) at Eglin AFB FL; (4) provide on-site technical support for the USRL/NIRL optimization and testing of mission data, components/subassemblies as required to include train, troubleshoot, install, maintain, and/or support both additional and existing components/subassemblies with estimated travel to include 5 trips consisting of 1 week each to the USRL and 2 trips consisting of 1 week each to the NIRL; and (5) repair components/subsystems as required in the estimated amounts of 36 man/hours and $15,000 in materials for the USRL and 24 man/hours and $10,000 in materials for the NIRL. The table below breaks out the anticipated maximum ordering amount over the five (5) year period of performance for the USRL:

March 2018 FOR OFFICIAL USE ONLY Page 3 of 8

Year 1 Year 2 Year 3 Year 4 Year 5 USRL Total

CLIN 1 SPARES $495,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $5,295,000

CLIN 2 TELEPHONE SUPPORT $50,000 $50,000 $50,000 $50,000 $50,000 $250,000

CLIN 3 ON-SITE TECHNICAL SUPPORT $300,000 $300,000 $300,000 $300,000 $300,000 $1,500,000

CLIN 4 TRAVEL $18,000 $18,000 $18,000 $18,000 $15,000 $87,000

CLIN 5 REPAIRS $26,000 $26,000 $26,000 $26,000 $26,000 $130,000

CLIN 6 UPGRADES $0 $0 $0 $0 $0 $0

CLIN 7 DATA REQUIREMENTS $5,000 $5,000 $5,000 $5,000 $5,000 $25,000

$894,000 $1,599,000 $1,599,000 $1,599,000 $1,596,000 $7,287,000 and NIRL:

Year 1 Year 2 Year 3 Year 4 Year 5 NIRL Total

CLIN 1 SPARES N/A N/A $30,000 $30,000 $30,000 $90,000

CLIN 2 TELEPHONE SUPPORT N/A N/A $20,000 $20,000 $20,000 $60,000

CLIN 3 ON-SITE TECHNICAL SUPPORT N/A N/A $18,000 $18,000 $18,000 $54,000

CLIN 4 TRAVEL N/A N/A $11,000 $11,000 $11,000 $33,000

CLIN 5 REPAIRS N/A N/A $10,000 $10,000 $10,000 $30,000

CLIN 6 UPGRADES N/A N/A $30,000 $30,000 $30,000 $90,000

CLIN 7 DATA REQUIREMENTS N/A N/A $12,000 $12,000 $12,000 $36,000

$131,000 $131,000 $131,000 $393,000

The total estimated dollar value for this procurement will be $7,680,000. Funding will be provided by the US Air Force and US Navy, using 3400 and 1804 O&M appropriations, respectively; the F-35 Joint Program Office (JPO), using 3600 RDT&E appropriations; as well as Norway/Italy partner funding provided through the F-35 JPO as 3400 funds. For the USRL portion of this acquisition, CLINs 1-5, and 7 will be funded with 3400 and 1804 O&M funding and CLIN 6 will be funded with 3600 RDT&E funds. Funding for the NIRL portion will be provided using Norway/Italy partner funding provided through the F-35 JPO as 3400 appropriations. The Norway/Italy funding is not provided through Foreign Military Sales (FMS) contract; it does not require a Letter of Agreement (LOA). The F-35 Joint Strike Fighter (JSF) Program is an internationally oriented program consisting of partnerships with a number of countries. The core JSF program is a multinational cooperative development program comprised of nine partner nations: United States, United Kingdom, Italy, The Netherlands, Turkey, Australia, Canada, Denmark, and Norway. The F-35 JPO is responsible for requesting and distributing funding from partner nations. Funding is transfered from the Partner country's bank to a JSF Holding Account controlled by the F-35 JPO. Partner funding for this procurement will be sent by the F-35 JPO to the the 53 Wing via Electronic Fund Transfer (ETF) as 3400 funds.

There are no feasible actions that could develop future competition over the next 5 years, and it is reasonable to seek approval for more than one fiscal year's requirements. However, the F-35 JPO is working on the next block upgrade to F-35, and there is a possibility that ASI spares and support will not be needed beyond 2024.

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

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(ii), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, required by FAR 6.303-2(b)(4).

March 2018 FOR OFFICIAL USE ONLY Page 4 of 8

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

Subsection 1

The Combat Electromagnetic Environment Simulator (CEESIM) is a highly specialized simulator system used for the F-35 Mission Data Development mission. These simulators were originally purchased under the N00019-02-C-3002, Joint Strike Fighter Program Office, ACAT 1D contract.

The total investment to date is over $280M in hardware and over $80M in developmental costs, a total of $360M. The initial simulator system was certified, delivered and integrated with various other sub-systems in the USRL by Lockheed Martin (LM) to support development, testing, verification, validation and fielding of critical F-35 electronic warfare programming. Although the simulator system is certified, delivered and integrated by LM, the simulator sub-systems (CEESIM and SCS) were developed and produced by ASI. The USRL laboratory contains two 4GRF CEESIMs and multiple Environment Generation and Analysis (EGA) workstations. The USRL EW Stimulator CEESIM includes twelve channels of RF generation which create 56 outputs covering the full high band frequency range. The SCS is an integrated hardware/software system used to create, edit, correlate and control multi-spectral test scenarios involving multiple simulators, stimulators, and sensor/threat models. The SCS provides a timing and synchronization network, a stimulator control system, data collection capabilities, scenario simulation control software, and interface units designed to drive an avionics system under test (SUT). It includes a suite of tools to create and maintain the files needed to run a multi-spectral test and then log, archive, and analyze test results. Using one master scenario, the SCS synchronizes and correlates multiple test assets. ASI developed SCS installations in both the F-35 and F-22 mission system integration labs control the following; EW Stimulator, Radar Stimulator, IR/EO Sensor Stimulator (F-35 DAS), Communication, Navigation, Identification (CNI) Function Stimulator, Signal Measurement System (SMS), INS/GPS stimulator, and Central mission models, such as the Government-provided Joint Integrated Mission Model (JIMM), can be integrated into SCS to support specific Government test facilities. The SCS ensures that the multi-spectral signals/scenes generated by environment stimulators or models are correlated in time and position. During a test run, each stimulator uses scripted and/or real-time position and orientation updates and model-specific event data to produce signals that stimulate the avionics sensors. These simulator sub-systems are considered highly specialized due to the requirement that they exactly mirror the operations of an F-35 aircraft. Without these system simulators, the entire system would be unable to test mission data that is critical to the F-35 being fielded to the Air Force, Navy, Marines and foreign partners.

This acquisition will be a follow-on contract for continued simulator support services. The work is currently being accomplished under contract, FA2487-14-D-0233. This IDIQ contract was awarded by AFTC/PZIE sole source to ASI to provide the USRL with the ability to obtain spare parts, repair parts, technical engineering telephone & on-site support, and additional components for the F-35 USRL Mission Data Development mission as future block upgrades are installed on the USRL. The 513 EWS, primary mission is to produce F-35 Joint Strike Fighter Electronic Warfare Mission Data.

The 513 EWS operates and maintains two (2) hardware-in-the-loop test lines which make up the F-35 USRL. Due to the F-35 program being relatively new there is a lack of failure rate data to predict the life of the system components. The USRL was purchased and delivered without any spare parts to support ongoing mission requirements. This three (3) year IDIQ has allowed for the 513 EWS to develop a good working relationship with ASI and to quickly and effectively obtain parts and technical support for their simulator systems. The last delivery order for this IDIQ was placed 11 September 2017 to provide support through the FY18 fiscal year. ASI has supported the F-35 JSF program for over 10 years, with CEESIM and/or SCS simulators in every integration and reprogramming lab: StimSIS, USRL, RC West, ACURL, and NIRL. They have demonstrated a deep understanding of the JSF stimulator, security, and sustainment requirements, and the laboratory

March 2018 FOR OFFICIAL USE ONLY Page 5 of 8 processes.

Therefore, this acquisition will be a follow-on IDIQ contract for the continued sustainment of highly specialized equipment and continued performance of a highly specialized service.

Subsection 2

Award to any other source would result in unacceptable delays in fulfilling the Air Force's requirements. ASI is the Original Equipment Manufacturer (OEM) of the existing Combat Electromagnetic Environment Simulators (CEESIM) and Synchronizer Controller Subsystems (SCS), and as such possess the required expertise, drawings, data, software, and intellectual property necessary to sustain these systems. To provide the requirement under this contract, a contractor must have a prior and detailed working knowledge of the unique hardware and software involved. This must include knowledge in (1) design and operation of the hardware and software and (2) the modeling software and its interfaces with the hardware. As the designer, developer, and sole qualified producer of the simulator systems, only ASI possesses the above in-depth knowledge and experience required to perform this contract. The present design, software/hardware and test data are proprietary to ASI and without that data being available to provide to other companies, there are no companies that can provide the supplies and services needed to support the mission other than ASI.

These simulators require personnel that understand the capabilities of the simulator and must have special program access to interpret and analyze the data. The facilities contain highly sensitive test data, results, and configurations necessary for the CEESIM and SCS to be effective assets to the F-35.

Without these assets, mission data is unable to be fielded to the warfighter due to the inability to verify and validate that they work. With ASI being the sole proprietors of the test data, results and configurations, ASI is the only source that can give the USRL spare parts to the CEESIM that are calibrated, meet configuration management requirements, and work properly to ensure the USRL and NIRL's validations and verifications of specialized F-35 Electronic Warfare Mission Data are correct.

These systems are critical to maintain configuration management stability as the output of mission data files must be commensurate with F-35 aircraft common primary mission equipment configuration. ASI owns all intellectual property rights to the radar components and subassemblies within the simulator systems and its source code. ASI is unwilling to negotiate the purchase of its intellectual property and data right. Without access to the data rights and technical data package it would be difficult for the 513 EWS or another vendor to acquire the sustainment parts, upgrades, and support need to keep the CEESIM and SCS in service. Furthermore, due to the complexity and risk of introducing configurations that may deviate from the baseline laboratory configuration there is a substantial programmatic risk of qualifying other potential sources to provide equipment that may not exactly mirror the current baseline USRL and NIRL setup. To qualify another source would entail contracting with another vendor for design, development and integration of a replacement EW stimulator and scenario control system. It would take approximately 18 months for the Government to develop an acquisition strategy and get a new vendor on contract. This is based on an estimated 6 months to develop and acquisition strategy and have that approved and approximately one year to get the contract awarded based on AFMC contracting timelines (AFMC MP 5304). In addition to the 18 month contracting timeline, security clearance timelines for the new contractor to operate in the specialized USRL and NIRL facilities would add approximately 4 months to the 18 month timeline.

This timeframe is based on current average length of time it takes for USRL personnel to receive clearance for special access programs within the facility.

Delays in contract award for CEESIM and SCS support would lead to gaps in services and prevent repairs should the USRL and NIRL lab facilities experience system failure. The CEESIM and SCS are critical to the production and reprogramming of F-35 mission data. Mission data is the information the aircraft needs to identify both enemies and allies on the battlefield. Without mission

March 2018 FOR OFFICIAL USE ONLY Page 6 of 8 data, the F-35 would not be able to effectively use electromagnetic and directed energy to control the electromagnetic spectrum or to identify and attack the enemy. Therefore, inability to produce and maintain mission data would increase the vulnerability of the F-35 to enemy threats that use electromagnetic capability to track and target aircraft. Additionally, the USRL would be unable to meet the 24 hour emergency reprogramming requirements in support of contingencies and combat operations mandated in AFI 10-703 Electronic Warfare Integrated Reprogramming. The USRL would also be unable to support operational testing to fully evaluate all EW software or mission data changes (AFI 10-703).

Subsection 3

Accordingly, Amherst Systems, Inc. is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing unacceptable delays in fulfilling the agency's mission requirements.

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

In accordance with DFARS PGI 206.302-1(d), a pre-solicitation Sources Sought announcement of this requirement was posted to Federal Business Opportunities (FedBizOpps) on 16 January 2018. It was posted under the Synopsis number FA2487-l8-R-0004 F-35 JSF EWS CEESIM Simulator Support Services. The synopsis included a description of the tasks for this contemplated requirements contract.

A response date was established as 15 February 2018. The incumbent, ASI responded with a capability statement addressing the technical requirements of the pending acquisition. Only one other company inquired about the synopsis but did not send a capabilities statement. Bowhead Systems Management, LLC (BSM) sent a copy of their DD Form 2345 requesting a copy of the Performance Work Statement (PWS). A copy was provided to BSM on 7 February 2018. BSM did not follow-up or send a capability statement. Upon review of their response and the lack of response from any other company, it is clear that ASI is the only responsible source to meet the requirement and no other supplies or services will satisfy agency requirement.

This action will require a Notice of proposed Contract Action (NOCA) in accordance with FAR 5.201.

The NOCA is expected to be published on in the 3rd Quarter of FY18.

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

The anticipated cost to the Government will be determined fair and reasonable through cost and price analysis in accordance with FAR Subpart 15.4. A technical evaluation of the contractor's proposal will be conducted by the 513 EWS. The previous contract has direct and indirect rates that have been determined fair and reasonable and those rates will be used as a basis for comparison of new proposed rates. Available DCMA Forward Pricing Rate Agreements or Recommendations will be utilized. All materials proposed will be analyzed and compared to the same or similar items' prices. Fee will be determined fair and reasonable by comparison with fee negotiated under similar previous efforts, or through use of Weighted Guidelines if no other method exists. At the conclusion of negotiations, the contractor will be required to provide certified cost and pricing data in accordance with FAR 15.406-2-(a). Fair and reasonable pricing will be determined at the Delivery Order level by utilizing the methods stated above; at award of the basic IDIQ contract, fair and reasonable pricing will be determined for the work scope negotiated under the first delivery order.

March 2018 FOR OFFICIAL USE ONLY Page 7 of 8

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 posting a sources sought of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. ASI was the only company to respond by providing a capability statement showing they are willing and able to perform the work required. Bowhead inquired about and was sent a copy of the PWS but did not provide a statement of capabilities or any further response to the Sources Sought indicating that they are willing and/or able to perform the work stated.

ASI is the incumbent contractor and owns all intellectual property rights to the radar components and subassemblies within the simulator systems and its source code. The results of this market research provide a high level of confidence that ASI is the only responsible source and no other qualified sources exist.

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

No other facts.

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

See Section VI 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.

This J&A covers more than one year's requirements because the same competitive issues described in Sections V, VI, and VIII are expected to exist as long as the 513 EWS, PSC, and F-35 Joint Program Office (JPO) utilize the CEESIM and SCS as critical subsystems for the USRL and NIRL to provide electronic warfare mission data and reprogramming for the F-35. However, the JPO is currently working to define requirements for the next generation Electronic Warfare stimulator to support the next F-35 block upgrade. The JPO has not finalized an acquisition strategy, and if they decide on competition, a contractor other than ASI could be selected. Therefore, a requirement for the scope defined by this J&A with ASI may not exist beyond 2024. The cognizant contracting organization shall examine the acquisition situation at that time and determine whether a sole source follow-on effort to this IDIQ is justifiable.

In accordance with the approved Acquisition Strategy, the Government did not acquire technical data suitable for competition for the baseline F-35 or its subsystems under the competitively awarded System Development and Demonstration contract (SDD). The CEESIM and SCS are integrated sub-systems of the USRL and NIRL. USRL and NIRL integrated lab components are not able to be broken out for individual parts procurements because the Government does not own the technical specifications necessary to ensure compatibility of the parts with the USRL and NIRL's system integration, performance, and configuration requirements. The Government has engaged with ASI to see if they are willing to negotiate purchase of the source code and data rights for the CEESIM and

March 2018 FOR OFFICIAL USE ONLY Page 8 of 8

SCS. ASI has been unwilling to do so. This agency will continue to monitor the industry through trade journals, technical symposia, and contact with industry representatives to remain abreast of potential sources should a future need arise. Any future requirements outside the scope of this justification will be reviewed and market research will be conducted. The previous J&A for this requirement stated that continuing market research would be conducted to monitor the industry and other contractor's ability to support this requirement. Market research has been conducted and to date no other source has been identified as having the technical knowledge and necessary parts and equipment available to support this requirement.

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.