Sole_Source_JA_-_18-R-7002_-_Redacted.pdf

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

March 2018 Page 3 of 6

I. Contracting Activity.

21st Contracting Squadron Peterson AFB, CO 80914

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

The Government intends to solicit through other than full and open competition, a commercial, firm-fixed price, new contract to Motorola Solutions, Incorporated (Motorola) for a technology (tech) refresh of the Land Mobile Radio (LMR) trunking systems at 23 Air Force (AF) bases and the zone controllers located at Peterson AFB (AFSPC system) and Barksdale AFB (AFGSC system). The following bases are receiving the tech refresh:

The AFSPC-connected bases being refreshed are as follows:

Buckley AFB CO, Cannon AFB NM, Cheyenne Mountain Air Force Station CO, Edwards AFB CA, Eglin AFB FL, Hanscom AFB MA, Hurlburt Field FL, Los Angeles AFB CA, Patrick AFB FL, Peterson AFB CO, Robins AFB GA, Schriever AFB CO, Tinker AFB OK, United States Air Force Academy (USAFA) CO, Vandenberg AFB CA, and Wright-Patterson AFB OH.

The AFGSC-connected bases being refreshed are as follows:

Barksdale AFB LA, Dyess AFB TX, Ellsworth AFB SD, F.E. Warren AFB WY, Malmstrom AFB MT, Minot AFB ND, and Whiteman AFB MO.

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

Background - Outdated Hardware/Software

In accordance with (IAW) AF implementation of the 26 Feb 2016 Deputy Secretary of Defense memo 'Implementation of Microsoft Windows 10 Secure Host Baseline', all LMR trunking systems are required to be Windows 10 compliant by NLT Oct 2018. To be Windows 10 compliant, all Motorola-based LMR trunking systems, including the AFGSC and AFSPC systems, must be updated to Motorola trunking software version 7.17. Upgrading the software on these systems requires first replacing old and outdated equipment that cannot function with the new software.

The AF's LMR trunking systems must also maintain Information Assurance (IA) compliance to receive and hold an Authority to Operate (ATO) certification. Continuous software and security updates must be received from the Manufacturer to meet IA standards. Support for the current software version of the AFGSC and AFSPC trunking systems (v.7.13) expires . After this time, Requirement Summary

This is a LMR trunking system tech refresh requirement with an estimated value of $ and an anticipated one (1)-year Period of Performance (PoP) of 29 Sep 2018 to 28 Sep 2019 with no option periods. This will be a Firm-Fixed-Price (FFP), commercial, supply contract where services are considered incidental to performance. Due to the existence of services, a PoP will be used on each CLIN as opposed to specific delivery dates. This tech refresh requirement will include replacing pieces of LMR trunking equipment (across 23 bases) that have reached end-of-life and cannot be supported on the new trunking system software (exact quantities to be determined prior to award). For this requirement, the Contractor shall 1) reuse all current Radio Frequency (RF), dispatch, and management site equipment, 2) replace all outdated and end-of-life trunking equipment 3) perform a phased upgrade of the trunking system software at each installation and zone controller, and 4) provide all necessary equipment, materials, software, diagnostic and test equipment, vehicles, qualified and certified personnel, transportation, ancillary items, and supervision necessary to complete the trunking system tech refresh at each base.

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) and required by FAR 6.303-2(b)(4) When supplies or services required by the agency are available from only one responsible source and no other type of

March 2018 Page 4 of 6 supplies or services will satisfy agency requirements, full and open competition need not be provided for. Market research has indicated that the supplies and services provided by this requirement are only available from one source, Motorola.

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

Proprietary Hardware/Software

The LMR trunking systems being upgraded for this requirement are made up almost entirely of proprietary Motorola hardware and software, including repeaters, consoles, dispatch sites, routers, zone cores, and numerous specialized software programs designed to enhance functionality, interoperability, and performance. Motorola is the only company that can service this equipment/software or authorize service on the equipment/software without voiding manufacturer warranties or potentially voiding each system's Authority to Operate (ATO). Currently, bases use trunking systems made with Motorola equipment and software and bases use trunking systems made with Harris Corporation equipment and software . The 23 bases that are part of this dual zone core system (AFGSC and AFSPC) are required to use Motorola trunking equipment in order to maintain system interoperability and to stay connected to the two zone cores. The continued use of Motorola equipment and software is essential to the operation of these trunking systems.

Loss of Features

One further consideration for the proprietary technology on these trunking systems is the estimated radios/ bricks being used across the 23 bases receiving upgrades. Similar to the trunking equipment, the vast majority of these radios are Motorola brand radios. The Air Force Installation Mission Support Center (AFIMSC), which is responsible for maintaining the AF's LMR trunking infrastructure, has determined that currently, only Motorola radios are fully interoperable with Motorola trunking systems. A key feature called Over the Air Programming (OTAP) and other manufacturer specific radio features would be lost when using the Motorola radios on a different manufacturer's trunking system, if it were switched to another vendor's equipment. This would create significant manpower and mission effectiveness issues due to then having to manually reprogram radios at each base once or twice per year while not having those radios available for use during the reprogramming.

Replacement Costs

According to market research, it is estimated that replacing the trunking systems at each base with those of another manufacturer would cost at least for each base (or total). Replacing the associated radios with those of the other manufacturer to obtain full interoperability would cost . Currently, only Harris Corporation (Harris) trunking systems could be used as a replacement as Harris and Motorola are the only vendors that have received Joint Interoperability Test Command (JITC) certifications of their trunking systems, which is a DoD requirement. An AF LMR Spending Analysis found that zone core-based trunking systems save the AF approximately in operations and maintenance (O&M) costs over stand-alone trunking systems (including maintenance of the zone core). Since there are no Harris zone cores in place for the AF, replacing the current Motorola trunking systems with Harris trunking systems would not provide the same benefits of a zone-core based system. The current subject LMR system is manufactured by Motorola. As described in the Market Research Report, the cost of replacing the system with that of another manufacturer is prohibitive. The cost-effective option is to receive a tech refresh on the existing system to allow for the equipment to be utilized until end of life.

Motorola Authorized Vendors

Market research found that Motorola has approximately authorized resellers/vendors for Federal Mission Critical radio systems. However, Motorola stated with a letter dated 25 Sep 2017 that due to the size and complexity of this requirement, that it must take the lead on this project and will not allow any of its authorized vendors to propose on this requirement. This letter was reviewed by the 21SW/JA legal office in conjunction with the AFSPC legal office and found that Motorola, as a manufacturer acting alone, can legally limit the business activities of its vendors/distributors.

As a result of Motorola's letter and proprietary technology, Motorola is the only source that can complete this requirement. See Market Research Attachment 1 for the letter.

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

The proprietary nature of this requirement creates a barrier to competition, as the equipment, service knowledge, and software are all proprietary to Motorola. The only alternative in the LMR marketplace would be to switch systems to another vendor. However, any new trunking system manufacturer/vendor would have similar types of proprietary hardware and software that can only be upgraded by the manufacturer.

IAW FAR Subpart 5.2 and DFARS PGI 206.302-1(d), a combined RFI and Synopsis was published on the FedBizOps (FBO) website on 3 Nov 2017. As a result, only one response was received from Motorola. The AF has additionally identified

Motorola authorized vendors through market research. However, based upon the letter Motorola's sent on 25 Sep 2017, Motorola will not allow any of their authorized vendors to propose on this requirement. Therefore, the AF would either have to replace the both AFGSC and AFSPC LMR trunking systems and potentially the radios with those of another manufacturer, or go sole source to Motorola. Since the AF determined this to be too costly, it is in the best interest of the AF to complete a sole source contract to Motorola for this requirement.

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

The anticipated cost of this acquisition will be evaluated for fair and reasonableness prior to award IAW FAR 15.404-1(b). Although obtaining certified cost and pricing data is not allowed based on commerciality, the Contracting Officer will request data other than certified cost or pricing data from Motorola. Requested additional data may include copies of subcontractor proposals, equipment lists, breakouts of anticipated travel, per-base costs of similar upgrades performed by Motorola, and/or a breakout of proposed labor categories and fully-burdened labor rates.

Motorola will be required to provide a technical approach that will be evaluated by technical evaluators to ensure that it understands the requirement and the proposal meets the requirements identified in the Performance Work Statement (PWS). Technical representatives will also review and evaluate Motorola's technical proposal to support the price fair and reasonable determination (e.g. number of labor hours proposed, etc.).

The AF has obtained the Price Negotiation Memorandum (PNM) document from a joint Army/AF PACJK task order (W52P1J-18-D-0036-0001) to upgrade, expand, and connect the Army LMR assets in mainland Japan, the island of Okinawa, and Korea to the Joint Japan LMR system (J2LMR), the total price from Contract FA8732-14-D-0021, Order GSQ1016EC0016 to upgrade the Air Mobility Command (AMC) trunking system, and the total price from contract W52P1J-16-D-0088 to upgrade the Army Europe trunking system. The PACJK detailed pricing information and the overall contract prices and data from an Army Europe trunking upgrade and AMC trunking upgrade will be used as historical pricing to ensure prices proposed for this contract are fair and reasonable.

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, market research, IAW FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. Additional market research for this effort was conducted 1 Sep 2017 to 18 Jun 2018 IAW FAR 10.001(a)(2)(ii). As a result, the AF has determined that a sole-source, commercial, FFP contract should be used for this requirement. See the Market Research document for further details.

A letter received from Motorola on 25 Sep 2017 and a discussion with

, were used to determine that Motorola's authorized vendors would not be able to compete for this requirement. A combined RFI/synopsis for this requirement was published on the FedBizOps website on 3 November 2017. Only one vendor responded to the RFI/synopsis: Motorola.

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

None. See Sections V-VIII.

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

None. Although the AF identified Motorola authorized vendors, Motorola has stated with a letter dated 25 Sep 2017 that they will not allow these vendor to propose on this requirement.

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.

Since the vast majority of the LMR hardware and software is proprietary to Motorola, it is in the best interest of the Air Force to sole source to Motorola or compete amongst its authorized vendors until the AF changes its LMR trunking systems and radios to those of another manufacturer at great expense. However, other LMR manufacturers have similar proprietary hardware and software that would also cause barriers to competition.

For the current requirement, LMR equipment and services from another manufacturer can only be done at great expense, and is not in the government’s interest. In the future, if the LMR trunking systems at issue have reached end of life and there are other responsible sources available, the Air Force will try to procure LMR equipment and services from those sources if in the Air Force’s best interest.

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.