JA_Signed_Redacted.pdf

FOR OFFICIAL USE ONLY

COORDINATION AND APPROVAL DOCUMENT

CONTRACTING ACTIVITY: HQ AMC Specialized Contracting Branch PROJECT/PROGRAM: Command Post Console System AUTHORITY: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(c)

ESTIMATED CONTRACT COST:

TYPE J&A: Individual

COORDINATION DATE

Voice System Manager

Contracting Officer

Office of the Staff Judge Advocate

Chief, AMC Specialized Contracting Branch

APPROVED

Command Competition Advocate

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Department of the Air Force, Headquarters Air Mobility Command (HQ AMC), Specialized Contracting Branch, HQ AMC/A7KQC, 507 Symington Dr., Rm W202, Scott AFB, IL 62225- 5022. Individual Justification for Other than Full and Open Competition.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

AMC Specialized Contracting intends to issue a new, firm fixed price (FFP) contract for new Siemens Command Console Systems equipment and upgrading/installation services of existing/new Siemens Command Console Systems at the six HQ AMC locations listed below, a one year warranty on new equipment, an optional warranty for the subsequent year, and optional survivable shelves.

III. DESCRIPTION OF THE SUPPLIES/ SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

Under the contemplated contract, the contractor will upgrade existing and install new Siemens Command Post Console Systems with the latest Joint Interoperability Test Command (JITC) certified hardware and version 6 software at six HQ AMC locations. The Siemens Command Post Console System is currently in use at over 130 bases Air Force-wide, including those listed in this requirement. A Command Post Console System consists of a primary and alternate location. At the Naval Station Rota location, the contractor will be installing a Command Post Console System. At the Dover location, the contractor will be adding another alternate location.

At the other locations, the contractor will be upgrading existing console systems as well as installing new consoles. The contractor will also perform incidental services that include project management, console system installations, system testing, configuration management and user training in accordance with (IAW) the Statement of Work.

This estimate includes both the cost of a one-year warranty that supplements the basic warranty provided with the purchase of equipment, and the cost of an optional extended one-year warranty. The estimate also includes the optional installation of a “survivable shelf” at the alternate locations. A “survivable shelf” is the term used to indicate that an alternate location will have its own processor, so that if the primary command post goes down for any reason, the alternate “shelf” has its own capability to sustain operations, albeit at 20% capacity of the primary command post. For this acquisition, A6OI will utilize 100% Transportation Working Capital Funds (TWCF). It is anticipated that the contract will include both funded and optional line items.

The approximate time required for each upgrade/installation is 15 days. The work will be completed at the bases consecutively, not concurrently, as the team will complete each upgrade/installation before moving to the next location. The performance start date is anticipated to be 1 Jul 13, and it is anticipated that the contract will include both funded and optional line items. The estimated completion date of the upgrade and installation for all locations is 30 Jun 14.

Table 1 below depicts the estimated cost per base.

Table 1.

Table 2 below details the major components that will be installed at all places of performance.

ROTA

SPAIN

INCIRLIK TURKEY RAMSTEIN GE AVIANO ITALY SPANGDAHLEM

GE

DOVER AFB

DE

Pri Alt Pri Alt Pri Alt Pri Alt Pri Alt Pri Alt Mort

Building 2 1994 500 310 3334 2326 1360 1135 670 3030 203 714 116

Consoles 8 4 10 6 11 6 5 3 8 6 10 9 6

Recorder Yes No Yes No Yes No Yes No Yes No Yes Yes Yes

Conference Server

Yes No Yes No Yes No Yes No Yes No Yes No No

Dispatch Server

Yes No Yes No Yes No Yes No Yes No Yes YES Yes

Remote Shelf

N/A OPT N/A OPT N/A OPT N/A OPT N/A OPT N/A Yes Yes

Radio Nets 6 3 6 3 6 3 8 0 10 4 9 5 1

Table 2.

Equipment for Primary

Equipment for

Alternate

Equipment for Mortuary

(Dover Only) Installation

Services Travel (NSP) 1 Year

Warranty Total Cost for Basic CLINS

Cost for Survivable Shelf

Cost for 2nd Year Warranty

Cost for Basic CLINS and all

Optional CLINS

OPTION OPTION

725th AMS/AMCC Rota

NAS $

728th AMS/AMCC Incirlik $

313 EOSS Ramstein $

724th AMS/AMCC, Aviano $

726th AMS/AMCC, Spangdahlem $

DOVER AFB $ 1 1 1$

Total $

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 U.S.C. 2304(c), as implemented by FAR 6.302-1(c).

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY

CITED ABOVE (APPLICABILTY OF AUTHORITY)

Historically, this effort has been purchased as brand name only. The most recent purchase of a similar upgrade was solicited on a brand name or equal basis, resulting in only Siemens or Siemens partners being found technically acceptable.

With regard to the upgrade of the current systems, Siemens is the Original Equipment Manufacturer (OEM) of the existing Siemens Command Post Console Systems and will not honor support from another system integrator/provider other than Siemens or their partners.

Significant changes to the equipment/software, including upgrades, will void existing OEM warranties and maintenance agreements, present and future, for the existence of the equipment.

The only authorized vendor to move, upgrade, or add expansions is the OEM or one of its partners. Any installations must be accomplished by OEM-certified technicians.

With regard to the equipment required for the upgrades and the installations on both the current and the previous acquisitions, all systems must be JITC-certified and have Multi-level Precedence and Preemption (MLPP) capability (IAW DoD Instruction 8100.3,) as well as an Approval to Operate/DoD Information Assurance Certification and Accreditation Process (ATO/DIACAP). The system must meet the critical interoperability requirements and be certified as interoperable for joint use within the Defense Information System Network (DISN).

Currently, the only contractors whose systems have the required JITC certification and meet the critical interoperability requirements are Siemens Enterprise Corporation and . However, AMC has an ATO/DIACAP for only Siemens. If AMC were to obtain an ATO/DIACAP for a solution, could technically meet the needs of the requirement; however, instead of performing upgrades to the existing Siemens Command Post Console Systems, they would have to remove them and replace them with their own, as only Siemens and Siemens’ partners can install Siemens software. The removal and replacement would result in a substantial duplication of cost. Therefore, this acquisition will be for highly specialized brand name equipment and related services.

In accordance with 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Siemens brand products are essential to the government’s requirement, thereby precluding consideration of a product manufactured by another company. HQ AMC/A7KQ has determined IAW FAR 6.302- 1(a)(2)(ii) & (iii) that award to any other brand would result in substantial duplication of cost to the government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force’s requirements.

The cost of replacing a Siemens system is estimated at a minimum of per location, based on contract FA8771-04-D-0009-QP54, which provided the installation of a Siemens command post at Fairchild AFB, WA, for a total price of $621,502. The estimated cost of upgrading a Siemens system is below $200,000 per post, based on contract FA4452-12-C-0002, CLIN 0001, which provided the upgrade of three Siemens posts for a total price of $491,444.

The estimated cost differential of replacing versus upgrading a Siemens command system is over

. Furthermore, any solution other than Siemens would require a new ATO/DIACAP to be generated at a cost of over and would delay the project over one year. The ATO/DIACAP process includes the following:

hiring an Enterprise Mission Assurance Support Service (eMASS) trained contractor, conducting tests, resolving issues identified during test, building the database in eMASS, submitting database for review, making necessary corrections, and obtaining Air Force Space Command approval. Until the upgrade and installation is accomplished, the equipment at all five locations will not be certified to operate on the network, and the Rota location will not have a system at all. A delay of over one year is unacceptable. The estimated cost for personnel needed to accomplish the ATO process is . This additional personnel cost, when combined with the estimated for replacing versus upgrading these command posts, results in an increase in necessary funding estimated at over if other than Siemens products are purchased.

Accordingly, Siemens and Siemens’ partners are the only firms capable of providing the supplies and services described in Section III 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. The use of the brand name only description in the acquisition is essential to the government’s requirements, thereby precluding consideration of a product manufactured by another company.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

A Sources Sought Notice was posted to the Federal Business Opportunities website on 1 Nov 12.

The notice included a brief description of the requirement and stated that the technical requirements of all systems must be brand name or equal to the latest JITC-certified version of the Siemens HiPath 4000 Dispatch Command and Control Communication System. The description included four of the five OCONUS locations, as the Rota, Spain and Dover AFB locations were added to the requirement later.

Four companies, ) responded. To assess ability to perform the effort, AMC reviewed each vendor’s capability package as summarized below.

: The requiring office found capable of performing the requirement only in Incirlik, Turkey. Therefore, is not capable of performing the entire requirement.

: The requiring office found not capable of performing the requirement because does not have an ATO/DIACAP.

: The requiring office found capable of performing the requirement only in Incirlik, Turkey. Therefore, is not capable of performing the entire requirement.

: The requiring office found not capable of performing the requirement because does not have an ATO/DIACAP.

An identical Sources Sought Notice was forwarded to the NETCENTS-1 and NETCENTS-2 vendors on 10 Jan 13. Two companies, (from NETCENTS-1) and

(from NETCENTS-2 Application Services Small Business Contract), responded.

stated they were not interested in the requirement. proposed a Siemens solution and was found capable of performing the requirement. While is not a partner of Siemens, they may submit a proposal for the current requirement by hiring Siemens as their subcontractor.

On 11 Jan 13, HQ/A7KQC performed a dynamic Small Business Administration Search utilizing NAICS 517110 and the keyword “Siemens.” This search produced six vendors. A Sources Sought notice was sent to the vendors via email on 11 Jan 13, and no responses were received.

Subsequently, on 19 Feb 13, the requiring office forwarded a signed and approved NETCENTS waiver stating that purchasing the requirement directly from the OEM or a partner company will result in savings of over .

This acquisition will be synopsized in accordance with FAR 5.201 as a brand name only requirement to Siemens and Siemens’ partners. Based on the results of the previous acquisition, completed in April 2012, as well as the current market research, the contracting office anticipates the receipt of at least three technically acceptable proposals: Siemens Enterprise Communications, . Both Siemens and

, a Siemens partner, submitted proposals for the previous acquisition, and submitted a capabilities package utilizing a Siemens solution in response to a Sources Sought Notice for the current requirement.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

For the proposed contract, the Contracting Officer will determine the price fair and reasonable by utilizing price analysis IAW FAR 15.404-1(b)(2)(i), comparison of proposed prices received in response to the solicitation, FAR 15.404-1(b)(2)(ii), comparison with current and historical prices for the same or similar services, and FAR 15.404-1(b)(2)(v), comparison of proposed prices with an independent government cost estimate.

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.”

Telephone conversations and emails with the Siemens’ DoD Sales Representative revealed that Siemens has partners, both large and small businesses, who sell and are certified to install their hardware and software. Siemens’ website http://www.siemens-enterprise.com/us/ allows access to their “Find a Partner” function, which confirms that, in North America alone, there are 129 partners, and in Germany, there are 1,534 partners. These are just two samples of dozens of locations wherein partners are listed. Additionally, the representative confirmed that often companies who are not Siemen’s teaming partners would bid with Siemens, as the subcontractor, doing the work. Due to the restrictions of the Non-manufacturer Rule as listed in FAR 19.502- 2(c) and 19.102(f), this requirement cannot be set aside for small business. However, small business resellers who are qualified agents of Siemens as well as small businesses that create subcontracting agreements with Siemens can provide the Command Post Console system and compete for the contract.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

None.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED 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

Due to the necessity to maintain OEM warranties and maintenance agreements for existing equipment, it is anticipated that the brand name cited above will continue to be the only brand name that will fulfill the government’s needs at this time and in the near future with respect to upgrading existing systems.

HQ AMC/A6OI will review the feasibility of utilizing alternate sources without detriment to the mission for future requirements consisting of the purchase and installation of the command post console system. Continued diligence regarding sources sought will be accomplished on future efforts to determine if there are any additional sources that can meet the needs of the government and whether the requirement to purchase brand name still exists.

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/10.htm http://www.siemens-enterprise.com/us/

XII. CONTRACTING OFFICER’S CERTIFICATION

The Contracting Officer’s signature on the Coordination and Approval Document evidences that she has determined this document to be both accurate and complete to the best of her knowledge and belief (FAR 6.303-2(b)(12)).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by his signature on the Coordination and Approval Document, the technical personnel has certified that any supporting data contained herein, which is his responsibility, is both accurate and complete (FAR 6.303-2(c)).