Redacted_JA_-_MPN25__FPN68.pdf

FOR OFFICIAL USE ONLY

COORDINATION AND APPROVAL DOCUMENT

CONTRACTING ACTIVITY: 763d Specialized Contracting Squadron PROJECT/PROGRAM: MPN-25 and FPN-68 Radar Support AUTHORITY: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

ESTIMATED CONTRACT COST:

TYPE J&A: Class

COORDINATION: DATE

KEVIN A. EVANS

Equipment Specialist

HQ AMC/A3AR

(618) 229-2125

LISA A. GROSS

Contracting Officer

763 SCONS/PKC

(618) 256-9965

WILLIAM C. JONES

Acquisition & Fiscal Law Div Office of the Staff Judge Advocate

HQ AMC/JAQ

(618) 229-0025

SUSAN R. MADISON

Director

763 SCONS/CL

(618) 256-9995

APPROVED:

GREGORY S. ONEAL

Command Competition Advocate

AFICA/KM

(618) 229-0267 kevin.evans.

Digitally signed by kevin.evans.

DN: cn=kevin.evans Date: 2015.05.17 11:50:38 -05'00'

GROSS.LISA.A. Digitally signed by GROSS.LISA.A.

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=GROSS.LISA.A Date: 2015.05.18 07:36:29 -05'00'

JONES.WILLIAM.C. Digitally signed by JONES.WILLIAM.C.

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=JONES.WILLIAM.C.

Date: 2015.05.18 10:05:21 -05'00'

MADISON.SUSAN.R. Digitally signed by MADISON.SUSAN.R.

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USAF, cn=MADISON.SUSAN.R Date: 2015.05.19 08:46:29 -05'00'

ONEAL.GREGORY.S. Digitally signed by ONEAL.GREGORY.S DN: c=US, o=U.S. Government, o KI, ou=USAF, cn=ONEAL.GREGORY.

Date: 2015.05.20 15:59:08 -05'00'

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Department of the Air Force, Air Force Installation Contracting Agency, 763d Specialized Contracting Office, 507 Symington Dr., Rm. W202, Scott AFB, IL 62225-5022. This is a Justification for Other Than Full and Open Competition. Purchase Request (PR) numbers F3SF385026A001 and F3SF385098A001 have been received to fund this requirement.

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

This Class Justification and Approval for Other Than Full and Open Competition is to award a new cost contract with a combination of cost-plus-fixed-fee, firm-fixed price and cost reimbursement CLINs to Exelis Incorporated.

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

AGENCY’S NEEDS

HQ AMC/A3A Communications Operations Directorate requires logistical and technical support for three Air Mobility Command (AMC) owned MPN-25 Mobile Ground Controlled Approach Radar systems and two Navy owned FPN-68 Radar systems also known as Precision Approach Radar 2000 (PAR-2000) systems. The period of performance includes a base period spanning 13 Sep 15 to 12 Sep 16, four 12 month option periods, the last of which concludes on 12 Sep 20 and a 6 month extension of services. Continuing the need through option periods is necessary as no funds are currently programed to replace the existing radar systems. The MPN-25 systems are garrisoned at Joint Base McGuire-Dix-Lakehurst (JB-MDL), New Jersey but are deployable worldwide. The two FPN-68 systems are stationed at Robins AFB and JB-MDL (McGuire).

Under the contemplated contract, Exelis will provide the services outlined below in support of the MPN-25 and FPN-68 radar systems.

The services being acquired under the prospective contract include Program Support, Product and Technical Support, Materials, Packaging, Handling, Transportation/Shipping, Travel and Other Direct Costs (ODC). All FPN-68 related services are detailed on separate optional CLINs. Optional tasks for both the MPN-25 and the FPN-68 radar systems are also incorporated in the prospective contract which include Training, Depot Spares and System Refurbishment/Overhaul. The requirement is funded using 3400 Operation and Maintenance (O&M) Funds. An estimate of the cost breakdown amongst the base and option periods is outlined in Table 1 below:

Table 1: Independent Government Cost Estimate

PERIOD OF PERFORMANCE: 13 Sep 15 - 12 Mar 21 Summary

(Base + Options)

Total for Base Period

Total for Option

Period 1

Total for Option

Period 2

Total for Option

Period 3

Total for Option

Period 4

Six Month Extension of Services

Combined Total

CLIN X001 MPN-25: Program Support - FFP

CLIN X002 MPN-25: Product and Technical Support - CPFF*

CLIN X003 MPN-25: Materials - CR

CLIN X004 MPN-25: Packaging, Handling, And Transportation/Shipping - CR

CLIN X005 MPN-25: Travel & ODCs - CR

OPTIONAL

CLIN X006

Training (All Radar Systems) - FFP

CLIN X007

Spares Procurement (All Radar Systems) - FFP

CLIN X008

System Refurbishment / Overhaul (All Radar Systems) - FFP

CLIN X009

FPN-68 McGuire: Program Support - FFP

CLIN X010

FPN-68 McGuire: Product and Technical Support - CPFF*

CLIN X011

FPN-68 McGuire: Materials - CR

CLIN X012

FPN-68 McGuire: Packaging, Handling, And Transportation/Shipping - CR

CLIN X013

FPN-68 McGuire: Travel & ODCs - CR

CLIN X014

FPN-68 Robins: Program Support - FFP

CLIN X015

FPN-68 Robins: Product and Technical Support - CPFF*

CLIN X016

FPN-68 Robins: Materials - CR

CLIN X017

FPN-68 Robins: Packaging, Handling, And Transportation/Shipping - CR

CLIN X018

FPN-68 Robins: Travel & ODCs - CR

Total

*The estimated total cost includes the estimated fee for each period.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

10 USC 2304(c)(1), as implemented by FAR 6.302-1(a) and required by FAR 6.303-2(b)(4).

V. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS

OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY

CITED ABOVE (APPLICABILTY OF AUTHORITY)

MPN-25 and FPN-68 radar support is a highly specialized service required for the continued operation of the MPN-25 and FPN-68 radar systems. The MPN-25 is capable of providing service to commercial and military aircraft at remote, temporary, austere and/or unimproved airfields. The FPN-68 is a fixed-base, highly reliable solid state landing aid. The FPN-68 provides critical course and glide slope information to Air Traffic Controllers guiding aircraft requiring instrument flight rules (IFR) precision approach and landing capability. Services provided include depot-level repair, maintenance, operator training, supply support, technical support, system engineering, and documentation management at contractor’s facility as well as at deployed system locations, as specified by the government. Any disruption of the repair and replacement cycle for these systems would seriously impair the MPN-25’s and FPN-68’s mission capability. This requirement is a follow-on to a sole source award to Exelis under contract FA4452-14-C-0012 for MPN-25 and FPN-68 radar systems maintenance support with a base period of performance from 13 Apr 14 to 12 Apr 15 and a 6 month extension of services executed to continue performance through 12 Sep 15.

The technical data and rights, source code and software for the MPN-25 and FPN-68 radar systems remain the property of Exelis Inc. In emails dated 11 Feb 14 and 09 Jun 14 Exelis Inc.

confirmed that the MPN-25 and FPN-68 radars are not sold, leased, or licensed to the general public. Additionally, Exelis also confirmed that they are not willing to sell the data rights for the subject system. As Exelis has chosen to retain exclusive ownership of the specialized software source code which positions them as the only source capable of providing logistical support for continued operations of the MPN-25 and FPN-68 radar systems.

The government determined award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through competition. Exelis does not have any authorized resellers or teaming partners to provide service. However, even if award was made to another contractor, due to the proprietary software and technical data that makes up the majority of the MPN-25 and FPN-68 systems, Exelis would remain a required subcontractor, adding obligatory pass-through costs to any contract. Alternatively, the cost of acquiring similar radar systems made by is estimated at for the three MPN-25 systems and for the two FPN-68 systems. The subsequent cost of purchasing new systems along with the required maintenance would far exceed the cost to maintain existing radar units. These costs were calculated based on information accessed through WebFLIS, a government designated logistics information system that allows retrieval of information from the Federal Logistics Information System (FLIS) databases. WebFLIS is located at http://www.dlis.dla.mil/webflis/.

Additionally, if AMC replaces the MPN-25’s and FPN-68’s with alternative radar systems, a thorough check of spare parts inventory would be required to determine compatibility with the replacement radar systems. It is anticipated that the majority of the spare parts would not be compatible with an alternative radar system. Additionally, the costs associated with the relocation of the spare parts, which reside at an Exelis facility, could not be recovered through competition.

Accordingly, Exelis is the only firm 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.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

A Sources Sought was posted to Federal Business Opportunities on 07 May 14 with a requested response date of 06 Jun 14. However, after an extension to 20 Jun 14, the notice closed without any response. The notice requested information from respondents regarding their qualifications, experience, and interest in fulfilling the requirements for the three MPN-25 systems and two PAR-2000 radar systems. A draft Performance Work Statement (PWS) was attached to the notice and requested that respondents demonstrate their capabilities to meet all or some of the tasks specified in the draft PWS as well as identify any major risks. Respondents were requested to identify their small business status under the applicable size standard and, if a large business, an appropriate percentage, if any, for small business subcontracting opportunities. No sources responded to the Sources Sought request including Exelis Inc., the holder of the proprietary software and technical data rights. However, in an email dated 09 Jun 14, Exelis expressed their interest in this requirement. This sole source requirement will be synopsized IAW FAR 5.201(a).

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

IAW FAR 15.403-4 “the Contracting Officer shall obtain certified cost or pricing data only if the contracting officer concludes that none of the exceptions in 15.403-1(b) applies”. As none of the exemptions to FAR 15.403-1(b) apply and the requirement is above the threshold for obtaining certified cost or pricing data, $700,000, certified cost or pricing data will be required.

The contracting officer will enter price negotiations IAW FAR 15 to ensure the final price will be fair and reasonable. Information obtained from market research and certified cost or pricing data received will be utilized to create minimum, objective, and maximum negotiation positions.

IAW FAR 15.404-1(a)(3) cost analysis will be used to evaluate the reasonableness of individual cost elements. Additionally, since the anticipated contract contains cost reimbursement CLINS, a cost realism analysis will be performed IAW FAR 15.404-1(d). Cost realism analysis will be performed by ensuring contractor’s proposal reflects a clear understanding of the requirement and prices are consistent with their unique method of performance described in their technical approach. Furthermore, final negotiated price will be evaluated to verify that the overall price is fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT

CONDUCTED

Market research was conducted utilizing a variety of techniques including: discussions with the requiring activity, review of the current contract for MPN-25 and FPN-68 radar support, and a Sources Sought synopsis posted to Federal Business Opportunities as described in Section VI above. Market research results indicate that only one source is capable of meeting the MPN-25 and FPN-68 radar support requirements, Exelis Inc., as described in Section V above. Market research also determined that this is a non-commercial requirement, as the MPN-25 was created from major modifications of a COTS radar system incorporated at AMC’s request, and MPN-25 utilization among commercial markets and private industry are nonexistent. Additionally, an email dated 09 Jun 14 from Exelis confirmed that the MPN-25 has not been sold, leased, or licensed to the general public or are expected to become available in the commercial marketplace within the next 12 months. As the services for the MPN-25 are not for support of an item that meets the FAR 2.101 definition, the support services have been designated as non-commercial.

The FPN-68 also does not meet the FAR 2.101 definition of a commercial item. In an email dated 11 Feb 14 from Exelis Inc., the company confirmed that the FPN-68 radars are not sold, leased, or licensed to the general public. IAW FAR 2.101, since these services are for support of a non-commercial item, services for the FPN-68 have been designated as non-commercial. The required maintenance support services for the FPN-68 are similar to the MPN-25, they share the same theory of operation as well as many of the same hardware items. No special terms or provisions were found during market research. Additionally, no other sources were found during market research.

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

The USAF continues to look for replacements for aging Deployable Air Traffic Control and Landing Systems. HQ AMC/A3AR has used open competition to replace out-of-date subsystems and isolated parts but is unable to repair the core system assets without Exelis’ proprietary software or expertise. However, the government will continue to monitor the marketplace for any changes that may improve the competitive environment for the MPN-25 and FPN-68 systems.

XII. CONTRACTING OFFICER’S CERTIFICATION

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

XIII. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION

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