LMR_J A_FINAL_Redacted.pdf

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

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.

Choose the funding level for this J&A Document:

< $650K > $650K and < $12.5M > $12.5M and < $85.5M > $85.5M

Contracting Activity: Dept. of the Air Force, 92d Contracting Squadron

Purchase Request / Local ID Number: F1X3CS5026AW01

Program / Project (and PE, if applicable): Land Mobile Radio (LMR) Trunking System Maintenance Services

Program Type (PEO or Other Contracting): Other Contracting

Authority (include full title): 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(A)

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

01 Jul 2015

Contracting Officer

Audra L. Dorn

92 CONS/LGCA, 509-247-2163

Signature

Date

01 Jul 2015

Project Lead / Program Mgr / Requiring Activity

Kaleb Eberle, SSgt

92 CS/SCO

Signature

Date

01 Jul 2015

Local Legal Reviewer

Gavin Johnson, Capt

92 ARW/JA,

Signature

Date

01 Jul 2015

Competition Advocate

Michael P. Gilbert

92 CONS,

Signature

APPROVAL (AFFARS 5306.304(a) )

Date Command Competition Advocate Gregory S. Oneal

AFICA/KM,

Signature

02 Jul 2015

I. Contracting Activity.

Department of the Air Force, 92d Contracting Squadron, 110 W. Ent St., Fairchild AFB (FAFB), WA 99011-8568. This effort is a Justification for Other Than Full and Open Competition for requirements funded by Purchase Request Number: F1X3CS5026AW01

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

Through this individual Justification and Approval (J&A), 92 CONS/LGCA intends to award a Firm Fixed Price contract to the proposed contractor:

Motorola Solutions, Inc., (Motorola) 7031 Columbia Gateway Dr., Fl 3 Columbia, MD 21046-2583

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

Under the contemplated contract, Motorola Solutions, Inc., will perform maintenance, repair, and training on the Motorola ASTRO 25 LMR Trunking System which will include 24/7 O&M support and remote monitoring via Motorola's Network Operations Center. The proposed contract will consist of one (1) 12-month base year from 30 September 2015 to 29 September 2016 and four (4) 12-month option years. The estimated cumulative value of this contract is The type of appropriation is 3400, Operation and Maintenance. The anticipated performance period is 30 September 2015 through 29 September 2020.

Services to be provided, in accordance with the PWS, include:

1) Help Desk Services: Telephone technical support 24-hours per day, 7 days per week, 365 days a year, for problem identification and resolution, including: help desk ticket creation, tracking, critical support (remote and on-site technical support), and closure. The Help Desk shall initiate the trouble shooting process and determine the level of technical support required to correct the discrepancy.

2) Network Monitoring: 24-hours per day, 7 days per week, 365 days a year remotely monitor and detect abnormal conditions for system operations including: monitoring, technical support, and technician dispatch services.

3) Corrective Maintenance: including replacement parts, routine software maintenance, patches, quarterly remote or on-site vulnerability scans (per DoD's Computer Emergency Response Center), and password management services. Proprietary Information: Motorola is the only source capable of the continued development of new circuit paths between radio tower sites and the highly specialized knowledge of the circuit infrastructure major system. An outside contractor cannot be trained on the infrastructure configuration, hardware and software configuration that routes information over the infrastructure due to the aforementioned specialized proprietary knowledge owned by Motorola. Accordingly, Motorola Solutions, Inc., is the only firm capable of providing the services identified in the PWS without the US Air Force experiencing unacceptable delays in fulfilling its requirements.

4) Training: will be provided onsite to FAFB radio technicians by Certified Motorola Technicians annually, and could include any two of the courses identified in the PWS. Motorola installed the entire system and designed the infrastructure in 2013 and is the only contractor with the capability to continually redesign circuit paths as infrastructure requirements change from year to year. Motorola is the only contractor with the proprietary knowledge, training, and software. Motorola is the only source for training of administrative modifications on this equipment. It only offers this training within its company and by its employees. It neither releases the knowledge, training, nor software required for administrative modification of the router and server equipment. Motorola does not offer this training or knowledge openly to the rest of the industry.

IV. Statutory authority permitting Other than Full and Open Competition.

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

FAFB's Enterprise Land Mobile Radio (ELMR) network relies solely on the ASTRO25 core to route voice communications and control information to all users and tenant units. The ELMR systems configuration is critical to radio network operations and maintenance. The ASTRO25 system supports ELMR capabilities including Information Assurance (IA) certifications and accreditations, Integrated Voice and Data (IV&D), Over-the-Air-Rekey (OTAR) with centralized key management facility, Over-the-Air-Provisioning (OTAP), centralized NICE Voice Log Recording, Network Management, Motorola Gold Elite and MCC7500 integrated console operations. Maintenance activities will provide continued coverage for existing factory warranties. Motorola systems are proprietary in nature and require utilization of same brand core components and/or certified third party products to ensure 100 percent interoperability and functionality of the system. Motorola's maintenance provides real-time updates via proprietary software and firm ware allowing seamless distribution of encryption keys to the network. The patented nature of the services required creates a barrier to competition.

Motorola's business model allows for small businesses to receive contract awards; however, they are incapable of performing the 24/7 O&M support and remote monitoring (which comprises the vast majority of this requirement).

Other vendors, in turn, sub-contract the work to Motorola. This was demonstrated through 21 acquisitions that were awarded to vendors other than Motorola. Analysis determined that, on average, 94% of each contract's services were sub-contracted to and performed by Motorola. Although, several vendors can provide portions of the services, only Motorola can provide the remote maintenance on the "Trunking System", provide the paramount 24/7 monitoring, and necessary software updates due to the equipment and service knowledge being proprietary.

Again, these three aspects of service comprise the vast majority (by both cost and by customer/vendor interface) of this requirement.

The 92d ARW believes that award to any other source 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. Based on the anticipated price for these services and anticipating a similar level of required pass-through as was experienced on other Government procurements, factoring in conservative levels of profit and G&A, it is estimated that contracting with an alternate vendor for this service could result in approximately $450K in duplicative cost. It cannot be assumed that this duplicative cost could be recovered through competition, as Motorola ultimately controls the pricing that they pass on to other vendors and would have nearly full control of their competition.

Accordingly, Motorola Solutions, Inc. is the only firm capable of providing the 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 practicable.

The information contained in this section was obtained from the Air Force Space Command's (AFSPC) 21st

Contracting Squadron's efforts to purchase substantially equivalent services. The Justification for Other than Full and Open Competition (J&A) was approved by AFICA/KS on 18 February 2015.

According to AFSPC's published J&A, a Sources Sought/Request for Information (RFI) was posted to Federal Business Opportunities (FBO) on 3 December 2014. A draft PWS was also attached to the posting. A total of four responses were received:

a. Serco, Inc.

b. LS Technologies

c. DELTEK

d. Motorola Solutions, Inc.

Serco Inc., and LS Technologies are both capable of completing the LMR requirement, however, they would both subcontract the requirement to Motorola Solutions, Inc. One contractor, DELTEK did not provide any information to address this offer specifically. This respondent also did not provide a summary of the services they provided or the items they manufactured.

Market research, completed by FAFB on 1 June 2015, identified several vendors capable of performing small portions of the service; however, FAFB supports the conclusions reached by AFSPC in which contracting directly with Motorola will allow the Government to forgo pass-through costs. Any other contractor, except for Motorola, would do less than 20% of the total work making it highly unlikely the prime contractor would provide any added value. This would likely result in the Government paying additional fees or profit. By contracting directly with Motorola, the FAFB radio technicians will be going directly to the experts for any technical repair/maintenance issues, rather than having to route all service calls and trouble tickets through a prime contractor to Motorola, the subcontractor.

This requirement was synopsized to the GPE on 16 June 2015. The solicitation, along with this document, will also be publicized on the GPE. Nothing prevents or precludes an interested vendor from submitting a proposal;

however, for the reasons stipulated above, it is unlikely that such a proposal would result in savings to the Government. Approximately 80% of the requirements can ONLY be accomplished by Motorola, as they hold proprietary data rights over their manufactured hardware, software, and firmware in addition to the direct data line that connects their technical center with Fairchild.

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

Several methods are available for the Contracting Officer to make a determination of fair and reasonable pricing. In this instance, a Firm Fixed Price, Option Year Contract is proposed, limiting risk to the Government and quantifying the scope of work. Substantial data is available with GSA retail vendors, contracts issued by other federal agencies and Air Force installations, as well as published Wage Determinations for the Government to estimate the anticipated cost with a degree of accuracy to allow for a determination of fair and reasonable pricing.

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

Substantial market research was conducted by both AFSPC and FAFB. Research revealed a highly competitive market with Motorola serving as either the direct provider of service to the Government or center point as a subcontractor to a prime. Market research conducted by FAFB identified a highly competitive market of Motorola subcontracts, distributors, and other loosely connected business relationships who would likely be utilized by Motorola for small, on-demand/onsite work. To guarantee access to Motorola's help desk expertise, reduce the potential for miscommunication, and reduce pass-through costs, a sole source acquisition was recommended.

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

Government Accountability Office (GAO) File B-409148 dated 28 Jan 14 sustained Motorola's protest of an Army award to Harris Corporation. Contracting with a company other than Motorola does not guarantee Motorola will subcontract with the selected vendor. Motorola does not sell mission critical products on the open market and reserves the right to issue a quote or not. Motorola's maintenance provides real-time updates via proprietary software and firm ware allowing seamless distribution of encryption keys to the network. Several sole source acquisitions for this service by AFSPC, the Department of Homeland Security, and other agencies substantiate the need for a sole source to avoid pass through charges to have a vendor manage a subcontract.

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.

At this time, there are no further actions that FAFB can take that would remove or overcome the current barriers to competition. Until FAFB replaces the current trunking system, at a likely cost of $3M - $5M, or other vendors gain the required service capability, competitive award will not be possible. We will continue to monitor the marketplace for changes in this industry that may potentially remove barriers to competition.

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.