Justification_and_Approval_Raven_SUAS_(redacted).pdf

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

FOR OFFICIAL USE ONLY

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APPROVAL (AFFARS 5306.304(a) )

Date

29 Aug 2018

Competition Advocate AARON D. JUDGE, Lt Col, USAF Deputy Director of Contracting, OL-ACC

Signature

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I. Contracting Activity.

United States Air Force Acquisition Management and Integration Center (AMIC)

129 ANDREWS AVE, STE 110

Langley AFB, 23665

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

The United States Southern Command (USSOUTHCOM) has a brand name requirement to purchase RQ-11B Raven Small Unmanned Aircraft Systems (SUAS), initial spares, training and recurring contractor logistics support for security forces supporting United States Southern Command (USSOUTHCOM) counter narcotics (CN) efforts. This effort shall be a single award, indefinite delivery-indefinite quantity (IDIQ), with mostly Firm-Fixed-Price (FFP) CLINs. AeroVironment, Inc., a small business under NAICS 336411, Aircraft Manufacturing, will be the contractor under this IDIQ.

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

The Department of Defense (DoD), with the concurrence of the Department of State, plans to undertake activities to build the capacity of USSOUTHCOM Area of Responsibility (AOR) security forces to conduct counter narcotics efforts pursuant to Section 333 of Title 10, U.S.C. (Section 333). In order to support this USSOUTHCOM requirement, DoD plans to provide RQ-11B SUASs to improve unit reconnaissance capabilities and operational effectiveness against transnational organized crime groups conducting illicit narcotics trafficking in USSOUTHCOM's AOR. Once purchased, this requirement is expected to be continued through the next three (3) years at the delivery/task order (DO/TO) level.

However, the IDIQ will have five (5) one (1) year ordering periods.

Specifically, this requirement will provide the following defense articles:

• Up to 4 Raven RQ-11B Unmanned Aircraft Systems; to include:

• Up to 8 each Digital Data Link Pocket Remote Video Terminal Kits (2 each per 4 systems)

• Up to 4 each Initial Spares Packages

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In conjunction with the purchase and delivery of the Raven UASs, this requirement will provide supplemental training and contractor logistics support (CLS) designed to enable the partner nation to achieve full operational capability. The required training includes New Equipment Training (NET) and Train-the-Trainer Training (TTT). NET will provide familiarity and understanding of the Raven UAS capabilities in order for students to become proficient in the safe operation and maintenance of the system in tactical applications. TTT will improve partner nation self-sufficiency by providing trainers the capability of training other security forces to safely operate and maintain the Raven UAS. CLS will provide no more than two (2) years of contractor sustainment support on a FFP basis after delivery of each year's procurement to the USSOUTHCOM AOR. CLS also requires a push package of consumable, non-consumable spares, and repair and return support of non-consumable spares based on a usage rate of 100 flights per year per system. Finally, this effort also includes consolidating goods for shipment, accomplishing all export requirements and transportation (shipping costs) material and required travel for training efforts to specified location(s) in the SOUTHCOM AOR.

Note: Supplemental training and CLS may be order simultaneously or individually.

As a Section 333 program, this requirement will be funded using Operations and Maintenance (O&M), Defense-wide account funds. Unit cost restrictions do not apply to the use of O&M funds for procurement of defense articles in support of approved Section 333, Building Partner Capacity (BPC) programs that have cleared Congressional notification.

Additionally, this program must use the appropriation that is available in the year of Congressional notification. Section 333, Paragraph g(2)(B), Full Operational Capacity (FOC) provides a time-limited exception to the bona fide need rule.

FOC allows current year funds to pay for the needs not only of the current year, but also needs of subsequent fiscal years that would otherwise have to be funded out of future-year funds. For a program to qualify for FOC, it must: A) Obligate all the funds during the period of availability, B) deliver equipment to the Government in the FY following the FY in which the program begins, and C) expend training and CLS funds in the year equipment is delivered to USSOUTCOM AOR and into the next two full fiscal years. The initial base period FY18 requirement was included in the Section 333 package the Under Secretary of Defense for Policy sent to Congress on 23 Feb 18. It will be funded with FY18 DoD O&M funds, with Government acceptance and subsequent donation of the Raven UAS equipment to USSOUTHCOM in FY19 (anticipated Jun 19 time frame). Each of the subsequent ordering period acquisitions will follow a similar timeline, starting with the Congressional notification year. Any subsequent support contemplated under this contract is developed based on planned programs within USSOUTHCOM AOR, and will not be executed prior to completion of Congressional notification. The estimated ceiling for Raven UASs, training, CLS, transportation, and travel is $13M with five (5) one (1) year ordering periods.

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

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(I), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

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

The USSOUTHCOM's requirement is for a backpack portable, small UAS with 3 to 10 km range and 500 to 1,000 foot above ground level operations to provide close proximity Reconnaissance, Security, and Target Acquisition (RTSA) for security forces. The RQ-11B Raven*, manufactured by AeroVironment, Inc., is the only current DoD program of record UAS that can satisfy this requirement. AeroVironment is a small business under NAICS 336411, Aircraft Manufacturing, and the sole manufacturer of the RQ-11B Raven SUAS with no authorized distributors or resellers. Obtaining this highly specialized equipment, including major components, training, and CLS thereof, from any other source would result in unacceptable risk in fulfilling DoD's approved, Department of State concurred and Congressionally-notified BPC requirement for USSOUTHCOM.

*The RQ-11B includes Digital Dara Link Pocket Remote Video Terminal Kits, Spare Packages, and CLS.

(U//FOUO)

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Army IDIQ:

See paragraph VIII for more information.

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

The RQ-11B Raven UASs is a commercial and readily available to customers (Federal and Non-Federal entities).

The Contracting Officer can expect to purchase a Raven UAS, training, and CLS at a fixed-price. Based on that determination, price will be analyzed via the price analysis process IAW FAR 15.404-1. Data other than certified cost or pricing data may be also requested for analysis IAW FAR 15.403-3. There is also sufficient acquisition history through previous foreign military sales (FMS) contracts for exportable RQ-11B Raven UASs.

Application of these methods will ensure the Contracting Officer can determine the final 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.

(U//FOUO) An internet search4 indicates there are at least 97 UAS and drone manufacturers in the U.S. alone, many with commercial solutions that will satisfy this rucksack portable, short range surveillance requirement for USSOUTHCOM AOR's. However, The Army awarded an indefinite delivery/indefinite quantity contract to seven companies (W911QY-18-D-0191/0197) on 11 Apr 18, with a not to exceed value of $248.5M, for the Family of Small Unmanned Aircraft Systems (FoSUAS) Products5. This contract provides ability to purchase Unmanned Aircraft, and Spare and Repair Parts, as required by U.S.

Army or its domestic and foreign customers. This contract does not provide training or CLS support. The aforementioned competitive IDIQ for the Army demonstrates additional vendors in the market space; however, to date, no vendor other than AeroVironment (one of the seven primes) has produced, or has the ability to produce, a RQ-11 B system.

Additionally, training and CLS support for Army SUASs is provided under contract W911QY-13-D-0097. For training and CLS support, a separate task order would be required on contract W911QY-13-D-0097, splitting this effort across two separate contract vehicles. Also, the Army does not offer decentralized execution on these contract vehicles, so funding would need to be transferred to Army to execute this requirement across both contracts. Anticipated timelines associated with gaining required approvals, transferring funds, and awarding two separate contracts presents an unacceptable execution risk for satisfying this requirement. Research has also indicated the Navy PMA-263 program office either purchases their SUAS off the Army contract vehicles or through individual contracting efforts through DLA or other sources directly to AeroVironment, Inc.

4http://www.uavglobal.com/list-of-manufacturers/

5W911QY-18-D-0191, 0192, 0193, 0194, 0195, 0196, 0197, Army Contracting Command, Redstone Arsenal

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

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In addition to the Raven RQ-11B providing the only current solution for this requirement, several additional factors combine to provide additional justification for establishing a single source contract for the Raven RQ-11B. First, since Raven's are a proprietary AeroVironment system, satisfying the equipment portion of this requirement through any existing DoD contracting vehicle could still result in a direct contract action with AeroVironment. Second, there are no existing DoD contracts that can satisfy the equipment purchase and follow-on training and CLS as a single contract effort. While training and portions of the CLS requirements may be satisfied by other vendors, such as the current Army Contract W911QY-13-D-0097, it is this organization's past experience with BPC efforts that splitting the equipment purchase and follow-on training and support between multiple contracts drastically increases execution risk associated with manufacturing, licensing, shipping and customs clearance timelines. Contracting with a single entity to satisfy the entire effort places technical, schedule and cost risk on a single vendor, removing the need for the USG to function as the integrator between the equipment and service provider. Third, in terms of CLS, any above organizational level repair for Raven LRUs would either need to be subcontracted back to AeroVironment based on proprietary component data or reverse engineered by another contractor supporting CLS. Either of these avenues adds additional program risk and cost for this requirement

Providing a small UAS solution compatible with the current U.S. Army or Marine Corps programs of record provides the added benefit of leveraging current organic military training teams and logistics processes to provide future BPC support for USSOUTHCOM AOR's. Commonality of systems provides OSD the ability to establish and fund organic DoD training support under Section 333. Also as mentioned in Section VIII of this J&A, the Family of Small Unmanned Aircraft Systems (FoSUAS) Products scope of work indicates the contract is capable of providing “…full spectrum of Small Unmanned Aircraft System (SUAS) and Parts required to support the Tactical UAS (TUAS) Product Office (PdO) in the Continental United States (CONUS) and Outside Continental United States (OCONUS), as well as its domestic and foreign customers.” Leveraging the program capabilities available to the U.S. Raven systems provides additional follow-on life-cycle sustainment capabilities that would not be available if a similar commercial systems was fielded to satisfy this requirement.

The following Foreign Military Sales contracts were awarded for Raven Systems:

W91IQY-13-C-0108 awarded on 9/30/2013

W911QY-14-D-0074 awarded on 9/29/2014

W911QY-15-C-0061 awarded on 6/30/2015

W911QY-15-C-0131 awarded on 9/21/2015

W911QY-17-C-0002 awarded on 3/09/2017

W911QY-17-C-0090 awarded on 8/09/2017

W911QY-18-C-0023 awarded on 12/15/2017

W911QY-13-C-0051 awarded on 8/1/2013

AeroVironment designed the Raven systems and currently retains title to technical data relating to the Raven systems.

Since the company owns the rights to the technical data packages, AV will be the only source to provide the Raven systems until a license for the technical data rights is purchased by the government or the technical data is made available to other manufacturers.

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

See paragraphs VI, VIII, and IX for potential sources. A Request for Information/Sources Sought (RFI/SS) was posted to

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Federal Business Opportunities (FBO) on 9 August 2018. Only one (1) vendor expressed interest in 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.

(U//FOUO)

stated in Section VIII of this J&A, there are numerous vendors that manufacture drone and quadcopter solutions for Group 1 UAS requirements.

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.