F3QCAM9067A001-JA_PDF_(print)_Redacted.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 9

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.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFSC

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): Product Data Services - System Management, Data Management and Enterprise Migration Support

Program Type (PEO or Other Contracting): Other Contracting

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $13,000,000.00 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

19 Apr 2019

Project Lead / Program Mgr / Requiring Activity

AFLCMC/LZPPS, DSN

Signature

Date

22 Apr 2019

Contracting Officer

PZIMA/B/ DSN

Date

Local Legal Reviewer

78 ABW/JAQ / DSN

APPROVAL (AFFARS 5306.304(a) )

Date

Competition Advocate

AFSC/PZCA / DSN 472-1102

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I. Contracting Activity.

This Justification and Approval to request authority for Other Than Full and Open Competition supports requirements generated by the Air Force Life Cycle Management Center, Product Data Services Division (AFLCMC/LZP). The contracting authority for this requirement is AFSC/PZI, Operational Contracting Branch/Production Support. The purchase request number supporting this contracting action is

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

Due to the circumstances described herein, the activity requests authority to modify Indefinite Delivery Indefinite Quantity (IDIQ) contract FA8501-15-D-0008 using Other Than Full and Open Competition as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Pricing arrangements include firm-fixed price, cost, plus fixed-fee, and cost reimbursable contract line items (CLINs).

The sole source requirement will be supported by the following source:

Northrop Grumman System Corporation

Large Business

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

Contract FA8501-15-D-0008 was awarded in September 2015 with an $80M ceiling. The validity period of the IDIQ is 10 September 2015 through 09 September 2020. This contract modification will increase the ceiling to $93M, an increase of $13M. This increase will ensure continued performance of these highly specialized technical services in support of Robins Air Force Base (AFB) product data systems, data management, conversion and migration processes, and transformation initiatives.

The following provides a high-level summary of performance areas requiring the acquisition of technical support services:

· Product and engineering data processes and improvement efforts, to include those required to prepare/transform data into new/updated Air Force data standards and to transition data and capabilities into Air Force enterprise-level systems currently in various stages of planning, development and/or implementation.

· Management, maintenance, and administration of primary and contingency product data systems and tools, which enable/facilitate data improvement initiatives and data management, creation, sustainment, storage and distribution processes.

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· Management and execution of processes to facilitate migration of product data to higher intelligence levels and to establish relationships between various types of product data.

Technical support services include system architecture, administration, database management/ administration, and other technical support services necessary to support all hardware infrastructure and software components utilized in the capture, storage, maintenance, electronic distribution, conversion, editorial, and data linking processes. The technical requirements associated with this acquisition require tight integration of the various service disciplines necessary to support data management, sustainment and improvement processes, the supporting systems infrastructure, and system constructs and software specific to product data types supported/integrated within the Product Data Systems environments.

The Product Data Systems infrastructure at Robins AFB includes both DoD standard systems and locally developed systems used for the management, storage, and retrieval of digital technical data for USAF managed weapon systems, to include data managed by organizational entities at other USAF locations. The product data systems supported by AFLCMC/LZP currently manage the largest product data inventory in the USAF. Electronic data processes and system repositories supported are utilized to manage approximately 60,000 technical order documents/increments, comprising an estimated 8,000,000+ pages of various sizes; over 17,000,000 engineering data images; over 1,000,000 Computer Aided Design (CAD)/Computer Aided Manufacturing (CAM) models and files;

and over 5,000,000 part indenture configurations consisting of over 19,000,000 part records. As the USAF increases requirements for the development, acquisition, and sustainment of more intelligent, technically complex data constructs, there is more reliance upon the AFLCMC/LZP product data systems and the technical services provided by Northrop Grumman System Corporation under this contract.

While the type skills necessary to support the requirements remains relatively constant, the ever-changing Information Technology (IT) landscape across the United States Air Force (USAF) injects program dynamics, and largely contributed to a more rapid consumption of the original contract ceiling than was anticipated. The fluidity in the quantity of program requirements can be attributed to multiple external factors: evolving data standards, legislation-driven system environment and policy changes (designed to reduce IT duplication and consolidate physical data centers), system compliance regulations, and efforts to transition capabilities and data to enterprise-level standards and systems in various stages of planning. Each of these factors contributed to an increase in the quantity of services required; however, the requirements resulting from public law-driven mandates associated with reduction of duplicative system and data center capabilities has been the largest contributor to consumption of contract ceiling more rapidly than anticipated.

On-going system consolidation initiatives led to identification of five Technical Order Authoring and Publishing (TOAP) system implementations within the Logistics Information Technology (Log IT) system portfolio. An AFLCMC/LZP-managed system, the Warner Robins-Integrated Data for Maintenance (WR-IDM) system, was determined to provide the capabilities necessary to support the USAF organic TO sustainment enterprise, and was, therefore, chosen as the target consolidation system. While the overarching USAF consolidation effort began prior to the award of the current contract, selection of the WR-IDM system as the target consolidation system did not occur until after contract award. This designation, and efforts to accelerate consolidation schedules resulted in a projection of overall savings of more than $25M for the USAF, but increased requirement quantities for both system sustainment and data process services provided under the program. Requirements

March 2018 FOR OFFICIAL USE ONLY Page 4 of 9 associated with TOAP support of the consolidated system and data processes necessary to migrate source data from legacy systems necessitated obligation of funding exceeding original projections by $900K in FY16, $1.5M in FY17, and $2.5M in FY18. The remaining consolidation objectives are projected to require an increase in contract funding (over that anticipated) of approximately $4.5M in

FY19.

Additionally, the pace of the USAF enterprise-level Product Lifecycle Management-Capability Initiative (PLM-CI) has not accommodated transition of AFLCMC/LZP-based PLM capabilities to-date. Yet, efforts to consolidate like systems within the Log IT portfolio continue. The consolidation mandate led AFLCMC/LZP to award a PLM prototype task order valued at approximately $1M in FY15, and to rehost the Integrated Data Information Manager (IDIM) system previously hosted at Tinker AFB within the PLM system managed at Robins. Requirements associated with the IDIM consolidation effort necessitated obligation of funding exceeding original projections by $2.1M in FY18, with an additional $2.1M to be obligated in FY19.

The expectation at time of award of the original IDIQ contract was that these initiatives would result in transition of capabilities provided by AFLCMC/LZP Robins-based systems into enterprise systems managed/hosted by other organizational entities, which would reduce the quantity of requirements for the contract. However, technical/product data system consolidation efforts initiated to-date resulted in the determination that the Robins-based systems were the most modernized systems and currently provide the largest majority of capabilities (when compared to other legacy systems), resulting in selection of those systems to serve as the consolidated systems until larger, overarching system initiatives can be implemented. These initiatives drove requirements necessitating utilization of funding exceeding projections. While these consolidation efforts result in overall savings to the USAF, they directly contributed to consumption of contract ceiling more rapidly than originally anticipated and drive the requirement for an increase in contract ceiling.

While external factors have driven a more rapid expenditure of contract ceiling than originally anticipated, wide-spread efforts to reduce system funding levels across the DoD are still expected to eventually drive an overall reduction in program cost at some point in the future. As Air Force enterprise-level systems are implemented and reach necessary levels of maturity, a decrease in the amount and scope of work associated with Robins AFB-specific product data systems support is expected. However, the timelines associated with these external programs are notional at present, budget impacts are unknown, and accurate cost projections are difficult to determine. Therefore, at present, requirements associated with these technical services are expected to recur over the next three to five years, and projections for future acquisition of services necessary to meet program requirements will be adjusted based on historical data.

A combination of Operations and Maintenance (O&M) (3400) and Consolidated Sustainment Activity Group-Supply (CSAG-S) (4930) appropriations may be utilized. The level of funding of each appropriation type will be based upon the data managed within the systems and supported by the program.

The following table depicts projected vs actual funding applied to the contract to-date:

Performance Period Projected Actual Funding Funding (Obligated)

Basic (September 2015-September 2016) $16M $16.3M Option Year 1 (September 2015-September 2016) $16M $18.8M

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Option Year 2 (September 2017-September 2018) $16M $19.5M Option Year 3 (September 2018-September 2019) $16M $18.5M Option Year 4 (September 2019-September 2020) $16M $19.9M* Total $80M $93.0M

*Projected amount of required FY19 funding.

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

10 U.S.C. 2304(c)(1), 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 agency's minimum needs can only be satisfied by the unique supplies or services available from the above cited source, which possesses the unique capabilities demonstrated as follows:

This increase in contract ceiling will ensure continued performance of highly specialized technical services required to support Robins AFB product data systems, data management, conversion and migration processes, and transformation initiatives. The Robins AFB product data environment provides one-of-a-kind capabilities to customers supporting operation, maintenance, and supply chain activities through the utilization of tightly integrated PLM, content management, workflow tools and data processes enabled within state-of-the-art infrastructure. The tight integration of separate but related systems, subsystems, and tasks increases the complexity of the program but is essential for sustainment of the environment and to attainment of program and policy objectives.

Northrop Grumman is the only source capable of providing the supplies and services as described in Section III above. They possess highly specialized skills required to sustain this complex environment, and they are the only source capable of facilitating the transition of capabilities and data collections into consolidated and/or enterprise-level solutions. They are the only source possessing the full depth and breadth of skills in `big data' management of USAF-peculiar product data, metadata and data relationships within PLM and content management environments. They are the only source capable of concurrently sustaining the supporting systems environments such that they remain compliant with fluid DoD/USAF data and system security requirements. The knowledge and skills possessed by Northrop Grumman is critical to the Government's ability to provide uninterrupted access to critical product data while facilitating rapid response to fluid data, system sustainment, and compliance requirements. A loss of the skill sets necessary to rapidly respond to changing system and data operating environments, as well as security and policy driven changes, would result in substantial periods of unavailability of data. Awarding the contract to any other source would inject unacceptable levels of risk into the program, result in unacceptable delays (estimated to exceed one year) in fulfilling the Air Force's requirements, and cause substantial duplication of cost (estimated to exceed $6M) to the Government that could not be expected to be recovered through competition. The duplicated cost estimate is calculated based upon expectation that a transition period of six to eight

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Additional costs would also be incurred to satisfy data replication and back-up requirements, which necessitate that a total of approximately 50TB of critical product data from the production systems located at Robins AFB be incrementally replicated (on a daily basis) at an off-site location in a different geographical area. Currently, those requirements are satisfied through use of Government furnished equipment located within Northrop Grumman's Oklahoma City, OK and Warner Robins GA facilities. Use of those facilities satisfies the Government's requirement associated with `warm' site capabilities and for retention of both classified and unclassified off-site backups. The Government's contingency plans currently outline directives for utilization of this `warm' site and backup capabilities for support of critical user access and data sustainment activities in the event of persistent system outages in the production environment. The duration of a project to migrate capabilities and data to a new contingency environment could require a period of performance from 9-12 months and would require a decreasing level of duplicate expertise until full migration was completed.

Establishment of a new `warm' site capabilities and duplication of resources that would be required to sustain the current production environment and concurrently achieve compliance with National Defense Authorization Act driven policies are only examples of drivers to cost increases that could not be recovered through competition.

There are cost, potential mission impacts, and risk of degradation of data associated with a consolidation/transition effort. Since USAF weapon systems/assets cannot be operated or repaired without associated product data, delays in the Government's ability to provide up-to-date, technically accurate product data critical to the operation and maintenance of USAF assets would also result in increased costs, though those are not directly measurable by this acquisition program.

Accordingly, Northrop Grumman is the is the only firm capable of providing the requirements described in Section III above without the USAF experiencing unacceptable delays in fulfilling its requirements and substantial duplication of cost to the Government 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.

A Sources Sought (SS) synopsis associated with an expected follow-on contract for these services was posted to Federal Business Opportunities (FedBizOpps) on 5 January 2018 with a response date of 15 February 2018 under Solicitation Number RM18- Air_Force_Product_Data_Services_System_Management. The SS requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. There were three respondents, including Northrop Grumman. With the exception of Northrop Grumman, respondents were determined not capable. Most notably, respondents other than Northrop Grumman did not include descriptive details regarding the development or execution of automated/semi-automated processes designed to discover/map relationship linking within a PLM system or map relationships across multiple types of legacy product data. Nor did they describe experience in support of processes necessary for sustainment of those relationships.

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This requirement will be synopsized on the FedBizOpps web page as required by FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis posting. Any source who responds to the Government as a result of the synopsis posting will be identified to the prime contractor as a potential source for subcontracting opportunities.

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

The overall cost of this acquisition will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide certified cost and pricing data to be used to support the Government's evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material and other direct costs, and direct and indirect rates will be negotiated by the Government based on recommendations from the Defense Contract Audit Agency, Defense Contract Management Agency, and expert technical personnel supporting the program. The contract price will be negotiated IAW the procedures in FAR Part 15 ensuring the ultimate cost to the Government 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 in accordance with FAR Part 10.001 and 10.002. The market research was completed in November 2018. The market research techniques used are as follow:

As described in Section VI above, a SS synopsis was posted to FedBizOpps advising industry of the pending acquisition and soliciting inquiries from interested vendors. The SS was posted on 5 January 2018 under Solicitation Number RM18-Air_Force_Product_Data_ Services_ System_Management.

There were three respondents, including Northrop Grumman. With the exception of Northrop Grumman, other respondents were determined not capable.

A Dynamic Small Business Search (DSBS) queries were executed using North American Industry Classification System code 518210 (Data Processing, Hosting and Related Services), and keywords “Product Data,” “Data Management-Migration,” and “Data Management.” The DSBS query identified commercial-off-the-self (COTS) providers for various products but none who possess the depth and breadth of experience necessary to support the collection of integrated COTS products currently utilized to support this program. However, the preponderance of the services to be obtained are to satisfy military-unique requirements and are considered non-commercial. This acquisition is designed to obtain continuation of services previously deemed non-commercial, and review by contracting officials has resulted in the determination that the follow- on effort will be awarded pursuant to FAR Part 15. It is anticipated that services will continue to fail to meet the commercial definitions outlined in FAR Part 2.

Internet searches were performed for any applicable industry standards, regulations, trade journals, or process guides applicable to Product Data Services - Systems Management, Data Management, and Enterprise Migration Support with negative results. No professional societies or organizations that represent the market sector for Product Data Services - Systems Management, Data Management, and Enterprise Migration support were found.

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The market research concluded Northrop Grumman System Corporation is the only vendor capable of fulfilling the Government's requirement.

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

None.

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

See Section VI.

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.

As stated previously, multiple factors make identification of a viable approach to competition difficult to identify. While the requirements to support enterprise-level system initiatives and achieve data center consolidation objectives are two of the factors which contribute to the non-competitive nature of the program, satisfaction of those requirements will also result in elimination/change of a large portion of the requirements associated with this acquisition.

The system capabilities resulting from the enterprise-level system initiatives and consolidation efforts, such as the USAF PLM initiative and the USAF TOAP system consolidation effort will subsume or change some aspects of the Robins product data systems capabilities and data. These initiatives and efforts are in various stages of planning/implementation and, once approved and adequately matured, subsequent steps to plan and build, test and deploy the solutions within enterprise-level system implementations will be taken. While the schedules may be considered notional at present, the most recent program information available indicates that legacy systems and data migration strategy will span the next few years.

Considering the extent of efforts necessary to prepare for and execute system capability and data transformation/migration processes, it is reasonable to expect those activities to begin well prior to initial enterprise-level system functionality rollout. Support provided under this program is not only critical to meet the USAF product data system and data process requirements, it is also critical to the success of enterprise-level initiatives. While the uncertainty and pace of enterprise-level initiatives drives fluctuations in the quantity of the requirements supported by the program, it also increases the criticality of retention of the highly specialized skills currently required to support the existing, one-of-a-kind product data systems environments until such time as capabilities and data have been transitioned. Northrop Grumman System Corporation is the only vendor currently capable of fulfilling the Government's requirement.

Awarding a new contract to any other source would inject unacceptable levels of risk into the program, result in unacceptable delays (estimated to exceed one year) in fulfilling the Air Force's requirements, and cause substantial duplication of cost (estimated to exceed $6M) to the Government that could not be expected to be recovered through competition.

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The prior J&A included the following plans to break barriers to competition. These plans have been implemented within the program and current contract terms require Northrop Grumman to meet the elements of item (2) when requirement is articulated within a contract task. Therefore, requirement for higher level approval in accordance with DFARS PGI 206.304(a) (S-70) (ii) is not required for this J&A. This instant J&A applies the same plan.

It has been determined that the only viable approach to reduce or eliminate competitive barriers and increase competition available at this time is to proceed with efforts to:

(1) Continue to increase and strengthen the program requirements associated with system and process documentation, making detailed system architecture, administration, process and training documentation a critical step in configuration control processes and mandating completion prior to implementation.

(2) Contractually require the incumbent contractor to support efforts to transition capabilities and data to enterprise-level systems, directing the incumbent to prepare and deliver transition plans that encompass all primary systems, related sub-systems and processes. Deliverables will provide foundation for transition activities, whether organic, contractor or enterprise-level.

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.