Redacted_J&A.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 8

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:

Purchase Request / Local ID Number: FD2060-19-30132

Program / Project (and PE, if applicable): Situational Awareness System Sustainment (SASS) Contractor Logistics Support (CLS)

Program Type (PEO or Other Contracting): PEO

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): $695,000 J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

20 May 2019

Project Lead / Program Mgr / Requiring Activity Gregg Middleton

WIUAA /468-9339

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

22 May 2019

Contracting Officer Lindsay O. Gooding

AFLCMC/WIUKA/468-7270

Signature

MIDDLETON.GREGG.L.1

010294785

Digitally signed by

MIDDLETON.GREGG.L.1010294785

Date: 2019.05.20 13:11:47 -04'00'

GOODING.LINDSAY.O.1

406524244

Digitally signed by

GOODING.LINDSAY.O.1406524244

Date: 2019.05.22 15:23:12 -04'00'

March 2018 FOR OFFICIAL USE ONLY Page 2 of 8

I. Contracting Activity.

This Justification and Approval (J&A) requests authority for Other Than Full and Open Competition to support requirements generated for the Air Force Life Cycle Management Center (AFLCMC), Special Operations Forces (SOF)/Personnel Recovery & Rotary (AFLCMC/WIU) Division. The Contracting Activity for this requirement is the SOF/PR & Rotary Division Contracting Division (AFLCMC/WIUKA). The Purchase Request number supporting this contracting action is

FD2060-19-30132.

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

Due to the circumstances described herein, the activity requests authority to procure the services and items listed in this document using Other Than Full and Open Competition prescribed by Federal Acquisition Regulation (FAR) 6.302-1, Only One Responsible Source and No Other Supplies and Services Will Satisfy Agency Requirements. The Period of Perfomance (PoP) for this follow-on effort to contract FA8509-14-C-0004 will consist of a seven (7) month basic and a six (6) month option. The FAR clause 52.217-8 Option to Extend Services will be included in the contract. The contract includes Firm Fixed Price (FFP) and Cost Reimbursement No Fee (CRNF) pricing arrangements. The entire projected PoP is 01 Sep 2019 - 30 Sep 2020.

This sole source requirement will be procured from the following company:

BAE Systems Technology Solutions & Services Inc.

DBA: BAE Systems 520 Gaither Road Rockville, MD 20850-6198 CAGE Code: 99789 Business Size: Large

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

This requirement is for Contractor Logistics Support (CLS) in support of the AC-130 Gunship aircraft fleet at Hurlburt Field, FL. Specifically CLS is required for Situational Awareness Systems Sustainment (SASS) of the Situational Awareness System (SAS) integrated components installed on the AC-130U aircraft. This effort will provide Contractor Source of Repair as Intermediate Level/ Depot Level maintenance (troubleshooting, repair & testing) within the System Integration Laboratory (SIL), Contractor-Inventory Control Point (CICP) Management, Supply Support Planning, Supply Management, Program Management, Engineering/Technical Support and Data Sharing of the integrated SAS components. To support a quick response time, the operating location of the CLS facility should be located within close proximity of Hurlburt Field, FL. Weekly interface with HQ AFSOC A4, HQ AFSOC A6/CSF, the 4th Special Operations Squadron and Special Communications offices located at Hurlburt Field, FL is required to support this effort. The Government requires a quick response time for troubleshooting/testing of SIL SAS components and resolution of hardware and/or software problems and upgrades. As software requirements evolve, constant troubleshooting and testing is required.

The total estimated value is $695,000. This effort will include the following Contract Line Item

March 2018 FOR OFFICIAL USE ONLY Page 3 of 8

Numbers (CLINs):

Seven Month Basic Award:

CLIN 0001 Engineering Services - CLS - $235,000 CLIN 0002 Engineering Services - Software Engineering Support - $15,000 CLIN 0003 Material/Other Direct Costs (ODC) - $75,000 CLIN 0004 Data IAW DD Form 1423-1 Contract Data Requirements List (CDRL) - $45,000 Total: $370,000

Six Month Option:

CLIN 0001 Engineering Services - CLS - $235,000 CLIN 0002 Engineering Services - Software Engineering Support - $10,000 CLIN 0003 Material/Other Direct Costs (ODC) - $40,000 CLIN 0004 Data IAW DD Form 1423-1 Contract Data Requirements List (CDRL) - $40,000 Total: $325,000

Projected PoP:

Seven (7) month basic award: 01 Sep 2019 - 31 Mar 2020 Six (6) month Option: 1 Apr 2020 - 30 Sep 2020

This seven (7) month basic award will be funded using Air Force Special Operations Command (AFSOC) FY19 Operations and Maintenance (O&M) 0100 funds. The six (6) month option, if required, will be funded using (AFSOC) FY20 Operations and Maintenance (O&M) 0100 funds.

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 CLS of the SASS is considered a SOF unique and highly specialized service in support of the SAS components installed on the AC-130U Gunship aircraft fleet located at Hurlburt Field, FL. A Source of Repair Analysis (SORA) was completed and approved for lifetime CLS for SAS in 2010.

Without serviceable SAS components, the AC-130U would be Non-Mission Capable (NMC). The agency's minimum needs for this specialized service can only be satisfied by the unique supplies or services available from BAE Systems Technology Solutions & Services Inc. as demonstrated in the following paragraphs.

The SAS is comprised of the following components: Aircrew Information Mapping System (referred to as M2MSA), Machine-to-Machine Situational Awareness Servers, Remote Operation Video Enhancement Receiver, Target Video Downlink, Electronic Warfare Officer Core Processor (software only; no hardware items), Common Interface Blanking Unit and specialized Data Link Processor (hardware and software). The SAS components were developed by multiple Original Equipment Manufacturers (OEMs), each possessing their own proprietary technical data not released or for sell to

March 2018 FOR OFFICIAL USE ONLY Page 4 of 8 the Government. Each OEM is unable to perform to this CLS requirement as they are not certified as a GOLD CICP and only have knowledge for trouble shooting and repair of their specific component versus all SAS components. BAE Systems however is certified GOLD CICP and has the necessary secure facilities to perform the CLS activities required to ensure successful sustainment of the SAS by conducting limited repairs and troubleshooting on all SAS components. This is done via a subcontracting relationship between BAE and the individual OEMs. Additionally BAE Systems has acquired a certification for their avionic technician to make limited repairs on the TAG computer servers from that particular OEM. All other OEMs do not offer certifications.

BAE Systems possesses unique history surrounding the early development of SAS components as they acquired Aerospace Integration Corporation (AIC). AIC provided early development of SAS components and initial install into the AC-130H fleet in mid-2004 as a temporary modification for aircraft positional awareness. Previous acquisition history reflects that BAE Systems, after acquiring AIC, has provided testing/repair services of the SAS components, CICP support, overall engineering support and provided field level support since 2006. BAE Systems has maintained the SASS as the CICP using the GOLD Logistical System to gain access into the Government supply system. BAE Systems has historically performed multiple functions in support of the SAS such as: troubleshooting of Line Replaceable Units failures, limited repairs to some components, maintains stock levels, fulfilling requisitions and providing on-site assistance to AFSOC users. BAE Systems has developed the ability to inspect, repair and test multiple components as a complete system in the Government owned console/test rack (SIL) that provides a plug and play test capability.

As the designer, developer, and sole qualified producer of the SIL, BAE Systems possesses the in-depth knowledge, experience, and necessary secure facilities required of the SIL as well as the special program access to interpret and analyze the data associated with classified SAS components.

Specifically BAE understands the (1) design and operation of the hardware and software and, (2) the modeling software and its interfaces with the hardware.

The current contract FA8509-14-C-0004 was awarded competitively to BAE Systems Technology Solutions & Services Inc. on 24 March 2014. The current contract end date is 31 Aug 2019, therefore the follow-on contract must be awarded by 1 Sep 2019.

Award to any other source would result in substantial duplication of cost and unacceptable delays to the Government that is not expected to be recovered through competition in fulfilling the Air Force's requirements. This support is critical to the success of operational missions and requires non-stop support as these services are mission essential. Award to another contractor would require a transition period between BAE Systems and the new contractor. Due to the critical nature of the program and the impending retirement of the AC-130U at the end of FY20, a lapse in coverage cannot occur. BAE Systems would be required to continue support until the new contractor has been able to relocate the SIL, set up repair capabilities, transfer all assets and acquire all security approvals required for classified storage. Also, a new contractor would have to acquire the certification from TAG to perform repairs to the servers which could take up to a year or more. The Government estimates it would cost $1M for BAE Systems to continue support during a transition phase. This would be in addition to the cost to stand-up the new contractor, therefore would be a duplication in cost. The AC-130U aircraft is currently projected to be retired by the end of FY20. The cost and time required to stand-up a new contractor is not feasible based on the projected retirement date of the AC-130U

March 2018 FOR OFFICIAL USE ONLY Page 5 of 8 aircraft. These costs would not be recovered through competition with the short projected PoP and aircraft retirement schedule.

Contract timelines do not allow for a new contractor to become an established CICP, which requires eighteen (18) months to become fully qualified and certified as a GOLD CICP participant. If this effort were awarded to a new contractor without BAE interim transition support, the Government would experience an unacceptable delay. If the new contractor is already GOLD CICP participant, there could still be a potential twelve (12) month delay before the new contractor is fully capable.

This delay is based on the estimated time to possibly build storage facilities large enough for the SIL and other Government furnished equipment, move all Government furnished equipment, contractor set-up for Classified storage, obtain required certifications, overcome learning curve for repairs/ troubleshooting components, and the amount of time to negotiate subcontracts and/or establish subcontracting relationships with each components OEM. For Boeing to become technically capable, they would need to procure and/or build a facility that is cleared/approved for Sensitive Compartmented Information, Special Access Program (SAP) handling/processing, storage capacity or maintenance access entry point for large equipment to be moved as required; all which would result in unnecessary delay in time of approximately 12 months or more and substantial duplication of costs of $1M or more. Here are the estimated costs involved with relocating the SASS CLS activities to another contractor in the Fort Walton Beach, FL area.

Requirement Projected Cost

Build/modify facilities to meet space and security requirements $400K

Move and setup of Software Integration Lab (SIL) $100K

Move SASS CLS components, repair parts and setup repair capability $50K Establish Contractor Inventory Control Point Activities (C-ICP) to incude required software liscensing and training $150K 90 day overlap of contractor support $175K Develop new support procedures/processes $50K Establish contractual agreements/contracts with subcontractors $50K Establish engineering technical support $25K

Accordingly, BAE Systems 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 and unacceptable delays in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Boeing, Fort Walton Beach, FL, was the only other source to enter a competitive bid on the current SASS CLS contract (FA8509-14-C-0004) in 2014 and was considered technically competent at that time. Boeing did not respond to the RFI posted on FedBiz Opps on 30 April 2019; and due to their previous response on the current contract, the Government contacted them with a list of questions to determine if they were capable or non-capable at this time to provide the SASS CLS. Boeing responded on 14 February 2019 and after reviewing their responses, they are not capable of providing

March 2018 FOR OFFICIAL USE ONLY Page 6 of 8 the necessary support at this time. Boeing does not possess the necessary secure facilities/resources required for this effort within the required 30-mile radius of Hurlburt Field, FL.

The requirement will be synopsized in FedBizOpps in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

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 part 15, the contractor may be required to provide other than certified cost or 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 Management Agency (DCMA) and expert technical personnel supporting the program. The contract price will be negotiated to ensure 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 and completed on 9 April 2019. The following market research techniques were used:

Google searches were conducted to identify any other possible sources that were GOLD certified CICPs and within close proximity (30 mile radius) of Hurlburt Field, FL that possessed the necessary secure facilities/resources required.

Searches were conducted using the Small Business Administration's Dynamic Small Business Search (DSBS) website with North American Industry Classification System (NAICS) codes 334111, 334118, 334511, 334611, 541330, 541511 and 811219 combined with key words “inventory control” and “Contractor Logstics Support” within the required zip code. Key work searches were conducted on the Thomas Register website and GSA Advantage using key words, “Contractor Logistics Support (CLS)”, “Logistics Services”, “Engineering/Technical Services” and “Contractor Inventory Control Point (CICP)” within the Hurlburt Field, FL zip code area. Zero small businesses were identified in the search.

Research was conducted on the list of certified CICPs that currently provide CLS support to Air Force and other DoD programs. Two (2) sources were identified that were certified to operate as a CICP using the GOLD Software, receive and ship stock listed items, and currently within a 30 mile radius of Hurlburt Field, FL. Although both vendors were found capable of providing the CICP support needed, only BAE Systems was determined capable of providing not only the CICP support but all segments of the acquisition requirement.

An additional RFI was sent to Boeing, Fort Walton Beach, FL, on 8 Feb 2019 to assess their capability

March 2018 FOR OFFICIAL USE ONLY Page 7 of 8 to provide the required support. They responded on 14 February 2019 and their responses indicated that they are not capable of performing SASS CLS at this time.

The SASS components do not fit the definition of a commercial item as defined in FAR Part 2.101.

These items are defined as military unique and are not customarily used by the general public or by non-Governmental entities. The Government requires parts that meet an exact form, fit, and function as determined by the specific mission. There are no aircraft in the commercial market with the same or similar components.

BAE Systems is the only source that has the certifications from the component OEMs to provide repair/troubleshooting and can provide the necessary support without any unacceptable delay. BAE Systems was determined to be the only source capable of fulfilling this instant acquisition.

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 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.

SASS component technical data is proprietary to the OEMs. The OEMs have declined to release or sell the technical data rights to the Government. The projected retirement date of the AC-130U fleet is by the end of FY20.

Due to the critical nature of the program, a lapse in coverage cannot occur. BAE Systems would be required to continue support until a new contractor has been able to relocate the SIL, set up repair capabilities, transfer all assets and acquire all security approvals required for classified storage. This transition cost is estimated at $1M. The cost and time required to stand-up a new contractor is not feasible based on the projected retire date of the AC-130U aircraft (FY20). These costs would not be recovered through competition with the short projected PoP and aircraft retirement schedule.

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.

March 2018 FOR OFFICIAL USE ONLY Page 8 of 8