19-52007_PDF_JA_SIGNED_PEO_REDACTED_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 7

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: AFLCMC/HBKA

Purchase Request / Local ID Number: FD2060-19-52007

Program / Project (and PE, if applicable): JSTARS E-8 Aircrew Training Devices (ATDs) Contractor Logistics Support (CLS) and Training System Support Center (TSSC) Operations

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): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

18 Dec 2018

Project Lead / Program Mgr / Requiring Activity James D Johnson

AFLCMC/HBGC, 472-3614

Signature

Date

18 Dec 2018

Contracting Officer Adrian V. Oliver

AFLCMC/HBKA, 472-3629

Signature

Date

11 Jan 2019

Local Legal Reviewer Major D. David Gilkes

78 ABW/JA, 472-0575

Signature

Date

21 Dec 2018

Competition Advocate Thomas G. Eller, D.B.A.

AFSC/PZC, 472-1088

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

06 Feb 2019

PEO / Head of Procuring Activity / Designated Alternate Steven D. Wert, SES Program Executive Office, Digital

Signature

JOHNSON.JAMES.D.107

4263433

Digitally signed by

JOHNSON.JAMES.D.1074263433

Date: 2018.12.18 16:00:51 -05'00'

OLIVER.ADRIAN.VANCE

L.1117681781

Digitally signed by

OLIVER.ADRIAN.VANCEL.1117681781

Date: 2018.12.18 16:37:42 -05'00'

ELLER.THOMAS.G.1056

933570

Digitally signed by

ELLER.THOMAS.G.1056933570

Date: 2018.12.21 14:25:16 -05'00'

Digitally signed by

GILKES.DARREN.S.1259356411

Date: 2019.01.11 15:08:18 -05'00'

WERT.STEVEN.D.10690

91020

Digitally signed by

WERT.STEVEN.D.1069091020

Date: 2019.02.06 17:23:28 -05'00'

March 2018 FOR OFFICIAL USE ONLY Page 2 of 7

I. Contracting Activity.

This Justification and Approval requests authority for Other Than Full and Open Competition to support requirements generated for Air Force Life Cycle Management Center (AFLCMC), Command and Control, Intelligence, Surveillance, Reconnaissance Division (C2ISR), Joint Surveillance Target Attack Radar System (JSTARS) Branch (AFLCMC/HBGC). The contracting office for this requirement is AFLCMC/HBKAA. The Purchase Request supporting this contracting action is

FD2060-19-52007.

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

Due to the circumstances described herein, the activity requests authority to acquire services for Contractor Logistics Support (CLS) and Training System Support Center (TSSC) Operations for the JSTARS E-8C Aircrew Training Devices (ATD) using Other Than Full and Open Competition (OTF&OC) as prescribed by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action will result in the award of a follow-on Indefinite-Delivery/Indefinite Quantity (IDIQ) contract with Firm-Fixed-Price (FFP), Cost-Plus- Fixed- Fee (CPFF) and Cost-Reimbursement-No Fee (CR-NF) Contract Line Item Numbers (CLINs).

The contract will cover a ten (10) year period in total. It will include a three year basic period and seven (7) additional 12-month options.

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

Rockwell Collins Simulation & Training Solutions LLC (RC) 400 Collins Rd NE Cedar Rapids, IA 52498-0001 Large Business CAGE Code: 00WX8

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

A. This requirement is for CLS and TSSC operations for the JSTARS E-8C ATD. The ATD provides the majority of JSTARS aircrew training, allowing crewmembers to log up to of their training requirements in a simulator vs. operational aircraft. The simulators allow flight crew members to get an accurate feeling of flying an aircraft in realistic scenarios, without putting aircrew members' lives at risk. Because of “Safety of Flight” risks in the aircraft, the simulators provide a safe environment for aircrews to train on anomalous conditions and/or emergency procedures in accordance with mandatory training requirements. In addition to these safety considerations, the cost per flying hour of the simulator is substantially less than the cost per flying hour in the JSTARS aircraft

This requirement includes operation, maintenance and support of the JSTARS E-8C ATD which includes: two Weapon System Trainers (WST), two Navigator Training Systems (NTS), and four Operator Work Station (OWS) Desktops located at . The contractor is required to provide trained personnel, equipment, tools, materials, supervision, and other items as necessary to support the E-8C WSTs, NTSs, OWS Desktops, TSSC, System Integration Laboratory, March 2018 FOR OFFICIAL USE ONLY Page 3 of 7 and all associated subsystems and equipment.

B. The total estimated cost for this acquisition is , based on current contract (FA8529-17- C-0003) actuals, historical data, and includes separate CLINs (X007 and X008) to support Aircraft concurrency listed in paragraph 4.5 of the PWS. The contract will consist of a three year basic period and seven (7) additional 12-month option periods. The validity period of the IDIQ is projected to be 04 August 2019 to 03 August 2029. The period of performance or delivery schedule will be cited in the task/delivery order(s) and J&A covers all the options.

C. Cost estimates for this proposed contract are derived by direct comparison with the current contract with RC for the same work. The funding type is Air National Guard (ANG) Operations & Maintenance (O&M) - Sustainment (3840); however, Air National Guard Reserve Equipment Account (NGREA) 0350 is available for Engineering Change Proposals (ECPs). Procurement (3010) is also available for use, to allow for major weapon system changes, i.e. Avionics block upgrade. The estimated cost per year is shown in J&A Attachment 1 (Table 1).

Note 1: The yearly cost estimates in Table 1 were compiled using historical actuals. Any discrepancies totaling costs can be attributed to rounding to three decimal places. This is solely to allow for ease of viewing.

Note 2: A historical average of Future Capability/Growth/Expansion was added to the in Table 1 to account for unknown costs arising over the course of the contract. This additional amount of brings the total cost of the acquisition to .

D. The contract CLIN structure is as follows:

CLIN Title Pricing Arrangement X001 Contractor Logistics Support --3840 FFP X002 Trainer System Support Center --3840 FFP X003 Cyber Security --3840 CPFF X004 Logistics Support Package Materials/Repair --3840 CRNF X005 Travel --3840 CRNF X006 Data NSP X007 Engineering Change Proposals --0350/3840 CPFF X008 Future Mods (If needed) --3010/0350/3840 CPFF/FFP

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 services are highly specialized; the ATD utilizes a complex and detailed software/hardware (SW/HW) interface to ensure it meets

March 2018 FOR OFFICIAL USE ONLY Page 4 of 7 certifications of Level-D capable flight simulators in accordance with Federal Aviation Administration Advisory Circular 120-40B. The ATD includes several subsystems

Organic depots do not possess the capability to sustain simulators of this complexity and do not have the expertise to develop and integrate the SW/HW changes required to operate this simulator. These services are highly complex and cannot be performed without the specific expertise associated with access to the Intellectual Property (IP) data rights underlying the SW/HW components of this system.

RC is the Original Equipment Manufacturer (OEM) of the ATD. Because the Government does not own the data for this unique equipment /service, sufficient technical data detail is not available to support competitive acquisition. The current contract (FA8529-17-C-0003), was awarded sole source to RC effective 04 August 2017 and will expire 03 August 2019. This acquisition is a follow-on contract for continued production of highly specialized equipment and continued performance of a highly specialized service.

RC is the only qualified source capable of providing these supplies and services without unnecessary risk, unacceptable delays, and substantial duplication of costs to the Government. This cost could not be recovered through competition and without the United States Air Force (USAF) and the Air National Guard (ANG) experiencing unacceptable delays in fulfilling their requirements. A new vendor would have to either reverse engineer or completely replace the equipment with similar items in order to modify or upgrade the ATD, in addition to adding the necessary new simulation airfields to maintain mission performance. The JSTARS Program Office made an inquiry to the 402 SMXG to determine cost estimates for a reverse engineering effort. Based on a similar reverse engineering project, , the resources required to perform software reengineering consisted of a software lab and five (5) software engineers. Based on this, the estimated cost to perform the reverse engineering is and estimated to take up to 24 months to complete. A reverse engineer effort would require the production of SW and technical data necessary to maintain each ATD at the current configuration. Additionally, reverse engineering costs for all systems, such as test equipment, and drawings development would have to be considered. A 24-month delay in sustainment support would cause a significant break in service. It would have a direct and negative impact to the aircrew's ability to train and ensure combat mission readiness to support the Combatant Commander's mission requirements.

In addition, acquisition lead time to prepare and award a competitive contract to reverse engineer the SW and data rights is estimated to take no less than two years. In total, it would take four years to complete a reverse engineering effort (two years to award and two years reverse engineering effort).

The local USAF reverse engineering office does not have the necessary SW expertise to reverse engineer SW source code. The Government estimates an internal reverse engineering effort would cost the Government approximately and also take up to 24 months. The estimated cost for the first year of this effort is Assuming that a reverse engineering effort was successful and competition resulted in a reduction in cost, the yearly savings would be . With a reverse engineering investment of , it would take approximately 11 years to recover the reverse

March 2018 FOR OFFICIAL USE ONLY Page 5 of 7 engineering investment A investment could not be recoups through competition savings before retirement of the E-8 aircraft. The retirement date of the E-8 is projected to be in 2030.

The data required for this effort is proprietary to RC. RC has asserted data restrictions on a significant portion of the SW and technical data. In July 2018, the Government requested via email an official company letter discussing the availability of data rights from RC. The Government received a response via email on 13 July 2018. RC stated they were not willing sell their data rights; however, would consider licensing their IP software executables for a license fee of ; however, RC would have to continue to perform the TSSC portion of the work, creating an unnecessary pass-through for TSSC support.

In conclusion, RC is the OEM and the only qualified source capable of maintaining the JSTARS ATD.

Award to any other source would result in substantial duplication of cost and unnecessary risk to the Government and is not expected to be recovered through competition. Award to any other source would result in unacceptable delays in fulfilling USAF/ANG requirements.

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

A Sources Sought (SS) synopsis was posted to the Federal Business Opportunities (FedBizOpps) website on 21 November 2017 under solicitation number RM18-Joint_STARS_E- 8C_Flight_Crew_Training_System_CLS_and_Training_Systems_Support_Center_Operations with a response date of 22 December 2017. The SS synopsis requested responses from interested vendors who may possess the expertise, capabilities, and experience to meet the requirements for CLS and TSSC operations for the JSTARS E-8C ATD level D flight simulator. The SS synopsis resulted in three responses and the respondents were not the incumbent. One respondent was a large business and two were small businesses. All three respondents were evaluated for their capability and determined to be not be capable due to the IP limitations and little to no direct experience with a level D flight simulator.

This requirement will be synopsized on FedBizOpps web page as required by FAR 5.201 citing

March 2018 FOR OFFICIAL USE ONLY Page 6 of 7 conditions precluding full and open competition. Although the Government does not own the IP to support the acquisition of these services from any other source, any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential for subcontracting possibilities.

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

In accordance with FAR 15.403-4, the contractor will be required to provide certified cost or pricing data to be used in supporting the Government's evaluation of the proposed cost. The proposed skill mix of labor, labor hours, types and quantities of material, 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 Government will negotiate a fair and reasonable price for both parties.

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

The Market Research was completed on 15 August 2018 pursuant to FAR 10.001 and 10.002 to determine the proper strategy for the continued sustainment of the JSTARS E-8C ATD.

The following market research methods and techniques were utilized:

A SS synopsis was posted to FedBizOpps 21 November 2017. The SS synopsis resulted in three responses. The respondents were evaluated for their capability and deemed not capable due to IP data limitations, in addition to the lack of direct experience with level D motion system upgrades.

The JSTARS program office performed a Small Business Dynamic Small Business Search (DSBS) in all socio-economic categories. The search was performed by entering the NAICS code 541511 (Applications software programming services, custom computer) and the keywords “Custom Computer” or “Applications software programming services.” The search resulted in 61 results. The vendors were evaluated and determined “Not Capable” on the basis they do not have access to the required IP to support this effort. The market research team concluded the SW source code and technical data for the three critical ATD components is proprietary to RC.

The ATDs have both been modified so extensively, the overall ATD system no longer retains the nongovernmental functions as described in FAR Part 2, and therefore this effort does not meet the definition of a commercial item.

The market research concluded RC is the only source that currently has the expertise, facilities, training, and equipment to provide full support for the ATD.

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

None.

March 2018 FOR OFFICIAL USE ONLY Page 7 of 7

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.

The Government does not possess the technical data for the JSTARS E-8C ATD to support full and open competition. RC responded to Government inquiry to sell the technical data on 13 July 2018.

They declined interest in selling the technical data but offered consideration to licensing their IP software executables for a license fee but RC would have to continue to perform the TSSC portion of the work, creating an unnecessary pass-through for TSSC support.

A reverse engineering effort was estimated to cost and take four years to complete. Due to schedule constraints and unacceptable performance risks, a reverse engineering effort was deemed not an economical investment as the costs of such efforts could not be recouped prior to the 2030 retirement date of the aircraft.

The plan to break barriers to competition in the prior J&A was to continue engaging the OEM on selling the technical data to the Government. The plan was fulfillment, therefore the current J&A does not require higher level approval in accordance with DFARS PGI 206.304(a) (S-70) (ii).

The Government's plan to break barriers to competition is to continue to engage the OEM on an annual basis to determine the feasibility of procuring the data rights.

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.