J&A_-_Redacted.pdf

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

Expert (SME) support at Continental United States (CONUS) and Outside Continental United States (OCONUS) locations. The system operations tempo (OPSTEMPO) shall depict the level of SME support required to operate and maintain systems during wartime and peacetime contingencies. The contractor shall be required to conduct Software Engineering and Investigation (SE&I) for TDL, maintaining and sustaining various common avionics systems including diagnostic troubleshooting for line replaceable units (LRUs) /parts, replacement of obsolete parts and maintenance of the various common avionics systems.

There is no intellectual property to any commercial data information that defines the performance and manufacturing characteristics for engineering services of these DoD avionics systems. This specific service is not available in the commercial marketplace because it is of military application only. There are no product services from alternate sources due to proprietary data.

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).

This contract action is for the continued provision of highly specialized services identified in Section III.

ViaSat Inc. is the Original Equipment Manufacturer (OEM) and maintains proprietary data rights to MIDS.

ViaSat Inc.is the only source with the testing and repair data capable of providing the services identified in Section III that meets the necessary minimum requirement. This engineering services contract requires the vendor to provide expertise in accomplishing hardware/software updates, maintenance, and sustainability in a Link 16 environment or tactical data links type activity. ViaSat Inc. has demonstrated the ability to work with the Multifunctional Information Distribution System-Low Volume Terminal (MIDS-LVT), and MIDS Joint Tactical Radio System (MIDS-JTRS).

AFLCMC/WNY had an existing task order on North Atlantic Treaty Organization (NATO) Support Procurement Agency (NSPA) contract number 4600002030/order number LC-CC/4500292857 with ViaSat Inc. to provide technical and engineering support services for Tactical Data Links (TDL) systems.

This contract expired October 2016.The AFLCMC/WNY Communications equipment requirement is unique. The Government does not own a complete data package for any of the Shop Replaceable Units (SRUs) or LRUs that comprise of the systems in the Networks and Information Integration (NI&I) portfolio. The existence of proprietary data rights for individual LRUs is inherent in this system due to the Government's inability to obtain the repair data (i.e. depot level assembly, maintenance drawings, or technical manuals) needed for competition.

The Government's minimum needs can only be satisfied by the services and capabilities from ViaSat Inc., which possesses the unique capabilities demonstrated below. There are no commercial applications due to the unique military application. No Commercial off the Shelf (COTS) items can be customized, modified, or tailored to meet this requirement. The contract is to be solicited under “Other than full and open competition” to ViaSat Inc. as ViaSat Inc. is the Original Equipment Manufacturer (OEM) and maintains proprietary data rights to MIDS. ViaSat Inc. is the only source with the testing and repair data capable of providing the services identified in Section III that meets the necessary minimum requirement.

Depot Source of Repair (DSOR) #98-0011 was approved and states Contract Repair for life for the MIDS program. A review was completed in June 2015 recommending no change under DSOR #99-007. This decision was made based on the cost to purchase the technical data, the logistics to maintain the anticipated upgrades, and the cost to establish organic capabilities. An Acquisition Strategy Annex V12 put together by the Joint Program Executive Office (JPEO) for MIDS Joint Tactical Radio System (JTRS) dated 10 Jan 2012 also states Contractor or Agency Support. MIDS is a joint service and International program that would require depot support for multiple configurations, as well as the ability to support varying configurations from multiple sources. MIDS is comprised of twelve different configurations supporting 31 separate platforms and is utilized by all four US services and the US Coast Guard, in addition to 42 different nations.

On 2 June 2017, the Government requested level three data from the OEM via e-mail. ViaSat Inc. refused to consider selling the data to the Government. This level of data is required due to the highly specialized design of the Low Volume Terminals (LVT). The LVT has a frequency-hopping algorithm that requires terminal to transmit on 51 carrier frequencies at a frequency-hopping rate of 78,000 times per second, as well as anti-jam capabilities. ViaSat Inc. remains the only source that can provide the services described in this J&A document.

The MIDS system was developed under the direction of MIDS International Steering Committee, composed of the United States, France, Germany, Spain and Italy. The MIDS Joint Program Executive Office (JPEO) and MIDS International Program Office (IPO), who maintains configuration control of MIDS specified and approved only two (2) companies, ViaSat Inc. and Data Link Solutions (DLS), which can repair or produce MIDS products for United States platforms. As a result, they are the only two companies with the highly specialized design and manufacturing data of the MIDS system. Both companies are the original equipment manufacturers of the MIDS product specific to their individually developed baselines that meets the System Segment Specifications (SSS) and have the requisite knowledge, experience, and manufacturing capabilities to satisfy MIDS requirements.

The result of the development is two MIDS products that are equivalents at the Line Replaceable Unit (LRU) level per the SSS, but not internally identical to each other as they were developed separately. Each manufacturer maintains their proprietary technical data packages and is capable of maintaining only their specific product baseline. Therefore, this acquisition is for performance of a highly specialized service identified in Section III specific to ViaSat Inc. only.

Reverse engineering of the MIDS program was considered in order to develop a competitive environment.

An engineering evaluation was conducted January 2015 utilizing analysis derived for the Joint Tactical Radio System (JTIDS) depot stand-up effort and compared to what would be required for the same type of effort in the MIDS program. In order to set up a competitive environment, there are four major elements that need to be addressed; technical data, reengineering, testing, and required highly specialized diagnostic test or repair equipment.

A. First, due to lack of required data and because the vendor refuses to sell any type of data for the MIDS LVTs, a reengineering effort would be required to put together a drawing package. This package would include, but is not limited to; the Interface Control Documents (ICD), circuit diagram schematics (board), and piece part schematics (FPGA). For the board level schematics, a Bill of Material (BOM) and an Engineering Drawing List (EDL) would also be necessary. With the level of effort required for this, an estimate of one man year per LRU was calculated, multiplied by twelve LRUs and then again by the two separate unique vendor configurations. This estimate is based on extensive discussions with AFSC and AFLCMC engineering, MIDS IPT, and evaluating the JTIDS reengineering efforts.

B. The reverse engineering effort for the MIDS product itself would require understanding the theory of operation. This process would require an estimated one man year per each individual Shop Replaceable Unit (SRU) located inside each of the twelve LRUs. On average there are ten SRUs per box. This estimate is again based on evaluation of the JTIDS effort.

C. Once a prototype has been completed, testing would be required for each SRU and LRU. This testing would include lab as well as platform testing for qualification of all users for the MIDS products. Because the source code (i.e. vendor software) is proprietary to the vendor/OEM, it is not available for programming the CORE software of the MIDS LVT or Signal Message Processor (SMP). This adds another level of effort to the process. Testing would be required on the twelve different LRUs (as well as the various different SRUs located in each box) found on 31 inter-service platforms and 42 foreign militaries.

D. Finally, each vendor utilizes highly specialized equipment for diagnostics, repair, and testing during and after the reengineering effort. Individual testers are required for all LRUs and their respective SRUs. Based on discussion with the vendors, they utilize an undefined number of testers for test and repair of each individual SRU and LRU. These testers are built with specialized equipment designed specifically for each individual vendor. There are other subcontractors involved with development and repairs of specific SRUs whose equipment would also need to be acquired. As the Government does not have the data for any of the testers needed, this would need to be engineered.

Equipment would also be required for calibration of the test stations. Reengineering would not include any of the costs for actually building the equipment necessary for repairs.

Taking all this into consideration, along with historical information from similar programs, the reengineering efforts for MIDS would take a minimum of ten years, requiring a team of engineers totaling

, based on per year for engineering labor alone. This estimate does not include the additional costs and time for the equipment required or qualifying a vendor. The ten year estimate assumes sufficient technical data on hand to proceed with reverse engineering process prior to establishing repair capability.

This process will need to be completed prior to reengineering the software and hardware. Since the Government does not own the required data for MIDS, the effort could exceed the initial ten year projection.

The expected system life for MIDS is 2035. The expected repair requirement totals approximately per year. After a 10 year reengineering effort, the remaining life cycle of 10 years after the effort, the remaining repair requirement will be approximately . The Government would spend at least to establish the efforts outlined above by 2025. Based on the reverse engineering estimate and system service life, the Government would yield no savings as the system would need to be in use for the next 52 years to see a return on investment. This would exceed the life cycle and service life of the item by approximately 32 years. With the project requiring ten years or more to complete and estimating the cost at

, establishing a competitive environment for MIDS is cost prohibitive and creates substantial cost duplication. The Government would not recoup savings to establish competition before the end of the program's life cycle.

Additionally the time and cost associated with establishing a competitive environment, the unproven data increases risks of lower fidelity and questionable compatibility, resulting in reduced success rate. Also considering the difficulties involved with reverse engineering/reengineering efforts, the completion of a data package does not guarantee another source would be able to perform the repairs and test for serviceability.

Accordingly, ViaSat Inc. is the only company capable of providing the services described in Section III above without the U.S. Air Force experiencing significant delays and 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.

A sources sought synopsis was posted to Federal Business Opportunities (www.fbo.gov) in the form of a Request For Information (RFI) under solicitation number FA8540-17-R-0007 on 13 January 2017 with responses due by 30 January 2017. One vendor provided a response to this posting by the due date: ViaSat Inc.

The Sources Sought Synopsis sought to identify potential sources that possessed the expertise, capabilities, and experience to meet qualification requirements to provide technical and engineering/sustainment support services.

The requirement will be synopsized on FedBizOpps web page as required by FAR 5.201, citing conditions which preclude full and open competition. Any source that responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential source for subcontracting possibilities.

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

The overall cost of this acquisition shall be determined to be fair and reasonable to the Government. In accordance with FAR 15.403-4, the Contractor shall 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 categories, labor hours, types and quantities of material, other direct costs and direct and indirect rates shall be negotiated by the Government based on recommendations from the Defense Contract Management Agency (DCMA) and experienced technical personnel supporting the program. The contract price shall be negotiated in accordance with 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 and completed on 3 March 2017 by the Integrated Product Team (IPT), AFLCMC/WNYBB, in accordance with FAR Part 10.001 and 10.002. Various market research techniques were utilized to identify additional qualified suppliers. Techniques such as Internet searches of Google, Dynamic Small Business Search, System for Award Management, and Thomas Register, screening analysis worksheets and a sources sought synopsis/RFI were accomplished. The Sources Sought Synopsis was posted to Federal Business Opportunities (www.fbo.gov) under solicitation number FA8540-17-R-0007 on 13 January 2017 with responses due by 30 January 2017. One vendor provided a response to this posting by the due date: ViaSat Inc., the Original Equipment Manufacturer (OEM).

Vendors identified through Market Research were evaluated based on the ability to demonstrate expertise in the ability to work with the MIDS-LVT and MIDS-JTRS Systems. The vendors needed to demonstrate expertise in accomplishing hardware/software updates, training, logistics services, and sustainability of a tactical data link (TDL) system in a Link-16 or Link-11 environment. Searches were accomplished with the criteria “hardware AND “military communication” AND “tactical data link” OR

“TDL.”

The primary filtering criteria used was North American Industry Classification System (NAICS) codes 541330 and 334290. The NAICS codes correspond to the results from the searches on System for Award Management (SAM) using NAICS code 334290 with keyword “Communication” and NAICS Code 541330 with keyword “Engineering Services”. The keyword searches initiated via the SAM website were conducted to address the level of expertise needed in order to meet the intent/capabilities of this requirement.

Small business surveys were conducted using the Dynamic Small Business Search (DSBS) database using known vendor names gathered via previous internet searches and SAM.

Vendor surveys were conducted based on the essential need to limit disclosure of sensitive operational data and mission capabilities associated with TDL systems. Through the market research process, the PMO identified and surveyed seven vendors to determine if they could provide the logistics, engineering services, operational support and SME support required to perform SE&I for the TDL programs. Based on the capability analysis, only one company, ViaSat Inc. is considered a viable solution for these services. Upon evaluation, no other sources met the required data and capabilities needed to successfully support this sustainment effort for TDL type common avionics systems.

Conclusions of the Market Research revealed that there are no sources, other than the OEM, ViaSat Inc., currently poised to provide engineering services for the multiple systems identified in the AFLCMC/WNY Common Avionics Networks Information and Integration portfolio. ViaSat Inc. has the proprietary technical data package, access to TDL system configuration, and experience in engineering and logistics services of the TDL systems, as such they are the only source with sufficient capacity to support demands of this requirement.

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

None.

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.

The Government does not possess an adequate technical data package to support full and open competition.

ViaSat Inc. declined the Government's request on 2 June 2017 to procure the technical data.

The expected system life for JTIDS is 2025 and MIDS is 2035. Any source other than ViaSat Inc. would have to reverse engineer the items, create a drawing package and incur associated cost for qualification and testing which would be cost prohibitive due to the redesign. Engineering evaluation has determined that the estimated cost to accomplish a reverse engineering effort would be approximately and take ten years to complete. A ROI for a competitive acquisition is estimated to take over 52 years. Based on the expected life of the JTIDS and MIDS programs, a reverse engineering effort is not economically feasible.

The Government will take the following steps to overcome barriers to competition for future acquisitions:

A. Every three years (beginning from contract award date) the multi-functional team will initiate an analysis, such as was discussed in Section V above to determine if procuring repair data maximizes the lifecycle sustainment related support. All life cycle sustainment decisions must conform to the most recent Depot Source of Repair (DSOR) determination.

B. Accomplish annual market surveillance and monitoring of technical literature to determine potential repair sources/suppliers.

C. Although the Government does not currently own any repair data for the MIDS program, to the Government will query the vendors annually for this information, elevating within the company if necessary.

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 signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.