Redacted_JA_final_signed.pdf

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

I NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action I 1 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 I I and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official. I l _________________________________________________________________________________ J

Choose the funding level for this J&A Document:

D � $700K D > $700K and � S 13.SM IZ! > S 13.SM and � $93M 0 > $93M

Contracting Activity: Air Force Life Cycle Management Center (AFLCMC) AFLCMC/WNKE Contracting Branch, Robins AFB, GA

Purchase Request/ Local ID Number: FD2060-16 -90715

Program/ Project (and PE, if applicable): Joint Air Defense Systems Integrator (JADSI) [AN/TSQ-214(V1 A)/PE 064281 F]

Program Type (PEO or Other Contracting): PEO

A th ·t (" 1 d f II ftl )· 10 U.S.C. 2304(c)(1 ), as implemented by FAR 6 .302-1, Only One Responsible Source and No Other u ori Y inc u e u I e • Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: D Class � Individual

COORDINATION CAFFARS 5306.304(a))

Date Project Lead / Program Mgr / Requiring Activity

AFLCMC/WNYBB,

Date Contracting Officer

AFLCMC/WNKE,

Date Local Legal Reviewer

78 ABW/JA,

Date Competition Advocate

AFMC/PZCA,

APPROVAL {AFFARS 5306 .304{al)

Date C31&N PEO

AFLCMC/HN,

Signature

1 of7

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

This Justification and Approval (J&A) to request authority for Other Than Full and Open Competition supports requirements generated for Air Force Life Cycle Management Center (AFLCMC) Electronic Warfare and Avionics Division (WNY), Common Avionics Branch (WNYB). The contracting activity for this requirement is AFLCMC/WNKE. The purchase request supporting this contracting action is FD2060-16-90715.

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

This Justification and Approval (J&A) is for the proposed contracting action supporting other than full and open competition procedures to award a new sole source, performance-based contract for Contractor Logistics Support (CLS) in support of the Joint Air Defense Systems Integrator (JADSI) (AN/TSQ-214(V1A). Other United States military services may utilize this contract for similar efforts, as required, with approval from the Air Force Program Management Office (PMO) and PCO. The contract will be a Firm Fixed Price (FFP), Cost Reimbursable No Fee (CRNF), Indefinite Delivery Indefinite Quantity (IDIQ) contract with a period of performance (PoP) of an eight (8) month basic, four (4) 12-month annual ordering periods, and the inclusion of FAR 52.217-8 Option to Extend Services up to six (6) months.

The sole source contract will be awarded to:

Ultra Electronics Advanced Tactical Systems Inc (Ultra ATS) 4101 Smith School Road, Bldg 4, Ste 100 Austin, TX 78744-3204 CAGE Code: 0B9D8 Large Business

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS

This requirement is for CLS to include maintenance, resolution of diminishing manufacturing sources and service life deficiencies, JADSI software Block Cycle Change (BCC) upgrades and test, host platform integration, site activations, operator and maintenance training and other training as required, cybersecurity, technical manual source data documentation, studies, and over and above work. Software upgrades and integration engineering are also necessary to meet requirements for follow-on JADSI versions and modifications. This includes contractor and Government developmental test and evaluation including in-plant testing, Air Force System Interoperability Testing, Joint Interoperability Testing; Operational Testing (as directed);

Operational Demonstrations, Evaluations, and Advanced Concept Technical Demonstrations.

This effort also requires technical support, documentation, and field support as needed to sustain the existing JADSI hardware and software. This support will include identifying hardware and software problem areas and generating Deficiency Reports (DRs), documenting the DRs in a Government accessible database and performing maintenance. The field support may include Subject Matter Experts (SMEs) and operating and maintaining a 24/7 Help Desk.

Estimated cost is with an eight 8 month basic, four 12-month annual ordering periods, and option to extend PoP up to an additional six months. This estimate was generated by the Program Office from previous similar contract actions with Ultra ATS. United States Air Force (USAF) Operations & Maintenance (O&M) appropriation (3400) funds are provided for these requirements.

Basic Ordering Period 1 Ordering Period 2 Ordering Period 3 Ordering Period 4 6-month extension option Total

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)

AFLCMC/WNYB has an existing contract (FA8523-12-D-0003) with Ultra ATS to provide CLS for the JADSI system. This contract will expire 27 September 2017. This contract action is a follow on contract for the continued performance of these highly specialized services.

The Government does not possess the technical data to compete this effort. The Government did not purchase a complete re-procurement data package under the original production contract, so Ultra ATS has maintained the data rights to the software. The Government did not purchase the rights to the basic engineering data and technical manuals for the currently fielded JADSI configuration and associated support equipment.

The JADSI system is comprised of mostly Commercial-Off-The-Shelf (COTS) hardware and highly specialized software developed and customized to support the Joint and Air Force's Air Defense mission. Most of the COTS hardware components and subcomponents which make up the JADSI system are items which are purchased from vendors and configured and assembled by Ultra ATS into the final unit. However, the is a proprietary design of Ultra ATS to which they maintain data rights. Ultra ATS also maintains data rights to the hardware design of the entire JADSI system.

The software is highly specialized because it correlates, forwards and translates various tactical data link languages as well as other intelligence digital messages into one fused data link picture.

The JADSI software is composed of a number of software modules. Many of the JADSI software modules along with a number of additional JADSI-related applications were developed at private expense by Ultra ATS. Those modules and applications are enhanced and maintained by Ultra ATS using their own private funding. In response to a Government query questioning data rights, the Vendor responded, “In accordance with the clause at DFARS 252.227-7014, these modules and applications are segregated from Government or mixed funding when being developed or enhanced. Therefore, Ultra ATS maintains restricted rights to these modules and applications in accordance with the referenced clause.”

In March 2016, the Government received a memorandum for record (SUBJECT: JADSI Data Rights and Cost) from Ultra ATS Director of Contracts asserting the vendor would consider an offer from the Government to sell or otherwise delegate the rights to its proprietary restricted rights JADSI software (s/w) for a sum not less than . Considering the alternatives discussed in this J&A, the Government finds it uneconomical to purchase these data rights.

It would take 2 years for the next Program Objective Memorandum (POM) cycle to request the funds required to procure the proprietary data from the Original Equipment Manufacturer (OEM). New drawings and technical data packages will need to be created, which would take an additional 18 months based on past similar efforts. After the proprietary data and drawings are acquired, solicitation and contracting actions will take at least 2 years to complete based on previous contracting efforts. Additionally, a new contractor would take a substantial amount of time to become operationally ready to support the JADSI system at the same level of expertise and capability as the OEM. Additionally, there would be significant lead time to obtain the proper security clearance for any new vendors to gain access to units in theater. The anticipated lead time to procure the technical data, compete the requirement, award the contract, and time for a new vendor to become operationally ready would result in unacceptable delays of support for the JADSI system of no less than an estimated 5.5 years.

Reverse engineering is not an option for the JADSI system due to the substantial cost associated with this process. Reverse engineering the software would require based on the calculation of a potential cost of per hour times 1.5M lines of code. The labor cost is based on JADSI 2009 labor rate of with inflation factor applied. Reverse engineering the proprietary modem hardware would require an additional to produce drawings, new technical manuals, etc., based on similar past efforts by the Government. COTS hardware would also have to be purchased and modified as necessary. The total reverse engineering cost for software and hardware is estimated to cost in excess of , making this an uneconomical option for the Government. A total reverse engineering effort is estimated to take 7 years; 5 years software and 2 years hardware. An estimated 5 years would be required to reverse engineer the 1.5M lines of software code. If reverse engineering the hardware is done concurrent with software, both could be completed in 5 years. The software portion is based on the assumption it would take 3-6 months to write 100,000 lines of code. The 1.5M lines of code would take no less than 5 years to write. This estimate is based on similar software/hardware reverse engineering type efforts. A 5 year delay to reverse engineer would cause an unacceptable delay in field system support and in filling the Government’s requirements.

The Government plans to transfer five major legacy programs to organic support via the Scalable Portable Integrated Data Router (SPIDR). JADSI is the last of these five legacy programs to be transferred due to the additional software engineering requirements. The estimated cost to complete the organic SPIDR software to meet all the requirements of JADSI is expected to be of the JADSI software purchase price. According to the SPIDR implementation schedule, JADSI will begin software implementation in 2nd quarter 2019 and is estimated to complete in 2022 pending the completion of the first four systems on schedule. In a Business Case Analysis conducted by the SPIDR PMO, JADSI’s annual software and license fees cost

. By transferring JADSI workload to SPIDR, this cost will be avoided. Purchase of Ultra ATS proprietary software will result in substantial duplication of cost that is not expected to be recovered through competition due to the effort already under way for organic SPIDR software.

JADSI's diverse and often complicated environment in which it operates, and the standards under which it must be certified, are dynamic in nature. Ultra ATS has unique manufacturing and testing equipment that is required for the repair of the JADSI system. Ultra ATS has a comprehensive and unique engineering knowledge base required to adequately research problems and develop engineering changes involving hardware and software modifications, upgrades, and sustainment. No other source is able to meet this level of expertise.

Accordingly, Ultra ATS is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing negative operational impacts, duplications of cost, and unacceptable delays in fulfilling its requirements.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

In an effort to locate additional sources, the Government posted a Request for Information (RFI) on the Federal Business Opportunities (FedBizOpps) on November 10, 2015 under solicitation number FA8523-16-R-3333. The RFI sought to identify potential sources that possessed the repair data, expertise, capabilities, and experience to meet qualification requirements to repair and operate JADSI components. There were no respondents to this RFI and no companies to date have expressed an interest to the series of questions.

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 will be fair and reasonable to the Government. In accordance with FAR 15.403-4, the contractor will be required to provide 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 in accordance with 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 pursuant to FAR Part 10.001 and 10.002. The market research was conducted by the engineer on 15 December 2016 to determine the market place for this requirement. Market research indicates that the system does not meet the FAR 2.101 definition of commercial items or non-developmental items which can be acquired using procedures available under FAR part 12.

The primary method of market research used were internet search methods. Results from System for Award Management (SAM) returned Ultra Electronics as a vendor for the JADSI requirement. This query also identified two additional vendors. These vendors were evaluated and determined not capable unless the Government provides them the technical data package for the JADSI system. The search was performed using NAICS 811213.

In an effort to locate additional sources, the Government posted a RFI on FedBizOpps on November 10, 2015 under solicitation number FA8523-16-R-3333. There were no respondents to this RFI and no other companies to date have expressed an interest to the series of questions posted.

The Government could not identify any commercial or non-developed items that were either available or able to be modified to meet the agency's mission requirements within a reasonable period of time and without substantial duplication of cost.

The market research concluded Ultra ATS was the only uniquely qualified, viable source available with the design and system data, as well as the unique experience and expertise necessary to satisfy the government's requirements for the engineering effort contract.

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 own the technical data package for the JADSI system; therefore this follow-on CLS effort should be pursued through a sole source acquisition to the incumbent, Ultra

ATS.

Ultra ATS offered to sell their proprietary data to the Government for no less than .

To procure the data was determined not a viable solution because of the prohibitive cost.

Reverse engineering is not feasible due to the substantial time and cost associated with this type effort. It is estimated to cost and take a minimum of 5 years to complete. In addition, the JADSI workload is projected to transfer to organic sustainment via SPIDR by 2022. The stand-up of SPIDR will break the barriers to competition by allowing for future competition for support and sustainment.

XII. CONTRACTING OFFICER’S CERTIFICATION

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. TECHNICAL/REQUIREMENTS PERSONNEL’S CERTIFICATION

As evidenced by my (our) signatures above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.