(CUI) MAGR_2K_M J_A Signed 220725 Final_Redacted.pdf

CUI

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. Agency and 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, Agile Combat Support Program Executive Office, Electronic Warfare and Avionics Program Office, Positioning, Navigation and Timing-Program Office (PNT-PO), AFLCMC/WNY. The Contracting Activity for this requirement is AFLCMC/WNKF. The Purchase Request number supporting this action is FD2060-21-32358.

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

Due to the circumstances described herein, the activity requests authority to procure the items and services listed in Section III of this document 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. This action will result in the award of a follow-on contract which will be a Requirements Indefinite-Delivery Contract (IDC) with five (5) one-year ordering periods.

The Requirement IDC will include multiple pricing arrangements. Firm-Fixed-Price (FFP) is anticipated for MAGR 2K production, repairs, data, demilitarization (demil), and Isolated/Unisolated mounts. MAGR 2K technical services, studies, and analysis efforts will be established at the delivery/task order level and could be FFP, Cost-Plus-Fixed-Fee (CPFF), and/or Cost-Plus-Incentive-Fee (CPIF). MAGR 2K-M Production Representative Unit (PRU) repairs and PRU production will initially utilize CPFF until actual accrue, then may transition to

FFP.

Based on the projected contract award date, orders can be issued 28 September 2023 through 27 September 2028.

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

Raytheon Company 2000 East El Segundo Blvd El Segundo, CA 90245-3507

CAGE: 4U884

Large business

III. Description of supplies/services required to meet agency needs (including the estimated value).

This acquisition is for production, repair, asset demil, technical services, studies, and analysis of Miniaturized Airborne Global Positioning System (GPS) Receiver 2000/Modernized (MAGR 2K/2K-M) family of receivers and mounts. The MAGR 2K line of receivers (variants) consists of highly specialized GPS user equipment. It is specifically designed to deliver precise navigation and timing to military aircraft performing various missions. Additionally, it provides anti-jamming, aircraft-to-weapon hand over interfaces, targeting, aircraft carrier alignment, and guidance information to encrypted radios. Its unique military design can withstand gunfire vibration, electro-magnetic interference, temperature and humidity ranges greater than what is typically found in commercial GPS units.

The MAGR 2K variants include MAGR 2K-IF, MAGR 2K-RF, MAGR 2KS-RF, MAGR 2KS S24, and MAGR 2K-M. The MAGR 2K is a militarized GPS airborne receiver system designed to receive specific satellite signals intended for military receivers that support the Department of Defense (DoD) and foreign military sales (FMS). The MAGR 2K is a dual frequency L1/L2 Selective Availability Anti-Spoofing Module (SAASM)-based Precise Positioning Service (PPS) airborne receiver providing enhanced positioning accuracy and feedback on quality of position accuracy. Platforms currently utilizing MAGR 2K equipment include: B-2, KC-46, F/A-18, AV- 8B, MH-53, CV-22, MV-22, Presidential Helicopters, and multiple FMS customers/platforms.

There is a requirement to incorporate DoD and civil mandates to design, test, and deliver a Military Code (M-Code)/Automatic Dependent Surveillance-Broadcast (ADS-B) out capable MAGR 2K (i.e., MAGR 2K-M). This mandate is driven by Public Law 111-383 Section 913.

This new M-Code/ADS-B out upgrade and the obsolescence redesigns for the Central Processing Unit (CPU) Input/Output (I/O) card will generate a new receiver. This new receiver implements M-code requirements, enhancements, and provides a more secure encryption capability, jamming resistance, and spectral separation from civil signals. This contract will allow for production and sustainment of both the MAGR 2K variants and MAGR 2K-M.

This contract will include five (5) one-year ordering periods. Funding types used in this contract may include Procurement, Operation & Maintenance (O&M), Research, Development, Test, and Evaluation (RDT&E), FMS, and others as determined appropriate. The estimated cost, best estimated quantities (BEQs) and CLIN structures are as follows:

Estimated Procurement Quantities Procurement FY24 FY25 FY26 FY27 FY28

NSN Item Name BEQs BEQs BEQs BEQs BEQs Total Qty Unit Price Total Cost

Estimated Repair Quantities

Total Contract Estimated Value

Note: BEQs reflecting a quantity of zero (0) are due to low probability of procurement requirements developing. In the event that such requirement(s) arise, the scope of this J&A covers those requirements.

Repair FY24 FY25 FY26 FY27 FY28

NSN Item Name BEQs BEQs BEQs BEQs BEQs Total Qty Unit Price Total Cost

FY24 FY25 FY26 FY27 FY28 Totals

Technical Services BEQs BEQs BEQs BEQs BEQs

Technical Services Estimation

FY24 FY25 FY26 FY27 FY28 Total Then Year $ Millions

CLIN Nomenclature X001 Production MAGR-2K Receivers

X002 RES-Production MAGR-2K-M Receivers

X003 Production MAGR-2K-M PRUs

X004 Data and Reports

X005 Technical Services

X006 RES-MAGR -2K-M Repairs

X007 MAGR-2K-M Repairs for PRUs

X008 MAGR-2K Repairs

X009 MAGR-2K-S (RF) Repairs

X010 MAGR-2K (RF) Repairs

X011 MAGR-2K (IF) Repairs

X012 MAGR-2K (IF) Repairs

X013 Demilitarization

X014 Production MAGR-2K Mounts (Isolated)

X015 Production MAGR-2K Mounts (Unisolated)

CLIN STRUCTURES

All MAGR 2K variant NSNs have been screened and assigned Acquisition Method Code (AMC)/Acquisition Method Suffix Code (AMSC) and/or Repair Method Code (RMC)/ Repair Method Suffix Code (RMSC) of �3/R.� AMC/RMC �3� means Acquire, for the second or subsequent time, directly from the actual manufacturer. AMSC/RMSC �R� means the Government does not own the data or the rights to the data needed to purchase this part from additional sources. It has been determined to be uneconomical to buy the data or rights to the data. It is uneconomical to reverse engineer the part. This code is used when the Government did not initially purchase the data and/or rights.

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

10 U.S.C. 3204 (a) (1) [formerly 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 the nature of the acquisition requires use of the authority cited above (applicability of authority).

The Government�s requirement to provide various aircraft platforms with Precise Timing and Navigation capabilities while ensuring survivability of the system is performed by the MAGR 2K equipment variants. Raytheon has been the sole source provider of MAGR 2K equipment variants. Raytheon possesses the following unique and highly specialized capabilities:

1) The MAGR 2KS was originally procured as a Non-Developmental Item (NDI) by the SMC/GPS Joint Program Office under the tenets of acquisition reform to replace the legacy MAGR due to obsolescence issues and increased capabilities. The NDI requirement was solicited competitively with no data being acquired because it was a NDI. Raytheon was the awardee in 1998. They developed and manufactured the MAGR 2K. They have since produced, repaired, and provided technical services to the Government for the MAGR 2K and its variants.

Raytheon owns the �Production Build� drawings, specifications, and the source code required to produce the receivers. Raytheon possesses the facilities, personnel, special tooling, management, and expertise required for production, repair, technical service, and demil requirements for these receivers. Raytheon possesses the technical data required to produce and sustain the MAGR 2K variants. The MAGR 2K variants are expected to remain in operational use through 2030.

2) The Government does not own the technical data or Government purpose rights to the data.

The Government sent inquiries to Raytheon requesting their interest in selling the MAGR 2K technical data packages (TDPs) on 28 November 2018 and 24 April 2020. Raytheon responded they have no interest in selling the TDPs. On 23 November 2021, the Government contacted Raytheon again regarding the sale of the TDPs. Raytheon responded that a formal Request for Proposal (RFP) would be required for them to conduct a study to determine the feasibility of them selling data rights to the Government. Once the study is complete, Raytheon will address the feasibility of selling the TDP to the Government. It is not prudent use of taxpayer dollars to fund an endeavor which in principle should be performed and assessed at Raytheon expense.

3) Specialized technical services are required to support aircraft integration efforts, troubleshooting software and hardware anomalies, Engineering Change Proposals, testing, and other unforeseen technical issues. The technical data required to support these requirements is owned by Raytheon and not available to other vendors.

4) Raytheon is the only known source that has invested in the incorporation of the SAASM into the MAGR 2K or its equivalent. The DoD and its FMS partners are the only ones in the marketplace procuring these items and related MAGR 2K services. There are other military GPS receivers that are unique to various DoD and FMS aircraft. Some are made by vendors such as Honeywell and Northrop Grumman; however, these units are not interchangeable or suitable substitutes for the MAGR 2K due to form, fit, and/or function concerns. The lack of Government data rights, coupled with the approximate required to produce a reverse engineered receiver would result in unacceptable delays in meeting agency needs. Even if another source could reverse engineer (RE) and duplicate the MAGR 2K receiver(s), the cost associated with an RE effort as well as platform integration and testing of a new unit is expected to exceed . These estimates are based on recent cost and time associated with the 3A to 3AS receiver redesign effort which is similar to the MAGR 2K variants. At a savings per year, it would take to recoup RE investment, far exceeding the operational use expectancy of 2030 as platforms are expected to begin migrating to the next generation MAGR 2K-M. Additionally, as the MAGR 2K has significant obsolescence concerns, it is likely that a major redesign would be required which could significantly impact costs and schedule. It is also very unlikely funding would be approved to support the redesign of a SAASM receiver based on the Congressional M-Code mandates. It is anticipated the MAGR 2K will no longer be producible by Q1FY24 due to significant obsolescence. Out-year repair demands are expected to decrease due to fewer users and units removed during the upgrade to MAGR 2K-M will be added to the supply chain providing a larger pool of assets.

There have been three follow-on contracts (FA8807-05-D-0001, FA8807-13-D-0001, and FA8540-18-D-0005) with the engineering, manufacturing, and development of the MAGR 2K-M receiver awarded as a separate order (FA8523-16-F-0049) against contract FA8807-13-D-0001.

The current contract, FA8540-18-D-0005, expires 27 September 2023. The Government will have limited data rights as the MAGR 2K-M development is built upon the foundation of the MAGR 2K which is proprietary. Any data obtained would be insufficient to manufacture, test and repair the MAGR 2K-M.

Accordingly, Raytheon is the only firm capable of providing the requirements described in Section III above without the United States Air Force (USAF) experiencing unacceptable delays in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under FAR 5.202 applies.

A Sources Sought (SS)/Request for Information (RFI) was posted to System for Award Management website (SAM.gov) on 01 September 2021, with amendment post on 02 September 2021 under Notice ID FA8576-21-R-0005. Responses to the SS/RFI were due by 01 October 2021. The SS/RFI stated that the Government is conducting market research to identify potential sources that possess the capability, experience, and expertise required to perform Production, Sustainment, Modification, and Engineering support for the MAGR 2K, MAGR 2K-M, and mounts for various Navy and Air Force platforms. The SS/RFI asked interested parties to provide documentation on how their company can meet the requirements detailed in the draft PWS. Two vendors responded to the SS/RFI: Raytheon Company (CAGE: 4U884) and X Technologies, Inc. (CAGE: 1JDN2). Raytheon provided a letter of interest in any resulting RFP or solicitation. X Technologies requested clarification on data rights possession, which led to the Government�s amending of the SS/RFI to include clarification of the data rights possession description. X Technologies was provided an email stating the SS/RFI had been amended to address the inquiry; the email was acknowledged by X Technologies, and to date, no further inquiries have been received.

A pre-solicitation synopsis will be posted on (SAM.gov as required by FAR 5.201. Although the Government does not own data to support acquisition of this requirement from any other source, any source who responds to the Government as a result of this synopsis will be identified to the Prime 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 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. Cost analysis will also include review of actuals for production and repair units. 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 Audit Agency, Defense Contract Management Agency, and expert technical personnel supporting the program. The contract costs/prices will be negotiated in accordance with the procedures in FAR Part 15, ensuring the costs/prices to the Government will be 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 initiated on 13 May 2021 and was completed on 29 October 2021 in accordance with FAR 10.001 and 10.002. The following market research techniques were used:

1) A search of the Small Business Administration website was performed utilizing the search tool located at: https://web.sba.gov/pro-net/search/dsp_quicksearch.cfm. The search yielded zero results indicating that there were no small business companies with the capabilities required to meet the Government requirements.

2) Internet searches were performed to determine the availability of SAASM-based airborne GPS receivers that could meet the performance requirements of the MAGR 2K receivers. Several manufacturers were identified that produce SAASM-based receivers that provided for a MIL- STD-1553 data bus; however, the physical configuration of said receivers was found incompatible with current platforms. These receivers do not meet the specification requirements and cannot be modified to meet platform requirements. Therefore, the activity eliminated them from the potential replacement pool. Additionally, internet searches were performed utilizing the following keywords: �Miniaturized Airborne GPS Receivers� and �Miniaturized Airborne GPS Receivers SAASM.� These searches yielded only one candidate that had the capabilities to meet the Government�s requirements: Raytheon. No other sources were found who produce a GPS receiver inclusive of SAASM capability and who have demonstrated the ability to integrate with the affected aircraft platforms. Finally, internet searches were also conducted using the keyword �M-Code GPS receiver.� At the time of the market research, there were no M-Code GPS airborne receivers available in the marketplace. As noted herein under Section V, our office, AFLCMC/WNY PNT-PO, in conjunction with Raytheon is developing an M-Code capable receiver under task order FA8523-16-F-0049 awarded against contract FA8807-13-D-0001.

3) SS/RFI, Notice ID FA8576-21-R-0005 was posted to SAM.gov on 01 September 2021 and amended 02 September 2021. Two vendors responded: Raytheon and X Technologies. X Technologies requested clarification on data rights which lead to the Government to amend the RFI for clarification purpose. After amending the RFI to clarify the Government does not own the TDPs, X Technologies discontinued its inquiry. Since X Technologies did not submit/complete a capabilities survey, they were determined not a capable vendor.

4) Per DoD and civil mandates (Public Law 111-383 Section 913), AFLCMC/WNY PNT-PO, in conjunction with Raytheon, are developing a M-Code capable receiver under task order FA8523- 16-F-0049. There are currently no M-Code GPS airborne receivers available in the marketplace.

5) Market Research Reports from previous MAGR 2K contracts were reviewed. The prior reports concluded Raytheon was the only source with the capability to support MAGR 2K.

Additionally, these reports coupled with the other market research techniques noted above reconfirmed that the MAGR 2K system is not a commercial item as defined in FAR 2.101. First, it does not meet the definition of a commercial item since there is no similar product �customarily used for non-Governmental purposes.� The MAGR 2K team conducted market research and found no suitable commercial products. There are sub-components of GPS that have commercial applications; however, the Government version of these products are modified and integrated for Government use in such a way that they lose any similarity to the aforementioned commercial products. Second, the MAGR 2K does not meet the FAR definition of a commercial item as it uses a PPS GPS as opposed to the commercial Standard Positioning Service (SPS) GPS. PPS is not available commercially and is regulated by a security device controlled by the GPS Joint Program Office and the National Security Agency. PPS uses control cryptologic keying material, while SPS does not. SPS does not meet current core requirements. Furthermore, the MAGR 2K provides anti-jamming, weapon hand-over/interface, targeting, interface with encrypted radios, aircraft carrier alignment, gunfire vibration, electro-magnetic interference, and stricter military temperature and humidity range requirements, none of which are available in a commercial application. MAGR 2K-M incorporates M-code which is not available for commercial sale as it invokes highly specialized capabilities for use in military operations.

After careful analysis of all search results, the conclusion found is that Raytheon is the only company that can provide all necessary capability for these specific requirements.

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.

The current version of the MAGR 2K system is in operation and expected to continue through 2030; any attempts to reverse-engineer the system could take up to and would not be completed in a timeframe that would meet the customers� requirements. The Government�s plan to overcome barriers to competition for future acquisitions is as follows:

1) The Government will continue attempts to acquire technical data rights by submitting data acquisition requests to Raytheon throughout the resultant contract if data rights are not obtainable and negotiated under said contract.

2) During 2026 or prior, the multi-functional team will initiate a break-even analysis to determine if procuring repair data maximizes the lifecycle sustainment. This is contingent on Raytheon submitting a rough order of magnitude for acquisition of the repair data.

3) The team will accomplish annual market surveillance and monitoring of technical literature to determine potential repair sources/suppliers of subject NSNs. Once the next generation receiver (MAGR 2K-M) is fielded, the team will continue with the same actions as above to acquire the data rights and pursue possible competitive acquisitions.

The prior J&A included the same plan to overcome barriers to competition. A formal cost benefit analysis was not conducted as data was not received from the contractor in order to conduct it. In addition, existing platforms are expected to migrate to MAGR 2K-M or sundown, repair demands are expected to decrease significantly once MAGR 2K-M is fielded. Raytheon was asked if they were willing to sell data and they have repeatedly stated the data was not available for sale. This was elevated to the program�s decision authority during the acquisition strategy briefing and it was determined to include level two data requirements in the solicitation. If the contractor proposes it, we will evaluate it and attempt to acquire and then work with the depots to establish organic capability. Based on the attempt to fulfill the prior plan, the current J&A does not require higher level approval in accordance with DFARS PGI 206.304(a) (S-70) (ii).

XII. Certification by the Contracting Officer.

As evidenced by my signature on the Coordination and Approval Document (CAD), 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) on the CAD, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.