PNVC INTEGRATOR REDACTED J&A .pdf

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

I

I NOTE: If o Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action j l must be included in the staff package for approval of the instant J&A. Thi5 applles to J&A staff packages that are submitted for review l I and approval at a level above the contracting offlcer. The predecessor /&A will be used as a reference d•cument by the approving offic,al. i t--------------------------------------------------------------------------------- I

Is this a new or amended J&A Document7 [8l New O Amended ( Prior to Award Only!)

Is this a Bridge Action as defined in the .AF Bridae Ac.t1on Reduction Plan?

Funding levelfor this acquisition:

Contracting Activity: AFLCMC/HNSK. Hanscom AFB, MA

Purchase Request/ Local ID Number: N/A

D Yes 18) No

Program I Project (and PE, if applicable): Prt>sidential and National Voice Conferencing (PNVCJ lnte,rator

Program Type (PEO or Other Contracting): PEO

Authority: 6.302-1 - 1 O USC 2304(ci(1 ), Only One Responsible Source dnd No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options):

COORDINATION [AFFARS 5306.304{!!1)

J&A Type: O Class 18) Individual

APPROVAL (AFFARS 5306.304(a))

Date William B. Roper, Jr

Assistant Secretary of the Air Force

(Acquisition, Technology & Logistics)

I. Contracting Activity.

The contracting activity responsible for this contracting action is the Air Force Materiel

Command (AFMC), Air Force Life Cycle Management Center (AFLCMC), AFLCMC/HNSK, MITRE D, 202 Burlington Road, Bedford, MAO 1730. This is a justification for other than full and open competition. The Approval Authority is the Assistant Secretary of the United States Air Force (USAF, SAF/AQ) Dr. William Roper. The Contracting Officer is Mr. Kevin T. Adams

(AFLCMC/HNSK), (781) 271-81 I 9. The Contract Specialist is Mr. Ryan Proietto (AFLCMC/

HNSK), (781) 271-8077.

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

This individual Justification and Approval is for the authority to award a new contract for the completion of integration and System Requirements Verification (SRV) of the Presidential and

National Voice Conferencing (PNVC) system to Raytheon, Space and Airborne Systems (SAS).

This contract will perform PNVC end-to-end verification testing and deliver test verification reports with Cost Plus Fixed Fee (CPFF), Firm Fixed Price (FFP), and Cost Reimbursable (CR) contract types.

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

PNVC provides the President of the United States (POTUS), Secretary of Defense, Chairman of the Joint Chiefs of Staff (CJCS), Combatant Commanders, and other U.S. Federal agencies worldwide, secure, survivable voice conferencing capability. This system enables voice communication among national leadership that can survive and persist during a nuclear event and provides crucial communication for our nuclear response and defense.

The contemplated PNVC Integrator contract is responsible for fielding, integrating, and testing of these components in a complete system architecture to deliver an end-to-end secure voice communication capability

INITIAL EFFORTS:

Prior to this follow-on effort, the Government awarded multiple Delivery Orders to Raytheon for the initial Systems Requirements Validation and System Requirements Verification efforts.

Under the initial PNVC Integrator contracts, the Government invested $40.8M for Raytheon to establish a technical baseline, test and verify requirements, and deliver associated end-items and technical documentation for the PNVC system.

Validation and Verification of the PNVC system was initiated via a Delivery Order

(DO)

The effort was executed over a 30-month (2.5-year) period starting on 30

September 2016

FOLLOW-ON EFFORT:

This new contract includes a base award and contract options and is a logical follow-on for the remaining engineering and test activities to support the completion of the PNVC integration effort. These activities include component integration, contractor developmental testing, risk reduction testing, and verification activities; support for Government developmental and operational test; and fielding, integration, and checkout

The base contract includes the following:

• Component Integration and Test

• Developmental Test and Evaluation (DT&E)

• Multi-Service Operational Test and Evaluation (MOT &E)

• Not-Separately Priced (NSP) data deliverables

• Updates to and delivery of documentation

• On-site troubleshooting, engineering and root cause analysis of Problem Trouble

Reports (PTRs) and conduct of associated regression testing

• Travel and Other Direct Charges (ODCs)

Contract Options include the following:

• Special Studies Task Requirement Notice (TRN) for study efforts such as availability and reliability analyses, parts obsolescence assessments, spares quantity and pre-positioning assessments, and deficiency reporting (DR) assessment/fixes.

• Development, validation and delivery of technical data, drawings, and associated documentation for the completion of the Enterprise Technical Order.

• Development, validation and delivery of Operations and Maintenance training that will be provided on-site immediately following the installation of the PNVC system at operational sites.

• Execute resolution of PTRs identified during contractor or government led testing for all components

• Contractor testing and verification for future Government development and operational test events

• Updates to technical data, drawings, and associated documentation resulting from

Government Developmental and Operational Test results

• Updates to Operations and Maintenance training resulting from Government

Developmental and Operational Test results

• Operational Site Surveys for both Continental United States (CONUS) and Outside

Continental United States (OCONUS) PNVC locations

• Operational Site Installation and Integration for both CONUS and OCONUS PNVC locations

• Depot activation engineering assessment to inform an organic versus contractor logistics support decision

• Interim Contractor Support and transition to government organic support

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

10 U.S.C. 2304 (c)(I), as implemented by FAR 6.302-l (a)(2)(ii)(B), and required by FAR 6.303-2(b)(4), only one responsible source and no other supplies or services will satisfy agency requirements.

V. (?emonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

Raytheon Company is the only firm capable of providing the supplies and services described in Section III above without the United States Air Force experiencing unacceptable delays in fulfilling requirements.

Raytheon has been the sole source designer, developer, and production contractor for nearly all of the components of the PNVC system

Figure 2 is comprised of (a) contractor familiarization/ramp-up and (b) delays in testing due to availability of Government Furnished Equipment (GFE) critical to the system verification effort.

This two year delay poses unacceptable delays to fielding of PNVC

a. Ramp-up to Raytheon's current unique knowledge base on the PNVC Technical

Baseline: Raytheon not only has intimate knowledge of the PNVC components as the primary developer and producer, they have also gained significant experience over the 2.5 years of PNVC integration efforts under both current and past delivery orders. This experience will drive over a year long ramp up for a contractor other than Raytheon, which is comprised of 6.5 months to rebuild the MBSE deliverable Raytheon has already generated under the CCSS delivery orders and an additional 6 months of familiarization with the PNVC system components and special test equipment to enable the ability to perform the contemplated contract effort.

The contemplated acquisition requires 52 contract deliverables, 42 of which are updates from the deliverables developed by Raytheon under the CCSS effort. Of the 42 continuation deliverables, 23 will be deliv�red using the MBSE model. Raytheon's model includes 42,575 artifacts with approximately 1.5 links per artifact equating to 63,863 links in the PNVC environment. All of these links are maintained in a computer model, updated, and converted within the model to auto-generate the 23 contract deliverables.

In order to provide the Government a concise, interlinked set of requirements traced to each PNVC component; test methods, plans, procedures, and results; technical data and manuals for system operations and maintenance; and operator/maintenance training documentation that facilitates sustainment activities; the new contract will require the contractor to maintain the 23 MBSE deliverables in a model comparable to Raytheon's

MBSE model.

Because the Government deliverable under the CCSS contract provides a model that is not exportable or replicable in its entirety, a new contractor would require 6.5 months to reestablish the links between software applications and meet Raytheon's knowledge level to continue updates and delivery of the 23 contract deliverables. To familiarize themselves with Raytheon's 42,575 artifacts and 63,863 links it is estimated it would take approximately one and a half minutes per artifact to read and understand the context and its linkage to other artifacts. [42,575 artifacts x 1.5 min/artifact+ 60 min/hr+ 40 hrs/week

+ 4 weeks/month= 6.5 months]. Attachment 2 lists the anticipated Continuation

Deliverables and MBSE updates.

Ramp-up to Raytheon's current unique knowledge base on PNVC Verification and

Test efforts: Raytheon is currently building upon the PNVC validation efforts and starting PNVC verification and test efforts under the Delivery Orders listed in Table I. In order for another contractor to initiate SVT with the same efficiency that Raytheon has gained with their previous component experience, a new contractor would require a minimum of six months to ramp-up before the start of testing. The ramp-up time would consist of, at a minimum. familiarization with:

In addition, a new contractor would also require ramp-up to become familiar with the specialized support and test equipment. Two such examples are the MIT Lincoln

Laboratory Satellite Simulator (MIT/LL SA TSIM) and the MILSTAR Atmospheric

Scintillation Simulator (MASS). These two pieces of specialized test equipment are integral to PNVC End-to-End testing. Raytheon has extensive knowledge of each of these devices including how they interface with the terminal sets.

Six months of ramp-up was chosen based on the amount of time it took experienced protected SATCOM MITRE engineers to become familiar with the PNVC system to start limited testing and demonstrations at the Bedford MA Strategic Communications Laboratory (SCL).

ln total, the ramp-up of recharacterizing the MBSE and familiarization with the components and verification work Raytheon has completed in the past 2.5 years would require over a year long effort of ramp-up for any contractor other than Raytheon.

b. GFE Procurement or Availability of a Government System Integration

Laboratory (SIL): While Raytheon has their own fully populated SIL the Government explored options for Contractors other than Raytheon to establish a Contractor SIL or share use of an existing Government SIL to satisfy the critical testing facility needs of the

PNVC integration effort. Creation of a new Contractor SIL would require extensive GFE and cause a minimum 2 year delay for Government procurement of the required equipment. Likewise, the limited capacity of the Government SILs poses delays exceeding IO years to the PNVC effort due to short periods of availability, making

Raytheon the only source that can satisfy the Government's requirements without unacceptable delays.

i. Contractor SIL

The work to be performed at a contractor SIL would require a complete suite of PNVC equipment available in order to perform the test and verification activities. Raytheon is using PNVC GFE items from the PNVC Government Systems Program Office (SPO) and

14 I discrete items from other Raytheon Government contracts to complete their efforts on the current CCSS contract. As stated above, the GFE items not owned by the PNVC SPO are provided on a Rent free Non-Interference (RFNI) basis for use by PNVC based on multiple Government-to-Government agreements with DISA, NSA. ARMY, NAVY, and other USAF programs. The 141 items that are used on a RFNI basis cannot be removed or provided to a new contractor as they have a primary GFE use required for their original, non-PNVC, contracts at Raytheon. To provide similar GFE to a new contractor for the new effort. the Government would have to procure the PNVC owned GFE in addition to the RFNI shared items and provide them as GFE at contract award.

ii. Government SIL

The other option to satisfy PNVC Test and Verification requirements is to offer the use of a Government SIL that contains the PNVC equipment.

a)

The Contractor ramp-up and GFE availability will impose a minimum two-year delay in an alternate contractor's ability to complete the verification requirements of the PNVC system.

This in turn delays the ability to complete Government and operational test, which drives an unacceptable delay in the operational readiness and fielding of this vital NC3 communication capability for the POTUS, COCOMS and other national leaders.

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

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

A Sources Sought Synopsis (SSS)/Request for Information (RFI) was issued on 29 August 2017.

The purpose of the SSS/RFI was to conduct market research in support of a future requirement to contract for highly specialized encrypted terrestrial and satellite communications testing, logistics support, training conduct and testing and certification expertise for the PNVC Integrator program.

Next, the Government issued a follow-on SSS on 6 April 2018 seeking additional information from industry to refresh market research and help determine what industry partners are capable of supporting the PNVC effort. The Government requested responses from potential sources who have an existing test and verification capability, have an alternate capability that does not rely on Government resources, or can develop a test and verification capability that can validate and verify the requirements in the documents provided within this synopsis (refer to Table I). The

Government stated it was especially interested in potential sources that can provide the requested effort with little or no schedule gap as a continuance to the efforts currently under contract.

A summary of potential sources resulting from Market Research are listed below in Table I received are described in detail in Section VIII below.

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

The Contracting Officer anticipates the cost for this effort will be considered fair and reasonable. The Contracting Officer wi II evaluate the contractor's price/cost proposal in accordance with FAR

15 .404-1, using proposal analysis techniques to include price analysis, cost analysis, and profit/fee analysis. Prior to entering negotiations, the Contracting Officer will obtain a Program Office

Technical Evaluation.

This acquisition will include the Defense Contract Audit Agency (DCAA) as well as Defense Contract Management Agency (DCMA) field pricing assistance and compliance monitoring. Certified cost or pricing data is required for this action.

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

The Government conducted a thorough Market Research effort during the period of August 2017 to April 2018. A summary of our market research is highlighted in Table I and discussed in this section.

All sources that expressed interest in the PNYC program were evaluated for their technical capabilities. The Government received to the original 29 August 2017

RFI/SSS. The respondents were Raytheon, . Attachment 4 includes the AFLCMC/HNS and MITRE technical evaluation report. Summary bullets are included below on the evaluation of the responses to the first RFI/SSS:

• Each respondent, with the exception of Raytheon, identified a need to either establish or share an independent test facility which would drive schedule and cost delays.

• Each respondent, with the exception of Raytheon, could only execute part of the technical task.

• Raytheon can execute all the tasks as called for under the RFI/SSS. Testing would be completed in the Raytheon test facility using the preexisting Government and

Raytheon test assets in place.

The Government posted a second SSS on 6 April 2018. The RFI sought to identify potential industry sources capable of validating requirements, integrating the components developed by other separate programs and verifying end-to-end PNVC System Specification requirements. The Government received from Raytheon, d responses detailing their capabilities, while stated that the company respectfully declined to respond to the second SSS notice. Following the SSS, the Government conducted a one-on-one with at their request in May 2018. No other respondent requested a one-on-one meeting. Attachment 5 includes the combined AFLCMC/HNS evaluation report.

Summary bullets are included below on the evaluation of the responses to the second SSS:

• As with the previous response. has many of the capabilities necessary to execute the tasks outlined in the RFI/SSS. One of the primary requirements of the follow-on contract effort is to continue contractor test and validation efforts.

reply indicated if a Government site was not available, they would make their facility at available as a substitute, however, this solution requires that the Government provide the: requisite GFE. went on to state that there would be significant risk and impacts to cost and schedule if Government facilities are not available, although they did not quantify.

• As with the previous response, Raytheon can execute all the tasks as called for under the RFI/SSS. Testing would be completed in the Raytheon test facility using the preexisting Government and Raytheon test assets in place.

Attachment 6 provides the consolidated AFLCMC/HNS Technical Market Research Report.

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 VJ.

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 program office will include a CUN to purchase data rights for any MBSE data asserted with less than Government Purpose Rights (GPR) to promote opportunities for competition in managing the technical baseline in the future.

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.