SAM DARC JA - Redacted 11 Sep 2024.pdf

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

Was a J&A approved for the preceding acquisition where that acquisition required a J&A? D Yes

Is this a new or amended J&A Document? � New D Amended ( Prior to Award Only!)

Is this a Bridge Action as defined at AFFARS 5302.1017 D Yes � No Dollar Value of this Acquisition: D .5. $750K D > $750K and .5. $15M D > $15M and .5. $ l00M

Contracting Activity: Space Systems Command (SSC)

� > $100M

Product Support Enterprise Contracting (PKL) 1050 E. Stewart Avenue, Bldg 2025 Peterson Space Force Base, CO 80914

Purchase Request (if available) / Local ID Number: SSC J&A No. 23-22

Program/ Project (and PE, if applicable): Deep Space Advanced Radar Capability (DARC) Sites 2 and 3 / PE 1206425SF

Program Type (PEO, Enterprise, of Operational): PEO

Authority:

6.302-1 - IO USC 3204(a)( I), Only One Responsible Source - No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $ (redacted) J&A Type: D Om � Individual

COO RDINATION ( AFFARS S306.304(a))

Date Program Manager / Materiel Leader (redacted)

Date Contracting Officer (redacted)

Date

Date

Local Legal Reviewer (redacted)

Chief of the Contracting Office (COCO) (redacted)

Date Competition Advocate (redacted)

Date Program Executive Officer (redacted)

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Date

28Aug 2023

Senior Contracting Official (SCO) and Head of the Contracting Activity (HCA) (redacted)

APPROVAL ( AFFARS S306J04(a))

Date Senior Procurement Executive Assistant Secretary of the Air Force (Space Acquisition & Integration) (redacted)

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I. Agency and Contracting Activity.

Requiring Agency:

Space Systems Command / Space Domain Awareness and Combat Power (SSC/SZ) 483 N. Aviation El Segundo, CA 90245-2808

Contracting Activity:

Space Systems Command (SSC) Product Support Enterprise Contracting (PKL) 1050 E. Stewart Ave, Bldg 2025 Peterson SFB, CO 80914

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

This individual Justification and Approval (J&A) authorizes non-competitive Fielding of the Deep Space Advanced Radar Capability (DARC) Sites 2 and 3. This contract action will be implemented through a new FAR-based contract and will contain multiple contract types (e.g., cost plus incentive fee (CPIF), cost plus fixed fee (CPFF) and firm fixed price (FFP)).

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

The DARC program is part of a larger effort of moving towards a resilient space enterprise in our nation's Space Domain Awareness (SDA) capabilities able to deter aggression. The DARC Program of Record effort will build and install a pseudo monostatic ground-based radar system. It will coherently combine the pseudo-monostatic array of steerable parabolic antennas. (redacted). DARC provides a unique capability that is critical to ensure the Space Force and DoD are able to successfully execute the SDA mission. More detailed information on the SDA mission analysis, threat, and operational acceptance need dates identified below is classified. The complete DARC system will consist of 3 geographically dispersed sites approximately 120 degrees apart for world-wide GEO belt coverage. The Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)) approved DARC Site 1 to proceed as a Middle Tier Acquisition (MTA) Rapid Prototype. DARC Sites 2 and 3 are planned to be acquired via the Major Capability Acquisition (MCA) pathway.

This acquisition will consist of the complete fielding of Sites 2 and 3; contractor logistics support for operations and support for all 3 Sites and Mission Operations Center (MOC) (Site 1 CLS limited to 2 years following Site 1 operational acceptance; Sites 2 and 3 CLS limited to 1 year each following each site operational acceptance); and the training of site operations and maintenance personnel for all 3 Sites and the MOC. The estimated contract award date for this Fielding action is Dec 2023 or 1 Qtr CY24 at the latest. The required Site 2 Operational Acceptance {OA) date is June 2028 and Site 3 QA is June 2029.

The two critical path items to meet the Site 2 operational capability date are production of the hardware subsystems and site construction. For example, the twenty-seven 15-meter dish antennas are currently the longest lead-time subsystem. Long- lead material for the antennas must be ordered NLT 2 Qtr 2024 (CY) such that all 27 antennas can be produced, delivered to site, and installed NLT 3 Qtr 2026 (CY) so that integration and test activities can begin NLT 1 Qtr 2027 (CY) to meet the operational capability date. The Architecture and Engineering (A&E) design, long- lead construction material orders, and approval processes must begin NLT 2 Qtr 2024 (CY) so that integration and test activities can begin 1 Qtr 2027 (CY).

The total estimated value for this contract action is (redacted). This estimate was based upon the Program Office Estimate.

Sites 2 and 3 development is estimated to cost (redacted). Contractor Logistics Support (CLS) for all 3 sites and the MOC is estimated to cost (redacted).

The Government obtained Government Purpose Rights to Intellectual Property for Site 1 and expects the same for Sites 2 and

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3. The Government will obtain the minimu� rights sufficient to operate, train, maintain and install new equipment and 3rd party software in an Open Systems Architecture environment. If contractor asserts other than Government Purpose Rights, the RFP will include Firm Fixed Price "Data Rights" Option CUN for the Government Purpose Rights level requested by the Government. The Government will specify a minimum of Government Purpose Rights for source code, documentation, and development artifacts consistent with DARC Site 1.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

As cited above, the authority for this J&A is Title 10 U.S.C. 2304(c)(l), and as implemented by FAR 6.302-l(a)(Z)(iii){B) "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements." FAR 6.301-l{a)(2){ii)(B) states that, Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency's requirements.

This contract action for Fielding of DARC Sites 2 and 3 is a follow-on contract for continued development and production of a major weapon system. As explained above in paragraph Ill and below in paragraph VIII, the DARC Program of Record complete system will consist of 3 geographically dispersed sites approximately 120 degrees apart for worldwide GEO belt coverage. DARC Site 1 was competitively awarded 22 February 2022. The award was made as an Agreement (OTA #21-12} on Space System Command's Space Enterprise Consortium (SpEC) OTA (FA8814-21-9-0001). The competitive award was made to Northrop Grumman Systems Corporation Space Systems Sector. The DARC Site 1 Rapid Prototype Request for Prototype Proposal (RPP) included the following language regarding "Potential Follow-on Activity: Upon successful completion of this prototype effort, the Government anticipates that a follow-on production (rapid fielding) effort may be awarded via either a contract or transaction, without the use of competitive procedures, if the participant in this transaction successfully completes the prototype project as awarded." DARC Site 1 Rapid Prototype OTA has an operational leave behind capability requirement of 1 Feb 2025. The DARC Program of Record is an ACAT I equivalent major system and, therefore, this acquisition will be a follow-on contract for the continued development and production of a major weapon system.

The DARC Program Office has determined that award to any source other than Northrop Grumman would result in unacceptable delays in fulfilling the agency's requirements. Sites 2 and 3 are required to be homogeneous in configuration to Site 1, in compliance with the Government Reference Architecture (GRA), to significantly reduce Life Cycle maintenance, operations, and modification costs. As part of the requirements definition process for Site 1, homogeneity was defined to mean, all antennas are the same design {except for variances required for integration of the transmit and receive elements) and are from the same manufacturer; and all transmit elements are the same design and from the same manufacturer; and all receive elements are the same design and from the same manufacturer. This requirement and definition was included in the Site 1 Statement of Work (SOW) and is included in the Sites 2 and 3 SOW. Northrop Grumman (NG), as the current Prime for Site 1, has a complete staff of engineers who have successfully completed the design of the Site 1 system, have built the digital modeling environment, have developed a software architecture that is compliant with the Government provided DARC Open System Architecture (OSA), and are currently building the hardware and software baselines as approved by the Government.

Unlike with a new contractor, NG has no schedule risk associated with hiring a staff and the considerable spin-up time that would be required to execute the Sites 2 and 3 requirements. NG has negotiated contract terms with all the major suppliers for DARC Site 1 (e.g., DARC specific equipment, data rights, and acceptance and testing procedures) and can quickly get these suppliers on contract and into production for Sites 2 and 3. Unlike with a new contractor, these existing relationships greatly reduce the schedule risk associated with getting the current suppliers on contract and ordering long-lead materials. The material lead time on the antennas, receivers, and transmitters is, along with site construction, the critical path driver in meeting the mission need date as discussed in Block Ill above. Finally, NG has 3 established strings of equipment in the DARC data center to support development, test and initial operations, and can immediately meet the software hosting needs of DARC Sites 2 and 3 with no risk of schedule delays associated with high-demand processors supply chain limitations.

The Program Office estimates that a source, other than the Site 1 Prime, would result in a minimum delay of 24 months. As explained above and as communicated to Industry during the selection process for Site 1 Rapid Prototype, the Government always intended to execute a non-competitive follow-on production {fielding) of Sites 2 and 3. DARC is a 3-site system.

Concurrent development of all 3 sites is, and was always, required to meet the mission need dates for all 3 sites. To meet the Government requirements, the deployed solution to all 3 sites must have the same antenna, receiver, and transmitter

March 2023 Page 4 of 7 configurations, and be from the same vendors (GRA described above). This was identified to all offerers during the initial selection process for Site 1 RP, was codified in the Site 1 RP SOW and is also codified in the Sites 2/3 SOW. Given the system requirements, the only way to compete Sites 2/3 would be for the Government to provide detailed specifications and drawings to enable a "build-to-print" approach. In addition, the Government would need to be able to provide validated mission and system software. In order to meet these operational acceptance need dates, DARC Site 2 needs to begin early in CY2024 and DARC Site 3 needs to begin in CY2025. As also discussed in Section VII, 2Qtr 2026 (CY) is the earliest the technical baseline information will be available to support a "build-to-print" approach. It would not have been possible for the Government to compete this acquisition and also meet the mission operational acceptance need dates.

Although the primary concern is meeting mission need dates, it is also likely that award to any other source would result in substantial duplication of costs. Both Sites 2 and 3 will require a delta Critical Design Review (CDR) to address any site unique conditions that may be required in the final designs for each site. This will require a more detailed understanding of the Site 1 design than a "build-to-print" approach would. The time and effort a new contractor would have to incur to "reverse engineer" and re-accomplish detailed mission and system analysis that was the source of, but not included within, the system specifications and drawings would result in an unnecessary duplication of cost. Moreover, duplicating the infrastructure to support the design effort (e.g., incumbent has 3 established strings of equipment in the DARC data center to support development and test as identified above) will also result in an unnecessary duplication of cost. These are only 2 representative examples, among many, that demonstrate why it is likely that award to any other source will result in substantial duplication of costs.

Accordingly, Northrop Grumman Corporation - Space Systems is the only firm capable of providing the supplies and services described in Section Ill above without the Government experiencing unacceptable delays (2+ years) in fulfilling its requirements.

V. 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 S.202 applies.

See Section VII regarding market research sources sought RFI. Additionally, the Government published a Notice of Proposed Contract Action on 8 August 2023 identifying the intent to release a sole source solicitation to Northrop Grumman Corporation

• Space Systems.

VI. 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. This effort will procure Fielding of DARC Sites 2 and 3, which are similar to DARC Site 1 Rapid Prototype currently being acquired under the SpEC OTA as explained below in paragraph VIII. The Site 1 Rapid Prototype will be used for historical reference for pricing purposes.

Certified cost and pricing data will be required for this contract in accordance with FAR 15.403-4. The contracting officer wrn require contractor submission of cost or pricing data in the format prescribed in FAR 15.408, Table lS-2. The contractor will be required to provide Basis of Estimates with supporting hours and dollars. The contracting officer will determine the reasonableness of proposed costs based on any form of the following, but not llmited to: Defense Contract Audit Agency (DCAA) Audit Reports, Defense Contract Management Agency (DCMA) recommendations, technical evaluations, and past history.

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

The Government posted a sources sought request for information (RFI) on SAM.gov on 16 May 2023. Statement of Capability responses were received from Northrop Grumman Corporation• Space Systems, L3Harris Techno1ogies, Inc - Space Superiority Division Space and Intelligence, and Leolabs Federal, Inc. The SOCs and the Government's evaluations are both summarized below.

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Northrop Grumman is the current Prime for Site 1 and demonstrated it can meet the Sites 2 and 3 requirements as explained in Block IV above.

Discussion of other respondents proposed approaches redacted.

The Government did not provide any responses to respondents regarding the Government's assessments of the SOCs. Note:

The sources sought RFI stated the following: "The Government is under no obligation to acknowledge receipt of submissions or of the information received, or to provide feedback to respondents with respect to any information submitted under this Sources Sought Synopsis."

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

Due to mission requirements, the Government cannot delay this effort until DARC Site 1 Rapid Prototype is successfully completed and technical documentation is available to support a "build-to-print" solution for the fielding of DARC Site 2.

Hardware production for Site 3 can only occur after completing hardware production for Site 2, therefore any delay in starting Site 2 directly impacts Site 3 delivery day-for-day.

IX. List of any sources that expressed, in writing, an interest in the acquisition.

Northrop Grumman Corporation - Space Systems Identity of other respondents redacted

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

As explained in paragraph VIII, DARC Site 1 RP was competitively awarded and included language stating, "Upon successful completion of this prototype effort, the Government anticipates that a follow-on production {rapid fielding) effort may be awarded via either a contract or transaction without the use of competitive procedures, if the participant in this transaction successfully completes the prototype project as awarded." The Government is executing this J&A only because DARC Sites 2 and 3 need to start before the DARC Site 1 success criteria have been met in order to meet the DARC Sites 2 and 3 Operational Acceptance dates. If DARC Site 1 successful completion criteria had been met before needing to start Sites 2 and 3, no J&A would have been required for a follow-on production of Sites 2 and 3.

However, DARC is being implemented with a business approach to minimize vendor lock. The Government obtained Government Purpose Rights on all hardware and software, software was built to Government-provided open systems architecture specifications, and the Government owns the tech stack (software development platform). DARC is postured to conduct competitive acquisitions for future sustainment and hardware or software upgrades following successful acceptance of the 3-site DARC system and the limited period of initial operations and sustainment support.

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XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that thfs justification is accurate and complete to the best of my knowledge and belief.

XII. 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.

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