INDEED_JandA_Redacted.pdf

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

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY13 Sep 2017

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

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

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFRL/RVKDB

Purchase Request / Local ID Number: FA9451-15-C-0005

Program / Project (and PE, if applicable): Integrated Directed Energy Engineering & Development (INDEED)

Program Type (PEO or Other Contracting): Research and Development

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

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

COORDINATION (AFFARS 5306.304(a) )

Date

22 Sep 2017

Program Manager , Capt. USAF

AFRL/RDSSE

Signature

Date

22 Sep 2017

Small Business Specialist

, GS-12, USAF

AFRL/RD

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

31 Oct 2017

Contracting Officer

GS-13, USAF

AFRL/RVKDB

Signature

Date: 2017.09.22 13:02:53 -06'00'

Date: 2017.09.22 14:10:13 -06'00'

Date: 2017.10.31 12:12:04 -06'00'

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY13 Sep 2017

I. Contracting Activity.

U.S. Air Force Research Laboratory (AFRL), Philips Research Site (PRS), Directed Energy Contracting Division (RVKDB), Kirtland AFB, NM 87117-5773. This document is an individual justification and approval document for other than full and open competition.

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

This document is an individual justification and approval document for a no cost extension on cost-plus-fixed-fee (CPFF) completion contract, FA9451-15-C-0005, with Northrop Grumman Aerospace Systems Corp. (NGAS & MSC), One space Park Blvd, Redondo Beach, CA 90278-1001, CAGE 11982. NGS & MSC is a division of Northrop Grumman Corporation. The following are entities owned by NG that are related to this effort: Cutting Edge Optronics (CEO) and Northrop Grumman Aerospace Systems (NGAS). The purpose of this J&A is to extend the technical period of performance for three years

The efforts associated with this acquisition provide for the continuation of research, development, engineering, design/adjustment, fabrication, assembly, integration, calibration, and test of applicable laser hardware for solutions to meet the research objectives of five integrated solid state laser systems which, when combined, compose the Integrated Directed Energy Engineering and Development (INDEED) program located at Kirtland Air Force Base, NM.

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

The mission of Directed Energy's Space Electro-Optics Division, Starfire Optical Range (SOR) (AFRL/RDSS) includes applications in Space Situational Awareness (SSA). The SOR requires lasers to facilitate its SSA mission. The SOR currently has lasers and laser. These lasers require regular support to include calibration for experiments, refurbishment of components, troubleshooting and maintenance, and technical expertise to integrate these lasers into ongoing research performed at SOR

Under the current effort, NGAS provides on-site technical laser research and engineering advancements for an anticipated performance period of three years (36 months) with an additional three months for final reporting. The current effort's period of performance ends December 1, 2017. The Starfire Optical Range (SOR) requires performance for three years from the award of this modification.

Under the contract, NGAS as the original equipment manufacturer performs the following:

(1) The Contractor provides, integral to research and development efforts, both on-site and remote laboratory and technical engineering on laser systems: (located at Kirtland Air Force Base, KAFB). The contractor ensures that the laser systems are kept in a general state of R&D experimentation readiness and are operationally available to fulfill planned experimentation schedules.

(2) The effort includes total system level diagnostic reviews, laser system technical analysis and overall laser system adjustments in order to match, coordinate, and execute various designated research and development experiments and efforts. To meet key research objectives, the Contractor performs proprietary adjustments to and calibration of internal optical laser components.

When this contract was awarded in December 2014, the estimated total cost of the effort was projected to be for 36 months funded using Air Force Research and Development, Test & Evaluation (RDT&E) 3600 appropriations. This includes an estimated cost of and a fixed-fee of . However, the contractor is under-running and has only expended approximately , with a burn rate of about per month as of September 2017.

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY13 Sep 2017

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

10 USC 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).

The laser systems are proprietary to NGAS. Data rights for the systems range from "commercial" to "limited" with very few components classified with government purpose rights. AFNWC/JAN was consulted to confirm the validity of the contractor's assertions. Even with a limited quantity of government purpose rights on specific components, the laser housing or system is protected by patents which prevent organic reverse engineering or third-party operation of the lasers. NGAS is the only entity with the skill set, knowledge, and legal right to perform the required tasks to maintain these lasers for experimentation readiness.

In November 2016, AFRL/RVKDB requested NGAS provide a rough order of magnitude (ROM) for the potential acquisition of the data rights. Several phone calls were held between NGAS Contract Management team and RVKDB.

NGAS was reluctant to provide a dollar estimate without the Government first authorizing the payment of proposal preparation costs. In January 2017 NGAS provided a "no bid" response, indicating that the data rights were not for sale, but affirmed that the rights we have on file for the INDEED contract are current.

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

This effort has been performed as sole-source by NGAS since June 2011. Market research was conducted in 2014 and again in 2017. A market research report is attached to this J&A.

Responses to requests for information in 2014 and 2017 were reliant on (1) data rights being provided or (2) the acquisition of new laser systems. The Independent Government estimate to replace the existing lasers with duplicate specifications is approximately and is an unfunded requirement. Modern replacement lasers with would cost an estimated to acquire. In summary, RFI responses demonstrated that the respondents lacked programmatic and technical resources needed to meet the requirements without significant impact to cost, schedule, and performance. Additional information is available in the attached market research report.

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

The purpose of this J&A is extension of the current INDEED contract FA9451-15-C-0005 for three years. The price on the contract was determined fair and reasonable at time of award in 2014.

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

Market research methods included searching the inter-agency government contracting website for Economy Act solutions, RFI posted on Federal Business Opportunities, general Internet searches for potential third party license and service providers, and organic-solution attempts were made via vacancy announcements on USAJOBS, which went unfilled. Details are available in the attached market research report.

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

The crux of this sole-source justification is the proprietary data rights owned by Northrop Grumman and the cost of (1) procuring that data or (2) replacing the lasers. Extending the current period of performance for three additional years provides the most cost-effective, flexible solution for the current operating environment.

The recommended path forward is to extend the current sole-source contract with Northrop Grumman Aerospace Systems. The contract was awarded with a ceiling of . As of September 2017 has been obligated. The

FOR OFFICIAL USE ONLY

FOR OFFICIAL USE ONLY13 Sep 2017

Government is liable for the fixed fee of . Based on the SOR's SSA mission requirements data right restrictions, the timeline for replacements, and the remaining ceiling, we recommend a three year no-cost extension on NGAS sole-source contract FA9451-15-C-0005.

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

No other sources expressed interest in procuring licenses on the Government's behalf or to perform the requirements as specified in Section III above. A white paper was submitted by Infinity Corporation, CAGE 6ZZQ3, which focused on crystal emitters and a combination of replacements and maintenance efforts with a ROM of . The Government Program Manager, Capt. found the contractor to lack the qualifications, skills, and resources to satisfy the government's requirement.

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.

AFRL/RDS intends to compete the replacement of these laser systems within the next three years. A request for information will be released for within the next six months.

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.