19-30178_JA.pdf

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

FOR OFFICIAL USE ONLY

March 2018 FOR OFFICIAL USE ONLY Page 1 of 8

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! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

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

Contracting Activity: AFLCMC/WNKD

Purchase Request / Local ID Number: FD2060-19-30178

Program / Project (and PE, if applicable): A2PATS Sustainment Support Services

Program Type (PEO or Other Contracting): PEO - Electronic Warfare Materiel Leader

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 Project Lead / Program Mgr / Requiring Activity George Hartman

AFLCMC/WNY DSN 472-4358

Signature

Date

18 Dec 2018

Contracting Officer Erin Taylor

AFLCMC/WNKD DSN 468-2719

Signature

Date

18 Dec 2018

Local Legal Reviewer Major D David Gilkes

78 ABW/JA DSN 472-0575

Signature

APPROVAL (AFFARS 5306.304(a) )

Date

19 Dec 2018

Competition Advocate Elizabeth F. Kennedy

AFSC/PZCA DSN 472-1102

Signature

HARTMAN.GEORGE.CH

ARLES.IV.1119514564

Digitally signed by

HARTMAN.GEORGE.CHARLES.IV.1119514564

Date: 2018.12.18 15:24:51 -05'00'

TAYLOR.ERIN.B.128748

Digitally signed by

TAYLOR.ERIN.B.1287482562

Date: 2018.12.18 15:49:02 -05'00'

Digitally signed by

GILKES.DARREN.S.1259356411

Date: 2018.12.18 17:03:42 -05'00'

KENNEDY.ELIZABETH.F.

1383983009

Digitally signed by

KENNEDY.ELIZABETH.F.1383983009

Date: 2018.12.19 09:34:12 -05'00'

March 2018 FOR OFFICIAL USE ONLY Page 2 of 8

I. Contracting Activity.

This Justification and Approval is to request authority for use of Other Than full and Open Competition to support requirements generated for the Air Force Life Cycle Management Center (AFLCMC), Agile Combat Support Directorate, Electronic Warfare and Avionics Division (WNY).

The contracting authority for this requirement is AFLCMC/WNK. The purchase request number supporting this contract action is FD2060-19-30178.

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

Due to circumstances described herein, the activity requests authority to acquire Sustaining Engineering Services in support of the Advanced Architecture Phase, Amplitude and Time Simulator (A2PATS) 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 individual action will result in the award of a new Indefinite Delivery Indefinite Quantity (IDIQ) contract with a basic contract year plus four (4) one year options. It is anticipated that the resulting contract will be a combination of Cost Plus-Fixed Fee, Firm-Fixed Price, and Cost Reimbursement-No Fee contract line item numbers (CLINs). This contract is anticipated to be awarded no later than 31 March 2019. The anticipated validity period of the IDIQ is 31 March 2019 to 30 March 2024.

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

AAI Corporation DBA: Textron Systems 124 Industry Lane Hunt Valley, MD 21030-3342 Cage Code: 97384 Large Business

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

This requirement is for engineering services support and sustainment of the A2PATS. The Electronics Warfare/Avionics Integrated Support Facility (EWAISF) A2PATS provides the modeling and simulation (M&S) of the transmission and/or reception of the various type of electromagnetic spectrum. The primary purpose of this effort is for sustaining engineering services supporting the A2PATS to include all modifications and/or technology refreshes of hardware, software, firmware, system training, off-site repairs, on call help desk, acquisition of additional A2PATS Maintenance cabinets, Stimulus cabinets and Synthetic Stimulus Instruments (SSIs), spares, assistance with A2PATS Diminishing Manufacturing Sources (DMS) and obsolescence issues and Test Measure Diagnostics Equipment that may be used to support the simulator. This requirement ensures the operability of each A2PATS Radio Frequency (RF) port in the network. The contractor will be required to perform repairs of failed/returned components, provide written/verbal notification upon receiving A2PATS Circuit Card Assemblies (CCA)/ components, provide accurate repair estimates, and contractor performance reporting.

March 2018 FOR OFFICIAL USE ONLY Page 3 of 8

The total estimated cost of the contract is . This estimate is based on a Rough Order Magnitude (ROM) provided by Textron Systems. The type of funding will be 3400 EWAISF Operation and Maintenance (O&M) Centralized Asset Management (CAM) 3400, and 3010 BP 12 A/ C Support Equipment Procurement. This contract is anticipated to be awarded no later than 31 March 2019. The anticipated validity period of the IDIQ is 31 March 2019 to 30 March 2024 in which all orders executed against this IDIQ will be covered by this J&A through and until completion of the individual orders.

Contract Line Item Number (CLIN) structure is as follows and cost are based on historical data with an annual escalation factor of 3% applied.

CLIN CLIN Desc. Cost Type FY19 FY20 FY21 FY22 FY23 TOTAL 0001 Repair Services 3400 CPFF 0002 Material 3400 CPFF 0003 A2PATS Tech 3010 FFP Refreshes And Upgrades 0004 Travel 3400 CRNF

Estimated Contract Value:

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).

The agency's minimum needs can only be satisfied by the unique supplies or services available from Textron Systems in support of the EWAISF A2PATS network.

This requirement is for highly specialized equipment and services. The EWAISF is specialized because it must be able to generate threat signals that have characteristics to accurately simulate and meet the fidelity requirements of all EW systems that the EWAISF supports. Within the EWAISF, the majority of Constructive M&S is currently performed with either Combat Electronic Environment Simulators or A2PATS. The A2PATS has the ability to precisely locate, identify, and defend against virtually all ground-based threats, surface-to-air threats, and air-to-air threats. Textron is the Original Equipment Manufacturer (OEM) of the A2PATS hardware, software, and firmware and own all technical data that is held proprietary.

Textron has in its possession all the necessary data and skilled personnel to provide comprehensive on-site and remote support, and is uniquely positioned to perform fast turnaround repair without relying on third parties for the A2PATS located in the EWAISF.

March 2018 FOR OFFICIAL USE ONLY Page 4 of 8

Sustainment engineering services are currently being provided by Textron Systems under sole source Navy contract N68936-16-D-0001, task order N68936-18-F-0166. The period of performance for this task order is January 2018 through January 2019.

The Government requested a ROM to purchase the Technical Data Package (TDP) from Textron Systems via email on 18 September 2018. Textron responded to the Government's inquiry that the selling price for the TDP would be that if the Government was truly interested in pursuing this option that all parties would have to agree to a date to establish the exact system configuration and to compile the necessary data. This data would be required to complete A2PATS sustainment since the simulator files are specific only to the A2PATS. Since the estimated end of service life for this asset is 2040, the Government finds it uneconomical to purchase the TDP for since it significantly outweighs the current estimated total life cycle cost of

Award to any other source would require a redesign and/or reverse engineering effort to develop a TDP. Based on the Air Force's engineering staff's experience and engineering project data, a redesign and/or reverse engineering effort would expose the Air Force to unnecessary cost risk, schedule risk, and technical risks with no guarantee of success.

The Electronic Warfare System Program Office estimates it would take at least five years to reengineer a TDP and qualify a replacement source of repair for the A2PATS. The new source would have to obtain the necessary tools/equipment, and facilities to support the effort. In addition, the new source would be required to identify and rectify any obsolescence issues, deliver qualification reports, provide first article assets for the Government's review and approval. This effort would require that the Government evaluate any new hardware and evaluate/test all software code at the Shop Replaceable Unit level to determine form, fit, functionality. The Government estimates that this would take a minimum of three years to accomplish. Subsequently, the hardware and software interface would have to be evaluated at the Line Replaceable Unit level to ascertain operational parametric data, requiring at least 12 months to accomplish. Finally, the A2PATS would have to be analyzed at the system level to validate all operational capabilities. At each step, a thorough documentation effort would have to be performed to archive the engineering data/support information required. This analysis and integration with each EW system is estimated to require an additional 12 months to accomplish. The estimated development cost for such an effort, not including the cost of production assets, is estimated at The time required and estimated cost is based on engineering expertise. Furthermore, the war fighter would only have a form, fit, and function replacement resulting in an inability to sustain the current A2PATS.

The Government performed a breakeven analysis for a reverse engineering effort. The analysis indicated it would take a minimum of 62 years' worth of repairs before the Government would have a return on investment (ROI). Based on the annual average repair cost of , which includes a technical refresh every five years, the cost for the life of the system is estimated at .

Since the asset will reach the end of its service life in 2040, reverse engineering is a substantial duplication of costs to the Air Force that is not expected to be recovered through competition, as evidenced by the following:

• With a projected life until 2040, the current annual average repair cost for is estimated at

• Estimated total life cycle cost for 22 years is .Assuming that a reverse engineering

March 2018 FOR OFFICIAL USE ONLY Page 5 of 8 effort was successful and competition resulted in a 20% reduction in repair cost, the new annual average repair cost would be or total for 22 years of . A savings of

• The total reverse engineering effort is estimated to cost .

• At the end of life expectancy of 2040, an deficit would remain from reverse engineering effort investment.

• By taking the average estimated repair delta of annually over 22 years, as a result of a competitive acquisition, an additional 40 years of repair would be required for the Government to recoup a ROI.

Given the amount of time it will take to receive approval and funding as well as the actual time to undertake the reverse engineering effort, the Government has deemed a reverse engineering action uneconomical at this time. The time required for such an effort would directly impact and degrade mission effectiveness by delaying current repairs for the A2PAT simulator which would result in degradation of EW systems in the EWAISF. Any delay in procuring A2PATS engineering support and sustainment would greatly reduce the survivability of the war fighter in the rapidly growing EW threat environment and are unacceptable. This instant acquisition is required to successfully continue sustainment services in order to maintain mission effectiveness against vulnerable threats.

Accordingly, Textron Systems is the only firm capable of providing the supplies and highly specialized services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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

A Sources Sought (SS) synopsis was posted to Federal Business Opportunities (FedBizOpps) on 13 August 2018 with a response date of 13 September 2018 under Solicitation # FA85- Advanced_Architecture_Phase_Amplitude_and_Time_Simulator_A2PATS_Sustainment Support Services. The SS synopsis requested responses from interested vendors that possess the expertise, capabilities, and experience to meet the requirements for sustainment support services that will consist of recurring and non-recurring engineering tasks in support of the EWAISF's A2PATS network. The EWAISF T&E Integrated Product Team (IPT) received two responses, including one from the OEM.

The Government evaluated both respondents but deemed only Textron Systems capable because there is no A2PATS technical data or proprietary source code to provide to the other respondent.

The requirements will be synopsized in FedBizOpps in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor 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 determined 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. The proposed skill mix of labor, labor hours, types, and quantities of materials, other direct costs, and direct and indirect rates

March 2018 FOR OFFICIAL USE ONLY Page 6 of 8 will be negotiated by the Government based on recommendations from the Defense Contract Management Agency (DCMA), Defense Contract Audit Agency (DCAA), and expert technical personnel supporting the program, as applicable. 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 in accordance with FAR 10.001 and 10.002. The market research was completed on 24 October 2018. Market research techniques used are as follows:

A SS synopsis was posted to FedBizOpps on 13 August 2018 under Solicitation # FA85- Advanced_Architecture_Phase_Amplitude_and_Time_Simulator_A2PATS_Sustainment Support Services. Two responses were received, including response from the Textron Systems. Both vendors were evaluated but Textron Systems was the only vendor deemed capable.

Market Research Investigation: An iterative investigative process utilized in order to help keep abreast of all information, data, capabilities, etc. dealing with the procurement and sustainment of the A2PAT simulator.

Surveillance: A continuous effort was upheld to provide awareness of the market or markets related to the mission area or capabilities being acquired. Attendance at the following events:

Industry Day: Dixie Crow Symposium March 19-23, 2017 Textron visited the EWAISF and provided a demonstration of their A2PATS software update Version 4.

TSWG: The EWAISF SME has attended several “Threat Simulator Working Groups” where the Product status of the A2PATS and various other simulators were updated.

Inter-Agency Inquiries (Navy- Pt. Mugu, AF - China Lake &, Eglin AFB) regarding past experience with similar contracts were held with other Government personnel leading similar efforts.

The team also conducted a review of several industry-wide searches on the Internet, using keys terms A2PATS, A2PATS maintenance alignment cabinet, A2PATS hardware, and 40354-41100-50. The following Internet sites were used: FBO.gov, Dynamic Small Business Search, (http://dsbs.sba.gov/ dsbs/search/dsp_dsbs.cfm) and Google.com.

These searches yielded four (4) potential vendors who were then contacted via phone and analyzed through the vendor survey. Although multiple companies had required knowledge to sustain simulator equipment, only one vendor, Textron Systems possessed the necessary technical data to accomplish the required A2PATS work effort.

Market research revealed that no vendor, other than Textron Systems, was found to have the knowledge, experience, and proprietary technical data required to support the A2PATS effort.

The A2PATS is a Non-Developmental Item to Textron Systems with the majority of RF CCAs

March 2018 FOR OFFICIAL USE ONLY Page 7 of 8 designed, manufactured, and assembled by Textron Systems. The A2PATS does not fit the definition of commercial item as defined in FAR 2.101.

The market research concluded Textron Systems is the only vendor capable of fulfilling the Government's requirement.

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 Government does not possess the technical data to support full and open competition.

Textron Systems is the OEM and maintains proprietary rights to the technical data for the A2PATS hardware, software, and firmware which currently resides in the EWAISF.

An inquiry was made to Textron Systems in September 2018 to procure proprietary data rights. They responded with ROM of . Since the estimated end of service life for this asset is 2040, the Government determined it to be uneconomical to pursue the purchase of the technical data.

A reverse engineering effort is estimated to cost and take five years to complete. A breakeven analysis determined the Government would not experience a ROI during the remaining 22 years of the program. An additional 40 years of repair would be required for the Government to recoup a ROI, therefore pursuing a reverse engineering effort is not feasible.

At this time the Government is not pursuing any avenues to overcome barriers to allow for contract competition, but the Government is working with the 402nd Software Maintenance Squadron located at Robins Air Force Base, to perform on-site trouble shooting and preventive maintenance services for the A2PATS that will reduce a small percentage of repairs being performed by Textron Systems.

There is no prior J&A therefore the requirements of DFARS PGI 206.304(a) (S-70) (ii) do not apply.

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.

March 2018 FOR OFFICIAL USE ONLY Page 8 of 8

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.