Final Approved JA18-144 EMSS_Secure Voice Equipment_JA MOD 01 Clean_Redacted 6 Aug.pdf

JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting

Procurements under FAR Part 12 and FAR Part 15

Purchase Request Number: To be determined (TBD)

Contract Number: HC101319D0004

Telecommunication Service Request Numbers: TBD

Procurement Title: Enhanced Mobile Satellite Services (EMSS) Secure Voice Equipment

Estimated Value:

Modification (MOD) Estimated Value: (of current ceiling, no increase necessary)

Statutory Authority: FAR 6.302-1 and 10 U.S.C. 2304(c)(l)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Justification for OTFAOC Number: JA18-144 MOD 01

Upon the basis of the following justification, I, Douglas W. Packard, hereby approve the use of other than full and open competition of the proposed contractual action pursuant to the authority of 10 U.S.C. 2304(c)(l) (FAR 6.302-1), only one responsible source and no other provides the supplies and services that will satisfy Agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

Headquarters United States Space Force (HQ USSF) Commercial Satellite Communications

Office

EMSS Program Management Office (PMO)

P.O. Box 549

Ft. Meade, MD 20755-9088

Contracting Office:

Defense Information Systems Agency (DISA)

Defense Information Technology Contracting Organization (DITCO)

Scott Field Office DISA Mobile Satellites Section (PL8221)

2300 East Drive

Scott Air Force Base, IL 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

Note: Revisions to the original Justification are prefaced “MOD 01” and are identified in bold text throughout the document.

MOD 01: The purpose of this modification is to incorporate the integration of enhancements, upgrades, and support for Sectéra®ISM2 (Iridium® Security Module) devices, hereafter referred to as the “ISM2”. This modification also includes firmware updates. The ceiling value and lifecycle period of performance remain unchanged.

EMSS Secure Voice Equipment-JA18-144 MOD 01

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This action seeks to issue a single award, Indefinite Delivery/Indefinite Quantity (ID/IQ) contract with firm fixed price (FFP) to General Dynamics Mission Systems, hereinafter

“GDMS”, a large business, located in Scottsdale AZ. The contract shall have a base period of 12 months plus four (4) 12-month option periods for a total of 60 months. The requested life-cycle contract ceiling for this contract is . This requirement will be customer funded through orders placed against an ID/IQ contract. Delivery orders issued under this ID/IQ contract will be issued by DITCO-Scott upon receipt of a Telecommunication Service Request

(TSR) via the DISA Storefront. These delivery orders may be executed with acceptable funding sources.

3. DESCRIPTION OF SUPPLIES/SERVICES:

MOD 01: This modification serves to incorporate the ability to make necessary upgrades, including firmware, to ISM2 equipment already procured as part of the existing equipment ordering list. In addition an optional 2-year extended warranty for the ISM2 is being added to the Equipment List.

HQ USSF is the PMO and provides the United States Government (USG) and other sponsored customers with satellite communication services through a dedicated, EMSS-controlled

Department of Defense (DoD) gateway. The EMSS gateway communicates with the commercial Iridium constellation, and traffic processed through the EMSS DoD gateway may be routed through the Defense Information Systems Network (DISN), Public Switch Telephone

Network (PSTN) or other third party networks.

The EMSS Follow-On Secure Handset (FOSH) contract (contract HC1047-13-D-4006) developed the 9575 handset modifications (9575A) and new Iridium Security Module, identified as the ISM2. The ISM2 interoperates with the 9575A, and together these components comprise a Secure Iridium Subscriber Unit (SISU). The architecture and hardware developed in the initial phase was intended to maintain current secure call capabilities utilizing the same cryptographic algorithm used by the 9505A and the original Iridium Secure Module (ISM). The ISM2 is available for order on the DISA Storefront. The efforts under this contract are required to fulfill the orders for devices and services that are only available from GDMS due to the cryptographic and proprietary nature of the equipment.

The nature of this contract is to provide secure voice equipment (certified by Iridium) and repairs exclusively provided by GDMS to all authorized EMSS customers, including the DoD and federal government, state and local government, approved foreign and allied governments, and other sponsored customers.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source and no other supplies or services will satisfy agency requirements, 10 U.S.C.2304(c)(1). FAR 6.302-1.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

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(a) Description of events.

The EMSS Program was founded in the late 1990s and distinctly included a requirement for secure voice and data communications. Recognizing this requirement, General Dynamics C4 Systems Inc. (GDC4S) (later renamed GDMS) developed a secure sleeve known as the ISM to be integrated into the commercial Iridium 9505 handset. Because GDMS spent its own internal research and development funding for the ISM, GDMS retains the intellectual property rights, as trade secrets, associated with the secure ISM sleeve. In 2015, production of the ISM became unsustainable due to parts obsolescence, and DISA contracted with GDMS to develop a next generation

ISM, called the ISM2, and to make modifications to the commercial 9575 handset design to interoperate with the ISM2. GDMS is the sole manufacturer of the ISM (no longer in production) and the ISM2. GDMS retains data rights to certain technical data elements of both modules. The Government possesses limited data rights to both the ISM and ISM2, due to the development of both devices being based on proprietary

GDMS designs that were privately funded. No other company or entity is eligible to produce or deliver the ISM2. The National Security Agency (NSA) certified the

9575A/ISM2 to enable Type 1 secure voice and data communication up to and including

Top Secret (TS).

GDMS has provided the ISM since 2001. In 2003, the ISM was modified through an

Engineering Change Proposal (ECP) with the NSA to work with a more recent commercial handset developed by Iridium (9505A). In 2008, when GDMS had to replace an ISM part that was no longer manufactured, another ECP was completed.

GDMS developed, distributed, and maintained the ISM through three (3) different

DISA Equipment and Provisioning contracts, and three (3) DISA Gateway

Operational and Technical Support contracts to develop, deploy, maintain, and update the secure voice capability.

The three predecessor contracts to the current contract being established are:

1) Enhanced Mobile Satellite Services (EMSS) Service Activation, Customer Support, and

Equipment (SACSE)

Contract Number: HC1047-13-D-4006

Contractor: GDMS

Objective of Contract: Provide equipment, provisioning, invoicing, record management, and customer care for users of the EMSS DoD Gateway

Contract Type: FFP, Sole Source

Total Contract Value:

Contract Period: 25 May 2013 – 24 May 2018

2) Provisioning and Equipment

Contract Number: HC1047-08-D-0002

Contractor: General Dynamics C4S

Objective of Contract: Provide equipment, provisioning, invoicing, record management, and customer care for users of the EMSS DoD Gateway

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Contract Type: FFP, Sole Source

Contract Period: 26 Nov 2007 - 25 Nov 2012

3) Provisioning and Equipment

Contract Number: DCA200-03-D-5004

Contractor: General Dynamics Decision Systems

Objective of Contract: Provide equipment, provisioning, invoicing, record management, and customer care for users of the EMSS DoD Gateway

Contract Type: FFP, Sole Source

Contract Period: Apr 2003 - Sept 2007

(b) Justification.

(1) Minimum Government requirements.

The minimum government requirements for this contract are the procurement of the ISM2, other proprietary equipment, and warranty and repair services related to EMSS secure voice equipment exclusively produced by GDMS.

(2) Proposed sole source contractor.

MOD 01: The ISM2 is a sleek, small form factor encryption module that provides

National Security Administration (NSA) certified protection of classified voice and data communications. The module is covert- it fits completely inside the Iridium

9575A handset and provides end-to-end security for information classified Top

Secret and below. The module provides interoperability with other Secure

Communications Interoperability Protocol devices.

GDMS is an Iridium Value Added Reseller and trusted commercial Service Provider of mobile satellite equipment services. The ISM2 is the NSA certified and approved product solution under HQ USSF EMSS Follow On Secure Handset program.

GDMS is the only vendor certified and approved by the NSA to perform maintenance on the ISM2. Furthermore, GDMS is the only contractor capable of providing access to the proprietary information (to include firmware updates) of the

ISM2 device, which was developed by GDMS.

GDMS is the proposed sole source contractor. GDMS has been providing this type of equipment and service since the inception of the EMSS program. The Government must retain GDMS as the secure voice equipment provider to ensure uninterrupted service to the warfighter. GDMS is the only contractor able to provide the secure voice equipment and repair services due to proprietary and cryptographic requirements for distribution.

The EMSS program established a requirement to provide an NSA Type-I communication capability for DISA and its Mission Partners. GDMS, in conjunction with the NSA, Page 5 of 8 Pages developed the capabilities and retains the Intellectual Property rights to the ISM and its successor the ISM2. GDMS is the sole manufacturer of the ISM2, which provides the

NSA type 1 secure communications capability for satellite phones. In order to provide terrestrial secure communications from an SISU, the Red Interworking Function Switch

(RIWF) was developed and installed by GDMS in the EMSS DoD Gateway. This device is proprietary to GDMS and required to provide the end-to-end secure voice capability.

(3) Discussion regarding cause of the sole source situation.

This EMSS Secure Voice Equipment contract will be the follow-on to the sole source

HC1047-13-D-4006 contract awarded 25 May 2013. This contract continues secure voice equipment, repairs, and warranty services that the contractor has provided since the early

2000s. At the present time, no other contractor can fulfill the EMSS secure voice equipment requirements. GDMS is the sole developer and owner of the secure voice equipment intellectual property. This makes GDMS the only provider capable of providing the required devices and services outlined in this contract. The provisioning and customer care services portion of the current contract are being openly competed among eligible Iridium Value Added Resellers in a separate action.

(4) Demonstration of unique source.

GDMS is the developer and sole owner of the secure voice equipment Intellectual

Property rights, making them the only provider qualified to provide the required devices and services outlined in this contract. There are no other providers of Type 1 secure voice equipment for the EMSS.

(5) Procurement discussion.

This sole source contract will be established on or about 25 September 2018 to continue

EMSS secure voice equipment capabilities. Secure voice equipment was previously provided by GDMS and this contract is a continuation of the previous contract (HC1047-

13-D-4006) that reaches the end of its period of performance on 25 September 2018. No other sources are capable of meeting requirements due to the proprietary knowledge required.

(6) Impact.

If this contract is not awarded, on-going Government/Sponsored operations and the survivability of deployed forces that rely on these devices and services through the EMSS

DoD Gateway will be at risk. Lack of the secure voice equipment will jeopardize the ability of the USG to obtain hand-held Type-1 secure voice capabilities. This is unacceptable to DISA's commitment to provide tactical communications capability to the

United States Central Command (USCENTCOM) and other Services and Combatant

Commands (COCOMs). The cost implications of not pursuing this effort are significant.

These secure voice capabilities are certified by NSA and completely integrated with the

EMSS DoD Gateway. These customized capabilities are not available through any

Page 6 of 8 Pages alternate sources. Contracting directly with GDMS is the only option for these devices and services.

6. FEDERAL BUSINESS OPPORTUNITIES ANNOUNCEMENT/POTENTIAL SOURCES:

A Sources Sought was conducted which resulted in no responses. The current provider did not respond due to the demonstrated ability to provide these items. It was confirmed that the contractor has unique expertise and knowledge base that qualifies them exclusively.

7. DETERMINATION OF FAIR AND REASONABLE COST:

In coordination with the DITCO’s Cost and Pricing Branch and the Technical Evaluation team, the contracting officer will determine whether the cost/price is fair and reasonable. In order to do so, price analysis to include, historical data and comparison with Independent Government

Cost Estimates will be utilized. The contracting officer and contracting specialist (in conjunction with the cost/price analyst) will ensure that the resulting negotiated price is fair and reasonable to the government.

8. MARKET RESEARCH:

Acquisition Research: The acquisition history for these devices and services were reviewed and market research was conducted. The Small Business Administration, General Services

Administration Advantage, and commercial web sites were utilized to identify if there are any

Small Business or HUBZone contractors with similar or identical capabilities. In each case, no small business was identified that can meet the requirements of the Performance Work Statement for this contact.

The unique secure voice equipment was developed for the EMSS PMO by GDMS. GDMS developed these systems for use on the Iridium satellite communication system and is the sole provider of these devices and services to the DoD community. GDMS has unique knowledge of proprietary information required to supply and maintain for the EMSS secure voice equipment.

Market research shows that no other party can offer the required devices and services offered by

GDMS.

9. ANY OTHER SUPPORTING FACTS:

None.

10. LISTING OF INTERESTED SOURCES:

General Dynamics Mission Systems

8201 E. McDowell Rd.

Scottsdale AZ 85257

Phone: 480.726.1286

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11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History. (See section 5)

The sole source nature of this action is driven by the proprietary information required to supply and maintain the EMSS secure voice equipment. GDMS developed the secure voice systems for use on the Iridium satellite communication system and is the sole source provider of these devices and repair services for the DoD community. Market research shows that no other party can offer the required equipment and services offered by GDMS.

In the future, the government may consider Internet Protocol (IP) based secure voice solutions that have recently been approved by NSA. These IP based secure voice systems use higher data rates than are not currently supported on Iridium so they cannot be used at this time. The EMSS program is planning for higher data rate services over Iridium in the future and will evaluate the

IP based solutions if, and when, the Iridium support for higher data rates becomes operational.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

In accordance with the exception under DISA Acquisition Regulation Supplement 7.103(S-91)

Table 7-1, an AP is not required.

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TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Mr. Leroy Long SIGNATURE: See separate PDF

TITLE/ORGANIZATION: EMSS Program Manager

PHONE: DATE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: Ms. Clare A. Grason SIGNATURE: See separate PDF

TITLE/ORGANIZATION: Chief, Commercial Satellite Communications Office

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME: Mrs. Danielle N. Hebert SIGNATURE: See separate PDF

TITLE/ORGANIZATION: Contracting Officer/DITCO

HEAD OF THE CONTRACTING ACTIVITY APPROVAL: I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Since this justification for OTFAOC does not exceed $100M, this review serves as approval.

NAME: Mr. Douglas Packard SIGNATURE: See separate PDF

TITLE/ORGANIZATION: Procurement Services Executive Director/DITCO

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO:

Kristina Lewis,