FINAL_ETFO_JBSP_-_Phase_4.pdf

DDEFENSE THREAT REDUCTION AGENCY

8725 John J. Kingman Road, Stop 6201

Fort Belvoir, VA 22060-6201

May 10, 2018

EXCEPTION TO FAIR OPPORTUNITY JUSTIFICATION

Jordan Border Security Project

1. Nature and / or Description of the Action

The Defense Threat Reduction Agency (DTRA) contracting activity proposes to award additional work within the Jordan Border Security Project (JBSP) Phase 4 effort via a series of modifications to the current task order without requesting proposals from all four of the multiple award contractors under the Cooperative Threat Reduction Integrating Contractor (CTRIC) II Indefinite Delivery/ Indefinite Quantity (ID/IQ) contract. Currently, Raytheon Intelligence, Information and Services (RIIS or Raytheon) is implementing the JBSP Phase 4 effort, HDTRA1-11-D-0007-0012 (TO12). The planned upcoming modifications will allow for an increase to the task order value that shall not exceed $18.25M, estimating $3.5M of Fiscal Year (FY) 2016 funds, $2.5M of FY 2018 funds, $8M of FY 2019 funds and $4.25M of FY 2020 funds. The current value of the task order is $49,345,667.96 and the current Period of Performance is 29 September 2015 through 31 May 2019 with the option to extend up to 01 December 2020 if all sustainment options are exercised. The actions are within the ceiling for CTRIC II of $950,000,000 and the period of performance ends 26 April 2021.

Growth in the existing tasks associated with this action were not anticipated at the award of the JBSP Phase 4 effort, TO12, and are a product of various engineering design changes, incurred/realized risks, and acts of nature that are impacting the initially estimated cost, schedule, and performance. The project team will continue to verify these issues during in-depth technical site surveys. The additional contract ceiling will allow potential cost growth due to additional unforeseen circumstances that may be discovered while executing the tasks and to add value to the sustainment options for required maintenance support resulting from design changes.

2. Description of the Supplies/Services Required

The Project is an ongoing effort that assists the Government of the Hashemite Kingdom of Jordan (GoHKJ) in enhancing their capability to deter, detect, and interdict weapons of mass destruction (WMD) and related materials crossing Jordan borders. The objective of the project is to provide assistance along the Jordan-Syria border (Phase 4). Due to the nature of the continued emerging threats, the Office of the Secretary of Defense has emphasized the importance of providing this capability.

Therefore, DTRA proposes modifications to TO12 to allow for the continued use of the currently contracted CTRIC (Raytheon) to help coordinate and manage the following actions:

Repair and replace any fence components that may become/have already damaged due to acts of nature

Address effects from engineering changes during the current construction/installation period as well as future sustainment option periods. Examples are:

o Cable ties for Sensors o Additional 500M of Senstar Cable o Vista Radar repairs o Derrick Cranes for towers to remove and replace Cameras o Additional Culvert Works o Additional Fence Water Management / Erosion remediation and control o Software license extensions o Fence post marking o Fiberoptic Splicing Equipment o Methods to protect Gate 5 shelter from rock falls o Grates/screens at culvert inlets to protect from trash/sediment o Incident reports from June 1, 2017 (Redline, Cambium licenses)

Address cost growth and overruns beyond the control of DTRA or Raytheon. Examples are:

o Defense Base Act Insurance for local contractors for FY 18 / FY 19 not included in Raytheon’s previous proposal submissions o Additional Fence Sustainment beyond the Base Work Activities period o Extend Intrusion Detection System sustainment

The Period of Performance for the construction/installation portion of the task order is currently from September 29, 2015 to June 26, 2018, with initial sustainment activities through May 31, 2019 and additional sustainment option activities through 01 December 2020. Raytheon has communicated their inability to maintain the current schedule due to the fence panel damage and as of February estimated at least a two month schedule slip, with a day-for-day additional slip until the fence repair work is provisioned, resulting in a current expected delay of approximately six months. For this reason, the initial Change Order for fence component repair is needed as soon as possible, whereas other modifications will follow over the remainder of FY 2018.

3. Exception to Fair Opportunity

The statutory authority for this Exception to Fair Opportunity is identified under FAR 16.505(b)(2)(i)(A), the agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

4. Justification Rationale

DTRA solicited for the JBSP Phase 4 TO12 through a competitive CTRIC II solicitation open to all four CTRICs. Two CTRICs submitted bids and ultimately Raytheon was awarded the effort.

Through this effort Raytheon is implementing the execution of all of the required tasks, however as noted, various impedances are realized. The addition to the Phase 4 required services identified above are consistent with the overall capabilities required for the JBSP and rely on a thorough understanding of the technical aspects of the Jordan Border Security System (JBSS) design and physical components, such as the passive barrier fence. If required to potentially conclude the effort with a different CTRIC or performer, duplication of cost to the Government that is not expected to be recovered through competition will result, as well as an increased timeframe and administrative burden from award to completion:

Mobilization/stand-up efforts to include familiarization with US-Jordan approved JBSS and passive barrier fence components, as well as relationships with subcontractors and various entities of the Jordanian Armed Forces (JAF);

Redundant project management costs to include labor and duplication of CDRLs and potentially divergent project plans between multiple CTRICs;

The aforementioned delays would severely impact the performer's ability to execute all associated tasks for the completion of the fence before the next rainy season begins. Once the rainy season starts, construction progress is minimal and if certain key activities are not completed additional repairs and rework would be required. The additional work would not only increase the cost of the JBSP but would increase the schedule by more than the available time on the CTRIC II vehicle.

Furthermore, multiple CTRICs concurrently implementing identical work, interfacing with JAF officials and subcontracting with the same manufacturers can potentially introduce communication failures and misunderstandings regarding technical requirements. This may result in the realizations of risks associated with delayed schedules and a lack of seamless integration of facilities and equipment affecting cost, schedule, and performance parameters.

5. Market Research

A newly conducted Market Research Report presented the requirements cannot be met efficiently or expeditiously through the market place other than through providing various TO12 modifications, such as the Change Order for the fence component damage repairs, as soon as possible. Market Research was conducted by examining historical acquisition information such as past market reports for similar- scope efforts; performing a search on GSA Schedules, GSA Advantage!, and the SBA databases; consulting with the requestor and knowledgeable representatives in the JAF; and through the personal knowledge and experience of the DTRA Project Officer. The various market research activities yielded the following results:

The acquisition of services in a full and open competition beyond the CTRIC II performers would negate the projects goals for reduction in administrative burden and negatively affect procurement timelines and cost effectiveness.

Two CTRIC II contractors proposed on the initial solicitation for JBSP Phase 4 and the overall scope, requirements, and mitigation of the potential risks/liabilities are within the CTRIC II contractors’ abilities. It is highly likely the contractors should meet the project’s procurement timelines, and provide cost effectiveness and value.

However, adding a new performing contractor to Jordan would likely cause confusion for the stakeholders and unnecessarily delay the projects implementation schedule. Also, the resources, connections, and processes that Raytheon has put in place enables them to perform work in Jordan in a proficient, safe, and cost effective manner. The close connections the group has made with the JAF’s directorates, stakeholders, and their subcontractors has been key to the success of the project.

Searches of the GSA Schedules and GSA Advantage! identified at least 10 potential companies that could perform the planned work. However, pursuing this acquisition method would result in additional administrative burden and negatively affect procurement timelines, causing further project delays.

A new implementing contractor, whether a CTRIC II performer or outside performer, would be required not only to establish themselves in country as a legal commercial entity allowed to import equipment and implement the JBSP, they would also be required to seek tax exemption status and establish key relationships in order to demonstrate the level of success seen under the current task order.

Generally, the services required in the JBSP Phase 4 are commercially available.

While many commercial construction and systems integrations entities could provide the general services, unique aspects of the work limit the market to select contractors. These unique aspects include: the location of the work; the requirements to provide network integration of the newly provided infrastructure with existing infrastructure; shipping and delivering equipment through customs and the work sites; equipment-related training; consistent CONOPS-related training to all border units to enhance the border security and WMD proliferation prevention capabilities; and the requirement to ensure that the GoHKJ can sustain and build upon these capabilities for the long term. These are all considered unique services that require knowledge of border security and WMD proliferation prevention requirements and experience doing business with Jordanian subcontractors and government agencies, all while adhering to Jordanian regulations and security requirements.

CTRIC III was considered but is currently still under source selection, with an expected award date of June 2018. Pursuing this contract vehicle would result in additional delays to the project.

Raytheon has unique capabilities as a result of their experience executing the multiple phases of the JBSP. These include established relationships with the JAF, other stakeholders, local subcontractors with applicable capabilities, and an established presence in the country. These capabilities allow Raytheon to execute the task order scope and additional work that comes up without adverse impacts on the project’s schedule or cost effectiveness.

6. Other Supporting Facts

Raytheon implemented their project management solution in accordance with the Statement of Work (SOW) of Phase 4 upon award of contract TO12. Costs associated with key personnel identified under their solution, including a project manager, sustainment manager, procurement manager, mobilization manager, and other personnel critical to the successful completion of the effort, have been or are realized as part of the Phase 4 effort. Although it is reasonable that DTRA will see a minor increase in project management costs due to the expanded level of effort under Phase 4 of the JBSP, DTRA assesses that awarding this work to a new CTRIC that will provide its own project management personnel to perform in parallel with the current Phase 4 CTRIC would result in even greater increased project management costs.

Additionally, Raytheon has established relationships with the JAF and in-country contractors in support of the Phase 4 effort. Programmatically, these relationships will allow Raytheon to leverage existing production schedules as part of their established subcontracts and are essential to successful project coordination, communication and execution. Introducing another CTRIC may increase risks to programmatic implementation and official communication between USG and GoHKJ.

The Phase 4 work is being performed in areas of Jordan with significant security concerns. The JAF provides physical security, limiting the number of people working at any one time and notifying Raytheon when workers should not be present at all. Adding another CTRIC would further complicate the coordination of these interrelated activities.

Competing this effort, as opposed remaining with Raytheon, would create an even more significant delay in completing the project’s main construction efforts, leaving the border vulnerable to possible threats for an unknown amount of time. Further, if a new CTRIC was selected then additional delays would result from the CTRIC needing to register their company in Jordan, approximately a 1-2 month process, and submit personnel for vetting for security passes through JAF, approximately a 3 month process. Additional costs would also likely result whether a new CTRIC was selected (since they would need to establish PMO to support the effort) or Raytheon was selected (since they would likely have to de-mobilize sub- contractors during the RFP delay and then re-mobilize when needed to perform the work).

For each contract action, a technical evaluation will be performed and the proposed costs will be evaluated using various cost analysis techniques to ensure fairness and reasonableness.

7. Subsequent Actions Future efforts for the JBSP will be competed through full and open competition to the maximum extent possible.

Technical Certification

I certify that the data and information forming the basis for this justification are accurate and complete to the best of my knowledge and belief.

Project Manager Date

Contracting Officer Certification and Determination

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

Additionally, I determine that the order represents the best value consistent with Federal Acquisition Regulations.

C Date

General Counsel Coordination

This justification is/is not legally sufficient.

Attorney Date

Approval

Based on the above justification, I hereby approve accomplishment of this acquisition by means of limited sources.

Competition Advocate Date

Head of Contracting Activity Certification and Determination

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

Additionally, I determine that the order represents the best value consistent with Federal Acquisition Regulations.

Head of the Contracting Activity (HCA)