FOJ_15-24617_OIR__INSITU__redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR SYSTEMS COMMAND

RADM WILLIAM A. MOFFET BUILDING

47123 BUSE ROAD, BLDG 2272

PATUXENT RIVER, MARYLAND 20670-1547

IN REPLY REFER TO:

FOJ_15_24617

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY (FAR 16.505(b)(2))

1. Contracting Activity.

Naval Air Systems Command (NAVAIR) Headquarters

2. Nature and/or Description of Action Being Approved.

This Exception to Fair Opportunity Justification (FOJ) authorizes and approves the issuance of an Urgent &

Compelling Action (UCA) Task Order to Insitu, Inc., 118 E. Columbia Way, Bingen WA, under Contract

N00019-12-D-0011 for land-based Unmanned Aircraft Systems (UAS) Intelligence, Surveillance and

Reconnaissance (ISR) Services in support of US Central Command (USCENTCOM) Overseas

Contingency Operations (OCO) for Operation Inherent Resolve (OIR). This is an Exception to Fair

Opportunity under the Naval Air Systems Command UAS ISR Services Multiple Award Contract (MAC)

(Land-Based) for which AAI Corporation of Hunt Valley, MD and Computer Sciences Corporation (CSC) of

Falls Church, VA were also awarded contracts. CSC recently sold ownership of its ISR Services division to

PAE ISR, LLC, of Chantilly, VA. With US Department of Defense (DCMA) concurrence via novation agreement on 22 December 2014, CSC transferred responsibility for MAC contract N00019-12-D-0010 to

PAE ISR, LLC. All subsequent references in this document to contractor, CSC, shall be stated as “PAE

ISR, LLC”.

3. Description of the Supplies or Services Required to Meet the Agency’s Needs (including the estimated value).

This procurement provides UAS ISR services to support USCENTCOM. These UAS ISR services will encompass both the operation and maintenance of the UAS to provide real-time imagery and data to

USCENTCOM, along with transportation of contractor personnel and equipment necessary to operate and maintain the UAS in designated land-based OCONUS locations. The overarching requirement for this

UCA is for six (6) sites, but no one awardee under the MAC is positioned to perform the whole effort under the urgent time constraints of this action. Due to the nature of the incoming JUONS, three (3) sites shall be awarded to Insitu, Inc., and three (3) sites shall be awarded to AAI Corporation under the UAS ISR

Services MAC. The third MAC awardee, PAE ISR, LLC, does not currently possess a CAT3 Interim Flight

Clearance, and therefore, will not have the capability to perform at any of the sites within the required timeframe.

The contracting strategy for execution of this UCA requires a nine (9) month base period of performance.

This period of performance is limited by the programmed funds available from the resource sponsor for this effort. The UCA will include an additional twelve (12) month period of performance option for each site following the initial base period of performance. The estimated value of this procurement with Insitu, Inc. is

$40M for a nine (9) month base period of performance and $28M for the twelve (12) month option period.

4. Identification of the Justification Rationale (see FAR 16.505(b)(2)) and, if applicable, a Demonstration of the Proposed Contractor’s Unique Qualifications to Provide the Required Supply or Service:

(1) The agency need for the supplies or services.

Supporting Information:

FAR 16.505(b)(2)(i)(A) states that “The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.” The following classified documents mandate this effort: "REQUEST FOR FORCES 1512 MOD 4 dtd 24 NOV 14", "USCENTCOM Request for Contract ISR in support of OPERATION INHERENT RESOLVE dtd 05 JAN 15", and “United States Central Command

(USCENTCOM) Request for Tactical Unmanned Aerial Vehicle (TUAV) Detachments in Support of

Operation Inherent Resolve (OIR) Joint Urgent Operational Need (JUON CC-0527)” dtd 27 FEB 2015. As such, it is imperative that UAS ISR Services move forward, as the stability and security within the OIR theater of operations poses a risk to the United States and its partners throughout the world. Insitu is one of two companies with both the necessary Flight Clearances and experience to perform 50 percent of the required ISR Services for USCENTCOM. Neither Insitu nor AAI is capable of meeting 100 percent of the

OIR requirement at this time because Insitu and AAI are both currently performing other ISR services efforts in support of DoD mission requirements and neither have available assets to perform the entire six

(6) land-based efforts. Additionally, there is insufficient time to conduct a Fair Opportunity competition to include the remaining MAC awardee, PAE ISR, LLC, and obtain the necessary operational authorities as the requirement for this effort is a result of real-time events occurring in the OIR theater of operations.

Competing the twelve (12) month period of performance option as a separate Task Order incurs unacceptable risk to the supported operation. The competition cannot be guaranteed to be completed in the available nine month window of opportunity. Assuming that the competition is successfully completed in the allotted time, the potential for demobilization of one vendor and immediate deployment of another vendor during what is expected to be a dynamic phase of operations is unacceptable.

5. A Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

In accordance with DFARS 217.7401(b) and (d), the issuance of a UCA allows for performance prior to contract terms, specifications, or price being agreed upon or formalized. The Contracting Officer shall receive Not to Exceed (NTE) pricing in order to award the UCA, followed by negotiation and definitization based on contractual agreement between the Government and the contractor. At the time of definitization, IAW FAR 15.402(a), the Contracting Officer shall ensure that all supplies and services ordered under the contract are procured at a fair and reasonable price. The contractor will be required to submit a proposal for this effort with sufficient information to support the accuracy and reliability of the estimate. The contractor will submit cost and pricing data in accordance with FAR 15.403-3. Experienced technical analysts and contract specialists, with the aid of necessary field pricing support, will review the contractor's proposed cost. Analysis will be based on information such as historical costs and rate recommendations provided by field pricing support agencies (Defense Contract Management Agency and Defense Contract

Audit Agency). The Contracting Officer will use cost and price analysis as the basis of negotiating a fair and reasonable price for the required efforts stated herein.

6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Due to the rationale set forth in paragraph 4 and IAW FAR 5.202(a)(2), market research was not conducted.

7. Any Other Facts Supporting The Justification.

None

8. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers that

Led to the Exception to Fair Opportunity before any Subsequent Acquisition for the Supplies or

Services is Made:

Future requirements for UAS ISR Services which fall within the parameters of the UAS ISR Services MAC will be competed among the MAC awardees unless an exception to Fair Opportunity exists in accordance with FAR 16.505(b)(2).