GBAD Optic Support JA_Redacted.pdf

Code: 028-PEO LS J&A Number: 22,049 and hardware, and the owner of the source code, Ascent remains the only source available to provide the necessary services and supplies to continue the software support specific to MADIS Inc 1.0.

The EO/IR system provides the primary identify capability and secondary detect capability for MADIS Inc 1.0 in the rapid kill chain sequence of detect, track, identify, and defeat. With the continued development of the overall MADIS Inc 1.0 requirements and systems, these EO/IR systems have been integrated with other vital tactical components to meet the kill chain sequence requirements. Due to maturity of MADIS Inc 1.0’s development, replacement or use of other EO/IR systems to meet the MADIS Inc 1.0 requirements is not practicable and will result in excessive duplication of cost and necessitate restarting mechanical, electrical and software integration of a new EO/IR system onto the MADIS Inc.1.0 system.

Continued use of the hardware and software within PM GBAD will require sustained support by the OEM provider, Ascent, throughout the program’s test and evaluation events in order to follow the Test Analyze Fix re-Test (TAFT) process. Recurring application updates are required to reduce cybersecurity vulnerabilities and maintain the approved Authority to Operate (ATO). The optic system also must maintain interoperability with all the associated information systems, which are also currently integrated into the overall MADIS Inc 1.0 structure, as these systems continue to upgrade and refresh over time.

The alternative to a sole source effort would require the Program Office to competitively procure, integrate, and test an alternative optic solution while concurrently sustaining existing systems. This course of action is cost prohibitive as outlined in Table 2, and would result in unacceptable delays.

Schedule delays resulting from a new competitive effort and the integration and test required for an alternative solution, as well as the re-design of the MADIS Inc 1.0 mechanical and electrical architecture, and potential need for additional MADIS Inc 1.0 C2 software development, would result in up to a five-year fielding delay for the MADIS Inc 1.0 systems. These delays would result in a shift in FOC from 2027/2028 to approximately 2032/2033. This timeline is derived from the timeframe necessary, with available resources, to develop a requirement, develop and release a solicitation, conduct a competitive source selection with evaluation, discussions, and award, and then contractor performance through the development and delivery of the updated system. With LRIP currently scheduled for 2nd Quarter FY 2023, a delay of up to five years in the optic requirement is unacceptable, and adversely affects the overall MADIS Inc. 1.0 program.

Furthermore, the optic must continue to maintain operational relevance, which will necessitate integration of new interfaces, features, and capabilities within the applications. Due to these activities, the program will require contractual arrangements with Ascent to provide the products and services needed to support and sustain the operational relevance of MADIS.

In addition to limited technical data rights, unacceptable delays, and the extent to which the current Ascent software is highly integrated into the MADIS Inc 1.0 framework, there are significant duplication of costs associated with re-procurement. Table 2 represents a breakdown of the duplication of costs anticipated if the Government chose another vendor to develop a new optic system. The costs were derived by the cost estimating team from historical data on the current optic system, with adjustments for inflation by year. These are the costs for reprocurement, and do not include costs

Code: 028-PEO LS J&A Number: 22,049

Based on the Government’s assessment of industry capabilities, the Government determined that Ascent is the only known source able to provide services and supplies for the continued support of the optic requirements of the MADIS Inc. 1.0.

7. Determination of Fair and Reasonable Cost

In accordance with FAR 15.402(a), the Contracting Officer will ensure that the services and supplies procured as a result of this J&A are at fair and reasonable prices. The Contractor will be required to submit a formal proposal with certified cost and pricing data and sufficient information to support the accuracy and reliability of their estimate. The technical analysts from the MADIS Program Management Office and contract specialists, with the assistance of Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) auditors as needed, will perform an analysis of the proposal. The Contracting Officer will also consider other sources of data related to prices, relying first on data available within the Government and secondarily on data obtained from sources other than the offeror. Sources for all such data include but are not limited to the IGCE, cost and price analysis, historical pricing data and the Defense Contract Management Agency. Furthermore, the Government will also use the Program Management Office’s independent cost estimate as part of the evaluation of the proposal to validate that the overall price is fair and reasonable.

8. Actions to Remove Barriers to Future Competition

J&A 20,056 for the previous procurement states, “if another potential source emerges, PEO LS will assess whether competition for future requirements is feasible”. Based upon the market research conducted for the new procurement, no other sources emerged with the capabilities to perform the requirement. For the reasons set forth in paragraph 5, PEO LS has no plans to compete the optic system hardware and software lifecycle management support.

A TDP for the optic system is not currently available to facilitate competition. If future procurements of the supplies and services described herein are necessary beyond the current procurement, and if another potential source emerges, then PEO LS will assess whether competition for future requirements is feasible.