2023-0067_JA_FINAL_Redacted.pdf

MODIFICATION (MOD) JUSTIFICATION & APPROVALS (J&A) FOR FEDERAL

ACQUISITION REGULATION (FAR) SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule/Multiple Award Contract (MAC) Orders under MAC/ Fair Opportunity – FAR 16.505, Defense Federal Acquisition Regulation Supplement 216.505-70, Procedures, Guidance, and Information 216.505-70

Purchase Request Number: 831404367 Contract Number: HC1028-08-D-2023 Task Order (TO) Number: 0067 Procurement Title: Counter – Rocket, Artillery, Mortar (C-RAM) Sense and Warn (S&W) Contractor Manning Forward Operating Base (FOB) Locations Estimated Value:

Modification Value:

Authority: FAR 16.505(b)(2)(i)(C)

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Number:

Upon the basis of the following justification, I, as the Head of the Contracting Agency (HCA), hereby approve this exception to fair opportunity pursuant to the authority of FAR 16.505(b)(2)(i)(C).

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agency:

b. Contracting Office:

DISA DITCO –

2. NATURE AND DESCRIPTION OF ACTION: The purpose of this modification is to increase the level of effort required for the C-RAM S&W contractor manning requirement as a result of several urgent Operational Need Statements from the United States Central Command (CENTCOM) which have increased the number of S&W coverage from the original eight locations to 18 locations. It is noted that the operational needs of this task order have been fluid and the life cycle of the original task order award increased by the contracting officer by an estimated above the original J&A ceiling during the course of operations and prior to this J&A modification. The previous increase was the result of urgent operational needs at three additional sites in Iraq in June , and one additional site in Egypt in February . At the time the fourth additional site in Egypt was added to the contract in February , CENTCOM anticipated a drawdown and withdrawal from several existing sites in CENTCOM Area of Responsibility, consequently resulting in a future descope of contract ceiling. Thus, although the addition of the Egypt

C-RAM S&W Contract Manning 831404367-site increased the contract ceiling, it was expected to be an interim impact while the identification of sites for drawdown and subsequent descope of effort could be completed.

A modification to the J&A was not requested. However, due to the evolving CENTCOM mission, the original sites were not closed as planned, and CENTCOM has now requested additional C-RAM S&W sites that were not previously forecasted. Support for the four sites previously added in June and February , and six additional sites are addressed in this modification to the AP and J&A. The nature of the work to be performed under this modification, and as previously increased, is identical to the nature of work performed under the existing contract, which currently requires services and incidental supplies to support C-RAM S&W staffing in support of the Force Protection mission for United States Forces. This modification incorporates the three sites previously added, and the fourth site added in February valued at an estimated through the end of the contract option periods, and adds six additional locations in Afghanistan and Operation Iraqi Resolve (OIR) throughout Iraq, Syria, Jordan, and Turkey valued at an estimated over the remaining life cycle of the contract to provide C-RAM force protection capabilities which provide life-saving warning to unprotected personnel against indirect fire attacks at US FOB locations in Afghanistan, Egypt, and OIR. The efforts will be funded with fiscal year operations and maintenance funds.

Original J&A: The purpose of this action is to issue a new task order (TO) to Northrop Grumman Systems Corporation (NG) against ENCORE II contract HC1028-08-D-2023 for continued service for the C-RAM S&W contractor manning requirement. The TO will be issued as a cost-plus-fixed-fee (CPFF) for a 12 month base period and three one-year options to provide the necessary services and incidental supplies to support C-RAM S&W staffing in support of the Force Protection mission for United States Forces – Afghanistan (USFOR-A) and Operation Enduring Freedom (OEF) in Afghanistan. The base year will be funded with fiscal year operations and maintenance funds.

3. DESCRIPTION OF SUPPLIES/SERVICES: USFOR-A has a continuing critical need to provide C-RAM force protection capabilities which provide life-saving warning to unprotected personnel against indirect fire attacks at US FOB locations in Afghanistan. Failure to provide these S&W capabilities will deny US government personnel the ability to take cover prior to indirect fire events and place undue risk on life and limb to exposed personnel.

These services are currently being provided by NG under ENCORE II TO HC1028-08-D- 2023/0042. NG supports eight FOB locations with highly competent staffing and operations of C-RAM S&W. Continuation of current services will permit uninterrupted coverage for US Forces, and preclude the necessity to pull C-RAM contractor operators from Afghanistan leaving US Forces exposed to unwarned indirect fires.

The estimated life cycle value is The period of performance (POP) is as follows:

Base Year: January 26, – January 25, Option Year 1: January 26, – January 25, Option Year 2: January 26, – January 25, Option Year 3: January 26, – January 25,

4. SUPPORTING RATIONALE, INCLUDING A DEMONSTRATION THAT THE

PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF THE

ACQUISITION REQUIRES USE OF AN EXCEPTION TO FAIR OPPORTUNITY:

a. Exception to Fair Opportunity. The extension must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract where all ENCORE II contractors were given a fair opportunity to be considered for the original award.

b. Description of Justification. The current contractor has built a level of expertise over the course of the current TO 0042 such that the FOB contractor operating teams have earned the trust and confidence of their supported military organizations. The FOB contractor operating teams have been fully assimilated into each respective military unit at their respective FOBs and provide significant contractor continuity of effort as the various military organizations rotate in and out of the FOBs. This contractor continuity gives the government the benefit of having already trained contractor personnel with the expertise and familiarity of the FOB, situational awareness of threat and threat tactics, force protection mission, execution of associated force protection tasks, and keen awareness of the terrain surrounding each FOB to identify potential points of origin from where threat fires are launched. Introduction of a new contractor at this time would require considerable resources, time, and effort to build the same level of expertise and trust with supported military organizations and needlessly place personnel at risk of injury from indirect fire until a suitable alternate team of operators could be trained and develop the necessary skills to provide the split-second instincts required. Further, changing contractors would also result in an 8-10 week gap in coverage in providing a life-saving force protection capability if the requirement was competitively procured and a different contractor was selected.

The 8-10 week delay represents the time it would take to train and validate new personnel, attend predeployment training, and then time to deploy to Afghanistan. USFOR-A requires uninterrupted support in providing S&W of the indirect fire threat that continues to impact US Forces in support of OEF, and as a result it is not possible to competitively procure continued support to begin by the expiration of TO 0042 on January 25, .

c. Justification:

(1) Minimum Government requirements. The minimum requirement is the sustainment of eight enduring S&W FOB locations in Afghanistan. USFOR-A requires that there be no gap in coverage after the expiration of TO 0042 on January 25, due to ongoing hostilities in Afghanistan.

(2) Proposed sole source contractor. NG, can effectively and efficiently provide the uninterrupted expertise to satisfy the requirements for this award. Since its inception in in response to an urgent war-fighter need in OEF, NG has been the only source to provide the staffing and operations for C-RAM system of systems (SoS). Over the past four years NG has developed highly specialized knowledge of the complexities of C-RAM SoS and the threat environment. The success of the C-RAM program in providing continuity of mission essential force protection against an ever-changing indirect fire threat depends on continued provisioning of NG’s specialized knowledge and services. The C-RAM Program Management Office (PMO) examined the cost efficiencies associated with a sole-source award based upon logical follow-on. Contractor efforts in program management, hiring of operators, training, and deployment of personnel would be highly duplicative, even if a second contractor were capable of performing the same complex efforts. The C-RAM PMO estimates management labor savings of , training savings in excess of and facilities cost savings of could be realized if awarded sole-source to the current contractor. Contractor direct labor and other indirect costs associated with the program management, hiring actions, operator training and replicating a successful personnel deployment model would significantly increase the cost to the government if a second contractor were used. Award of this effort to NG would provide best value to the government. Award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through competition.

(3) Discussion regarding cause of sole source situation. As discussed in paragraph 6, the market research conducted for this procurement confirmed that at current time NG continues to be the only source with the expertise, efficiencies, and experience to execute the C-RAM mission. Further, service requirements beyond the proposed POP will be evaluated on an ongoing basis and a decision on an additional follow-on approach will be made pending the current Administration’s efforts to identify enduring requirements and subsequent post withdrawal footprint of FOB locations throughout Afghanistan.

(4) Demonstration of unique source. The C-RAM SoS overall is not a commercial item in accordance with the FAR Part 2 definition. While C-RAM contains some commercial items, it is not a commercial system. The commercial items are integrated with one another via an existing Army command and control (C2) system, forward area air defense, in a manner not duplicated by any other existing commercial system. Additionally, the air and missile defense workstation forms the C2 backbone of the C-RAM SoS and NG is the only source with the expertise and in-depth knowledge of interoperability requirements with manning and operations to perform the continuation of this effort in an efficient and economical manner. Because of NG’s unique technical expertise and knowledge, and the critical nature of C-RAM’s ongoing force protection mission in OEF, conducting a competitive procurement to obtain an alternate supplier for this requirement is not an efficient or economical solution at this time. The requirement for manning and operations of the C-RAM SoS requires a thorough and intimate knowledge of the architecture and C2 components, which NG possesses.

(5) Procurement discussion. Once the US government and the Afghan government complete their negotiations and mutually concur to a Status of Forces Agreement, USFOR-A will begin planning for drawdown and transition activities for the enduring requirement. Based upon the experience encountered in Iraq with the drawdown of US Forces, it is estimated that this planning process could take up to three years. NG has provided this service since its inception in July in both Afghanistan and Iraq, and there have been no other contractors operating the C-RAM SoS to date.

(6) Impact: Award to any source other than NG will disrupt C-RAM PMO’s ability to field, operate a critical war-time force protection capability, and unnecessarily increase risk to deployed forces. It will result in unacceptable delays in resetting C-RAM fielding’s in Afghanistan if a new source without NG’s experience and specialized knowledge attempts to perform these services. Leaving USFOR-A personnel in theater without the indirect fire protection of the C-RAM SoS would cause an unacceptable and unnecessary risk to those personnel. Failure to provide a continued immediate response to the OEF mission and maintain the staffing and operations of the C-RAM capability will likely increase the casualties caused by indirect fire attacks on US personnel in Afghanistan.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION: A cost evaluation will be accomplished to determine that the anticipated cost to the government will be fair and reasonable. The contracting officer will obtain certified cost or pricing data, and upon completion of negotiations, will obtain a certificate of current cost or pricing data.

6. MARKET RESEARCH: The C-RAM PMO conducted market research from January 2, to November 4, A sources sought was issued on October 20, , to determine if any prospective contractor(s) possessed the full capability to support this C-RAM mission. The assessments were made to the following aspects which are integral to the C-RAM S&W staffing and operations mission:

- Capability to manage effective organizational structures in an austere environment

- Understanding of deployment support requirements

- Capability to manage large-scale cost-reimbursable contracts

- Provide integration/operations of telecommunications equipment in a local/wide area network.

The government received responses from two small businesses.

provided only limited qualified experience in the areas of training management and basic equipment operations, but their equipment operational expertise was limited to the legacy architectures which is no longer utilized in OEF. e and only provided examples of their competence in the C-RAM Interceptor which is not part of this effort, and in training management. Neither offeror provided any example of expertise in C-RAM indirect fires sensors, the command and control system, nor the newly fielded WARN system.

It has been determined that this follow-on effort should be a sole-source award to NG under the ENCORE II contract using a CPFF approach. As outlined above, NG is the only source with the unique technical expertise and knowledge to perform the C-RAM S&W Manning requirement.

The requirement for manning and operations of the C-RAM SoS requires a thorough and intimate knowledge of the architecture and C2 components, which NG possesses.

7. ANY OTHER SUPPORTING FACTS: Quality assurance surveillance of the contractor in the last months has been exceptional in almost every facet, with no unsatisfactory performance noted to date. Additional consideration was given to the risks associated with the success of the current contractor’s deployment model and success in meeting and exceeding government deployment schedules.

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

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

Procurement History.

(a) As a result of the unknown events related to the drawdown of forces and subsequent time constraints, an exception to fair opportunity was previously approved to provide uninterrupted continuity of service through TO HC1028-08-D-2023/0042, The J&A was signed/approved on January 14, by Ms. Kathleen Miller, Head of Contracting Activity, for a period of nine months with three one-month options, January 26, through January 25,

(b) The C-RAM contractor manning effort was competed as a joint urgent operational need in June as fair opportunity under the ENCORE II suite of contracts, whereby only one contractor, Northrop Grumman Information Technology (NGIT), , submitted a proposal and on July 30, was awarded TO HC1028-08-D-2023/0042. TO 0042 was awarded for a POP consisting of a one-year base with two one-year options. In June a modification was executed to the basic contract, HC1028-08-D-2023, and subsequently for TO 0042 to effect the novation from NGIT to NG, . In July , in accordance with FAR 52.217-8, TO 0042 was extended an additional six months through January 25,

9. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): The AP will be revised to reflect this modification.

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: SIGNATURE:

TITLE/ORGANIZATION:

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: SIGNATURE:

PHONE: DATE:

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

NAME: SIGNATURE:

PHONE: ( DATE:

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 exceeds $13.5M, this review serves as approval.

NAME: SIGNATURE:

PHONE: DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO