Redacted-JA-DCGS-N-OY1.pdf

Reference Number: HC1028-12-D-0029-0014

Title of Effort: DCGS-N IOP Support

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JUSTIFICATION & APPROVALS FOR FAR SUBPART 16.5 ACQUISITIONS

EXCEPTION TO FAIR OPPORTUNITY

Multiple Award Schedule (MAS)/ Multiple Award Contract (MAC)

Orders under MAC/ Fair Opportunity – FAR 16.505, DFARS 216.505-70, PGI 216.505-70

Purchase Request Number: 37016-46

Contract Number: HC1028-12-D-0029

Task/Delivery Order Number: 0014

Procurement Title: Distributed Common Ground System-Navy (DCGS-N) Interoperability

(IOP) Test Support

Contracting Office: Defense Information Systems Agency (DISA)/Defense Information

Technology Contracting Organization (DITCO)/Joint Interoperability Test Command (JITC)

Mission Support Section (PL8315)

Estimated Value: $22,690.98

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

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

Upon the basis of the following justification, I, as the Contracting Officer, 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:

DISA/JITC

2001 Brainard Road, Building 57305

Fort Huachuca, Arizona, 85670

b. Contracting Office:

DISA/DITCO/PL8315

2300 East Drive, Building 3600

Scott Air Force Base, Illinois, 62225

2. NATURE/DESCRIPTION OF ACTION(S):

a. The nature of this action is to modify the current cost-plus-fixed-fee (CPFF) task order

(TO) against the Testing and Evaluation (T&E) Multiple Support Services (MSS) indefinite-delivery/indefinite-quantity (ID/IQ) contract, held by Oberon, Inc. This modification will add

280 labor hours to the labor category for a System Analyst Intermediate to support additional

IOP testing of the Intelligence Carry-On Program (ICOP), a mobile component of the larger

DCGS-N Increment 1 system during option period one of this task. Additionally, there will be an ICOP-specific Test Plan appendix to be included in the overall DCGS-N Increment 1 Block 2

IOP Test Plan.

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b. The funded amount will increase the original option one period by $22,690.98 from

$106,333.20 to $129,024.18. The lifecycle cost will increase by $22,690.98 from $561,679.44 to

$584,370.42, which is a 4% increase of the current lifecycle cost.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The operational mission of the DCGS-N is to provide the Joint Task Force (JTF)

Commander, and below, with critical intelligence for battle management and information dominance across the full spectrum of operations, including peace, conflict, war, operations other than war, and the Global War on Terror (GWOT). The ICOP responds to multiple fleet requirements for a subset of DCGS-N Intelligence, Surveillance, Reconnaissance (ISR) capabilities for Navy Cruiser-Destroyer (CRU/DES) ships and similar platforms and addresses current Commander, Third Fleet (C3F) and Commander, Fifth Fleet (C5F) Urgent Operational

Needs (UONs). The ICOP will provide an integrated ISR capability, via the DCGS-N Enterprise

Node (DEN), that will include the ability to leverage Joint, Intelligence Community, Coalition, and Interagency resources for the benefit of the maritime commander, and optimize the maritime intelligence contribution to the Combatant Commander (COCOM), Naval Force Commander, and other component commanders.

b. This task primarily addresses Joint Interoperability Certification testing support to

DCGS-N Increment 1 Block 2 with the addition of the ICOP capabilities. DCGS-N Increment 1

Block 2 is the new instantiation of DCGS-N, replacing DCGS-N Increment 1 Block 1 and the

ICOP is the ISR solution to address the unit-level requirements. The purpose of this tasking is to provide the independent technical test and evaluation (T&E) of DCGS-N Increment 1 Block 2 and the ICOP Joint Interoperability as governed by Chairman of the Joint Chiefs of Staff

(CJCSI) 6212.01 and related Department of Defense (DoD)/JITC regulations and directives and to guide and support the DCGS-N program office as they strive to achieve Joint Interoperability

Certification.

c. The period of performance remains unchanged at August 14, 2014 through August 15, 2015.

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. IAW FAR 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy, efficiency and time because it is a logical modification to an order already issued under the contract, and all awardees were given a fair opportunity to be considered for the original order.

(b) Description of the Justification. DCGS-N IOP support TO was awarded as a CPFF TO to

Oberon on August 14, 2013 following a fair opportunity competition using the JITC T&E

MSS IDIQ contracts. The proposed contract change submitted by JITC on July 14, 2014 adds testing of the ICOP during Developmental Test (DT) to assess the ICOP capabilities and adds an additional test event for seven days to support DCGS-N Increment 1 Block 2

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DT-afloat. Because the additional task falls within the current DCGS-N IOP support task, this is a logical follow-on to modify the order already issued under the current contract.

(c) Justification:

(1) Minimum Government requirements. The Government requires highly specialized knowledge of the DCGS-N and ICOP system architecture as well as a complete understanding of the critical joint interoperable test requirements and current Top Secret

(TS)/Sensitive Compartmented Information (SCI) level clearance. The DCGS-N program office will need timely IOP evaluation results of both the DCGS-N Increment 1

Block 2 and ICOP in order to support the fielding decisions for further deployment to the rest of the fleet.

(2) Proposed sole source contractor. The incumbent contractor Oberon, Inc. is the only contractor that can perform the work for the least amount of cost to the government and customer, due to the amount already invested, and still meet the testing schedule timeframes due to their extensive knowledge and current testing of the DCGS-N system.

(3) Discussion regarding cause of the sole source situation. The reason for this sole source submittal was due to the decisions of the DCGS-N Program Office to reduce their budgets during sequestration and scale back the efforts for the DCGS-N Increment 1

Block 2 and incorporate the unit-level requirements into the ICOP. Additionally, the

DCGS-N PMO is aligning the testing of DCGS-N and ICOP to reduce resources, costs and logistics. Due to the twelve month investment of testing and evaluation services at

$121,032.96 and the short-suspense test schedule, modifying the current task order enables JITC to extend existing, cleared DCGS-N resources to include ICOP test requirements.

(4) Demonstration of unique source. Oberon is the most qualified contractor capable of providing these services within the time and funding constraints imposed by the DCGS-N

Program Management Office. Oberon is in place now, with proper TS/SCI clearances supporting this task and is capable of continuing without interruption. No phase-in or ramp-up will be required to expand this support. Therefore, it is not in the best interest of the government to compete this task at the present time. Additionally, since Oberon developed the initial DCGS-N plan, they would be able to add an appendix to the current

DCGS-N plan to address the exceptions/modifications for the portable ICOP requirements. Another contractor would have to develop a new plan.

(5) Procurement discussion. The original task order was competed among all seven T&E

MSS contractors. Three offerors participated in this competition, of which Oberon, Inc.

was evaluated as the lowest-priced, technically acceptable offer. This increase is required to support the additional labor hours required to support the ICOP IOP test and certification requirements.

(6) Impact. If JITC were to compete this task, based on historical experience, it could delay the start of the task up to three months based on the timelines to issue a competitive

Page 4 of 5 Pages task and up to six months to get a tester with TS/SCI clearance and full knowledge and understanding of the ICOP. Selecting another prime contractor would increase costs due to the estimated 480 labor hours (or two months) to familiarize themselves with the system well enough to develop a test plan and carry out the test. To compete the task, bring the next contractor on-line and up to speed on DCGS-N/ICOP, if it isn’t Oberon, would not meet the customer’s acquisition schedule.

5. COST/PRICE FAIR AND REASONABLE DETERMINATION: Rates have been established with the basic contract. All rates set forth in the contract, and used on individual task orders, were based on full and open competition and a price analysis was accomplished.

Proposed task order rates and loadings will be compared with the basic contract rates and loadings and verified as fair and reasonable.

6. MARKET RESEARCH:

a. In accordance with FAR Part 10, market research has been conducted for this acquisition. JITC performed a formal analysis of the market through GSA Advantage, and historical contract costs. The action officer has determined through market research and market analysis that in the future, competition can be obtained for the above requirement using competition amongst T&E MSS contractors. However, the only way to avoid the loss of invested resources and additional costs to the government is to modify the existing task order to accomplish the requirement.

b. This effort requires highly specialized, multi-disciplinary knowledge and the need for staff to be available immediately to continue support operations. These support operations require the contractor’s staff to have DCGS-N and ICOP system architecture as well as a complete understanding of the critical joint interoperable test requirements and current TS/SCI level clearance. The use of any other contractor other than the incumbent, Oberon, would result in significant delays in testing efforts and threaten the ability to provide an acceptable level of support. The current contractor has been performing the contracted duties at an acceptable level for over a year. Staffing is already in place to continue this effort for the duration of the TO without any delay in service. This method represents the best value to the Government, in order to allow for completion of the effort.

7. ANY OTHER SUPPORTING FACTS: NA

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

THAT LED TO THE EXCEPTION TO FAIR OPPORTUNITY:

(a) Procurement History.

Contract Number: NBC00H02C0002

Contractor: Northrop-Grumman-Mission Systems

Contract Period: April 20, 2009 - August 14, 2013

Total Contract Value: $116,465.71

Contract Type: CPFF

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Objective: The purpose of this tasking is to provide the independent technical test and evaluation (T&E) of DCGS-N Increment 1 Block 2 as governed by CJCSI 6212.01 and related DoD/JITC regulations and directives and to guide and support the DCGS-N program office as they strive to achieve Joint Interoperability Certification.

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