HSBP1016C00053-Northrop_Grumman_JA_ContractExtension_vF-6.11.19_Redacted.pdf

Justification and Approval (J&A)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

ONLY ONE RESPONSIBLE SOURCE

41 U.S.C. 3304(a)(1), FAR 6.302-1

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by FAR Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), Customs and Border Protection (CBP) Procurement Directorate.

2. Nature and/or description of the action being approved.

CBP intends to extend contract support services under contract HSBP1016C00053 for an additional 6-months. The total estimated value for this contract extension is $464,821.65. The contract will provide continuity of operations while CBP actively competes the follow-on long-term contract for like services.

Name and address of the proposed Contractor:

Northrop Grumman Systems Corporation 2340 Dulles Corner Blvd Herndon, VA 20171-3400

3. Description of Supplies/Services.

Air and Marine Operations (AMO) has the responsibility to secure the Nation’s borders against the unlawful movement of people, illegal drugs and other contraband between Ports of Entry (POE). To efficiently and effectively manage the Nation’s borders, AMO requires persistent surveillance solutions aimed at enhancing situational awareness and security in land, air, and maritime environments by allowing personnel to monitor and counter dynamic and evolving threats. Northrop Grumman Systems Corporation is currently providing support to meet AMO’s mission objectives.

The Tethered Aerostat Radar System (TARS) provides for long-range search and track of air and surface targets, providing multi-domain awareness to Customs and Border Protection Air Marine Operations Center (CBP AMOC), Caribbean AMOC, Office of Border Patrol (OBP), United States Coast Guard (USCG), and the U.S. military. The TARS program is comprised of all aerostats, aerostat support systems, radars, weather equipment, communications systems, winch systems, facilities, special purpose vehicles, associated equipment, and personnel necessary to accomplish the mission.

CBP has an ongoing need for TARS data processing and distribution contract support, which includes technical advice and logistical support to ensure processing and distribution of radar surveillance data via an IP network, which transmits the processed data from the TARS sites to the Surveillance Data Users. The support includes:

a) Engineering, Analysis, and Design support to Tethered Aerostat Radar System (TARS) installations with advice to ensure communications interface designs, equipment, and integration meet requirements. This includes supporting controlled testing, optimizing processor systems, as well as providing recommendations for performance improvement.

b) Contracted Logistics Support (CLS) to monitor, distribute, and control support assets for the radar processors and ancillary equipment.

c) TARS Radar Data Network (TRDN) Management by linking TARS site data to the users and the contractor Technical Support Facility (TSF) using internet protocol (IP) technologies. Services to maintain equipment spares at each TARS site, as well as at the contractor’s facility, and ship assets to repair, replenish, and replace spares to maintain established on-site sparing levels.

d) Service Engineering Support to support reviews and the development of technical proposals, requirements documents, configuration management documents, test plans, test results, system change notices, and other related documentation.

The proposed period of performance for the contract extension is:

Period Total Base (6 months) $464,821.65 Total $464,821.65

4. Identification of Statutory Authority Permitting Other than Full and Open Competition.

The statutory authority permitting other than full and open competition is 41 U.S.C. 253(c)(2) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled " Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

5. Demonstration That the Nature of the Acquisition Require Use of the Authority Cited.

The United States Air Force (USAF) managed the TARS Program until March 2013 when the USAF and the Department of Homeland Security (DHS) began the formal transfer of the program, including supporting contracts and operational responsibilities. Effective 1 July 2013, DHS and CBP assumed operational control and contract management and funding responsibilities for TARS.

The current contractual services are scheduled to expire on 29 June 2019, which the contemplated contract extension will support AMO’s ongoing needs beyond the expiration of the current contract and will prevent disruption of program operations throughout current procurement activities to award a follow-on contract. A solicitation for the follow-on contract was released on April 30th, 2019 with a proposal submission date of June 7th, 2019. Contract award for follow-on services is anticipated in October, 2019.

Northrop Grumman Systems Corporation possesses the required expertise to perform the services to ensure that AMO successfully accomplishes its mission. Northrop Grumman Systems Corporation is most familiar with the issues, operational considerations, and technical challenges of the TARS program. They have highly qualified personnel with the required broad base knowledge and experience with the program. Northrop Grumman Systems Corporation will make them immediately available for the minimum time required for this effort to respond to AMO’s current needs. The requisite expertise is necessary for ongoing support until the follow-on contract award is made in early FY20.

Northrop Grumman Systems Corporation’s continued support will avoid the unacceptable risk of a lapse in mission-critical services and disruption to AMO’s daily operations during the time required to compete the follow-on competition. Northrop Grumman Systems Corporation is uniquely qualified to continue services as it has acquired extensive knowledge of the TRDN and the STRAP equipment. This is due to Northrop Grumman Systems Corporation specific experience working on the Surveillance and Tracking Radar Processor (STRAP), a critical subsystem that performs essential data processing and distribution functions on TARS. In the past 20 years of the AF TARS program, the STRAP has had a number of changes and modifications with very little records documenting the various alterations. No other company has the experience and knowledge of the specific, modified TARS/STRAP configuration. Therefore, Northrop Grumman Systems Corporation is the only company with the requisite body of knowledge to maintain and operate the current STRAP system. Although other companies are capable of doing the work, given ramp-up time and training that would be necessary to fully onboard a new contractor, it is impracticable to compete this effort in the limited time remaining under the current contract. The significant transition learning curve, start-up lead time requirements (including background investigation clearances for access to sensitive CBP information and systems) for the multiple site locations across the U.S. southern border and the Caribbean poses a risk of disruption in the flow of vital air and marine target data to the CBP AMOC, Caribbean AMOC, OBP, USCG, and U.S. military users, which will jeopardize homeland security and vital U.S.-Mexico border surveillance initiatives. The lapse in any of these services poses an unacceptable risk to national security. Because Northrop Grumman Systems Corporation has the body of knowledge, resources and experience in place necessary to provide CBP the required services without risking an interruption in critical mission capabilities, it is in the Government’s best interest to forgo competition in order to ensure continuity of these services.

Changing to a new data processing and distribution contractor for TARS would result in a substantial investment in time and contract transition cost to the Government that is not expected to be recovered through competition since it is anticipated that the follow-on contract will replace this bridge contract by October, 2019. Onboarding a new contractor at this time would add performance risk to the program due to the time required to compete, train personnel, and to ensure minimum operational performance standards and critical operation of the TRDN and the STRAP equipment.

Modifying the current contract to extend services with Northrop Grumman Systems Corporation will reduce the risk of the loss of expertise and knowledge base from the current TARS data processing and distribution services contract. Without Northrop Grumman Systems Corporation continued support during the time necessary to award the follow-on competitive requirement, there will be a lapse in TARS operations and interruption of vital air and marine target data to users, which will jeopardize CBP’s vital U.S.-Mexico border surveillance initiatives as well as impact the activities of the U.S. military and USCG.

For these reasons it has been determined that AMO’s requisite needs can only be satisfied by procuring these services from Northrop Grumman Systems Corporation considering they're the only immediate responsible source.

6. Description of Efforts Made to Ensure that Offers Are Solicited From As Many Potential Sources As Is Practicable.

CBP will publish this J&A on FedBizOps upon approval indicating its intent to issue a contract extension to Northrop Grumman Systems Corporation. For the reasons explained above in Paragraph 5, competing this requirement in the limited time remaining under the existing contract would be impracticable due to the administrative effort that would be required to develop a request for proposals, receive and evaluate offers, and award a new contract.

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

The Contracting Officer anticipates that the cost will be fair and reasonable based on the government’s IGCE, documented historical cost, Forward Pricing Rate Recommendation received from DCMA and data from the previously competitively awarded contract.

8. Description of Market Research.

The Program Management Office used the information obtained through over 20 face-to-face meetings and site visits with industry leaders (see table below) along with discussions to develop and issue a Request for Information (RFI) on 25 February 2015. The RFI was to solicit input from industry to provide insight into market conditions, availability of technology and innovative business approaches that would aid in the development of the acquisition strategy for advancement of TARS to improve performance in meeting the agency mission objectives at a lower cost.

CBP held an industry day on November 16, 2017, and provided access to TARS locations via site visits in early February 2018. The industry day was attended by 51 different vendors (see Attachment 1). The site visits hosted 21 different vendors (see Attachment 2). The RFP for the follow-on contract was released on April 30th, 2019, which proposals are due June 7th, 2019 and contract award is anticipated by October, 2019.

The Program Office’s market research has shown potential interest from across industry, including large and small businesses. While the results of the discussions revealed that there are other companies with the requisite capabilities and experience to currently meet the ongoing data collection and dissemination needs of the TARS program, it would be impracticable under the circumstances to competitively procure these services.

In preparation for the follow-on requirement the program office, in conjunction with procurement, initiated and completed the following actions:

Date of Event Event Name Location of Event

October 24, 2017 TARS-RFI TARS-RFI was posted to FBO

November 16, 2017 TARS Industry Day The IPR Center, 2451 Crystal Drive Suite 200, Arlington, VA 22202

December 11-20, 2017 TARS-Bidders Library

February 7-9, 2018 TARS Site Visits El Paso, Texas Marfa, Texas Eagle Pass, Texas

May 6-7, 2019 Pre-Proposal Conference Meeting

AMOC

Riverside, CA

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

N/A

10. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the Acquisition.

CBP held an industry day and provided access to TARS locations via site visits. The industry day was attended by 51 different vendors (see Attachment 1). The site visits hosted 21 different vendors (see Attachment 2).

11. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required.

The Program Office’s market research identified several potential sources for the follow-on contract requirement. The results of the RFI, Industry Day for the follow-on, and the site visits indicate that there are several companies with the requisite capability and desire to compete for the follow-on services. By the Governments release of its request for proposal on April 30th, 2019, it has afforded all interested vendors an opportunity to compete for the follow-on TARS contract. All of the market research conducted to date shows that there will be sufficient competition for the follow-on contract.

12. Planning and Funding Statement. Include a statement that this acquisition does not result from a lack of planning or the expiration of funds.

This acquisition does not result from a lack of planning or the expiration of funds. Since CBP assumed programmatic and contracting responsibilities from the USAF, it has actively engaged in planning efforts for the follow-on contract. A significant part of this planning entailed research concerning the eventual business and program approaches that would be cost effective and that would better serve AMO’s needs.

Unfortunately, the government shut down that happened between 21 Dec 2018 to 28 Jan 2019 drastically affected the schedule and timing of the full and open re-compete for this program resulting in a schedule adjustment that goes beyond the current bridge contract. The program is working very hard to make up as much ground as possible with the use of the new PIL process in an effort to streamline the source selection process. Given the unknown and uncontrollable government shut down and using the PIL process, the program office is dedicated to completing the full and open competition during the additional 6 months. The option periods included with this contract extension are to support any unforeseen contingencies that may occur throughout the acquisition process of the follow-on contract.

Award of a contract extension will ensure continued operation of the TARS sites without interruption in order to maintain vital national security while the acquisition team competes the follow-on contract. The contract extension will also provide adequate time to prepare a comprehensive, competitive Request for Proposal with sufficient response time for industry to develop the optimal logistics and technical response to meet the CBP’s requirements.

13. Posting Requirement.

CBP will post this requirement on FedBizOpps.gov pursuant to FAR 6.305.

► J&A CERTIFICATIONS

14. REQUISITION/PROGRAM OFFICE CERTIFICATION

I certify that the foregoing justification is accurate, meets the Government’s minimum needs and contains complete information necessary to support the action described in this document and the authority cited.

► J&A APPROVALS

15. CONTRACTING OFFICER CERTIFICATION/APPROVAL*

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Name: Joshua J. Bedregal

Contracting Officer

Signature: ________________________________ Date: _____________

* In accordance with FAR 6.304(a)(1), CO certification of a J&A for a requirement not exceeding $700,000 shall constitute approval of the J&A.

6/11/2019