HSBP1016C00053_Redacted_J A.pdf

Justification and Approval (J&A)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Only One Responsible Source 41 U.S.C. 253(c)(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.

Contracting on the basis of other than full and open competition. CBP intends to award a fixed-price contract with a total estimated value of including a base 12 month period and options for up to nine additional months. The contract will provide continuity of operations while CBP completes the 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 CBP Air Marine Operations Center (AMOC), Caribbean AMOC, Office of Border Patrol (OBP), United States Coast Guard (USCG), and US 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.

There are currently eight operational sites, six over the US-Mexico border, one over the Florida Straits, and one over the northern Caribbean (Puerto Rico). Each site consists of aerostat, L-band dual-channel air-surface radar, ground control and data networking systems, an aerostat mooring system, and on-site weather systems. The primary users for TARS generated air surveillance data are U.S. Customs and Border Protection’s (CBP) Air Marine Operations Center (AMOC 2), U.S. CBP’s Caribbean Air Marine Operation Center (CAMOC), USNORTHCOM/NORAD - AFNORTH (1AF) supporting Western Air Defense Sector (WADS) and Eastern Air Defense Sector (EADS).

Northrop Grumman Systems Corporation will continue to provide 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 bridge contract is:

Period Total Base Period - 12 months Option Period 1 – 6 months Option Period 2 – 1 month Option Period 3 – 1 month Option Period 4 – 1 month Total

The estimated contract value for the base period of would fund performance through 30 April 2017 when the follow-on contract award is anticipated. However, additional option periods will be included in the bridge contract in the event the follow-on award is delayed due to unplanned activities such as GAO protests.

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

The statutory authority permitting other than full and open competition is 41 V.S.C. 253(c)(1) 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, Customs and Border Protection (CBP) assumed operational control and contract management and funding responsibilities for TARS.

The current contractual services are scheduled to expire on 30 April 2016. The contemplated bridge contract will support AMO’s need beyond the end of the current contract and will prevent disruption of program operations during issuance of a competitive solicitation for a follow-on effort.

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. 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 time required for this effort and to respond to any AMO changing needs. The requisite expertise is necessary for ongoing support until the follow-on contract award is made in FY2017.

Northrop Grumman Systems Corporation continued support would prevent a lapse in service and disruption to AMO’s daily operations. Northrop Grumman Systems Corporation is uniquely qualified to continue services as it has acquired extensive knowledge of the TARS Radar Data Network (TRDN) and the Surveillance and Tracking Radar Processor (STRAP) equipment. If a contract is awarded to a new contractor (i) this would require substantial contractor effort to develop the base knowledge necessary for the operational requirements for all eight sites; (ii) DHS CBP will incur significant transition costs and schedule risk; and (iii) most importantly, without Northrop Grumman Systems Corporation continued support, it would result in critical mission impairment. There will be interruption of vital air and marine target data to users which will jeopardize vital US-Mexico border surveillance initiatives. Only 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.

For these reasons it has been determined that AMO’s requisite needs can only be satisfied by procuring these services on a sole source basis from Northrop Grumman Systems Corporation.

The results of the discussions revealed that there are no other known companies with the requisite capabilities and experience to currently meet the data collection and dissemination needs of the TARS program. 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.

The Program Management Office also used the information obtained through industry discussions to develop and issue a Request for Information (RFI) on 25 February 2015, to solicit input from industry to provide insight into market conditions, availability of technology and innovative business approaches that will aid in the development of an acquisition strategy for advancement of TARS to improve performance in meeting the agency mission objectives at a lower cost. Twelve companies provided information in response to the RFI. CBP has commenced work on the follow-on contract and is currently performing an Analysis of Alternatives (AoA) to complete development of the acquisition strategy. Release of the RFP for the follow-on contract is planned for 4th quarter of FY16 and contract award is expected by the 4th quarter of FY17.

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

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 1, 2017. A new contractor would add performance risk to the program due to the time required to train personnel to ensure minimum operational performance standards and critical operation of the TRDN and the STRAP equipment.

The sole source contract to Northrop Grumman Systems Corporation is necessary to support continuity of operations of the current TARS Data Network. Since assuming responsibility of the TARS program in 2013, the PMO has conducted market research to develop the acquisition strategy for the follow-on acquisition. At this time there are not any known companies that are capable of fulfilling the requirements to maintain the current TRDN with the STRAP. A sole source bridge contract is currently the only option that will provide continuous coverage until the follow-on competitive contract is awarded.

The Bridge contract will also allow for continued support and overlapping coverage after awarding the follow-on competitive contract in the event of a GAO protest, as well as allow for support during the transition process required for orientation and knowledge transfer to the new contractors.

Awarding a sole source bridge contract to Northrop Grumman Systems Corporation will reduce the risk for the loss of expertise and knowledge base from the current TARS data processing and distribution services contract. Without Northrop Grumman Systems Corporation continued support, there will be a lapse in TARS operation and interruption of vital air and marine target data to users which will jeopardize vital US-Mexico border surveillance initiatives.

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

None

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 CBP will be taking significant actions to identify and remove any barriers to competition for the subsequent follow-on acquisition for the TARS. Specifically, the TARS program office conducted market research through the Request for Information issued RFIs on 25 Feb, 2015 and will continue to engage industry to identify any potential barriers to competition. Findings from the market research effort will be considered and addressed in the acquisition strategy for the TARS follow-on acquisition.

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. Award of the bridge contract will ensure operation of the TARS sites without interruption in order to maintain border security while the acquisition team determines the appropriate acquisition strategy for the follow-on contract by continuing market research and studying various alternatives. The bridge contract 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. The RFP for the competitive acquisition is anticipated to be released by the 4th quarter of FY16.