J A_for_Award_Synopsis.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION (J&A)

10 U.S.C 2304(c)(1) Only One Responsible Source and No other Supplies or Services will Satisfy Agency Requirements

SOLICITATION NUMBER: HSCG23-16-R-C4ISR

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by FAR Subpart 6.3 and in accordance with requirements of FAR 6.303-1(a)(1), the justification for the use of the statutory authority permitted by FAR 6.302-1 is supported by the following facts and rationale required under FAR 6.303-2 as follows:

(1) Agency and Contracting Activity. The United States Coast Guard (USCG), CG-9127, Washington, DC, presents this Justification for Other Than Full and Open Competition (J&A) for review and approval.

(2) Nature and/or description of the action being approved. Approval is sought to obtain, on a sole source basis, engineering services to support development and integration of USCG Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) systems.

The Coast Guard anticipates awarding a Time and Materials (T&M) type contract at an estimated cost not to exceed $10 million per year. The name and address of the contractor:

Lockheed Martin Mission Systems and Training (LM-MST) 199 Borton Landing Rd.

Moorestown, NJ 08057-0927

(3) Description of the Supplies/Services. The requirement is to acquire engineering support services that include: performance specification reviews and updates; asset performance specifications; training and technical field support; Contractor developed firmware and software; LM-MST developed government off-the-shelf (GOTS) and commercial off-the-shelf (COTS) software; certification and accreditation; sensor and tactical systems; communication systems; navigation systems including analysis for electromagnetic interference (EMI), electromagnetic compatibility (EMC), and electronic mobile exchange (EMX); information assurance (IA); design documentation; system development process;

hardware and software; operations; security; testing; safety; aviation electronics redesign - including redesign, testing, and fielding of a first production test article; and integrated logistics support.

The USCG will issue Work Orders that will include a complete and detailed description of the effort to be performed.

The period of performance is for a twelve-month base period (August 1, 2016 through July 31, 2017), three one-year option periods (August 1, 2017 through July 31, 2017; August 1, 2018 through July 31, 2018; and August 1, 2019 through July 31, 2019), and one six-month option period (August 1, 2019 through January 31, 2020). Since this is a T&M contract, the option periods will be negotiated with LM- MST on an individual basis prior to each award date. The annual cost for this acquisition is not to exceed $10,000,000, which is planned as follows (each Work Order will have its own IGCE):

Estimated Dollar Value Not to Exceed

Funding FY16 – Base

Period (12 months)

FY17 – Option Period One (12 months)

FY18 – Option Period Two (12 months)

FY19 – Option Period Three (12 months)

FY20 – Option Period Four (6 months)

AC&I $10,000,000 $10,000,000 $10,000,000 $10,000,000 $5,000,000

(4) Identification of Statutory the Justification and the Rationale. This acquisition is being conducted under the authority of 10 U.S.C.2304(c) (1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements.

(5) Demonstration that the Nature of the Acquisition Requires Use of the Authority Cited. Pursuant to FAR 6.302-1(a)(2)(ii), supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (A) substantial duplication of cost to the Government that is not expected to be recovered through competition and (B) unacceptable delays in fulfilling the agency’s requirements.

The need exists to ensure the seamless integration of strategic and tactical C4ISR capabilities, particularly in the context of the envisioned USCG net-centric and highly distributed future networking environment.

Significant and highly specialized engineering and development efforts have been expended in the procurement of new C4ISR capabilities that meet Coast Guard mission needs and technical performance requirements. These capabilities exist in the Coast Guard Command and Control (CGC2) Segment 2 system developed by LM-MST. In order to eliminate the duplication of these engineering and development efforts, to continue with the integration and deployment of the new C4ISR capabilities, and to avoid costly and unacceptable program delays, LM resources are required to maintain the continuity of development efforts in order to achieve program goals and objectives within defined and continually shrinking funding limits.

The Coast Guard has invested $70M and 30 months of effort into the design and development of the CGC2 system. These costs have been incurred and cannot be reversed. LM-MST has asserted restricted rights to certain software components of the CGC2 system and the Government has accepted these asserted rights. Restricted rights have been asserted by LM to the CGC2 system Similar Source Correlation, Data Fusion-Dissimilar, Identification & Classification, Electronic Surveillance Measures (ESM) Track Identification, Electro-Optical Infrared (EO/IR) Track Identification, Target of Interest Doctrine, and Task Manager. These restricted rights apply to the aforementioned non-commercial CGC2 computer software components that were developed exclusively at LM-MST private expense and no development costs were allocated to a Government contract. LM-MST has asserted itself that the Government rights to use, release, or disclose the CGC2 software components is restricted. If the engineering services contract were competed and awarded to another source, the awarded source would not be able to perform the requirements of the engineering services contract due to these restricted rights.

A new software design and development effort would have to be undertaken by the new source resulting in substantial duplication of cost that could not be recovered (estimated at $9.35M). Delays in fulfilling the Coast Guard’s requirements could also have severe schedule and funding implications resulting in unacceptable delays (estimated at 12-18 months) based on approximately 8 months to complete procurements and implement a required software development environment, followed by 2-4 months for installation and checkout/security accreditation for the new software development environment, followed by another 4-6 months of new vendor learning on the new environment. The additional time and cost to replicate the CGC2 design is not in the best interest of the Government.

The LM-MST Maritime Domain Awareness Center (MDAC) [development, test, and integration laboratory] and MDAC Annex are co-located in the LM-MST facility developing the AEGIS Modernization (AMOD) Advanced Capability Build (ACB) 12 / Baseline 9 sponsored by Department of Defense (DoD). LM-MST is the sole provider of this critical hardware and software suite and the Coast Guard is leveraging DoD infrastructure by co-locating the MDAC and MDAC Annex. This allows for shared sensors, systems, and lessons learned that significantly reduce risk with respect to cost over-runs and increase the quality of the C4ISR product. The cost of duplicating all of these capabilities, functions, infrastructure, sensors, simulators, and connections elsewhere is not in the best interest of the Government, especially while the NSC and CGC2 Segment 2 system remains in production.

(6) Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. The proposed contract action was synopsized via the Federal Business Opportunities (FedBizOpps) website on April 29, 2016, in accordance with FAR 5.201. Upon the listing closing date on May 14, 2016, no sources had responded to express interest in this work.

(7) Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable. The Contracting Officer has determined that the anticipated cost to the government for supplies and services covered by this J&A will be fair and reasonable based on the Contractor’s historical pricing information, the government’s independent cost estimate, and cost comparisons to similar items. Additionally, certified cost or pricing data will be obtained, and the USCG will utilize DCMA recommendations on direct and indirect rates in its determination of fair and reasonableness.

(8) Description of Market Research. Market research was conducted in March 2016 pursuant to the policies and procedures of FAR Part 10. The research was performed primarily by examining available LM -MST contract vehicles due to the fact that a contractor other than LM-MST would require considerable time and non-recurring expense cost to develop a working knowledge of the CGC2 software, hardware, and integration of the system requiring direct assistance from LM-MST to gain that working knowledge. Additionally, LM-MST, as the system developer, holds the restricted rights to several areas of the system design.

Pursuant to COMDTINST M4200.19J, Coast Guard Acquisition Procedures (CGAP), Chapter 3019 – Small Business Programs, market research for applicable small business sources was conducted to support completion of the Small Business Review Form, DHS Form 700-22. US General Services Administration (GSA) 8(a) Streamlined Technology Acquisition Resources for Services (STARS) II categories were reviewed for applicability. The 8(a) STARS II Government wide Acquisition Contract (GWAC) is a small business set-aside contract that offers Multiple Award Indefinite Delivery/Indefinite Quantity (IDIQ) contracts for technology solutions. The STARS contracts [STARS 1 – STARS 8] were reviewed but it was found that the contractors could not provide the required capability. AbilityOne was searched for existing contract vehicles available for the Lockheed Martin division, Missions Systems and Sensors. No contracts were listed.

Per FAR Part 10.002, on 21 March 2016, the Interagency Contract Directory [https://www.contractdirectory.gov] and the federal procurement data system (www.fpds.gov) were queried for contracts to Lockheed Martin MST, Moorestown, NJ, under NAICS code 541330 (Engineering Services) and also using the filter product service code (PSC) 425 (Engineering and Technical Services). No government-wide contracts were found to be available for these search criterions.

Additionally, the DHS Enterprise Wide Contract Vehicle Portal (https://www.dhs.gov/professional-services) Technical, Acquisition and Business Support Services (TABSS) was queried for LM-MST contracts for engineering services, but none were found.

(9) Any Other Facts Supporting the Use of Other Than Full and Open Competition. Under previous contracts, LM-MST has delivered the first two systems for the NSC Class and is under contract for the remaining six systems and the TRACEN Petaluma system components. The proposed services in this contract are vital to delivering comprehensive, functioning, and integrated C4ISR designs in the most efficient manner. LM-MST developed and delivered the current C4ISR Segment 2 design on the National Security Cutter (NSC). Lockheed Martin Mission Systems and Sensors (MS2) laboratories performed a pivotal role by maximizing the use of limited resources, leveraging sensors, modeling test tools, hardware and interfaces across all of these assets to significantly reduce redundancy. In addition it incorporates the Coast Guard Seawatch system baseline and Department of Defense (DoD) programs of record including the US Navy Aegis Modernization (AMOD) Advanced Capability Build (ACB) 12 baseline, which is Lockheed Martin developed and managed. The current infrastructure established in these laboratories supports this effort in the most efficient manner. The Segment 2 design will be the basis for future NSCs and future aircraft systems. Reproducing this highly efficient and integrated infrastructure and procuring the additional hardware and sensors needed to adequately test and integrate these systems in the middle of development and deployment is not in the best interest of the Government.

(10) A listing of the Sources, if any, that expressed, in writing, an Interest in the Acquisition. As previously indicated, a synopsis was issued on the FedBizOpps website on April 29, 2016 requesting that parties express their interest in writing to the Contracting Officer and to date, no sources have written to express interest.

(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. In support of the Competition in Contracting Act, engineering and contracting representatives continuously conduct market research to ensure that companies interested in doing business with the USCG are given an opportunity to compete for our requirements. If another potential source emerges, the Coast Guard will assess whether competition for future requirements is feasible.