J A 19-113 - MET Sustainment Support.pdf

Control No: 19-113 Contractor: L3Harris Corp.

Supply/Service: MET Sustainment Support Est Dollar Value:

JUSTIFICATION REVIEW DOCUMENT

FOR JUSTIFICATION AND APPROVAL FOR OTHER

THAN FULL AND OPEN COMPETITION

Supply/Service: Modernization of Enterprise Terminals (MET) Sustainment

Authority: 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.

Prepared by:

Contracting Officer: Michael L Lansing DSN: 793-7239 Contracting Officer Email: Michael.l.lansing2@mail.mil

Technical:

Requirements:

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Contractor: L3Harris Technologies Corp.

Department of Army

Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command – Rock Island (ACC-RI), Rock Island Arsenal, Rock Island IL 61299-8000.

2. Description of Action: The Product Manager Wideband Enterprise Satellite Systems (PdM WESS) and the PM DCATS request a sole source contract with L3Harris Corporation (formerly Harris Corporation) that includes Cost-Plus Fixed Fee (CPFF) and Cost Reimbursement Contract Line Item Numbers (CLINs). ACC-RI projects award to occur no later than Other Procurement, Army, and Operations and Maintenance, Army funds. Program Executive Officer, Enterprise Information Systems (PEO EIS) approved an acquisition plan In Accordance With (IAW) Defense Federal Acquisition Regulation Supplement (DFARS) 207.103(d)(i)(B) on 31 January 2020

Prior to this action, a 10 year competitive Indefinite Delivery Indefinite Quantity, Firm Fixed Price contract, W15P7T-09-D-H001, with Time and Materials, and CPFF incidental services CLINs, was awarded to Harris Corporation on 22 April 2009. The contract provided for the production and delivery of 93 AN/GSC-52B(V) MET systems and support services to replace the aging and outdated AN/GSC-52 Modernization (52 Mod) terminal inventory. Current MET support services are performed through Task Order BA42 under this contract. Task Order BA42 has a three year Period of Performance (PoP) (22 April 2017 – 21 April 2020).

Additionally, the SCO approved Justification and Approval (J&A 19-049) on 19 April 2019, which on W15P7T-09-D-H001. This enabled the award of Task Order BA49 for the procurement of additional MET terminals and hardware, as well as spares and sustainment services for existing MET terminals on contract. J&A 19-049 paragraph seven, Actions to Increase Competition, stated:

“This is a one-time purchase of additional MET terminal systems and related spares, and at this time, the Government anticipates no future similar acquisitions. However, if a similar requirement arises, the Government will make every effort to compete it to the maximum extent practicable. As noted above, the Government is planning a competitive follow-on contract for sustainment services, and anticipates award in March 2020.”

Consistent with paragraph 7 of J&A 19-049, the proposed action is for sustainment services only; the Government will purchase no additional terminal systems.

The Government intends to award the MET Sustainment contract via Sole Source procurement. While market research in 2016 indicated there was sufficient competition in the market place to support a full and open procurement, subsequent changes

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(4) occurred which led the Government to reconsider the acquisition approach and change the strategy to Sole Source.

L3 and Harris were two companies that had demonstrated experience to provide the overall systems integration.

Since 29 June 2019, the market conditions for this industry have changed dramatically.

On that date Harris and L3Technologies (formerly L3Datron) announced a merger into L3Harris, which effectively removed L3 as a potential competitor. also informed ACC-RI that it would only participate as a sub-contractor under L3Harris as that has been their role on the current 10-year IDIQ. In mid-2019, subsequently announced that it was acquiring

3. Description of Supplies/Services: PdM WESS is responsible for managing the acquisition, development, sustainment, and modernization of enterprise satellite communication (SATCOM) terminals and satellite network control and planning systems. These systems are used with the Wideband Global Satellite, Defense Satellite Communications Systems, and commercial satellite systems. As a part of this mission, PdM WESS requires L3Harris to provide sustainment support services at worldwide locations for the MET and 52 Mod programs’ family of SATCOM Earth Terminals. The 52 Mod program is the predecessor to the MET contract and was the vehicle for the initial installation of many SATCOM terminal locations and subsequent sustainment and upgrades of facilities before the award and implementation of the current MET contract.

The services to be provided under this effort include: depot operations, maintenance, engineering services (technical assistance, site surveys and preparation, obsolescence

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(b) (4) (b) (4) studies and recommended solutions, de-installation and installation of legacy and MET systems), warranty management, and integrated product support such as new equipment training, technical manual revisions and repair parts list updating.

Over 100 MET and 52 Mod systems are maintained in locations around the world.

The major commands of the Army, Navy, and Air Force, as well as International partners and other agencies as needed by the Government, operate and maintain these systems. The MET Program has purchased terminals, of which have been installed and are operational. The remaining will require installation services support over the next five years as part of the Terminal Modernization sustainment effort.

The PoP for the maintenance contract will be from

. PdM WESS estimates the total dollar value for the base and all option periods at

The Independent Government Estimate (IGE) is based upon historical prices for the MET program. The following table reflects the IGE:

4. Authority Cited: 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2)(iii)(A) and (B), for DoD, NASA, and the Coast Guard, services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services, when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition; and, unacceptable delays in fulfilling the agency's requirements.

As the incumbent since 2009, Harris, now L3Harris, is the only contractor that can provide the required support services in the amount of time available,

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L3Harris and GD (now CPI), L3Harris’ primary subcontractor since contract award, designed, produced and tested the family of MET systems. This design knowledge uniquely positions them to quickly identify and repair any systems failures. L3Harris has gained knowledge through 20+ years of maintenance and installation support of enterprise terminals, to include MET and predecessor 52 Mod Programs. On the 52 Mod program, newly assigned engineers worked initially alongside experienced engineers. Based on conversations with 52Mod engineers, PdM WESS learned that up to

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6. Efforts to Obtain Competition: Market research discussed in paragraph 8 of this document provides details of the activities performed in an attempt to identify potential competitors for this contract. ACC-RI shall publish the notices required by FAR 5.201.

The contract will contain FAR clause 52.244-5, Competition in Subcontracting, which states that the contractor shall select subcontractors on a competitive basis to the maximum extent practicable.

7. Actions to Increase Competition: To increase competition and avoid transition issues, the Government began acquisition planning well in advance of expiration of current contract. The planning has allowed sufficient time to perform market research, develop Government to industry collaboration, release Request for Information and draft Request for Proposal (RFP) via the FedBizOpps website, form Integrated Product Teams, and allow for strategic planning by the program management team. These actions helped to provide information across all industry in order to help the Government fully understand the available market place for the MET sustainment requirement. However, current market research shows an ever shrinking pool of vendors, with L3Harris as the only viable option.

8. Market Research: In accordance with DFARS 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information 206.302-1(d), ACC-RI posted a Sources Sought to FedBizOpps on 31 January 2018 for the follow-on sustainment contract. Reponses were received from

During a number of Industry

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Days held in the National Capital Region beginning in 2016 up to the present day, no vendors expressed interest in the MET sustainment contract. On 15 August 2019, a draft RFP for the MET sustainment support services contract was posted online to the FedBizOpps web site. When the response period closed on 28 August 2019, only L3Harris Technologies, the incumbent, responded to express interest in participating in the contract.

Therefore, PdM WESS has determined that L3Harris is currently the only contractor capable of meeting technical and schedule requirements of the MET sustainment support services

9. Interested Sources: To date, no other sources have expressed a written or oral interest in this requirement.

10. Other Facts.

a. Procurement History:

Contract No.: W15P7T-09-D-H001 MET Production Contract Contractor: Harris Corporation GCSD Award Date: 22 April 2009 Competitive Status: Full and Open Competition

Contract No.: DAAB07-98-C-A515 52 Mod Production Contract Contractor: Harris Corporation GCSD Award Date: 29 May 1998 Competitive Status: Full and Open Competition

b. Acquisition data availability: Acquisition Data is available and can be provided by the PdM WESS office to those with the proper clearance, authority, and sufficient reason to

(b) (4)

(b) (4) view requested data.

c. Unusual and compelling urgency: There is not an unusual and compelling urgency for this effort as the services are continuing under the current MET contract until 21 April 2020.

Supply/Service: MET Sustainment Support Est Dollar Value:

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based on the cost/price analysis.

Date: 15 NOV 2019 LANSING MICH Digitallysignedby

LANSING.MICHAEL.L.12805

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Date: 2019.11.15 09:04:37

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Contracting Officer

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Date: 15 NOV 2019

LANSING MICH Digitally signed by" LANSING.MICHAEL.L.1280 AEL.L.1280521 s21600 f>fJO _ Date: 2019.11.15 09:05:09

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Contracting Officer

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