J and A Nellis Final - With Redactions.pdf

FOR OFFICIAL USE ONLY

Justification and Approval (J&A) for Other Than Full and Open Competition

FOR OFFICIAL USE ONLY March 2018 Page 1 of 6

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: AFLCMC/HBAK

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): Digital Airport Surveillance Radar at Nellis Air Force Base

Program Type (PEO or Other Contracting): PEO

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): $9.6M J&A Type: Class Individual

COORDINATION (AFFARS 5306 . 304 ( a) ) ** The text in the signature blocks below is editable, including the title.

** To remove a row, click the "X" next to the signature block. CAUTION: Once removed, it can only be restored by downloading the BLANK FORM again.

X

APPROVAL (AFFARS 5306 . 304 ( a) )

Date Competition Advocate Signature

25 Jul 2019 Mr. Joseph J. Buzzell, NH-04

AFLCMC/PZC, DSN 845-0076

BUZZELL.JOSEPH.J.122 Digitally signed by

BUZZELL.JOSEPH.J.1228530847

8530847 Date: 2019.07.25 13:22:48 -04'00'

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to all J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Sign and Save Procedure

Date Program Manager Signature

22 May 2019 Mr. Timothy M. Devlin, NH-III

AFLCMC/HBAG, DSN 845-4667

DEVLIN.TIMOTHY.MICH Digitally signed by

DEVLIN.TIMOTHY.MICHAEL.1007929834

AEL.1007929834 Date: 2019.05.22 15:12:54 -04'00'

Date Contracting Officer Signature

24 Jul 2019 Mr. Tyler J. LeBlanc, GS-12

AFLCMC/HBAK, DSN 845-5078

LEBLANC.TYLER.J.1500 Digitally signed by

LEBLANC.TYLER.J.1500614761

614761 Date: 2019.07.24 12:21:03 -04'00'

Date Local Legal Reviewer Signature

23 May 2019 Mr. Sean B. Brady, GS-13

66 ABG/JA, DSN 845-5794

BRADY.SEAN.BRIAN.127 Digitally signed by

BRADY.SEAN.BRIAN.1272499841

2499841 Date: 2019.05.23 14:22:57 -04'00'

FOR OFFICIAL USE ONLY March 2018 Page 2 of 6

I. Contracting Activity.

The Air Force Materiel Command's (AFMC) Air Force Life Cycle Management Center (AFLCMC), Digital Directorate (HB), Aerospace Management Systems Division (HBA), Contracting Office (HBAK), 75 Vandenberg Drive, Hanscom Air Force Base (AFB), MA 01731-2103 is the contracting organization responsible for this proposed contracting action and is seeking approval for this Justification for Other Than Full and Open Competition. The Procuring Contracting Officer (PCO) for this contract action is Mr. Tyler J. LeBlanc; phone: 781-225-5078; E-Mail:

tyler.leblanc@us.af.mil.

II. Nature and/or description of the action being processed.

AFLCMC/HBAK intends to award a contract to produce, integrate and test equipment for an ASR-11 Digital Airport Surveillance Radar (DASR) system at Nellis Air Force Base (AFB), Nevada on a sole source basis to Raytheon Company, 1001 Boston Post Road E, Marlborough, MA 01752-3770, hereafter referred to as “Raytheon."

Contract types for this effort include Firm Fixed Price (FFP) and Cost Plus Fixed Fee (CPFF).

FFP will be used for material procurement while CPFF will be used for the system integration.

III. Description of supplies/services required to meet agency needs.

The Department of Defense (DoD) and the Federal Aviation Administration (FAA) jointly procured DASR systems to upgrade existing radar facilities for DoD and civilian airfields. The Air Force is the lead agency for this acquisition. DASR is a terminal air traffic control radar system that replaces current analog systems with new digital technology. The DASR system is a critical component of the National Airspace System (NAS) infrastructure. The FAA nomenclature for the DASR radar is ASR-11, the DoD nomenclature is AN/GPN-30. The ASR-11 is replacing existing ASR-7, ASR-8 and AN/GPN-12, -20 and -27 systems. These older radars, some over 20 years old, were replaced to improve reliability, provide additional weather data, reduce maintenance costs, improve performance, and provide digital data to new digital automation systems for presentation on air traffic controller displays.

A DASR was never delivered to Nellis AFB under the current DASR Production Contract. A decision was made earlier in the program to deliver the ASR-9 airport surveillance radar currently at Nellis from the Federal Aviation Administration (FAA) because the Lead and User commands (Air Force Flight Standards Agency and Air Combat Command) did not want to wait for the lead time required to deliver a DASR. This ASR-9 is the only radar of its type providing air traffic control on USAF bases. This is a one of a kind asset for the USAF and logistical support is provided by the FAA. Since that time a new base gymnasium was constructed at Nellis AFB which causes interference problems for the ASR-9 operation and the Lead and User commands revived the requirement for an ASR-11 DASR at a new location at Nellis AFB. A proposal was submitted by Raytheon for a DASR in 2018 however the Program Office and Raytheon were unable to get on contract due to an irreconcilable cost delta of ~$3M and a no bid by Raytheon. At the same time the FAA and Raytheon decided not to continue with the production of two Mobile Airport Surveillance Radars (MASRs) under Delivery Orders 0080 and 0085 due to cost and schedule overruns.

A Course of Action (COA) was initiated to issue a Request for Proposal (RFP) to Raytheon under a new DASR contract vehicle to build a DASR using the available MASR assets as Government Furnished Equipment (GFE). The GFE approach will result in a significant reduction in the amount of manufacturing to be performed by Raytheon and the associated cost and schedule risk of obtaining equipment from new suppliers, which should resolve the irreconcilable cost delta of ~$3M mentioned previously. Considerations of FAR 45.102 and DFARS PGI 245.1 were reviewed and this approach was determined to be the best acquisition strategy due to mailto:tyler.leblanc@us.af.mil

FOR OFFICIAL USE ONLY March 2018 Page 3 of 6 significant cost savings and reduction of risk. This COA also includes coordination with NIWC Atlantic (formerly SPARWAR) to perform site preparation and installation and checkout (INCO) as a cost reduction measure.

NIWC has the necessary expertise to accomplish such a task, as they previously completed site preparation and INCO at 27 Navy DASR sites. This DASR will be installed in a new location at Nellis AFB, be logistically compatible with all other DASRs in the USAF inventory and resolve the current interference issue with the ASR-9 since it will be removed and returned to the FAA.

The Air Force will provide Primary Surveillance Radar (PSR) and MSSR LRUs as Government Furnished Equipment (GFE). Raytheon will be responsible for procuring all other material needed to assemble a complete DASR system.

Raytheon will also be responsible for assembling, integrating, and testing a DASR Electronic Equipment (EE) shelter.

Raytheon will ship all materials to Nellis AFB where the Government will be responsible for site preparation, installation, and checkout of the complete DASR system.

The estimated price of $9.6M is derived by the program office scrutinizing the historical data of the 156 fielded systems, as well as the scope and duration of the effort.

FY18 3080 procurement funding will be used for the effort.

The period of performance for this effort will be twelve months after contract award.

IV. Statutory authority permitting other than full and open competition.

10 United States Code 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii), and required by FAR 6.303-2(b)(4), “Only one responsible source and no other supplies or services will satisfy the agency requirements without substantial duplication of cost to the Government that is not expected to be recovered through competition."

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

The DASR is a highly specialized system. Only Raytheon, as the designer and Original Equipment Manufacturer (OEM) has the knowledge and specialized capabilities to integrate the GFE PSR and MSSR LRUs along with the material procured and manufactured by Raytheon, into a fully functioning DASR Electronics Equipment (EE) shelter.

Raytheon has completed production of DASR systems as part of an ACAT IC program on two separate contracts: contracts F19628-96-D0038 and FA8730-08- D-0001. The -0038 contract, the original DASR production contract, was awarded to Raytheon via full and open competition in 1996 and the performance period ended 30 September 2011. The -0001 contract, the DASR Phase II Production contract, was awarded to Raytheon on a sole source basis on 30 September 2008 as a follow-on production contract with the ordering period that expired 30 September 2016 and performance period that ended on 30 September 2018. A prior J&A, approved on 30 June 2016, extended the ordering period from 30 September 2016 to 30 September 2018 and the performance period from 30 September 2018 to 30 September 2020. This was implemented through contract modification FA8730-08-D0001 P00064.

The DASR System is derived from the two Non-Developmental Items (NDI) designed and produced by Raytheon: the ASR-10SS Primary Surveillance Radar (PSR) and the Condor MK2 Monopulse Secondary Surveillance Radar (MSSR). For this effort, the Government will be responsible for providing the PSR and MSSR as GFE. Raytheon will be responsible for the production and procurement of approximately thirty (30) different LRUs and related assemblies needed to complete the DASR system. Some of the LRUs are manufactured directly by Raytheon and are complex assemblies, others are procured from outside suppliers.

The drawings necessary to perform the EE shelter integration effort contain Raytheon proprietary data. The

FOR OFFICIAL USE ONLY March 2018 Page 4 of 6

Integration and testing of the EE shelter, is the most complex part of this acquisition effort. The EE shelter is the heart of the DASR system; it contains all of the primary and secondary surveillance radar components with the exception of the Antenna Pedestal Group (APG). To date, Raytheon has integrated all 156 DASR EE shelters. The Government has limited rights in the DASR technical data and restricted rights in the DASR software.

Having another contractor integrate and test a fully populated EE shelter would result in unacceptable delays and duplication of costs not expected to be recouped through competition.

During the production contracts, the Government went through extensive test & evaluation efforts to qualify and verify that the NDI DASR met all system requirements. Given the fact that the Government does not possess the data rights necessary to conduct a competitive acquisition for a Nellis DASR System, the only alternative is to find another radar source. Based on the DASR production contract, we estimate it would cost $28.5M to qualify a new radar that meets the DASR System Specification requirements. In addition, there would be a cost to obtain contractor support for the sustainment of the new radar since it would be unique from the existing DASR radar and would require a dedicated logistics support contract. The estimated annual cost of this contract is $100K or double that of a DASR site. The cost was increased to account for the fact that the support would be sole source and only for a single site. These duplicate costs for the qualification of a new radar as well as the increased cost for sustainment of the new radar are not expected to be recovered through competition.

In addition to the duplication of cost, we estimate it will take approximately four (4) to five (5) years to qualify a new radar (new manufacturing source) that meets all DASR System Specification requirements. This estimate is based on the amount of time Raytheon needed to integrate and qualify the original DASR system that was based on a Commercial Off -The Shelf Non-Developmental Item radar. Also, this schedule assumes that there is another manufacturing source with an existing NDI radar similar to DASR.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

On 30 October 2018, the Government posted a Sources Sought Synopsis (SSS) on FedBizOps (FBO) for DASR capabilities to identify interested and capable sources. Only one contractor, Raytheon, submitted a response to the synopsis. AFLCMC/HBA evaluated the response and determined Raytheon to be qualified to provide the required capabilities for the DASR program. Discussions with the FAA, Army, and Navy also came to the conclusion that Raytheon is the only source with the expertise to provide the necessary capabilities for DASR sites.

On 31 May 2019, A Notice of Contract Action was posted on Federal Business Opportunities (FBO). The posting closed on 15 June 2019 and no responses were received.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The price associated with a Nellis AFB DASR contract will be determined to be fair and reasonable to the Government by the following two (2) methods:

(1) Price analyses will be conducted in accordance with FAR 15.404-1 to ensure offered prices are fair and reasonable. The Contracting Officer will use the Program Office Estimates as well as the prices obtained in previous delivery and task orders as well as actuals for the same contract vehicles to analyze price of supplies and services. Additionally, the program office has over 20 years of data on procurement of previous DASR systems.

(2) Also, the Contracting Officer will obtain cost or pricing data from Raytheon to conduct cost analysis. The

FOR OFFICIAL USE ONLY March 2018 Page 5 of 6 cost and pricing data will be analyzed by Government technical evaluators, the Administrative Contracting Office, the Defense Contract Audit Agency, and cost analysts as required. The final contract price will be evaluated and negotiated by the PCO in accordance with FAR Part 15 to ensure that the price paid by the Government is fair and reasonable. Depending on the value of the delivery/task order and/or change the PCO may require the contractor to submit certified cost and pricing data in accordance with the Truth In Negotiations Act. Raytheon in turn will be required to submit a certificate of current cost and pricing data upon request to ensure the Government has received the most current, accurate and complete cost and pricing data in determining a fair and reasonable price.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

The program office has conducted in-depth market research and to date, no contractor other than Raytheon has provided information to substantiate their qualifications and abilities to produce or sustain DASR systems.

(See paragraph VI above).

IX. Any other facts supporting the use of Other Than Full and Open Competition.

N/A

X. List of any sources that expressed, in writing, an interest in the acquisition.

See Paragraph VIII above.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

At this time, the Government does not foresee overcoming the barriers to competition for the DASR system.

Raytheon used the ASR-10, a Non-Developmental Item (NDI), as the basis for the DASR design and thus the Government only has restricted/limited rights to some of the technical data and software items. The DASR system includes multiple software and hardware and Raytheon funded elements and design.

Although Raytheon has indicated no intention to sell the DASR data rights, Government will continue to inquire about the status of data rights for in future DASR efforts to overcome any barriers to competition.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.

FOR OFFICIAL USE ONLY March 2018 Page 6 of 6

Remove the Guidance pages below. Remove the IACR pages below.

X