JA Redacted HC101320C0004.pdf

JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6 Justification & Approval (J&A), Supporting Procurements under FAR Part 12 and FAR Part 15

Purchase Request Number: To be determined (TBD) Contract Number: TBD Procurement Title: Commercial Satellite Communications (COMSATCOM) Bandwidth

Monitoring and Utilization Assessment and Reporting Estimated Value: $ Statutory and Regulatory Authority: 10 U.S.C. 2304(c)(1) and FAR 6.302-1

JUSTIFICATION FOR OTFAOC

OTFAOC Number: JA20-007

Upon the basis of the following justification, I, as Head of the Contracting Activity, hereby approve the use of other than full and open competition of the proposed contractual action, pursuant to the authority of 10 U.S.C. 2304(c)(1). The regulatory authority is FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agency:

Air Force Space Command (AFSPC), Commercial Satellite Communications Office

(CSCO)

6916 Cooper Avenue Fort Meade, Maryland 20755-7086

b. Contracting Office:

Defense Information Systems Agency (DISA) Defense Information Technology Contracting Organization (DITCO)/PL8222 2300 East Drive Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

The nature of this action is to issue a sole-source, firm-fixed-price contract for COMSATCOM bandwidth monitoring, utilization assessment, and reporting to Kratos RT Logic (Kratos), a large business. The period of performance (PoP) is for one year from date of award, estimated from December 20, 2019 through December 19, 2020 and will include four 1-year option periods.

The bandwidth and utilization reports will enable AFSPC CSCO to track and report spectrum utilization across all COMSATCOM contracts. These capabilities will be utilized to provide an understanding of comprehensive efficiency and economies of scale for the Joint Combatant

COMSATCOM Bandwidth Monitoring and Utilization Assessment and Reporting-JA20-007

Page 2 of 6 Pages

Commands, services, and agencies (CC/S/As). The total estimated cost is $ . Funds will be provided as fiscal year 2020 Defense Working Capital Funds.

3. DESCRIPTION OF SUPPLIES/SERVICES:

Kratos provides global COMSATCOM network operations services, utilizing their global network of antenna sites, equipped with a proprietary satellite carrier monitoring system, MONICS®. MONICS® monitors the satellite carrier performance on all transponder leases.

Performance monitoring data is captured and reported for AFSPC CSCO with aggregation of data and analytics provided for bandwidth utilization with near-real-time data access to the Government. This service will be provided by Kratos as part of the bandwidth monitoring function of the requirement. At no time will the Government purchase licensing rights to the software.

This solution will enable the COMSATCOM office with the ability to enhance its mission for providing efficiencies and economies of scale to its mission partners. The strategic inference for increased awareness of bandwidth utilization by users is paramount to efficiency of services and the Department of Defense (DoD) COMSATCOM budget. The results of the COMSATCOM bandwidth monitoring and utilization assessment and reporting service will be used to drive further cost savings for the DoD by identifying underutilized leases and either sharing that bandwidth with another CC/S/A or re-competing the contract at the end of its PoP for a smaller amount of bandwidth.

The PoP and estimated value for the lifecycle of this action are as follows:

Base Year 20 December 2019 - 19 December 2020 Option Year 1 20 December 2020 – 19 December 2021 Option Year 2 20 December 2021 – 19 December 2022 Option Year 3 20 December 2022 – 19 December 2023 Option Year 4 20 December 2023 – 19 December 2024 Surge Lifecycle

4. IDENTIFICATION OF STATUTORY AUTHORITY:

Only one responsible source, and no other supplies or services, will satisfy agency requirements, 10 U.S.C.2304(c)(1)/(FAR 6.302-1).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a. Description of events. COMSATCOM bandwidth has been the focus of multiple inquiries and directed studies from Congress, the Office of the Secretary of Defense (SecDef), and United States Government Accountability Office (GAO). AFSPC is charged with procuring COMSATCOM services for the DoD. As a result of these studies and reports, AFSPC has a continued need for in-depth knowledge, trends, and

Page 3 of 6 Pages metrics for satellite capacity leased by the DoD. This reporting capability will provide AFSPC with comprehensive efficiency and accelerated response times.

The COMSATCOM bandwidth monitoring and utilization assessment and reporting service is required to perform across all commercial satellites that are leased by AFSPC globally, agnostically and without conflict of interest. Kratos is not a satellite owner and does not provide bandwidth, which allows reseller agnosticism in order to effectively monitor leased COMSATCOM bandwidth and report the global spectrum utilization across all COMSATCOM constellations and contracts.

Due to a corporate acquisition and subsequent rebranding of the parent company to Kratos RT Logic, Kratos Defense & Security Solutions, Inc., SAT Corporation was acquired by Kratos but retained the name of SAT Corporation for the duration of the existing contract. As Kratos realigns its divisions and consolidates its corporate structure, SAT Corporation is being rebranded as Kratos RT Logic.

b. Justification.

(1) Minimum Government requirements. The Government requires 24x7 near-real-time performance monitoring data and bandwidth utilization assessment radio frequency (RF) monitoring services on DoD-contracted COMSATCOM RF links (carriers), networks, and bandwidth segments. The contractor will be monitoring the performance for the spectrum utilization of the DoD end-users that operate over the full span of COMSATCOM services. Kratos will provide the ability to monitor C, Ku, Ka, and X-band frequencies, utilizing their proprietary software system, MONICS®, a suite of globally operated, precision calibrated monitoring equipment.

The Government intends to acquire the reporting capabilities as a commercially available, managed service. However, it may require software integration to feed the commercially available service through DISA’s Enterprise Management System under Satellite Communications (SATCOM) Ordering Management & Situational Awareness Tools (SOMSAT). SOMSAT is a tool suite developed by DISA and may require the ingestion of data produced as part of the Bandwidth Monitoring and Utilization requirement to facilitate aggregation of useful operational data. The Government does not intend to fund, develop, acquire, or otherwise take ownership of the infrastructure required to fulfill these requirements.

(2) Proposed sole source contractor. Kratos is the only contractor that can perform this task, utilizing a fully operational, globally-managed SATCOM network operations monitoring service. No other contractors were identified that have the global infrastructure to provide the capability for spectrum monitoring and bandwidth utilization as a commercially agnostic, available service.

(3) Discussion regarding cause of the sole source situation. A previous acquisition for this service was synopsized and conducted by DISA via a sole source to SAT Corporation, under contract HC1013-14-C-0101. SAT Corporation was the only vendor capable of providing the required services as a commercial product and

Page 4 of 6 Pages conduct RF monitoring and utilization analysis on a global, agnostic scale. Market research has determined that, with no new entrants to the market, Kratos remains the only available vendor capable of providing these capabilities.

(4) Impact. Failure to provide bandwidth monitoring and utilization reporting would result in AFSPC’s inability to provide situational awareness of leased spectrum utilization, resulting in the loss of capability for performance monitoring and aggregation of data. The loss of this reporting capability would impact AFSPC’s continued effort to meet the mission set, as directed by Congress, the SecDef, and the GAO. Failure to provide this capability will result in duplication of costs for the CC/S/As. Should the Government not have this singular service monitoring all bandwidths (which provides economies of scale), the Government would pay more to monitor each individual contract. AFSPC is required to provide efficiencies and analysis of DoD COMSATCOM usage. It is in the financial interest of the DoD to have a singular effort providing this monitoring and analysis, as opposed to purchasing it piecemeal. This report feature will be used to provide efficiency data for the use of enhanced satellite servicing missions and reports. Loss of actionable information would impact AFSPC’s continued effort to make informed and efficient acquisitions on behalf of the DoD user community.

6. FEDERAL BUSINESS OPPORTUNITIES (FBO) ANNOUNCEMENT/POTENTIAL

SOURCES:

A synopsis for this action will be published on the FBO website, as required by FAR 5.201, and this J&A will be made available to the Government point of entry (GPE), in accordance with

FAR 6.305.

7. DETERMINATION OF FAIR AND REASONABLE COST:

The contracting officer (KO) will perform an evaluation of the offeror’s proposal and proposed costs to ensure the costs are fair and reasonable to the Government, as defined in FAR 2.101, and results in the lowest overall cost alternative to meet the Government’s needs. Certified cost or pricing data is not required for this commercial acquisition, in accordance with FAR 15.403- 1(b)(3). Proposal pricing of the sole source provider will be compared, using cost/price analysis techniques outlined at FAR 15.404-1.

8. MARKET RESEARCH: Market research was conducted during a period from March 2019 through September 2019. Interviews with Government personnel familiar with the current service and research of various DoD contract vehicles were conducted to survey the current state of the market. Research revealed that the required services are not available through existing Government contract vehicles. DITCO posted a sources sought on FBO on September 10, 2019 to confirm availability of any additional capable sources. The only response received, in reference to the sources sought, was by Kratos, which further demonstrated that Kratos is the only company capable of providing the worldwide monitoring service required for this effort.

Page 5 of 6 Pages

9. ANY OTHER SUPPORTING FACTS:

None

10. LISTING OF INTERESTED SOURCES:

SAT Corporation (Kratos) was the only vendor who expressed an interest in the procurement through a request for information to the GPE in October 2013. Other respondents provided feedback, indicating they used SAT Corporation (Kratos) to provide spectrum-monitoring services but that deploying their own capability for all DoD-leased COMSATCOM would be economically unfeasible due to the DoD’s global monitoring requirement. Further, a September 2014 notice of intent was published, resulting in no responses. The Government issued a sources sought notice on September 10, 2019 that was posted to FBO. However, no other vendor, except for Kratos, responded by the closing date of September 24, 2019. Once again, the Government confirmed that there are no new entrants with this global monitoring capability, leaving Kratos as the only capable source. A synopsis will be published on the FBO website, as required by FAR 5.201.

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

(a) Procurement History.

(1) HC1013-14-C-0101, September 30, 2014

(2) Sole Source

(3) No set-aside

(b) If the Government’s required functionality changes, or other vendors enter the market capable of providing the worldwide monitoring service required, the Government will seek full and open competition at that time.

Page 6 of 6 Pages

TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance, which are included in the J&A, are accurate and complete, to the best of my knowledge and belief.

NAME: Ryan Langoski SIGNATURE: See PDF signature page

TITLE/ORGANIZATION: Program Analyst / AFSPC CSCP

PHONE: DATE:

REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance, which are included in the J&A, are accurate and complete, to the best of my knowledge and belief.

NAME: Ryan Langoski SIGNATURE: See PDF signature page

TITLE/ORGANIZATION: Program Analyst / AFSPC CSCP

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete, to the best of my knowledge and belief.

NAME: Lora T. Benhoff SIGNATURE: See PDF signature page

TITLE/ORGANIZATION: Contracting Officer / DITCO / Fixed Satellites PL8222

HEAD OF THE CONTRACTING ACTIVITY APPROVAL: I have reviewed this justification and find it to be accurate and complete, to the best of my knowledge and belief. Since this justification for OTFAOC does not exceed $93M, this review serves as approval.

NAME: Douglas W. Packard SIGNATURE: See PDF signature page

TITLE/ORGANIZATION: Head of the Contracting Activity / DITCO

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Tamara J. Norrenberns, Contract Specialist, SAT Corporation (Kratos) was the only vendor who expressed an interest in the procurement through a request for information to the GPE in October 2013. Other respondents provided feedback, indicating they used SAT Corporation (Kratos) to provide spec...