JA20-101 ViaSat SBS0027-Redacted.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: SBS0027 Contract Number: To be determined Procurement Title: Naval Air Systems Command (NAVAIR) EP-3 Model Aircraft Ku-band Spread Spectrum (KuSS) Services Estimated Value: $ Statutory Authority: 10 United States Code (U.S.C.) §2304(c) (1)

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: JA20-101

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) and FAR 6.302-1/Defense FAR Supplement

(DFARS) 206.302-1.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a. Requiring Agency:

NAVAIR, Program Manager Air (PMA)-290E 22389 Joyce Road, Building 3700 Patuxent River, Maryland 20670

U.S. Fleet Cyber Command/ Tenth Fleet 9800 Savage Road, Suite 6586 Fort George G. Meade, Maryland 20755

b. Contracting Activity:

Defense Information Systems Agency Defense Information Technology Contracting Organization/PL8221 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

This acquisition is for the follow-on requirement of a firm fixed price (FFP) contract to Viasat, Inc. (Viasat), a large business, for Viasat Global Broadband Service. The objective of this contract is to provide 15 Electronic Patrol 3 (EP-3) aircraft terminals and one lab terminal for a total of 16 terminals with KuSS communications services utilizing Viasat Global network (VGNet) subscription service.

NAVAIR EP-3 Model Aircraft KuSS Services –JA20-101

Page 2 of 7 Pages

a. Required services include commercial satellite communications (COMSATCOM) managed network services for Ku-band aircraft terminals.

b. The period of performance (PoP) consists of a 12-month base period and will include three, one-year option periods, followed by two, six-month option periods for the final year of service of the EP-3 fleet. The total estimated cost is $ .

Fiscal year (FY) 2020 Operation and Maintenance (O&M) funding will be provided using a military interdepartmental purchase request. The applicable North American Industry Classification System Code is 517410, Satellite Telecommunications.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. Navy EP-3 aircraft have critical mission requirements that rely on COMSATCOM connectivity originally acquired under contract HC1013-15-C-0007 (SBS0007) for use of the Viasat Global Network, which currently expires July 31, 2020. Viasat currently provides a forward link (receiving) speed of 1 Kbps and return link (transmitting) speed of 512 Mbps which rely on the Priority Return Link (PRL) for nine simultaneous operations (SIMOPS). Only one terminal will operate on a single SIMOP at any time. The required quantity of SIMOPs is nine in support of all mission aircraft. NAVAIR requires the renewal of this contract to provide Basic Return Link, Multiprotocol Label Switching, and PRL service for nine SIMOPS. The EP-3 provides indications and warnings to warfighters on the ground through its satellite uplinks. The loss of Viasat Global Network services would be detrimental to the safety of the warfighters who are relying on the aircraft communications.

b. This is a follow-on contract for HC1013-15-C-0007. Optional contract line item numbers (CLINs) shall allow NAVAIR to increase surge support not to exceed 30% of support for the defined task areas of the performance work statement.

c. The resulting contract will be FFP with a base period of 12-months plus three one-year option periods and two six-month option periods for a total estimated cost of $

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/DFARS 206.302-1).

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

(a) Description of events.

Viasat is the only source capable of providing satellite service to EP-3 aircraft fitted with specific hardware. Viasat utilizes proprietary hardware equipment and communications waveforms that operate only with Viasat subscription services that include space segment satellite resources, commercial teleport services, and access to the public internet.

Additionally, Viasat is currently the only provider capable of meeting NAVAIR’s data rate requirements of a minimum of 1 megabit per second (Mbps) forward link (FL) and 512 kilobits per second (Kbps) priority return link (PRL) per aircraft with worldwide coverage through the Viasat Arclight modem and 12 inch antenna with a current EP-3 NAVAIR

Page 3 of 7 Pages

Airworthiness Flight Certification. The EP-3 fleet’s retirement is to occur in FY24, and the time remaining until this fleet is retired does not allow for scheduling or funding of hardware replacement.

(b) Justification.

(1) Minimum Government requirements. COMSATCOM service must provide 1 Mbps forward and 512 Kbps receive data rates to allow the systems to operate as intended. Service must be compatible with Viasat Arclight modems and the Viasat VR-12 antenna system currently installed on the entirety of the EP-3 fleet of aircraft. Arclight is a proprietary and patented waveform, requiring Arclight compatible ground hubs for connectivity. Viasat is the only contractor that provides this service.

(2) Proposed sole source contractor. The proposed contractor for this effort is Viasat

Inc., 6155 El Camino Real, Carlsbad, California 92009-1699.

(3) Discussion regarding cause of the sole source situation. The EP-3 Fleet of aircraft and the ground infrastructure utilizes antennas and hardware modems that are proprietary to Viasat. To utilize other COMSATCOM service providers, the government would need to procure new equipment (terminals and modems) and perform modifications to the EP-3 Fleet of aircraft, which would impose increased costs and unacceptable downtime for an out of cycle change in operations. In addition, the EP-3 is currently scheduled to be retired by the end of FY24. For this reason, it is impractical to install new equipment on the entire fleet of low density/high demand operational aircraft. Furthermore, due to deployment schedules, it would be extremely difficult to procure and install new equipment on all the aircraft before fleet retirement, operationally preventing the aircraft from its core mission duties during changeover of equipment/services.

Due to the proprietary hardware configurations of the EP-3 Fleet and COMSATCOM ground infrastructure, the only available service is through the current contractor, Viasat.

(4) Impact. If satellite communications are not procured or rendered inoperable, the

NAVAIR EP-3 global support mission will be placed at risk. The EP-3 aircraft directly supports the safety of the warfighter in missions where the plane is providing support and intelligence to external ground, air, and surface forces. The inability to efficiently transmit data from the aircraft in a timely manner will severely affect the safety of these forces.

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES: A Sources Sought was issued on January 24, 2020. A synopsis for this action will be published on the beta.SAM.gov website, in accordance with FAR 5.201.

Page 4 of 7 Pages

7. DETERMINATION OF FAIR AND REASONABLE COST: With the assistance of a Cost and Price Analyst, the contracting officer will determine whether Viasat’s proposed price is fair and reasonable before award. Other than certified cost and pricing data will be requested from the contractor at the time of solicitation. The supporting price documentation will be analyzed and contractor-proposed pricing will be compared to the independent government cost estimate, commercial price lists or catalogs, and other contracts for similar services will be evaluated to determine pricing is fair and reasonable.

8. MARKET RESEARCH: Market research for this requirement started in October 20, 2014 with the research required for Viasat Global network KuSS services. At the time of the prior contract award HC1013-15-C-0007, it was determined that Viasat was the only contractor capable of providing the required satellite service (EP-3E Operational Requirements Document, ORD) for the existing and already installed hardware on the EP-3 fleet. HC1013- 15-C-0007 was subsequently awarded July 2015. With the expiration of service on July 31, 2020, NAVAIR is currently adhering to the EP-3’s sustainment schedule with a sunset scheduled for FY24 per NDAA 2011.

The ongoing market research from the PMA-290E program office indicated that Inmarsat was recently awarded a Supplemental Type Certificate (STC) in October 2017 for the Jet ConneX WiFi system. While this is viewed as a comparable capability/service, its use is not justified by the duplicative cost associated with an End of Life (EOL) capital investment of $ or the down time acquired to re-outfit the associated hardware for COMSATCOM configuration.

Finally, a Sources Sought was posted on January 24, 2020 to determine the availability and technical capability for potential sources qualified to provide Ku-band service subscriptions for VGNet KuSS services. Three contractors submitted a response; Global Eagle, SES Government Solutions (SES-GS), and Hughes Network Systems, LLC.

• Global Eagle provided a response that recommended utilizing Global Eagle’s existing global network and replacing the current Viasat modem and antenna with the Global Satellite Antenna Assembly (GSAA) and the Hughes’ HT Aero Modem. The Government reviewed the proposed network noting Global Eagle’s throughput and non-proprietary architecture. However, the solution proposed focuses primarily on the replacement of the existing hardware and an ability to utilize Global Eagle’s existing global network. It was determined that the cost of hardware replacement, to include procurement, software development, integration, and testing, would total over $ and would take approximately three years to complete. Global Eagle’s solution would require duplicative costs in capital assets not expected to be recouped by the Government.

Additionally, when taking into consideration the aircraft’s EOL estimates of FY24, the time required to procure, integrate, and test new hardware would create multiple year-long cycle delays rendering the fleet inoperable during out-of-cycle hardware updates.

• SES GS provided a response that requires purchasing bandwidth separately and providing

Government Furnished Equipment (GFE). Viasat does not sell or lease the hub equipment necessary to support the VMBR-1520 therefore the Government cannot procure it for use as GFE. Alternately, SES GS suggested that the Government change hardware to

Page 5 of 7 Pages open architecture equipment. It was determined that the cost of hardware replacement, to include procurement, software development, integration, and testing, would total over $ and would take approximately three years to complete. For an EOL fleet, SES GS’s solution would require duplicative costs for the replacement of existing hardware not expected to be recouped by the Government. In addition, the time required to procure, integrate, and test new hardware would create unacceptable delays when taking into consideration the aircraft’s EOL estimates of FY24.

• Hughes provided a response that recommended replacement of the Viasat hardware with a Ku/ Ka-band dual band antenna and the Hughes’ HT Aero Modem. The Government reviewed the proposed network and acknowledges the data rates offered. However, the solution proposed a hardware replacement that is not acceptable to the government due to duplicative and unnecessary hardware costs estimated at over $ that would not be recouped by the Government for an EOL Fleet. In addition, the time required to procure, integrate, and test new hardware would create unacceptable delays rendering the fleet inoperable during out-of-cycle hardware updates.

All market research conducted has verified that Viasat continues to be the only contractor with whom the prerequisite services can be provided, due to the Viasat proprietary hardware installed on the EP-3 fleet of airplanes. The Navy plans to replace the EP-3 fleet with MQ-4C Broad Area Maritime Surveillance (BAMS) unmanned aircraft and the MQ-8B Fire Scout unmanned helicopter, which provides more robust architecture engineering. Additional market research is currently underway by the PMA-290E program office, and NAVAIR will continue throughout the duration of the contract as necessary, to investigate the use of non- proprietary equipment in future NAVAIR architecture.

9. LISTING OF INTERESTED SOURCES:

As identified above, three companies expressed an interest and submitted responses to the January 24, 2020 sources sought posting: Global Eagle, SES GS, and Hughes. Additionally, Viasat expressed interest in the requirement and stated they would propose to any RFQ posted, but did not respond to the sources sought.

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

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

Procurement History.

HC1013-15-C-0007 was awarded July 2, 2015 as a sole-source contract to Viasat, Inc.

with a one-year base period of August 1, 2015 to July 31, 2016, and four one-year option periods.

NAVAIR will continue to conduct market research during this time period for alternative solutions that meet their requirements, and that may be procured through full and open competition at the conclusion of this contract. Market research will also be conducted prior to exercising the option period(s) for this contract, and the results of this market research will be

Page 6 of 7 Pages presented to the contracting officer to determine if exercising the option period is in the best interest of the Government.

Page 7 of 7 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: Anthony Denton SIGNATURE: See separate PDF

TITLE/ORGANIZATION: Program Analyst/SFCSCO

PHONE: 301-225-4965 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: CDR Ryan Ogden SIGNATURE: See separate PDF

TITLE/ORGANIZATION: EP-3 IPT Lead/PMA-290

PHONE: 301-225-4696 DATE:

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

NAME: Jarid Schulte SIGNATURE: See separate PDF

TITLE/ORGANIZATION: Contracting Officer / DISA DITCO/PL8221

PHONE: 618-418-6567 DATE:

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 separate PDF

TITLE/ORGANIZATION: Head of the Contracting Activity

PHONE: 301-225-4120 DATE:

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO Tina Aviles, Contract Specialist, at tina.m.aviles.civ@mail.mil or Jarid Schulte, Contracting Officer, at jarid.l.schulte.civ@mail.mil.