JA20-113 SBS0024 FINAL APPROVED W SIGNATURES _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: SBS0024 Contract Number: To be determined Task/Delivery Order Number: Not applicable Procurement Title: Naval Senior Leadership Communication – Aircraft (NSLC-A)

Satellite Communications Services Estimated Value: $ ($ including potential 6-month extension) Statutory Authority: 10 United States Code (U.S.C) 2304(c)(1) and Federal

Acquisition Regulation (FAR) 6.302-1

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: JA20-113

Upon the basis of the following justification, I, as Head of the Contracting Activity, hereby approve the use of OTFAOC of the proposed contractual action pursuant to the authority of 10 U.S.C. 2304(c)(1) and FAR 6.302-1.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requiring Agency:

Naval Information Warfare Systems Command (NAVWAR) Program Executive Office for Command, Control, Communications, Computers and Intelligence (PEO C4I) Communications and Global Positioning System Navigation Program Office (PMW/A 170) NSLC-A 4301 Pacific Highway San Diego, California 92110

Contracting Activity:

Defense Information Systems Agency (DISA) Defense Information Technology Contracting Organization (DITCO) Mobile Satellite Section (PL8221) 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225

2. NATURE/DESCRIPTION OF ACTION(S):

This acquisition is to establish a firm fixed price (FFP) contract with Viasat, Inc. (Viasat), a large business, for Viasat’s Global Broadband Service. Required services include commercial satellite communications (COMSATCOM) managed network services for Ku-band aircraft terminals.

Current year operations and maintenance (O&M) funds will be used for this effort.

NSLC-A Satellite Communications Services-JA20-113

Page 3 of 8 Pages and N8 letters1, and included the initial requirements for modernization of the Joint Enroute Mission Planning and Rehearsal System (JEMPRS)/Satellite Communications (SATCOM) system, on-board network components, and terminal/shore connectivity.

NSLC-A received initial acquisition authority in the PEO C4I Project Definition Document (PDD) of June 19, 2012, to procure and field NSLC-A systems on three aircraft. Subsequent PDDs authorized the procurement and fielding of NSLC-A systems on the final two aircraft. The PDD details key system requirements for the project. In accordance with the acquisition authority, NSLC-A is required to provide respective aircraft with four simultaneous data users and three simultaneous voice users with a total aggregate threshold data rate of 2048 kilobits per seconds (Kbps) (1536Kbps FL and 512Kbps RL), an objective end-to-end connectivity of 16 Mbps, worldwide coverage, and maintain the use of a 12-inch antenna. NSLC-A must maintain commercial and Government priority global access to meet requirements. Furthermore, multiple senior leaders at the General Officer level have stated the need for higher throughput.

Department of Defense (DoD) Instruction O- 3710.03, Chairman of the Joint Chiefs of Staff Airborne and Temporary Duty Communications, dated January 12, 2017 from the DOD Office of the Chief Information Officer establishes policy and assigns responsibilities for providing the minimum essential airborne and temporary duty location communications to the Chairman of the Joint Chiefs of Staff, the Vice Chairman of the Joint Chiefs of Staff, their immediate staff and other entities receiving Office of the Chairman of the Joint Chiefs of Staff communications team support. Although NSLC-A does not fall under this instruction, the level of personnel requiring airborne communications is comparable, and many times the aircraft are shared across users. The aforementioned instruction calls for a minimum (threshold) aggregate synchronous bandwidth of 3 Mbps (Viasat’s Plus level plan); however, users on similar aircraft fleets via other satellite communications contracts are currently at a service level of 10 Mbps FL, and NSLC-A requires the ability to increase its bandwidth if needed to support shared users. This higher service level is supported by Viasat’s Enhanced Premium Plan.

This justification covers the procurement of space segment leases that will facilitate meeting the base requirement, plus options to enhance the service levels in the event the base requirement is increased in the future.

(b) This is a follow-on effort to contract HC1013-15-C-0004 (SBS0006) for broadband airborne communication on the move KuSS services to provide required subscriptions of the VGNet. The customer activity is PEO C4I PMW/A 170 (NSLC-A).

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).

1 Ser N2N6/1U150075 and Ser N8/11U159106 (October 13, 2011 and September 26, 2011 respectively)

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5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

Viasat is the only responsible source because the Viasat hardware is currently installed on all five NSLC-A aircraft. The proprietary Viasat hardware operates only with Viasat space segment subscription services. Further, Viasat space segment subscription service meets the needs of the NSLC-A aircraft users called out in the NSLC-A PDD (as described in Section 3(a) above).

(a) Description of events.

In order to meet the requirements outlined by OPNAV, DITCO (on behalf of NSLC-A) awarded a sole source contract to VGNet Ku-band Spread Spectrum Service (KuSS) under contract HC1013-13-C-0003. The J&A approving this action was signed May 7, 2013, citing 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. Market research determined Viasat was the only company that could meet the data rate requirements of up to 2048 kilobits per second (kbps) aggregate with worldwide access while maintaining use of the installed 12-inch Viasat antenna, because Viasat utilizes proprietary hardware that operates only with Viasat space segment subscription services.

In order to meet the continued requirements in subsequent PDDs, a follow on sole source contract was awarded to Viasat (HC1013-15-C-0004) in March 2015 allowing for the continuation of service on NSLC-A C-37 and C-20 aircraft. A J&A was approved supporting the sole source award.

(b) Justification.

(1) Minimum Government requirements. NSLC-A requirements call for:

Threshold (minimum) data rate of 2048Kbps aggregate (1536Kbps FL and

512Kbps RL) Objective End to End connectivity of 16Mbps with worldwide coverage Maintaining the use of the present Viasat Arclight modems and VR-12T 12-inch antenna currently on the C-37 and C-20 aircraft (which have an existing Federal Aviation Administration (FAA) Supplemental Type Certification

(STC))

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

Viasat has built a business model utilizing proprietary hardware equipment and communications waveforms that operate only with Viasat subscription services.

(3) Discussion regarding cause of the sole source situation. The NSLC-A communication suite required a 12-inch antenna with an existing STC. An STC is a type certificate (TC) issued when an applicant has received FAA approval to modify an aeronautical product from its original design. The STC, which incorporates by reference the related TC, approves not only the modification but also how that modification affects the original design. When the solution was under development in 2011, the only source available providing end to end service with global coverage and an antenna within the size constraints of the aircraft (with existing STC) allowing the program to meet its milestone objectives was the Viasat VR-12T antenna with the ArcLight VMBR-1500 modem. The antenna is installed directly

Page 5 of 8 Pages onto the aircraft fuselage and acquires satellite via antenna controls provided by the proprietary Arclight VMBR- 1500 modem. If NSLC-A is required to update the current Viasat proprietary system hardware on the C-37 and C-20 aircraft, the replacement equipment must undergo testing and cyber accreditation. Each aircraft would not be operational during the estimated seven months required for installation;

assuming no other changes, the cost to upgrade the antenna system for the entire fleet is estimated to cost up to $ and would take approximately three years to complete.

Depending on the contractor providing a non-Viasat proprietary system, the hardware/aircraft may also have to undergo STC. An STC is required by the FAA when an aircraft is to be modified from its original design (or further modified from an issued STC).

If an STC is needed, it is estimated that it will take an additional 4-6 months from contract to fielding. This assumes a similar-size antenna; a larger antenna would require a larger tail on the aircraft, necessitating additional engineering, certification, and cost.

Including installation, testing, and accreditation, to include STC, the total time to modify the fleet would be 3-4 years. No budget is currently in place for equipment change, and the earliest possible timeframe to budget for such a change would be fiscal year 2023.

(4) Impact. If Viasat services are not procured, NSLC-A must rely solely on the only other broadband option currently available to them and compatible with equipment installed on the aircraft, Inmarsat’s Swift Broadband service. The Swift Broadband service will only provide NSLC-A with a data rate of 432 kbps, an approximate 79% drop in available data rate in CONUS. This drop in data rate, from the current capability of 2048 kbps, will prevent NSLC-A from meeting its minimum requirements as defined in the August 2012 Joint Letter, described in section 3A of this document, from the Deputy Chief of Naval Operations, Information Dominance (N2/N6) and Deputy Chief of Naval Operations, Integration of Capabilities and Resources (N8). The operational impact of any degradation in service is that United States DoD senior leaders would not have access to the necessary, mission critical video teleconference and internet services that allow them to stay informed and effective while in flight.

6. PUBLIC ANNOUNCEMENT/POTENTIAL SOURCES:

A synopsis for this action will be published on Government Point of Entry (GPE), as required by FAR Subpart 5.2. A Sources Sought notice was posted in September 2019 to determine whether other sources exist to meet this requirement (results described in Section 8 below).

7. DETERMINATION OF FAIR AND REASONABLE COST:

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. Contractor-proposed pricing will be compared to the independent government cost estimate and multiple other contracts for similar services, as well as Viasat’s published GSA Schedule pricing for VGNet services. Based on this analysis, the Contracting Officer will determine whether the proposed price is fair and reasonable.

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8. MARKET RESEARCH:

The PMW/A 170 program office conducts regular market research that is kept current and has been performed in the last 12 months. The PMW/A 170 program office attends the Satellite Industry Association (SIA) hosted DoD Commercial SATCOM Users Workshop annually with panel discussions and a number of vendors available in a trade show format to encourage information exchange. Further, the PMW/A 170 engineering team and program management team attended Satellite 2020 in March 2020, and personnel have attended the annual “Connecting with Customers” (CwC) event (hosted by Satcom Direct), where service providers attend and SATCOM solutions are briefed during presentations and panel discussions. Finally, the NSLC-A APM has routine discussions with Gulfstream, the aircraft manufacturer, on the hardware that is currently certified with a valid FAA STC to ensure the program has the most up to date information and data available when making programmatic decisions.

Finally, as indicated above, a Sources Sought was posted on September 6, 2019 for VGNet KuSS services. Three vendors responded: Intelsat General Communications LLC (FlexAir service plans), New Tech Solutions, Inc. (NTS), and Viasat.

• Intelsat General Communications LLC (Intelsat) submitted a comprehensive response highlighting their non-proprietary system and the antenna hardware that supports their FlexAir subscription service. However, review of the solution indicates that it does not meet the Government’s need without significant investment in equipment and/or updates to the aircraft.

• The response from NTS offered a variety of technology services, none of which includes a satellite connectivity service to meet the NSLC-A requirement.

• The response from Viasat reflected the company can fulfill all the requirements enumerated in the Sources Sought without any impact to the schedule, and referenced the current contract (HC101315C0004) to demonstrate their capability.

Evaluation of all market research conducted has verified that Viasat continues to be the only contractor able to provide the required services.

9. ANY OTHER SUPPORTING FACTS:

None

10. LISTING OF INTERESTED SOURCES:

Intelsat General, New Tech Solutions, and Viasat expressed interest in the procurement through responses to the Sources Sought notice posted in September 2019. Analysis of these responses is described in Section 8, and as indicated, Viasat remains the only contractor able to provide the required services. As stated in paragraph 6 above, a synopsis will be published on the GPE, as required by FAR 5.201.

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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) HC1013-15-C-0004, sole source contract to Viasat (large business), Period of Performance: March 10, 2015 – June 9, 2020

(2) HC1013-13-C-0003, sole source contract to Viasat (large business), Period of Performance: September 10, 2013 – March 9, 2015. Contract included shared simultaneous operation (SIMOP) which was not sufficient for the Navy VIP users, requiring a new contract with a SIMOP per aircraft so no user was left without coverage during a simultaneous flight.

The program office engages with industry on an ongoing basis (such as at the events noted in the Market Research section), and visits with vendors upon request to learn about available systems.

Consideration has been given to the possibility of utilizing service other than the Viasat service;

however, use of an alternative service would require replacement of equipment on the aircraft. A cost-effective replacement system (with a valid STC) for installation on the C-37 and C-20 aircraft has not been identified. The program office will continue to monitor Viasat’s performance and end-of-life estimates (no known date yet) for a future replacement system.

Market research will be conducted prior to exercising the option periods for this contract, and the results of this market research will be presented to the contracting officer to determine if exercising the option period(s) is in the best interest of the Government. Given ongoing evolution of the satellite industry and associated technologies, along with the potential capability of future satellite infrastructure, NSLC-A will continue to conduct market research over the life of the contract for alternative airborne communication-on-the-move solutions that meet their requirements, and that may be procured through full and open competition.

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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: ANTONY W. STOTTS SIGNATURE: See separate signature page

TITLE/ORGANIZATION:

PHONE: (858) 208-8500 DATE: See separate signature page

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: ANTONY W. STOTTS SIGNATURE: See separate signature page

TITLE/ORGANIZATION:

PHONE: (858) 208-8500 DATE: See separate signature page

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

NAME: JENNIFER M. JONES SIGNATURE: See separate signature page

TITLE/ORGANIZATION: Contracting Officer; DISA/DITCO/PL8221

PHONE: (618) 418-6379 DATE: See separate signature page

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 signature page

TITLE/ORGANIZATION: Head of Contracting Activity

PHONE: (301) 225-4120 DATE: See separate signature page

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO

Jennifer M. Jones; (618) 418-6379; jennifer.m.jones265.civ@mail.mil.