JA6302-1cSPE7MX-20-R-0145.pdf

Justification and Approval Page | 2 made as specified in the Performance Work Statement. The EOL purchase will be completed by January 2022, but the VMI will extend through calendar year (CY) 2029 if all options are exercised.

3. Description of Requirement –

Background – The MGUE Increment 1 ASIC development program is a joint-service USA, United States Air Force (USAF)/Space Force, and United States Navy (USN)/ United States Marine Corps (USMC) Acquisition Category (ACAT) ID program, with the USAF as the lead service and DoD Executive Agent for GPS. Three MGUE Increment 1 Technology Development contracts were awarded on September 28, 2012, to L3Harris (then Interstate Electronics Corporation) (Contract FA8807-12-C-0011), Raytheon Company (Contract FA8807-C- 0012), and Collins Aerospace (then Rockwell Collins) (Contract FA8807-C-12-0013) under full and open competition. Under these contracts, the prime contractors developed common M-Code technology, in concert with Marvell Government Solutions/Global Foundries (hereon referred to as Global Foundries) as a supplier of the raw wafer and die, to be used by the majority of using DoD programs requiring an M- Code enabled GPS receiver in the near- to mid-term. Vendors were allowed to package their final product solution as an ASIC or a multi-chip module called a Common GPS Module(CGM). Proprietary MGUE Inc 1 Product hardware—Raytheon DIAMOND ASIC, Collins Aerospace CGM, and L3 Melody II ASIC—is complete with software deficiencies, security certification, and software upgrades ongoing.

The Common Architecture for Assured (CAAP) Position Navigation and Timing (PNT) ASIC development is a joint-service funded program to integrate components of the Raytheon MGUE Inc 1 DIAMOND ASIC and GPS anti-jam technology developed by the Air Force Research Laboratory (AFRL) and USN Tactical Tomahawk program. The CAAP ASIC was started by AFRL in response to Tactical Tomahawk modernization requirement to replace its legacy Raytheon-developed Advanced GPS Receiver 4 (AGR-4) with an M-Code capable receiver in response to Public Law 111-383 and need for greater survivability. AFRL matured the ASIC to Preliminary Design Review. Given the same Public Law and survivability requirements, the USAF Small Diameter Bomb (SDB) II program issued a sole source contract (Contract FA8672-17-D-0004, Order FA8672-18-F-6002) to Raytheon Missile Systems on July 13, 2018, under its Integrated Engineering Change Proposal Contract J&A authority to complete development and validation of the CAAP ASIC for use in its High Anti-Jam Miniature M- Code Enhanced Receiver (HAMMER). HAMMER, based on the CAAP ASIC, was selected for SDB II after a limited competitive down-select between Raytheon and Collins Aerospace. The CAAP ASIC program is jointly funded by the USAF and USN and the SDB II program serves as lead program.

The MGUE Inc 1 ASIC/CGM and CAAP ASIC are used on DoD Military-Grade GPS Receivers and GPS-aided Precision Guide Munitions. The primary user is the USAF. However, across all DoD services, the using programs include, but are not limited to: Tactical Tomahawk, Joint Direct Attack Munition (JDAM), SDB I, StormBreaker SDB II, Joint Air-to- Surface Standoff Missile (JASSM), F-15 and F-16 aircraft, MH-60 helicopter, Miniature Air Launched Decoy-Extended Range (MALD-ER), Conventional Prompt Strike, Land Warrior, Standard Missile-3 (SM-3), Standard Missile-6 (SM-6), Tactical Boost Glide, Long Range Precision Fires, Guided Rocket Launch Munitions, Satellite Launch Control System, Paveway 4 Guided Bomb, Combat Survival and Evader Locator (CSEL), Unmanned Aerial Vehicles (Predator, Global Hawk, Raven, Shadow), High- speed Anti-Radiation Missile (HARM) targeting system, Joint Precision Approach and Landing System (JPAS), Joint Standoff Weapons System (JSOW) Smart Missile, and Single Channel Ground and Airborne Radio System (SINCGARS).

Foundry Closure – In accordance with Section 11.1 of the Acquisition Strategy for MGUE Increment 1 signed by Honorable Dr. Frank Kendall on March 12, 2005, Global Foundries is the only trusted ASIC foundry currently approved by the DoD to design and produce ASICs of this type at the 45 nm/90 nm (nanometer) technology nodes. In early 2019, Global Foundries announced plans to close its 45 nm, 60 nm, 90 nm, and 110 nm foundry lines where the new ASICs/CGMs are being manufactured, with final orders required by December 2020 for 45 nm products and December 2021 for 90 nm products.

Global Foundries’ decision to shut down these technology nodes was a business decision driven by

Justification and Approval Page | 7 producing legacy UE for the next five years. Likewise, Mayflower Communications Company and Collins, who developed a newer single ASIC security module design, are impacted because their ASICs are produced on Global Foundries 130nm and 90nm lines, which are scheduled to close by 2020 and 2022, respectively.

• Wait for MGUE Inc 2 ASICs This would delay fielding of M-Code receivers by 3 to 5 years. This is unacceptable to DoD and the military services who want to field M-Code UE much sooner.

• Use of a Software Defined Radio (SDR) SDRs are attractive because they can run on a number of different hardware platforms. To date, The Aerospace Corporation, The MITRE Corporation, Northrop Grumman Corporation, Mayflower Communications Company, and Qualcomm have started M-Code SDRs. However, none of these SDRs has progressed to the point where they can be security certified, so all of these remain as classified receiver designs, which limits their utility to the services.

• Use of an M-Code Space Receiver General Dynamics has developed an M-Code Space Receiver

(MSR) that has received security certification. However, this M-Code receiver was developed to the GPS Space Receiver PP—not the MGUE Inc 1 PP. As a result, it does not meet a number of important crypto, IA and AT requirements needed to operate in the terrestrial environment.

This would require a major re-design of the MSRs and its ASIC according the General Dynamics MSR team and take another 3 to 5 years before M-Code UE could be fielded.

As a result, the only way to capitalize on the more than $1.7B the USAF has spent on developing, integrating, and testing these M-Code ASICs/CGMs, and to realize the military services need for “unclassified” modernized GPS UE, is to purchase these items before Global Foundries closes its 90nm and 45nm production lines.

The initial market research and product development performed by USAF and described above was followed by DLA’s two rounds of formal market research consisting of an RFI and a round of follow-on Questions and Answers (Q&A) to clarify responses. A sources sought notice was not issued as Raytheon (4U884) is the only supplier able to provide the entire procurement grouping of the two ASICs and the associated VMI service. A waiver of the sources sought notice requirement will be submitted to the Head of the Contracting Activity for signature in accordance with DFARS PGI 206.302-1(d).

Round 1 of the RFI dated May 4, 2020, requested a point of contact (POC), company history, logistics information, Rough Order Magnitude (ROM) cost per unit, manufacturing process, and contract history.

Raytheon (4U884) provided a response, dated May 22, 2020 (see Attachment 3 for Raytheon’s complete responses). Raytheon provided POCs, a summary of their company history, and details on their logistics operations.

Furthermore, Raytheon describes their manufacturing process that ensures the chain of custody of the items. Raytheon did not provide specific contract numbers for previous similar acquisitions but stated that they have “many similar reference contracts.” Finally, Raytheon stated that they would be capable of performing the planned award as they continue to improve their inventory management and positive control processes.

Round 2 of the RFI consisted of an email sent by , Acquisition Specialist (DLA) on May 27, 2020, to Raytheon with a list of questions that were discussed during a phone conference on May 28, 2020. Raytheon provided a written response (see Attachment 4) dated June 2, 2020, that answered the questions posed during the phone conference regarding lead time, pricing, and Raytheon’s ability to bridge two fiscal years.

Justification and Approval Page | 8

Raytheon provided the following responses to the email questions:

s.

8. Price/Cost Considerations – I hereby determine that the anticipated cost to the Government will be fair and reasonable. The Raytheon DIAMOND ASIC (CLIN 0001), CAAP ASIC (CLIN 0002), VMI (CLIN 0003), and CDRL (CLIN 0004) have all been determined not to be commercial and will be solicited in accordance with FAR Part 15, which will require certified cost or pricing data (CCPD) to aid the Contracting Officer in establishing price reasonableness. The Contracting Officer will ensure that contract terms, conditions, and prices are commensurate with the Government’s need. In addition to CCPD, the Contracting Officer will use historical prices, market prices, market research, and/or pricing information provided by offerors to aide in a fair and reasonable price determination.

For the resulting contract, detailed documentation and justification of price reasonableness will be prepared and detailed in an official price negotiation memorandum prepared upon the completion of negotiations.

9. Efforts to Obtain/Increase Competition – To ensure that offers are solicited from as many qualified sources as practicable, the acquisition was synopsized on beta.SAM.gov for a period of 15 days in addition to the efforts performed and evaluated alternatives by the services along with the RFI. The solicitation will be made available upon request. All responsible sources may submit a capability statement or proposal, which shall be considered by the agency.

10. A listing of sources indicating an interest in the acquisition is: Raytheon (4U884). No other sources indicated an interest in this procurement.

11. There is one previous representative buy and J&A for the DIAMOND ASIC. A large purchase order

SPRBL1-20-C-0001 was awarded by DLA Land Aberdeen for a total of $1,704,340.00 (2540 x $671.00 each). The solicitation was issued as unrestricted and a copy of the J&A for that acquisition is attached (Attachment 5).

In accordance with DFARS PGI 206.304(a)(S-70)(i), the following planned actions (or previously taken

Justification and Approval Page | 9 actions by DoD) to remove any potential barriers to competition in this procurement have been taken:

The initial R&D contract for development of the ASIC/CGM was competed publicly.

In the past, DLA Land and Maritime has hosted Captains of Industries to bring in industry leaders for particular commodities or weapon systems to help decrease barriers for companies looking to become sources of supply.

The Solicitation was synopsized for 15 days and posted on beta.SAM.gov.

ATTACHMENTS

1. Global Foundries 45nm and 90nm EOL Notices

2. E-mail Regarding Technical Approval/Certification

3. Raytheon RFI Response #1

4. Raytheon RFI Response #2

5. Previous Procurement’s J&A for DIAMOND ASIC

6. DD2579 Package

[Signatures appear on the following page.]