Justification and Approval AN-SPS-75 Radar Support R.pdf

J&A IDIQ Contract for Sustainment and Maintenance of AN/SPS-75 Radar

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. § 3204

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3, the following facts and rationale justify the use of such authority:

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Command, Control, Communications, Computers, Cyber, and Intelligence (C5I) Office of Contracting and Procurement (CG-914) prepared this justification for other than full and open competition.

2. Nature and/or Description of the Action being Approved.

(a) Nature of the Action: The USCG intends to procure on a sole source basis sustainment, repair, maintenance, and technical support services for the AN/SPS-75 radars installed on USCG and at USCG Training Center Petaluma CA and AN/SPS-75 radar spare and replacement parts from Northern Defense Industries, LLC.

(b) Name and address of the Proposed Contractor:

Northern Defense Industries, LLC.

Address: 667 S Washington Street, Alexandria, VA 22314 SAM Unique Entity ID: HH3RNN7NCCV1

CAGE: 5G8A6

(c) Type of action: Five-year sole source Indefinite Delivery/Indefinite Quantity (IDIQ) contract that will allow firm-fixed price (FFP), time-and-materials (T&M), and hybrid (FFP and T&M) task orders. The IDIQ contract will have a 5-year ordering period (no option periods) with yearly prices.

(d) Estimated total value (including options): $9 million

Ordering Period Estimated Total Value Year 1 $1.9 million Year 2 $2 million Year 3 $2.1 million Year 4 $1.4 million Year 5 $1.6 million $9 million

(e) Type of funding: Operations and Support (O&S) funds

(f) Year of funding: Each Fiscal Year starting with 2024

(g) Solicitation number: 70Z04424RC2PL2402

(h) Background information about the requirement:

The AN/SPS-75 radars (also known as TRS-3D Baseline D), initially manufactured by Airbus, were originally acquired Acquisitions Directorate (CG-93) under ntegrated Coast Guard Systems (ICGS) contract. The AN/SPS-75 radar originated in the Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) design and build of the first National Security Cutter (NSC) (Bertholf - in service since 2008) and then in the following builds for the NSC class and installed in the Coast Guard's Training Center Petaluma CA supporting the NSCs.

Sustainment, repair, and maintenance support services for AN-SPS-75 radar were originally and the prime contractor subcontracted sustainment, repair, and maintenance support services to Airbus Defense and Space, Inc.

Contract HSCG79-15-C-PC7019 was awarded on June 26, 2015 on a sole source basis to Airbus Defense and Space, Inc. for AN/SPS-75 radar sustainment, repair, and maintenance support services. In March 2017, Hensoldt, Inc. acquired the defense electronic and optronic operations previously provided by Airbus Defense and Space, Inc., (a division of Airbus Group). All proprietary rights fully and totally transferred to Hensoldt, Inc. for the AN/SPS- 75 radar.

IDIQ Contract 70Z04419D19000800 was awarded on April 1, 2019 on a sole source basis to Hensoldt, Inc. for AN/SPS-75 radar sustainment, repair, and maintenance support services; the IDIQ contract has an ordering period of April 1, 2019 March 31, 2024.

In March of 2023, Hensoldt, Inc. underwent a restructuring and sale. The radar production activities were transferred to Hensoldt Sensors GmbH (CAGE D1901) in Germany. At the end of March 2023, Northern Defense Industries, LLC (NDI) acquired Hensoldt, Inc. and is the sole US company that can provide sustainment support services, maintenance, repairs, field services, and spare/replacement parts for the AN/SPS-75 radar.

3. Description of Supplies/Services.

The AN/SPS-75 radar is currently deployed and operational on eleven (11) National Security Cutters and at the USCG Training Center Petaluma, California. To sustain the radar to meet the mission requirements of the Coast Guard, the following sustainment, repair, maintenance, and technical support services and supplies are needed:

(a) Provide depot level maintenance to include

Restoration of antenna arrays and pedestals.

Provide technical guidance with development of USCG specific preventative and corrective maintenance procedures.

Update and audit published technical documents and publications.

Perform annual system performance tests (SPT) on deployed systems.

Assist with layup and restoration of the radar in conjunction with extended maintenance periods.

Perform semiannual reconditioning to spare in storage Traveling Wave Tubes (TWT).

Perform adaptive maintenance support as requested to support information assurance and cyber security needs.

Assist with the development and installation of Engineering Changes.

(b) Provide technical guidance for corrective maintenance to include:

Provide remote Level 1 Help Desk technical support on an as needed base.

Provide onsite Level 2 Technical Support to correct mission degrade causalities with the radar.

(c) Provide spare and replacement parts for the AN/SPS-75 radar.

4. Identification of Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. § 3204(a)(1) implemented by Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled Only One Responsible Source and No Other Supplies of Services will Satisfy Agency Requirements

5. Identification of Exception to the Buy American Act.

The exception to the Buy American statute permitting the purchase of articles that are not domestic end products is FAR 25.103(b), Nonavailability. A class nonavailability determination, in accordance with FAR 25.103(b)(1), has been made for the articles listed in FAR 25.104, which

Spare and replacement parts for the AN/SPS-75 radar are only manufactured in Germany.

6. Demonstration that the Nature of the Acquisition Require Use of the Authority Cited.

The AN/SPS-75 radar is installed on USCG NSCs as the primary air-search radar, which is integral to the NSCs Command, Control, Communications, Computers, and Intelligence, Surveillance, and Reconnaissance (C4ISR) processes. The AN/SPS-75 radar is a modular, highly reliable, countermeasure-resistant, medium-range air and surface surveillance system. The radar is critical to the NSCs maintaining situational and tactical awareness for mission accomplishment.

Sustainment, repair, maintenance, and technical support services and spare/replacement parts are needed to maintain the mission critical operation of the AN/SPS-75 Radars onboard NSCs and to

The AN/SPS-75 radar system is manufactured by Hensoldt Sensors GmbH (Germany) with proprietary software, technology, and equipment. Northern Defense Industries, LLC. is the sole authorized distributor/company in the United States that can provide sustainment support services, maintenance, repairs, technical support, field services, and spare and replacement parts for the AN/SPS-75 radar. As currently configured, no other source can maintain the AN/ SPS-75 Radar system because they do not have access to the proprietary data necessary for radar system sustainment/maintenance.

Attempts to pursue a competitive acquisition for a new radar and support would result in substantial duplication of cost and/or harm to the USCG that could not be recovered through competition.

Without sustainment, repair, maintenance, and technical support services and spare/replacement parts for the AN/SPS-75 radars, the USCG ed due to non-operational availability of the mission critical radar system.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

The requirement was posted in the Acquisition Planning Forecast System (APFS) on January 6, 2023 (APFS Record F2023060767) and no responses were received.

A Sources Sought Notice was posted on SAM.gov on March 3, 2023 and no responses were received.

A Pre-Solicitation Notice/Synopsis of intent to sole source will be posted on SAM.gov per FAR 5.201.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on prior acquisition history. The Contractor will also be required to provide Certified Cost and Pricing Data in accordance with FAR 15.403-4 which will be used by the Contracting Officer to conduct cost and price analysis to ensure that all prices are determined fair and reasonable.

9. Description of Market Research.

Market Research was conducted from January 3, 2023, to March 30, 2023. The previous IDIQ contract 70Z04419D19000800 was reviewed and no responses were received from the Acquisition Planning Forecast System (APFS) record or the Sources Sought Notice described in paragraph 7. No additional sources were identified as a result of these efforts. DHS/government-wide strategic sourcing vehicles were also reviewed and determined to be out of scope of this requirement.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

Northern Defense Industries, LLC. confirmed in writing that they are the sole US distributor/company for spare parts and support services (repairs, sustainment, etc.) for the AN/SPS-75 Radar.

11. A Listing of the Sources, if Any, that Expressed, in Writing, an Interest in the Acquisition.

No other sources, except for Northern Defense Industries, LLC, have showed interest or the capability to provide the required services.

12. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required.

There are currently no actions planned to remove or overcome barriers to competition within the next five years.

13.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Christina M. Grimstead Date Contracting Officer, CG-9143-2

14. Technical/Requirements Personnel Certification.

data, which forms a basis for the justification, is accurate and complete.

Dale Smith Date Technical Representative/COR, C5ISC-C2PL

APPROVAL

Frederick Steward Date Command Procuring Activity Advocate for Competition (CPAAC)