GATOR_Block_2_(GB2)_GWLR_JA_signed_-_REDACTED.pdf

UNITED STATES MARINE CORPS

MARINE CORPS SYSTEMS COMMAND

2200 LESTER STREET

QUANTICO, VIRGINIA 22134-6050

IN REPLY REFER TO:

CT-028 PEO LS

J&A No. 16,193

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

Marine Corps Systems Command Program Executive Office Land Systems (PEO LS) – G/ATOR 2200 Lester Street Quantico, VA 22134-6050

2. Description of the Action Being Approved

The use of other than full and open competition to award a sole source, cost plus incentive fee contract to Northrop Grumman Systems Corporation (NGSC), 1580A W. Nursery Road, Linthicum Heights, MD 21090, for the acquisition of the design and development of Increment II Ground Weapons Locating Radar (GWLR) of the Ground/Air Task Oriented Radar (G/ATOR) System.

3. Description of Supplies/Services

The G/ATOR program is a single materiel solution for the Multi- Role Radar System (MRRS) and the Ground Weapons Locating Radar (GWLR) requirements. It is structured as an evolutionary acquisition program consisting of four discrete increments.

Each increment builds upon the capabilities of the preceding increment(s). Increment I, Air Defense/Surveillance Radar (AD/SR) will satisfy the Short Range Air Defense (SHORAD) and Tactical Air Operations Center (TAOC) Air Surveillance missions including Identification Friend or Foe (IFF). The Increment I design will provide for growth to all Increments without equipment re-design and will provide a computer software architecture that allows for the computer software and firmware to be upgraded via open architecture with the functionality of all following Increments. Increment II will address Ground Weapons Locating Radar (GWLR) functions. Increment III, which has been deferred, will address the air mission’s additional requirements for Decoys, Mainbeam Cancellation, Non-Cooperative Target Recognition (NCTR), sensor netting, and an Integrated Data Environment (IDE) capability. Increment IV, Expeditionary

CT-028 PEO LS G/ATOR

Airport Surveillance Radar (EASR) will incorporate an Air Traffic Control (ATC) capability and Mode 5/S Identification Friend or Foe (IFF).

Increment II will be a software solution to perform the GWLR mission. GWLR will directly support the Marine Expeditionary Force (MEF) Counterfire Targeting missions. Increment II will be capable of acquiring the location of threat indirect fire systems at a greater range than current capabilities and will provide greater accuracy and deployability to fully support Marine Air-Ground Task Force (MAGTF) counterfire and counter-battery missions. The primary mission of Increment II (GWLR) is to locate enemy rocket, mortar, and artillery weapons and to provide timely information on acquired enemy locations for counterfire and intelligence purposes. Its secondary mission is to register and/or adjust the fires of friendly artillery units.

The system will be forward deployed and may be employed in any size MAGTF ranging from the Marine Expeditionary Unit (MEU) to the MEF level.

The purpose of the proposed contract action is to award the Increment II design and development to NGSC. Increment II is a software solution to be installed on the Increment I hardware and operating software. Specific tasks will include software development and engineering analysis, developmental testing, simulations, and demonstrations. The acquisition will also include integration planning for insertion of Increment II software into the Increment I G/ATOR systems; engineering and logistics support for Developmental Testing/Follow on Operational Test and Evaluation (DT/FOT&E); Technical Data Packages (TDPs); and engineering studies, services and support.

Initial Operational Capability (IOC) of Increment II GWLR system is anticipated for fourth quarter fiscal year 2017.

The estimated period of performance for development of Increment II is from first quarter fiscal year 2014 through fourth quarter of fiscal year 2017. The total estimated dollar value for this effort is . The funding profile is illustrated in the following table in millions of dollars by fiscal year and appropriation.

will be provided to the Government with restricted rights prohibiting the release of the data outside of the government. However, without government purpose rights allowing the government to convey this data to a third party, it will be very difficult for a vendor other than NGSC to develop the Increment II software without G/ATOR sustaining significant cost increases and time delays. Therefore, a Business Case Analysis (BCA) was deemed necessary so an informed decision could be made as to the path forward regarding the contracting strategy for Increment II.

In 2011, the G/ATOR Program Office conducted a Business Case Analysis (BCA) investigating the cost, schedule, development benefits, and risks associated with conducting a sole-source acquisition as compared with a full and open competition for procuring Increment II (GWLR). The analysis examined the use of five different procurement Course of Actions (COA); assessing the overall value of each to determine the best executable COA.

The following are the COAs that were considered:

COA 1 - Sole Source Acquisition. Assumes Increment II is awarded to the Increment I incumbent, i.e., NGSC.

COA 2 - Full and Open Competition. Assumes award to a vendor other than the Increment I incumbent. It was assumed that a new developer would need to substitute the NGSC proprietary data right items or reverse engineer the proprietary hardware/ software.

COA 3 – Accelerated Development, Sole Source. Assumes an accelerated Increment II schedule would be conducted concurrently with Increment I; however, the window of opportunity for implementing this COA is no longer viable. If this course of action was to be implemented, performance would have needed to start by December 2011. There simply was not sufficient lead time to conduct the acquisition for this course of action.

COA 4A - Full and Open Competition using Restricted Technical Data Rights. This COA assumes that the Government is able to procure or obtain a license to NGSC’s proprietary technical data rights from Increment I. Based on information obtained from a

As a result, the Government determined that COA 2 full and open was cost prohibitive in comparison to COA 1 sole source. COA 4B was determined not viable because in order to conduct a dual contracting strategy, a technical data package (TDP) suitable for competition and an EDM asset are necessary. The ability for another supplier to be capable of transforming their experience and expertise into a system that meets the requirements for Increment II depends heavily upon their access to Increment I data and equipment. At this point in time, the Increment I TDP is still a work in progress and is far too immature to support design and development of Increment II by an alternate manufacturer, as is the associated EDM, developmental tools and test benches.

Presently, the Increment I G/ATOR system is in Developmental Test. Much of the design information represented in the TDP is expected to be updated significantly during transition to LRIP and finalized at the completion of the Physical Configuration Audit scheduled in fiscal year 2016. Without the availability of a mature data package and/or incurring a significant amount of reverse engineering, another contractor will not be able to design and develop Increment II in accordance with the schedule provided in the Acquisition Category (ACAT) IC Acquisition Program Baseline (APB) dated 22 May 2012. Moreover, at the time the BCA was conducted, the Government intended to procure the NGSC capital EDM prior to Increment II development. However, due to budgetary constraints, the acquisition of NGSC’s capital EDM has been moved to fiscal year 2019. Therefore, COA 1 sole source is the most appropriate course of action under the authority of “only one responsible source and no other supplies or services will satisfy agency requirements.”

6. Description of Efforts Made to Solicit Offers from as Many

Offerors as Practicable

A Request for Information (RFI) Sources Sought synopsis was posted to the Federal Business Opportunities website (FedBizOps) on 10 November 2009, soliciting industry to determine if there is more than one viable offeror capable of meeting the government’s requirements. The RFI requested technical, design, government furnished equipment/ information required and developmental schedules to meet the key notional events in the development of follow-on Increments. Industry responses were received from NGSC and . The assessment of industry’s responses to the RFI was conducted by civilian and military subject matter experts (SMEs) highly qualified to evaluate the data requested by the RFI. The SMEs’ findings relative to each industry response were rated to determine their level of capability as follows: (1) capable to develop the increment, (2) marginal capability to develop the increment, or (3) no capability to develop the increment.

Of the two RFI respondents, it is clear that NGSC and have the corporate experience and capability to develop Increment II.

However, the ability of NGSC and to transform their experience and capability into a system that meets the requirements for Increment II depends heavily upon their access to Increment I data and equipment. If the Government were to procure the NGSC capital EDM, it is estimated to cost an additional which is beyond the program budget controls and therefore cannot be made available for competition to an Increment II developer. As stated in paragraph 5 above, both the Government EDM and NGSC’s capital EDM are undergoing developmental testing, and much of the design information represented in the TDP will be updated significantly during transition to LRIP and production. Therefore, the technical SME’s concluded that cannot successfully develop and deliver a G/ATOR Increment II capability within the current schedule associated with the fielding of the G/ATOR systems necessary for replacing legacy systems without being provided a mature and complete TDP, which will not be available until fiscal year 2016 and will not be releasable in its entirety due to the proprietary nature of the data and the associated restricted and limited rights provided by NGSC.

The legacy systems are 35 years old and will not be supported by the US Army after fiscal year 2016; the cost of sustainment will be substantial for every year that the G/ATOR replacement is not available. The schedule provided by does not include time for Developmental Testing/Operational Testing which would be required to achieve an operationally effective Increment II;

this omission presents a risk to the required Initial Operational Capability (IOC) date. The factors delineated herein further support the Contracting Officer’s determination that is not realistically capable of developing the G/ATOR Increment II with an acceptable cost, schedule or performance risk.

Increment II as set forth in the Acquisition Program’s Baseline as approved by Assistant Secretary of the Navy (Research, Development, and Acquisition) on 22 May 2012.

also offered to provide the TPQ-53 radar as an alternative source for the GWLR requirements. The Marine Corps requirement, as modified and approved by the Joint Requirements Oversight Council (JROC) decision memorandum, specifically identifies a Multi-Role Radar Solution (MRRS) where a “single hardware solution” will satisfy all the G/ATOR Increments. Therefore, the proposed alternative solution to establish the TPQ-53 radar as an alternative for the GWLR does not support the JROC requirement for a single hardware solution.

Additionally, in 2011 the Director of the Capabilities Development Directorate (CDD) directed the conduct of a BCA to “determine the best value recommendation of the short/medium range radar alternative that optimizes the radar operational performance at the most reasonable cost.” CDD also based their analysis on the assumption that the Government intended to procure the NGSC capital EDM prior to Increment II and therefore the EDM would be available to the Increment II developer.

Analysis was based upon the current threats to MAGTF with a primary focus on ground counter-fire/counter-battery capabilities, The CDD BCA’s conclusion was that the is not a viable option because of its design immaturity, and the TPQ-53 neither meets the GWLR maximum range requirement against a variety of threats nor complies with all expeditionary mobility;

and statement of capability provides no new information invalidating those conclusions.

Based on the foregoing information, the Contracting Officer has determined that a sole source contracting strategy is the most appropriate course of action under the authority of “only one responsible source and no other supplies or services will satisfy agency requirements.”

7. Determination of Fair and Reasonable Cost

In accordance with FAR 15.402, the Contracting Officer will determine the cost to the Government for supplies and support covered by this J&A will be fair and reasonable. The Contractor will be required to submit a formal proposal with certified cost and pricing data and sufficient information to support the accuracy and reliability of the total price. Analysis of the proposal will be performed by technical analysts from G/ATOR Program Manager Office, contract specialists, assistance of Defense Contract Management Agency (DCMA) analysts and Defense Contract Audit Agency (DCAA) auditors as needed. The Contracting Officer will analyze the various cost elements that are presented in the proposal, as well as review the actuals from the EMD effort to negotiate a fair and reasonable cost.

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in paragraph 5 above, PEO LS G/ATOR has no plans at this time to compete the system design or development of Increment II. However, as part of the Increment II contract, the USMC will ensure the contract contains the required Defense Federal Acquisition Regulation Supplement (DFARS) clauses associated with data rights. The USMC’s intention is to obtain Government Purpose Rights (GPR) in Increment II data. Once Increment II is developed, it will be fielded as a software upgrade and there will not be any hardware manufactured as a result of this solicitation;

During the next four to six years, as all Increments achieve IOC and the program transitions to FRP, the G/ATOR TDP will be matured and its contents more precisely defined.