N00164_13077_FBO.pdf

DEPARTMENT OF THE NAVY

CRANE DIVISIGN

NAVAL SURFSCE WARFARE CENTER

300 HIGHWAY 361

CRANE ~4DIANA 475fl4000 W~ REPLY REFER TO:

J&A 13-077 Code CXNN

P.R. Number: N00164-14-R-WS72

JUSTIFICATION AND APPROVAL FOR USE OF OTHER THAN

FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

Naval Sea Systems Command (Naval Surface Warfare Center), Crane Division (Code CXNN)

2. Description of the Action Being Approved

Award of a Firm Fixed Price, Indefinite Delivery, Indefinite Quantity (IDIQ) supply contract on a sole source basis to DRS Intelligence, Communications and Avionics Solutions (ICAS) at Beavercreek, OH for R-2674(C)/A Joint Tactical Terminal — Receiver (JTT-R), Part Number 3399-0000-03-2, NSN 5810-01-614-3071 and Repair requirements in support of program.

3. Description of Supplies/Services

The currently uses the OZ-72(V)7(C)/A Multi-mission Advanced Tactical Terminal (MATT) to receive the Integrated Broadcast Service (IFS) network. LBS is an information superiority enabled service that generates increased combat power by networking sensors, decision makers, and shooters to achieve shared awareness, increased speed of command, more efficient operations, greater lethality, increased survivability, and a higher degree of precision intelligence. The Department of Defense (DoD) is consolidating and replacing existing lBS terminals, including the MATT, with a common family of terminals called the Joint Tactical Terminal (JTT) Family of Systems (FOS). Similarly, the entire IFS network is undergoing a re-architecture of the broadcast from its current multi-broadcast, multi-data format structure, to a single broadcast (Common Interactive Broadcast - CLB) and single data format (Common Message Format - CMF). The JTT FOS is a critical component of the new architecture as these systems are the only IFS receiver/transceiver devices in the DoD being modernized to support both the new consolidated broadcast architecture and the National Security Agency crypto modernization mandate.

After extensive market research and simultaneous technical evaluation of all the terminals being developed as part of the JTT FOS, the RT-1934(C)IURC-145(V)1, Joint Tactical Terminal Intelligence Broadcast Transceiver (JTT-IBX) was selected as the best candidate to integrate into the aircraft. The JTT-IBX was later upgraded and designated as the R-2647(C)/A JTT-R after the unique requirements were incorporated into the configuration.

J&A 13-077

The JTT-R is an Ultra High Frequency (UHF) receiver that provides near real-time over the horizon threat data for situational awareness and assessment, threat avoidance, targeting, mission planning, and communications. The JTT-R uses the Receive Crypto Module (RCM) for embedded decryption, message processing, and tactical data processing. The JTT-R can simultaneously receive and process intelligence reports for the Integrated Broadcast Service -

Simplex (IBS-S), the Integrated Broadcast Service - Interactive (lBS-I), and the Common Interactive Broadcast (Cifi).

The minimum and maximum quantities of JTT-Rs are 35 each and 180 each, respectively.

Delivery requirements are within 365 days after award of each order. The minimum and maximum quantities of Repairs are 1 each and 30 each, respectively. Delivery requirements are within 90 days after receipt of material. The total estimated value of the contract is $25.9M. The estimate is based on past actuals and planned sponsor requirements and budgets. The ordering period will be five (5) years after award of the contract, or 30 September 2018, whichever is earliest.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

Acquisition Plan No. CR-13-004 incorporates this effort. The estimated cost and funding source is shown in the following table. The total estimated value of these requirements is $25.9M as follows:

Estimated Dollar Value ($M)

~ype of Funds: FY14 FY15 FY16 FY17 FY18 Total Systems APN $23.4 Systems FMS $2.5 Total $25.9

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c)(l). Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority

DRS is the sole designer and manufacturer of the Joint Tactical Terminal-Integrated Broadcast Service (JTT-TBS) system. Over a seven year development effort under contract WISP7T-05-D-5015, DRS developed a unique, in-depth corporate knowledge of the JTT-IBS manufacturing process and design complexities, integrated logistic support, and operational requirements. Beginning in 2005, DRS Technologies was competitively awarded a contract for the design, development, and fielding of Joint Tactical Terminals (JTTs) under the U.S. Army’s JTT-fflS program. Under this contract, the Army spent approximately $38.2M on non-recurring engineering (NRE) efforts and built a total 285 systems that provided warfighters throughout the armed services with near real-time tactical intelligence and targeting information via the lBS network. The lBS is the worldwide DoD standard network for trax~smitting tactical and strategic intelligence and targeting data to all echelons of Joint Service operational users.

In October of 2008, NAVAIR Program Executive Officer for Tactical Aircraft Programs (PEO(T)I Program Manager for the Program Office (PMA-265) began an effort to find a replacement for the MATT which is being phased out of DoD inventory.

The RT-1934(C)/URC-145(V)1, JTT-IBX from the JTT-IBS system was chosen after a comprehensive market research and technical evaluation of all the terminals being developed as part of the JTT family of systems. The JTT-IBX was not designed to operate on a tactical aircraft so starting in October 2010, PMA-265 performed a series of proof of concept tests to demonstrate that the JTT-IEX could withstand the environmental stress conditions (temperature, altitude, shock, vibration, electromagnetic interference) of a carrier based tactical aircraft. These tests concluded in December 2011 with a successful flight test at NAWC-AD Patuxent River, MD. Although the flight tests were successful, there were several design changes required to fully integrate the JTT-IBX into the as well as changes to reduce operator and maintenance tasking. In July 2012, a contract was awarded to Boeing with DRS as a subcontractor to modify the JTT-IBX with the required changes. Because Communication Security (COMSEC) is a configuration managed item by NSA, these changes drove the need for new nomenclature and part number. The modified JTT-IBX was designated as the R-2674(C)/A Joint Tactical Terminal — Receiver (JTT-R). In the end, the Navy spent approximately $l6M to fully integrate the JTT-R into the . These costs $10.7M for DRS to perform software integration, design changes, qualification testing, and the construction of seven (7) new JTT-R systems and the modification of eight (8) existing JTT-IBX systems to the JTT-R configuration.

At the time the market research was conducted, no other IRS radio met the requirements of the . Since then additional lBS receivers have been developed such as the Universal Serial

Bus Embedded National Tactical Receiver (USB ENTR) and the Air Force Tactical Receive System (AFTRS). NAVAIR has spent $5.5M to conduct government System Integration lab testing and, Development Testing and is scheduled to start Operational Testing in July 2014. To integrate the necessary unique requirements into these radios would require environmental re-qualification testing, platform hardware and software integration, documentation updates and Development/Operational Testing. It is estimated that these costs would be $21.5M and take three (3) years to complete. This would also cause a schedule slip of up to 3 years, which would result in the loss of IBS-CIB receive capability in the aircraft thus reducing mission effectiveness which could result in missed electronic attack jamming assignments and loss of aircraft and aircrew from an adversary surface to air missile.

The Government does not own a Technical Data Package (TDP) suitable for a full and open competition of this requirement. At this time, there are no funds to support a procurement of a Level III drawing package, reverse engineering effort, or licensing agreement, since a source of manufacturing already exists.

Based on the facts above, DRS is the only source capable of fulfilling this requirement. Any other source would require significant additional cost and schedule. Any schedule delay, caused by re-competition and qualification testing would severely impact support of current system and mission requirements.

J&A 13—077

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

The proposed contract action was synopsized on the Federal Business Opportunities (FEDBIZOPS) website on 05 September 2013. One industry response from Raytheon (Space and Airborne Systems) was received on 18 October 201 3.

Raytheon contacted the Government in reference to the posted synopsis expressing interest in this requirement. The Government received market research information regarding Raytheon’s JTT-Sr product. The Government has made the determination that the JTT-Sr does not meet size, weight, power input, voltage and operating temperature requirements. A significant redesign would be required to bring the product up to the Government’s minimum requirements.

The time it would take for the redesign is approximately 24 months. Planned schedule for deployment of JTT-R assets is June 2015. Therefore, based on the aforementioned determination, Raytheon will not be able to meet schedule requirements. A response to Raytheon was sent 25 February 2014, which communicated the above mentioned determination. The response included top level requirements for the JTT-R and a comparison of the configuration for the JTT-Sr. As of 7 March 2014, the Government has yet to receive a written response from Raytheon formally withdrawing their interest in this effort. On 26 Feb 2014, the Government contacted Raytheon to discuss the Government response in regards to Raytheon’s interest in this procurement action. The Government was informed during the conversation that Raytheon understands that they cannot meet the Government’s requirements in light of a June 2015, required delivery date due to significant changes would be required to their similar product.

A written statement from Raytheon withdrawing interest was received on 19 March 2014.

The lBS community is a small community. The Government is aware of the available products that can receive the lBS broadcast, which includes the JTT-Sr. The Airborne Electronic Attack Systems Division performed market research to include their own knowledge of the industry and found no manufacturer providers of a similar or same nature. No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than DRS to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost

The Contracting Officer has determined that the anticipated cost to the Government for the supplies covered by this J&A will be fair and reasonable. Assistance from the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) will be requested along with a certification of current cost and pricing data from DRS prior to contract award. DRS has been supporting the JTT-R efforts since 2005 and the historical cost data will assist the Navy in obtaining a fair and reasonable contract value for this procurement.

8. Actions to Remove Barriers to Future Competition

For the reasons set forth in Paragraph 5, Naval Surface Warfare Center, Crane Division has no plans at this time to compete future contracts for the types of supplies covered by this document.

If other potential sources emerge, Naval Surface Warfare Center, Crane Division will assess whether competition for future requirements is feasible.

TECHNICAJJREQJJJREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting data, including Acquisition Plan No. CR 13-004 dated 26 November 2013, except as noted herein, are complete and accurate to the best ofmy knowledge and belief.

TECHNICAL COGNIZANCE:

Sign

Phone No. Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206,303(90))

I have determined this justification is legally sufficient.

Name (Print) and Title (Code) Phone No. Date

Date

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Procuring Activity, the solicitation of the proposed procurement(s) using other than full and open competition, pursuant to the authority of 10 U.S.C. 2304(c)(l).

REQ COGNIZANCE:

Name (Print) and Title (Code) agnature

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(a)(12))

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

Pho~e No.Name (Print) and

OF THE PROCURING ACTIVITY

3-ac-H Date