18DJV15_17063_Redacted_J&A.pdf

DEPARTMENT OF THE NAVY

CRANE DIVISION

NAVAL SURFACE WARFARE CENTER

300 HIGHWAY 361

CRANE INDIANA 47522-5001

J&A Number: 17-063 Code: 0233 P.R. Number: N0016417RJV15

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity

The Naval Sea Systems Command, Naval Surface Warfare Center Crane Division (NSWC Crane), Contract Operations Division, Code 0233.

2. Description of the Action Being Approved

Award of a firm-fixed-price, indefinite-delivery, indefinite-quantity, supply contract with an ordering period of five years on a sole source basis for evaluation, repair, spare parts, and software maintenance of the Man-portable Surveillance and Target Acquisition Radar (MSTAR), in support of the Ground Based Operational Surveillance System (G-BOSS), from DRS Technologies SSI, 201 Evans Lane, St. Louis, MO 63121.

3. Description of Supplies/Services

The required products covered under this J&A are evaluation, repair, spare parts, and software maintenance of the MSTAR units. There are occurrences when the Government determines the proposed cost to repair resulting from the evaluation of the unit is Beyond Economical Repair (BER) and will have the unit returned without repair. Maintenance of proprietary Radar Sensor Unit Communication (RSUC) software is also required to mitigate Information Assurance vulnerabilities or operating system obsolescence.

The MSTAR is highly versatile low-power, high-performance ground surveillance radar that provides wide-area surveillance day or night and in all weather conditions. It locates moving targets and classifies them as personnel, tracked or wheeled vehicles. MSTAR is constructed of Commercial Off-The-Shelf (COTS) items and is a component of G-BOSS. Thales Group UK is the Original Equipment Manufacturer (OEM); however, DRS maintain the rights to manufacture, repair and upgrade MSTAR units in North America.

G-BOSS is a persistent surveillance system for providing 24/7 detection, display, and tracking of items of interest through multiple sensor systems. It is constructed of Commercial Off-The-Shelf (COTS), Government Off-The-Shelf (GOTS) and custom components integrated into a single system. The G-BOSS family is currently comprised of three variants: G-BOSS Heavy with an 80’ tower infrastructure, G-BOSS Medium with a single axle trailer infrastructure, and the man-portable G-BOSS Light with a tripod infrastructure. All three variants include MSTAR radar.

IN REPLY REFER TO:

The total estimated contract award is $3,500,000.00 and will utilize O&M funding.

Estimated Dollar Value

FY18 FY19 FY20 FY21 FY22 Totals O&M $660,000 $680,000 $700,000 $720,000 $740,000 $3,500,000 Total $660,000 $680,000 $700,000 $720,000 $740,000 $3,500,000

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

4. Statutory Authority Permitting Other Than Full and Open Competition

10 U.S.C. 2304(c),(1), “Only One Responsible Source.”

5. Rationale Justifying Use of Cited Statutory Authority

MSTARs are manufactured by DRS to support the G-BOSS systems currently fielded as well as systems that will be fielded in the future. This procurement is required to maintain functional MSTAR inventory to ensure operational availability of the G-BOSS systems. It is anticipated that any future competitive procurements for a next generation of radar will include contract lines for repair of new units procured.

The Government does not own the proprietary design specifications or drawings and associated documents adequate to allow for competition. Thales Group UK is the OEM and according to Tony Michie, Thales UK Protected Vehicles Business Lead, in a letter dated 13 Jun 2013, “DRS has sole manufacturing, repair and upgrade rights for the MSTAR program in North America.”

In addition, an email from Angie Gross Contracts Administrator for DRS dated 1 June 7, 2017, noted that; “Thales/DRS do not intend to sell proprietary design specification or drawings and associated documents to the Government.” DRS has the knowledge of the MSTAR system to adequately evaluate required repairs to return the system to full functional capability. The costs associated with such a license arrangement, coupled with the time it would take to negotiate such a license arrangement would be both cost and time prohibitive.

Award to any source other than DRS would result in substantial duplication of costs that are not expected to be recovered through competition, and unacceptable delays would occur in fulfilling the agency’s requirement. Based on current engineering estimates, the delay necessitated by reverse engineering the MSTAR components and developing specifications, soliciting competitive offers and awarding to an alternate source and operational test verification would be a minimum of 18 months.

MSTAR V4 Reverse Engineering (Estimate) 2 Jun 2017

Failure to provide repaired radars will negatively impact the operational availability of G-BOSS systems. This will inhibit United States and Coalition forces in being successful in operational missions by requiring them to perform without the necessary security equipment that they require to protect themselves, resulting in an unnecessary increased risk for casualties and deaths to our Warfighter.

In addition, Marine Corps personnel have been provided extensive training to use G-BOSS systems with the MSTAR. It is imperative that repaired components be duplicates of components already fielded. Familiarity of equipment in contingent operations is critical and can be lifesaving, especially when the equipment is used for the safety of the Warfighter.

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

The proposed contract was synopsized on the Federal Business Opportunities (FEDBIZOPS) website on 5April 2017 and no responses for this requirement was received. 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 Costs

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable. The Government has determined that a significant (or similar) quantities of this requirement have been purchased from this offeror in the past and cost/pricing information was received on those past procurements.

Manpower 2 full time, 4 part time 1 - Project Lead 1 - Engineer (.5) hardware (.5) software 1 - Technician .25 - Acquisition .25 - Logistics

Time (Months)* 6

Rate ($labor)** 110.49$ People per day Hours per day Hours / day Total days 6 month hours

Total Labor ($) 402,183.60$ 3.5 8 28 130 3640

Test Range Fees 1 MSTAR V4 (Eng Asset)*** Test equipment Lab Facility Development ($) 210,909.00$ 40,000.00$ 137,909.00$ 6,000.00$

Lab Fees Environmental Testing Misc tools, cables 12,000.00$ 10,000.00$ 5,000.00$

Estimate - total ($) 613,092.60$

Note:

*Estimate from Crnae engineers based on experience **Crane ND04 loaded labor rate of $103 per hour plus NMCI and RDT&E fees ***based on procurement N0016410CGR92 contract for procurement of MSTAR V4 radars

Timeline 6 months reverse engineer 6 months source development 6 months validation tesitng

Total 18 months

MSTAR V4 Reverse Engineering (Estimate) 2-Jun-17

This information should be sufficient to support the fair and reasonable cost determination of this procurement.

8. Actions to Remove Barriers to Competition

The G-BOSS program transitioned from an Urgent Universal Need Statement (UUNS) program to an ACAT IV program in FY16. The Next Generation Persistent Surveillance System program is planned to be an evolutionary development of the existing G-BOSS system. The Next Generations Persistent Surveillance System program may evaluate commercially available radar platforms, based on performance specification requirements, for competitive procurement of systems inclusive of repair activities. This requirement for a different radar platform or capability is estimated to be sometime after FY21.

TECHNICAL/REQUIREMENTS 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-11-001 Rev D, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Nathan Lockhart Title: Project Lead (JXVW) Phone No. (812) 854-8408 Date

REQUIREMENTS COGNIZANCE:

Richard Samuelson Title: Technical PM (JXDN) Phone No. (812) 854- 6144 Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303(90))

I have determined this justification is legally sufficient.

Agu Onuma Title: Assistant Counsel (OOL)Phone No. (812) 854-1425 Date

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.

Jonathan Dickinson Title: Contracting Officer (0233) Phone No. (812) 854-5417 Date

APPROVAL BLOCK (FAR 6.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Competition Advocate for the Procuring Activity, the solicitation of the proposed procurement(s) using of other than full and open competition, pursuant to the authority of 10 U.S.C. 2304 (c)(1).

Name: Kelly Siffin Title: Chief of the Contracting Office (02) Phone No. (812) 854-3705 Dat

DEPARTMENT OF THE NAVY