N00164_CR19046_FBO_Redacted.pdf

J&A #: CR-19046

Code: 0233

N0016419RJV43

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

JUSTIFICATION

1. Contracting Activity.

The Naval Surface Warfare Center (NSWC), Crane Division, Expeditionary Integration Contract Branch (0233).

2. Description of the Action Being Approved.

Award of a five (5) year Indefinite-Delivery, Indefinite- Quantity (IDIQ) contract on a sole source basis in the amount of $8,000,000 to Viasat, Inc. 6155 El Camino Real, Carlsbad, CA 92009, CAGE 47358 for the procurement of repairs, spare parts, engineering services, logistical services, training support, and travel in support of

3. Description of Supplies/Services.

The required supplies and services covered under this J&A are for procurement and support actions consisting of, but not limited to spares, repair actions, calibration, assembly modification, design upgrades, depot piece-part lay-in, engineering support, training services and system related logistics services for the

. The includes but is not limited to the

Antenna, Antenna Control Unit (ACU), Inertial Control Unit (IRU), and modem. This J&A is also inclusive of future Viasat, Inc. unique systems support resulting from avionics enhancements, obsolescence replacement, and follow on equipment installed as a result of approved Engineering Change Proposals (ECP) or temporary Flight Clearance approvals.

DEPARTMENT OF THE NAVY

NAVAL SURFACE WARFARE CENTER

CRANE DIVISION

300 HIGHWAY 361

CRANE INDIANA 47522-5001

IN REPLY REFER TO:

Support for products and services are required for the equipment installed as a result of approved ECP FRC FESE EP-098 and Air Frame Change (AFC) 806. The is a high frequency data link for airborne applications.

The support will ensure including the and are Fully Mission Capable (FMC). There have been discussions of using the equipment on the , but the aircraft is currently not flying with the to date.

Ensuring the aircrafts remain FMC results in the Aircraft being capable to perform their current and assigned missions. These aircraft are the primary maritime surveillance aircraft operated by the US Navy. Their duties include anti-submarine and anti-surface warfare, command, control communications, computers and intelligence surveillance and reconnaissance, search and rescue, drug interdiction and exclusive economic zone protection. The

, , and are currently deployed in theater of operations in supporting the war-fighter.

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

The period of performance for this action is the date of award through five years thereafter.

The following table shows the estimated dollar value of the procurement identified by Fiscal Year (FY) and appropriation.

Estimated Dollar Value

TYPE

FUNDS

FY20 FY21 FY22 FY23 FY24 TOTAL

APN-6 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $5,000,000

O&MN $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000

RDT&E $100,000 $100,000 $100,000 $100,000 $100,000 $500,000

TOTAL $1,600,000 $1,600,000 $1,600,000 $1,600,000 $1,600,000 $8,000,000

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.

The derivative aircraft supported under this IDIQ began entering operational service in the mid 1980s and the SPA aircraft entered operational service in 1995 after extensive airframe modifications by military, government and contractor entities.

Lockheed Martin Corporation designed and produced the basic aircraft. Unique Special Missions Equipment (SME) avionics components were commercially procured from various Original Equipment Manufacturer (OEM) entities, including Viasat, Inc.

This SME was delivered to the and as Government Furnished Equipment for install and integration under AFC-806 and ECP FRC FESE EP-098. The Government does not own nor possess the necessary Level III hardware or software documentation necessary for full and open competition for the Viasat, Inc. equipment that supports the

, which includes but is not limited to the antenna, ACU, IRU, and Modem. Due to the special nature of the , the Department of Defense and determined the program would be a non-Acquisition Category interim-for-life enterprise and necessary non-governmental support would be procured from the individual OEMs.

Viasat, Inc. is unwilling to sell the data rights to the government and is the only source that possesses the technical data to repair, support, and maintain the for the . The lack of software documentation, test fixtures/stations, and quality/performance acceptance test procedures prohibit any other source from directly manufacturing these spares or repair actions. If another vendor were to perform the tasks identified in the J&A, the cost to reverse engineer, generate Acceptance Test Procedures, perform first article testing, acquire flight certification, and perform stress analysis would cost $13,618,751.00. In addition, the approximate development time for the system would be 60 months.

The development of a new system would add the following cost and schedule delays:

Description Cost Months to Complete

Re-tool of Line $961,703.00 12

Reverse Engineer and Test Procedures (x3 Platforms) $2,792,520.00 18 First Article of Test (x3 Platforms) $3,111,528.00 3 Tempest Certification(x3 Platforms) $630,000.00 6 Electrical Load Analysis(x3 Platforms) $195,000.00 6 Stress Analysis(x3 Platforms) $45,000.00 6

Publications/Reoccurring Costs (x3 Platforms) $18,000.00 3

Flight hours (P-3 rate used) x3 Platform 72 hours each $3,240,000.00 6

Ramp Fees per platform x3 $2,625,000.00

Included in Flight Hour Calculation

Total: $13,618,751.00 60 months

The government estimates it would require five (5) years to perform reverse engineering and subsequent efforts on this equipment. In five (5) years, this SME equipment will be obsolete; therefore, efforts to procure parts and support for these assemblies from any other source would be expending time, effort and dollars for no appreciable benefit or gain to the government.

The scheduled requirements to provide support of the on the platforms are immediate or there is risk of losing this capability for the warfighter. Viasat, Inc. is the only source that would be able to meet this schedule. Based on the above stated information, the substantial duplicative costs associated with an award to a source other than Viasat, Inc. are not expected to be recovered through competition. Award to a source other than Viasat, Inc.

would result in unacceptable delays in fulfilling requirements.

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

A combined request for information and sources sought for the proposed IDIQ contract was posted on the FEDBIZOPS website on 20 May 2019. To date, no responses have been received. The proposed contract was synopsized on the FEDBIZOPS website on 29 May 2019.

The contract specialist utilized the FPDNG EZSearch tool as well as the HIS Haystack Database to search for part numbers and National Stock Numbers related to this requirement. Search results showed that Viasat, Inc. was the only source awarded actions for parts related to this procurement. No additional market research was conducted because it is not practicable for the reasons discussed in Paragraph 5 for any company other than Viasat, Inc. to provide the required supplies and services.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated costs to the government for the requirements covered by the J&A will be fair and reasonable. The Government has procured similar supplies and services from this offeror in the past and pricing information was received on those procurements. This information should be sufficient to support the fair and reasonable cost determination of this procurement.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NSWC Crane has no plans at this time to compete future contracts for the types of supplies and services covered by this document. If another potential source emerges, NSWC Crane will assess whether competition for future requirements is feasible. The synopsis will include a statement that other sources may submit an offer.