N6134019C0015_FY19_SBIR_P3_CREATE_JA0043-Redacted.pdf

J&A_19_0043

IN REPLY REFER TO:

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER TRAINING SYSTEMS DIVISION

12211 SCIENCE DRIVE

ORLANDO, FLORIDA 32826-3224

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Training Systems Division (NAWCTSD) - Orlando, FL

2. Description of the Action Being Approved.

Soar Technology, Inc. (SoarTech) was awarded a Small Business Innovative Research (SBIR) Phase I contract, N68335-15-C-0010, on 15 October 2014 resulting from topic number N142-090, “Crew Role-player Enabled by Automated Technology Enhancements” (CREATE). The Phase I contract required SoarTech to develop a capability that supports simulated P-8A training by incorporating intelligent, speech-activated role player agents. The output of the Phase I contract was the design, development and demonstration of a proof-of-concept capability that augments P-8A part-task trainers with intelligent, speech-activated role player agents. SoarTech also developed a software testbed, built on the open-source SimJr constructive simulation environment, to support a proof-of-concept capability with which trainees can rehearse Anti-Submarine Warfare (ASW) mission activities with autonomous crewmembers.

SoarTech was subsequently awarded a SBIR Phase II contract, N68335-16-C-0019, on 5 October 2015 to mature the Phase I design and continue the development of the synthetic crew member agents through building out each individual agent, as well as integrating proposed speech recognition capabilities into the pipeline and modifying the software to better suit the part-task trainer environment. At the conclusion of the Phase II, subsequent funding was awarded as a Phase II.5 contract, N68335-17-C-0121, on 20 March 2017 to provide a more robust technology capable of addressing a wider variety of P-8A training scenarios and to support development of a basic capability for the alternative trainer. Further, funding supported test and integration preparation activities to refine the transition path.

This justification and approval authorizes and approves awarding a Small Business Innovative Research (SBIR) Phase III contract to SoarTech. This Phase III contract will extend the previous efforts through implementation and assessment of the CREATE capability in a part task trainer architecture, delivery and certification of the CREATE capability, design and development of tactical and communication training environments built upon the CREATE infrastructure, design and development of a chat capability to expand the CREATE infrastructure, and design and development of training use cases.

3. Description of Supplies/Services.

This Phase III contract requires SoarTech to extend the CREATE effort developed under the Phase I, Phase II, and Phase II.5 contracts. SoarTech will complete work that derives from, extends, and completes

J&A_19_ 0043 efforts achieved under the Phase II contracts, N68335-16-C-0019 and N68335-17-C-0121, to support the transition of the CREATE effort into training products utilized by the P-8A community. Work to be conducted by SoarTech under the Phase III contract includes the following:

Implementation of the CREATE capability in a part task trainer architecture, Assessment of the CREATE capability in a part task trainer architecture, Certification and delivery of the CREATE capability within the P-8A training systems, Design and development of component systems, including advanced behavior modeling and speech technologies, to demonstrate feasibility of system for a standalone tactical and communication training platform, Design and development to extend component systems, including advanced behavior modeling and speech technologies, to demonstrate feasibility of system to provide intelligent, automated chat role playing capabilities, Implementation of an operational CREATE system within training environments, and Design and develop use case scenarios for usability and engineering test and validation of system components within maritime training environments.

The total estimated value of the effort is $. The CREATE Phase III contract will be initially funded at the time of award with Fiscal Year (FY) 18 APN funding at an estimated $. This funding will provide implementation and assessment of the CREATE capability in a part task trainer architecture. FY19 and FY20 funding will fund options, with tasks associated with RDT&E and APN efforts as illustrated above.

Estimated Dollar Value

FY18 FY19 FY20 Total by Type

RDT&E

APN

Yearly Total

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

10 U.S.C. 2304(c)(5), as implemented by FAR 6.302-5 Authorized or required by statute.

15 U.S.C. 638(r)(1) states: “In the case of a small business concern that is awarded a funding agreement for Phase II of a Small Business Innovation and Research (SBIR) or STTR program, a Federal agency may enter into a Phase III agreement with that business concern for additional work to be performed during or after the Phase II period“

15 U.S.C. 638(r)(4) states: “To the greatest extent practicable, Federal agencies and Federal prime contractors shall issue Phase III awards relating to technology, including sole source awards, to the SBIR and STTR award recipients that developed the technology.”

5. Rationale Justifying Use of Cited Statutory Authority.

The nature of the acquisition requires the use of the authority cited. The SBIR/STTR Programs are structured in three phases. Phase I (project feasibility) determines the scientific, technical and commercial merit and feasibility of the ideas submitted. Phase Il (project development to prototype) is the major research and development effort, funding the prototyping and demonstration of the most promising Phase I projects. Phase III (commercialization) is the ultimate goal of the SBIR/STTR Programs. Because the Phase III work derives from, extends, or completes efforts performed under Phase I and Phase Il, use of the authority cited is required. SoarTech was awarded a Phase I SBIR contract on 15 October 2014:

N68335-15-C-0010, a Phase II SBIR contract on 5 October 2015: N68335-16-C-0019 and a Phase II.5 SBIR contract on 20 March 2017: N68335-17-C-0121.

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

The SBIR Topic N142-090 was selected through a competitive SBIR award. As described above, only SoarTech is being considered for Phase Ill award due to the nature of the acquisition. In accordance with FAR 5.202(a)(7), this proposed contract action does not require public notification to the Government Point of Entry (GPE).

7. Determination of Fair and Reasonable Cost.

In accordance with FAR 15.402(a), the Contracting Officer shall ensure that all supplies and services are procured at a fair and reasonable price. The contractor will submit a formal price proposal with certified cost and pricing data in accordance with FAR 15.403-4 and sufficient information to support the accuracy and reliability of the estimate. SoarTech’s proposal will be reviewed by experienced technical analysts and contract specialists. Price analysis will be conducted in accordance with FAR Part 15.404-1. The Contracting Officer will use cost and price analysis as the basis for negotiating fair and reasonable prices.

Lastly, historical contract cost data and other relevant information will be utilized in the establishment of a fair and reasonable price.

8. Description of Market Research or Statement of the Reasons Market Research was not Conducted.

FAR 10.001(a)(2) indicates that market research appropriate to the circumstances must be conducted.

SBIR Phase III procurements are such that traditional market research to identify alternative sources is generally unnecessary. As described above, the Phase III work derives from, extends, or completes efforts performed under Phase I and Phase II.

9. Any Other Supporting Facts.

Not applicable.

10. Listing of Interested Sources.

Not applicable.

11. Actions to Remove Barriers to Future Competition.

NAWCTSD has no plans at this time to compete this contract for the type of software covered by this document. Pursuant to the SBIR/STTR statute, the Agency is not only allowed to enter into a Phase III agreement with SoarTech, as the small business that was awarded the original Phase II funding agreement, but it is also encouraged, to the greatest extent possible, to issue SoarTech such a follow on contract since it is the small business that originally developed the technology for the CREATE software suite. The SBIR/STTR reauthorization statute states Congress’ intent that Phase III award be made to the

SBIR/STTR firms that created the technology so that these small businesses can commercialize it. It is possible that competitors will enter the market once the required product is commercialized. If another potential source emerges or a similar technology is identified during a market survey, NAWCTSD Orlando will assess whether full and open competition and commercial item acquisition procedures for future requirements are feasible.

CERTIFICATIONS AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance which are included in this Justification and its supporting acquisition planning documents, except as noted herein are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Signature Name (Printed) Phone No. Date

REQUIREMENTS COGNIZANCE:

LEGAL SUFFICIENCY REVIEW:

I have determined this Justification is legally sufficient.

CONTRACTING OFFICER CERTIFICATION:

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

APPROVAL:

Upon the basis of the above justification, I hereby approve the solicitation of the proposed procurement(s) described herein using other than full and open competition, pursuant to the authority of 10 U.S.C.

2304(c)(5), authorized or required by statute.