r_JA - Persistent Systems IDIQ - 23 May 2018.pdf

DEPARTMENT OF THE NAVY

SPACE AND NAVAL WARFARE SYSTEMS CENTER PACIFIC

53560 HULL STREET

SAN DIEGO, CALIFORNIA 92152-5001

Source Selection Information – See FAR 2.101 and 3.104

J&A No. 18-0301

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I, as Procuring Activity Competition Advocate, Space and Naval Warfare Systems Center, Pacific, hereby approve the use of other than full and open competition for the proposed contractual action pursuant to the authority of 10 U.S.C.

2304(c)(1).

l. Contracting Activity:

Department of the Navy, Space and Naval Warfare Systems Center, Pacific (SSC Pacific).

2. Description of the Action Being Approved:

This Justification and Approval (J&A) contemplates the award of a sole-source Indefinite Delivery, Indefinite Quantity (IDIQ) contract to Persistent Systems, LLC (Persistent Systems) for engineering services, materials, training, and test support to support the integration and operation of Information Operations payloads into multiple Unmanned Aerial Vehicles (UAVs) used by the United States Special Operations Command (USSOCOM) and the United States Navy. The estimated value of the contract is $12M.

3. Description of Supplies/Services:

The Unmanned Aerial Vehicle Information Operations (UAVIO) Integrated Product Team (IPT) of SSC Pacific, Code 561, is tasked to develop, integrate, and sustain electronic sensor systems for use on UAVs and Unmanned Aerial Systems (UAS) in support of USSOCOM and Navy requirements. These systems are comprised of complex systems that include airframes, sensors, antennas, electronic systems, and communication links.

The Government has integrated a number of sensor systems, typically referred to by a Small Unmanned Radio Frequency Receiver (SURFR) designation, into multiple UAS. Presently, the SURFR family of systems consists of nine supported systems: SURFR-1A, SURFR-1B, SURFR-2A, SURFR-3A, SURFR-3B, SURFR-4, SURFR-5A, SURFR-5B, and SURFR-6.

These systems are currently integrated into the following UAS: the Insitu ScanEagle, the Insitu RQ-21A, the Textron Aerosonde, and the Arcturus-UAV JUMP-20. Persistent Systems is the provider of some of the core components the Government has integrated into the SURFR family of systems. Specifically, Persistent Systems provides RF communications hardware, networking components, processor boards, test equipment, and software in support of the SURFR family of systems.

In order to continue performing sensor integration, test, and operation of these sensor systems and associated capabilities, Code 561 requires that Persistent Systems provide the following services:

1.1. Design and Integration: The contractor shall support the Government in the design and integration of communication systems as components of Radio Frequency (RF) systems onto airborne platforms.

1.1.1. The contractor shall provide program support at planning events, payload development and roadmap events, and Technical Exchange Meetings (TEMs).

1.1.2. The contractor shall provide engineering services to design and integrate communication systems. These services may include design, analysis, test, and fabrication of systems, subsystems, or components.

1.1.3. The contractor shall provide engineering services to design, modify, and/or update system software for Persistent Systems communication systems. Modifications and updates may be made to enhance capabilities, and or provide new capabilities to existing Government-owned hardware produced by Persistent Systems.

1.1.4. The contractor shall review or analyze Government-designed system integrations as necessary to ensure performance of Persistent Systems communication systems.

These services may include mechanical, thermal, structural, electrical, and EMI/EMC analyses.

1.2. Test and Evaluation: The contractor shall support the Government in the test and evaluation of Persistent Systems communication systems in conjunction with, or operating on, airborne platforms.

1.2.1. The contractor shall provide field services support and engineering support as required in preparation for and execution of ground and flight test events. The contractor shall support test events at Contractor and Government facilities, at CONUS test sites, Hawaii or any of the US Territories. Typical support services may include: preparation of test plans and test reports; pre-flight and post-flight checks; operational readiness checks; general system maintenance; equipment troubleshooting; and technical support.

1.3. Training: The contractor shall support the Government in the training of Government personnel’s use of Persistent Systems communication systems in conjunction with, or operating on, airborne platforms.

1.3.1. The contractor shall provide training services as required to support payload development or operation; ground or airborne operations and maintenance; as well as other training requirements both formal and informal, which are relevant to the Persistent Systems communication systems. This training may be classroom or field-based and may occur at contractor or Government facilities.

1.4. Sustainment Support: The contractor shall provide sustainment support for Persistent

Systems communication systems.

1.4.1. The contractor shall provide engineering support services to sustain and maintain operation of Government-owned Persistent Systems communication systems.

These services may include troubleshooting and failure analysis; system test and calibration; characterization; and repair of damaged or failed systems, subsystems, or components.

1.5. Materials: The contractor shall modify, manufacture, and deliver communication systems to the Government.

1.5.1. The contractor shall manufacture and deliver communications systems to the

Government for integration onto airborne platforms, or in support of airborne operations. Material requirements under this contract may be variations of existing contractor designs as well as new designs per Government requirements specified in individual task orders. Materials may include: radio systems;

individual radio components and interface cables; amplifiers and components;

support equipment; interface cables; connectors; mechanical hardware; and complete communications systems.

This action will be structured using an IDIQ type contract with a Cost-Plus-Fixed-Fee structure for labor and cost reimbursement arrangement for acquisition of materials. The contract will employ a three-year base ordering period and one two-year option ordering period.

These requirements are anticipated to be funded with the following appropriations:

Estimated Dollar Value

FY18 FY19 FY20 FY21(o) FY22(o)

RDTE

PDA

OMDA

Total 2,124K

4. Identification of Statutory Authority:

10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority:

SSC Pacific manages a family of sensor systems that are integrated into UAVs in response to USSOCOM and US Navy operational requirements. These sensor integrations are typically

(b)(4) referred to by a SURFR designation (e.g., SURFR-1, SURFR-2, etc.). Multiple programs of record field the SURFR family of sensors that SSC Pacific develops, integrates, tests, and maintains. The programs include the Multi-Mission Tactical Unmanned Aerial System (MTUAS), the Mid-Endurance Unmanned Aerial System (MEUAS), and the Small Tactical Unmanned Aerial System (STUAS). All three programs are managed by USSOCOM Program Executive Office (PEO) Fixed Wing (FW) and support both Navy and non-Navy Special Operations Forces (SOF) requirements.

The MTUAS materiel solution is the Government-Owned Government-Operated (GOGO) MQ- 27A ScanEagle and MQ-27B ScanEagle, manufactured by Insitu, Inc. The MQ-27 family of UAS is operated by Naval Special Warfare (NAVSPECWAR) and has been fielding the SURFR family of systems since 2010. The current inventory of SURFR payloads for MQ-27 exceeds 150 units at a value of $100,000 to $250,000 per system.

The STUAS materiel solution is the GOGO RQ-21A Blackjack, manufactured by Insitu, Inc.

The RQ-21A UAS is operated by NAVSPECWAR. Integration of the SURFR family of systems into the RQ-21A commenced in 2016 and is scheduled for fielding in spring of 2019. The current inventory of SURFR payloads for RQ-21A is 16 units.

The MEUAS solution is a $450M Multiple Award Contract (MAC) to provide Contractor- Owned Contractor-Operated (COCO) UAS-based Intelligence, Surveillance, and Reconnaissance (ISR) as a service in support of USSOCOM operations. The MAC awardees include Arcturus-UAV (H92222-17-D-0010), Insitu, Inc. (H92222-17-D-0011), and Textron Systems (H92222-17-D-0019). Under the MAC construct, operations at each site are competed as task orders to provide hourly flight services to the Government. The MEUAS contract requires that Government furnished Information Operations (IO) and Electronic Warfare (EW) payloads (i.e., SURFR payloads) be integrated into and operated on the UASs. SSC Pacific is the payload integration lead for MEUAS. To date, integration of the full SURFR family of systems into each of the three MEUAS COCO platforms has been funded and integration on two of the platforms has been completed and fielded. Total MEUAS payload inventory is currently 142 units and is expected to exceed 200 units by the end of FY18.

The lifecycle cost of a sensor system consists of many factors: basic technology development (S&T), system integration (R&D), developmental and operational testing (T&E), training, fielding, and finally, sustainment (O&M). Basic technology development can cost $5-10M per capability and can take two to four years. Presently, the SURFR family of systems consists of nine supported systems: SURFR-1A, SURFR-1B, SURFR-2A, SURFR-3A, SURFR-3B, SURFR-4, SURFR-5A, SURFR-5B, and SURFR-6. R&D cost for the integration, test, and associated processes ranges from $2-3M per system and can take up to two years.

The Government has integrated Persistent Systems products as core components to all of the SURFR systems. Persistent Systems developed core electronics of these SURFR systems at its own expense and thus it owns the Intellectual Property (IP) regarding the design and operation of these components. During this integration, the Government invested approximately $2M per system, and each system took approximately two years from inception to fielding. Presently, the Government maintains approximately 450 SURFR systems in inventory at a value of $60M. As

Persistent owns the IP, competing an alternate solution would result in the inability of the Government to support the existing systems and require a substantial reinvestment of both time and funding to develop and integrate the alternate system and/or modify the existing systems. A gap in capability may occur during this transition period due to the inability of the Government to support the current inventory with repairs, system updates, etc.

Additional costs relating to system lifecycle include operator training and certification as sensor operators require extensive training through both classroom-based theory and live airborne operations in order to use the systems operationally. A Program of Instruction (POI) must be developed for each system, a school-house must be contracted for instruction, and components must invest the time and funding to train and certify their operators. The existing POI was developed to include the operation of the Persistent Systems products included in the SURFR systems. Course costs are approximately $15K per student. This POI would need to be modified and the payload operators would need to repeat training.

Using an alternate vendor for the Persistent Systems capabilities would incur substantial cost to the Government through repeat integration, procurement, POI development, and user training.

As a result, in support of these USSOCOM requirements, SSC Pacific is pursuing an IDIQ with Persistent Systems, and additionally each of the additional SURFR payload vendors (LGS Innovations, SR Technologies, and QRC Technologies) to support continued integration, test, and acquisition in support of these programs of record.

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

The specific requirement in this J&A relates to the core sensor components. A complete system integration consists of many components that are in addition to these core sensor components and these components are regularly competed through other means. For example, reference the SSC Pacific Custom Circuit Boards and Electronic Components Fabrication MAC and the SSC Pacific Custom Part Fabrication MAC.

When receiving a requirement for a fundamentally new sensor capability, efforts are made to select the vendor via full and open competition for the development of that capability. SSC Pacific has taken this approach in the past for new requirements. For example, reference N66001-16-C-3501 (Remote RF Receiver System).

Additionally, SSC Pacific and USSOCOM regularly seek out and identify vendors that provide comparable or improved (technically more capable or more economical) capabilities by working with experts in the Intelligence Community and attending forums where the Government can interact with organizations developing these kinds of capabilities such as Special Operations Forces Industry Conference (SOFIC) and Trident Spectre.

7. Determination of Fair and Reasonable Cost:

The Contracting Officer will determine the anticipated cost to the Government of the supplies/services covered by this J&A to be fair and reasonable based on rates approved on previous DoD contracts for similar services.

8. Actions to Remove Barriers to Future Competition:

As detailed in Section 6, SSC Pacific and USSOCOM intend to compete future procurement of core payload components such as the ones identified from Persistent Systems in this requirement.

(b)(6)