J A-_-Kenya-_-all_signatures.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

IN REPLY REFER TO:

S B I R J 5 _ 2 5 0 1 8

SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE III JUSTIFICATION & APPROVAL FOR

USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Agency and Contracting Activity.

Department of the Navy, Naval Air Warfare Center Aircraft Division (NAWC-AD) Lakehurst, NJ

2. Nature/Description of Action(s) Being Approved.

This Phase III Small Business Innovation Research (SBIR) effort is a follow-on to a Phase I SBIR contract under Topic N03-138 entitled "Tactical unmanned aerial vehicle for high performance magnetic sensing."

This Phase III Justification and Approval authorizes and approves the Small Tactical Unmanned Aerial Systems Program Office (PMA-263) to place an order under Basic Ordering Agreement number N68335- 11-G-0009, with Insitu, Inc., 118 East Columbia River Way, Bingen, WA 98605 in support of a Pseudo Foreign Military Sales case, J7-P-LAD, Government of Kenya (GoK) ScanEagle system procurement. This effort is a continuation of the Phase I and II efforts, to utilize the technology developed during those Phases for intelligence purposes as discussed in the Phase III Dual Use applications section of the topic announcement. The requirement is for the procurement of a ScanEagle Unmanned Aerial System (UAS) and a 12 month Flight Hour Sustainment Package. The total estimated value of this action is $9,567,688.00 for a period of performance of 12 months and funding has been provided pursuant to section 1206 of the National Defense Authorization Act (NDAA), as amended.

3. Description of Supplies/Services.

This effort is for the procurement of one (1) ScanEagle UAS that consists of six (6) ScanEagle Medium Wave Infra-red Unmanned Air Vehicles and a 12 month Flight Hour Sustainment Package that includes spares, training, technical manuals, a Site Survey, Site Activation Team, Field Service Representative (FSR) support and force protection for the FSR team.

For this contract the Department of State verified that Kenya is eligible to receive assistance and supports the use of Section 1206 authority to address gaps in training and equipment for Counterterrorism (CT) interdiction operations. This Section 1206 program will help build the capacity of the Kenya Air Force (KAF) to provide operational and tactical transport of CT units in support of CT operations at Laikipia Air Base.

The KAF lacks the capabilities to effectively identify and locate terrorist elements operating within their borders which could allow al-Qaida to destabilize the region, and both indirectly and directly harm U.S.

interests.

The ScanEagle UAS is an expeditionary, Intelligence, Surveillance, and Reconnaissance (ISR) system that operates in a low/medium altitude and delivers day and night imagery. The system has a small equipment footprint and does not require a runway for launch and recovery making it suitable for operations from

SBIR_15_25018

unprepared terrain in forward deployed areas. The ScanEagle performs a variety of mission profiles which benefits the GoK including troop and convoy escort, search and rescue, sea surveillance and control, insurgent suppression, and target location.

The Department of Defense (DoD) plans to undertake activities to build the capacity of the Kenya military forces to participate in military and stability operations in which the U.S. Armed Forces are participating, pursuant to section 1206 of the NDAA for Fiscal Year 2006 (P.L. 109-163), as amended. This section 1206 program will help build the capacity of Kenya's Special Forces.

4. Identification of Statutory Authority.

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 an 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."

Furthermore, 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. Demonstration that Proposed Contractor's Unique Qualifications or Nature of Acquisition Requires Use of Authority Cited.

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 II (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 II, use of the authority cited is required.

6. Description of Efforts Made to Ensure Offerors Were Solicited From as Many Potential Sources as Practicable/ Public Notification through Government Point of Entry (GPE).

The topic for this effort was included in the DoD Program Competitive Solicitation issued under the SBIR Program. As described above, only Insitu is being considered for Phase III 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 GPE.

SBIR 15 25018

7. Determination of Fair and Reasonable Cost, The Contracting Officer will determine prior to award that the negotiated price/cost of the contract executed under this justification is fair and reasonable pursuant to FAR Subpart 15.4. This determination will be documented in a Business Clearance Memorandum, which will be included in the contract file.

8. Description of Market Research or Statement of the Reason 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.

Insitu, as the Original Equipment Manufacturer (OEM), is the only company able to provide the ScanEagle and its related equipment, to meet the technical and operational requirements of the GoK. Insitu, also as the OEM, is able to provide FSRs with the qualified knowledge and expertise to work on their proprietary system. The ScanEagle UAS will be used to support ongoing CT offensives against al Qaida terror cells in Kenya. The UAS will provide an expeditionary ISR in a low/medium altitude and will deliver day and night imagery. ScanEagle has high stealthy levels at very low altitudes enabled by a low acoustic, visual, and infrared range signature, an advanced muffler, and a mature modular design that enables carriage of electro-optic or infrared imaging payloads. It also has a small operational footprint and includes a pneumatic catapult and Insitu's proprietary SkyHook retrieval system that offers true runway-independence. This permits launches and captures on unimproved terrain and in to the wind for superior operating envelopes. Differentiating characteristics include low personnel requirements, in-field component replacement, inertial stabilized camera that can track fixed and moving objects for extended periods, and 20:hour flight endurance capability. Due to the lack of Kenya's runway infrastructure around the primary areas of operation, and the above stated characteristics, the ScanEagle UAS was selected because it best supports the UAS mission in Kenya.

10. Listing of Interested Sources.

N/A

11. Actions Taken to Remove Barriers to Future Competition.

As the designer and developer of the ScanEagle, Insitu is the only source capable of supporting and maintaining the ScanEagle UAS. This action involves procurement of a directed amount of ScanEagle systems, and the program office does not have knowledge of this country's future procurement or life cycle plans No actions are being taken to remove barriers to future competition.

12. Period of Performance.

12 months

13. Total Estimated Dollar Value of the Acquisition Covered by this J&A, with Funding Specified by Year and Appropriation, See Appendix A for Estimated Dollar Value

14. Actions Attempted to Make Immediate Acquisition Competitive and Cost/Benefit Analysis.

This Phase III SBIR effort is a logical follow-on to past Insitu efforts of the Phase I and Phase II SBIR contracts under Topic N03-138 entitled "Tactical unmanned aerial vehicle (TUAV) for high performance magnetic sensing."

Appendix A

Estimated Dollar Value in Thousands

FY15 FY16 FY17 FY18 FY19 FY20 FY21 Total

FMS 10000 0 0 0 0 0 0 10000

Total 10000 0. 0 0 0 0 0 $10000 k

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TECHNICAL AND REQUIREMENTS CERTIFICATION REQUIRED BY FAR 6.303-2(c):

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:

Digitally signed by BATTAGLIA.MICHAELA.1199157783

BATTAGLIA.MICHAEL A 1 1 991 57783 DN:c=US,o=U5.Government,ou=DoD,ou=PKI,ou=USN,cn=BATTAGUA.MICHAELA.1199157783 Date: 2015.08.07 0936:08 -04OT

NAME/TITLE Code Phone Date"

REQUIREMENTS COGNIZANCE:

BA I I AGLIA MICHAEL A 1 199157783 DI*^S,o=U^.Government,ou=DoD,ou=PKI,ou=USN,cn=BAraGLIA.MICHAELA.1199157783

* _ Date: 2015.08.07 093632 ̂ MW

NAME/TITLE Code Phone Date

LEGAL SUFFICIENCY REVIEW:

I have determined this Justification is legally sufficient.

K k\r- A r V T - I llir>r*lir-Mr-»A««r-i A mi n r \ - i A n i r- Digitally signed byMCARTHUR.ELLEN.PAMElJ\.101897't81S

IVILAKI nUn.bLLbN.rAMhLA 1 (Jl o y / 4 o l b D M c=us,o=u.s. Government, O U = D O D ^

Date: 2015.08:07 11:59:52-04*00'

NAME/TITLE Code Phone Date"

CONTRACTING OFFICER'S CERTIFICATION REQUIRED BY FAR6.303-2(B)(12):

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

I / A / T I / R i A r » \ / r i r - , T I I IV I R A N I *\ " > n n n / ' n n / " , DigitalIysignedbyKACEKilARyBETH.NiVlN.1228860863 KAL-bl\ IVlAKYDt I H NIVIN 1 Z Z O O O U O D J DN:c=US,o=U.S.Govemment,ou=DoD,ou=P^

* * * Date: 2015.08.0712:46:42 -WW

NAME/TITLE Code Phone ' Date

COMPETITION ADVOCATE APPROVAL REQUIRED BY FAR 6.304(a)(2):

APPROVED

Upon the basis of the following justification, I hereby approve, as Procuring Activity Competition Advocate for Naval Air Warfare Center Aircraft Division (NAWC-AD) Lakehurst, NJ, the use of other than full and open competition for the proposed procurement described herein, pursuant to the authority of 10 U.S.C.

2304(c)(5).

[ Print Name of Approving Official ] Code Phone