JA_18_0387_(Falcon-I)_REDACTED_(13_SEPT).docx

J&A_18_0387

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION

22347 CEDAR POINT ROAD, UNIT 6

PATUXENT RIVER, MARYLAND 20670-1161

J&A_18_0387

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Aircraft Division (NAWCAD 2.5.2) Lakehurst, NJ.

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves, on a sole source basis, the issuance of an Indefinite Delivery Indefinite Quantity (IDIQ) contract to Airtec Inc. 44174 Airport Rd., California, Maryland to provide flight operations, maintenance, and as needed, development, testing, and evaluation of currently integrated aircraft systems and associated ground systems, as well as additional systems required by the Government, to include an improved Light Detection and Ranging (LIDAR) onboard processing system, a new MACHETE LIDAR system, and a new TRACER Synthetic Aperture Radar (SAR) system on an existing, modified, Contractor-Owned/Contractor-Operated (CO/CO) multi-sensor aircraft with already installed Government Furnished Property (GFP). The CO/CO aircraft is leased by Airtec, Inc. from BAM Leasing, LLC, effective 01 December 2011 for a year with annual renewal options for up to nine times, or final expiration of 30 November 2021. The aircraft continues to operate under a FAA Standard Certificate of Airworthiness that was issued 09 August 2016. While onboard ancillary systems have been modified ahead of sustainment obsolescence, the primary MACHETE LIDAR and TRACER SAR systems have not been modernized from their original configuration. Subsequently, the sensors are degrading from original performance specifications due to the constant wear and vibration caused by the aircraft. Thus, a modernization initiative was launched in FY2017. It is also important to note that the MACHETE LIDAR sensor design is so completely unique in its construction that only one aircraft, the CO/CO aircraft possessed by Airtec, Inc., has ever been modified for installation and use for this particular system requirement.

This IDIQ will have an ordering period of 24 months from 30 September 2018 to 30 September 2020 with a maximum ordering quantity of 1,728 operational Intelligence, Surveillance, Reconnaissance (ISR) Flight Hours (FHs) with an estimated contract ceiling of $41,444,826.

3. Description of Supplies/Services.

NAWCAD Advanced Concepts and Rapid Transition Division (AD-4.11.6) has been tasked to provide ISR services and electronic support data to include systems engineering, integration, airworthiness, and operational implementation of the developmental system. The primary means to collect this data is via persistent commercial airborne assets with government provided payloads and data links. This effort requires the Contractor to provide a fully integrated CO/CO multi-sensor aircraft with installed GFP. This effort will also require the Contractor to maintain the aircraft, and because the sensors use emergent technology and are constantly being refined, the Contractor must provide support for upgrades, removal/replacement/repair efforts, developmental testing, evaluation, integration, and operation on currently integrated systems and associated ground systems, as well as additional systems required by the Government, to include an improved LIDAR onboard processing system, a new MACHETE LIDAR system, and a new TRACER SAR system. Both the new MACHETE LIDAR and TRACER SAR systems are being designed and developed by the Original Equipment Manufacturer (OEM) to be integrated into the CO/CO aircraft during performance of this effort IAW current aircraft modifications. Specifically, the MACHETE LIDAR system is being developed under a separate contract to the MIT LL, and the TRACER SAR system is being developed under another contract to Lockheed Martin. To continue utilization of the system capabilities during the integration of the new MACHETE and TRACER systems, the Contractor will be tasked to provide a fully integrated CO/CO aircraft with an installed TRACER SAR system.

The flight operations requirement is based on the current operational tempo of 72 FHs per month. However, mission tasking combined with flight testing of new ISR systems may surge monthly totals to 120 FHs per month for a maximum of 240 FHs over a 60-day period. Over the ordering period, the maximum ordering quantity of operational ISR FHs will be 1,728.

Estimated Dollar Value in Thousands

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

10 U.S.C. 2304(c)(1), as implemented by Federal Acquisition Regulation (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.

At this time, Airtec, Inc. is still the only responsible source that can meet the Government’s requirement without the Government incurring significant duplication of costs and program schedule delays.

Contract N68335-10-G-0026-0007 was awarded to Navmar on a sole source basis under the authority of FAR 6.302-5 (Phase III Small Business Innovation Research). Under that contract, Navmar was required to perform Research and Development (R&D) to structurally modify the CO/CO aircraft multi-sensor aircraft to operate the MACHETE and TRACER systems and associated subsystems. At the conclusion of the effort on 30 September 2013, historical contract data showed that the R&D that Navmar provided only accounted for 7% of the total contract cost, and Airtec, Inc., a subcontractor on the Navmar contract and possessor of the aircraft, accounted for 93% of the total contract cost. Upon conclusion of that contract, Airtec, Inc. and Navmar were not required to provide technical data or drawings associated with the work they had completed. As a result, the follow on contract, N68335-13-D-0386, was awarded to Airtec Inc. on 30 September 2013 which provided for continued R&D to structurally modify the CO/CO aircraft.

On 29 September 2014, Contract N68335-14-D-0030 was awarded to Airtec, Inc. which provided for continued operations, maintenance, and as needed, developmental test and evaluation of currently integrated systems and associated ground systems. Airtec, Inc. possesses the aircraft that has been uniquely modified to operate the current and new MACHETE and TRACER systems and associated subsystems. In addition, the aircraft has also been modified to maximize time on-station over selected target sets, which makes this specific aircraft the sole platform in which the sensors can be integrated and operated.

Contract N68335-14-D-0030 was awarded with a Justification & Approval (J&A) use of Other Than Full and Open Competition (J&A 14_24274.1) which indicated the intent to remove barriers to future competition by requesting technical information from Airtec, Inc. Although the Government is now in possession of the technical data, the Government determined that the technical data provided was not sufficient to successfully define a detailed engineering specification necessary for a full and open competitive contracting strategy. Specifically, MIT LL was asked to provide technical documentation specific to the MACHETE LIDAR to the Government. However, due to funding constraints, MIT LL was unable to provide technical documentation with the level of detail and accuracy necessary to meet the Government’s needs in defining the engineering specification. Therefore, the current configuration differs from the recorded technical data. Both the TRACER and MACHETE capabilities are still being developed and upgraded by the OEMs to improve performance and life span. OEMs for both TRACER and MACHETE are conducting these developmental efforts on external contracts. The Government intends to provide an Engineer to support this project by implementing a systems engineering program, as well as configuration management plan to better document and control the integration of the new TRACER and MACHETE. The Government anticipates that this oversight, to include the implementation of a systems engineering plan and a configuration management plan, will result in an integration technical data package that can be used to compete this effort if a follow on requirement exists after the period of performance for this contract.

During the installation of the new MACHETE and TRACER systems, which, per direction, are being specifically designed for the modified, aircraft possessed by Airtec, Inc., AD-4.11.6 has been tasked to provide ISR capabilities with a CO/CO aircraft already integrated with a TRACER SAR system to maintain operations. Airtec, Inc. already possesses this aircraft and will provide this aircraft with a TRACER system already installed for flight operations during the time of the new MACHETE and TRACER integration onto the other aircraft. The TRACER for the aircraft is expected to be provided to Airtec, Inc. via a separate contracting effort which is scheduled for award in August of 2018.

Through historical data captured by the Government, Airtec, Inc. possesses the modified aircraft with the integrated GFP; therefore, use of any other source would cost the Government approximately $18.3M and an estimated 36 months in schedule to duplicate the same capability. Cost duplication of $18.3M is based on historical costs: $8M was funded to Navmar for the design, modification, and testing of the CO/CO aircraft and was funded to MIT LL and Lockheed Martin to design, integrate, and test the MACHETE LIDAR and TRACER SAR systems on the modified CO/CO aircraft. Duplication of costs would occur since an alternative aircraft from the Airtec aircraft would require integration, testing, and modification to support the MACHETE LIDAR and TRACER SAR systems in addition to requiring a new FAA Standard Type Certificate. Additional costs would be incurred if the aircraft was not utilized for future efforts; costs would include removal of the sensors from the existing aircraft and de-modification of the current airframe to return it to OEM standards. Schedule duplication of 36 months is based on historical schedule data: four months of design work required prior to modifying the aircraft; nine months from the start of modifying the aircraft until the sensor installation initiates; four months to completion of sensor installation; eight months of ground and flight testing prior to operations; and 10 to 12 months to complete a competitive contract action of this magnitude and complexity.

Once technical data is complete and available, it can be translated into clearly-defined contractual requirements to pursue a competitive contracting strategy in the future. The Government anticipates receipt of this documentation in November 2019 which, in coordination with a Government Systems Engineer hire, would lend itself to support a competitive action at the completion of the ordering period associated with this Sole Source action. This would reduce the cost and schedule delays in the aforementioned paragraph to be within a range that could likely be recouped by pursuing a competitive solicitation.

Based on the above, Airtec, Inc. is currently the only responsible source that can meet the Government’s requirements. A 24 month ordering period will permit the Government to obtain the necessary data and pursue a competitive contracting strategy for a follow on effort.

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

Market Research was conducted using internet search engines and posting a synopsis of the requirement to the Government Point of Entry www.FBO.gov. A Request for Information (RFI) was posted to FedBizOpps (FBO) website on 27 April 2018. When the RFI closed on 4 May 2018, the Government had received six capability statements. All of the responses were reviewed. It was determined that only Airtec, Inc. was capable of meeting the requirements of this effort by providing a aircraft already modified for and outfitted with the MACHETE LIDAR and TRACER SAR system. The proposed contract action was synopsized on the FBO website on 21 May 2018 with a response date of 5 June 2018. Of the six capability statements, some of these vendors could be capable of performing this effort in the future, but at this time, they are not due to their lack of technical understanding of the FALCON-I system and access to the aircraft.

7. Determination of Fair and Reasonable Cost.

IAW FAR 15.402, the Contracting Officer shall ensure that all supplies and services provided under this contract are procured at a fair and reasonable price. The Contractor will submit a formal cost proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. Airtec, Inc.'s proposal will be reviewed by experienced technical analysts, cost analysts, and contract specialists with the aid of necessary field pricing support. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price.

8. Actions to Remove Barriers to Future Competition.

Since 2014, the government has attempted to transition this tasking to an Army Program of Record (POR) and pursued avenues to acquire a Government Owned/Contractor Operated (GO/CO) aircraft under a competitive contract, utilizing the Government owned design and data from N68335-10-G-0026-0007. However, the Army has not moved forward on POR intentions, the Government has determined that CO/CO operations are more cost effective than GO/CO operations at this time. As stated in Section 5 above, the Government intends to gather available and complete technical data over the course of this contract to ensure the data is obtained and translated into clearly-defined requirements for a competitive contracting strategy for any follow on requirements.

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