OCX_Block_3F_JA_Redacted-ForPosting.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

March 2018 Page 2 of 6

APPROVAL (AFFARS 5306.304(a) )

Date William B. Roper, Jr.

Assistant Secretary of the Air Force (Acquisition, Technology & Logistics)

Signature

March 2018 Page 3 of 6

I. Contracting Activity.

HQ United States Space Force Space and Missile Systems Center (SMC) Acquisition Office - Space Production Corps, OCX (SMC/PCCX) 483 North Aviation Blvd.

El Segundo, CA 90245

II. Nature and/or description of the action being processed.

The new contract will be awarded as a combination cost-plus-incentive/award fee. The purpose is to enable OCX to integrate additional capabilities from the GPS III Follow-on (GPS IIIF) Space Vehicles.

III. Description of supplies/services required to meet agency needs.

Under the contemplated contract, the contractor will provide supplies to update Raytheon's OCX Block 1 & 2 ground system to incorporate GPS IIIF satellite capabilities in the operational constellation known as OCX Block 3F. To align with test and integration of first GPS IIIF Space Vehicle (SV), also known as SV 11, initial capabilities must be delivered by January 2023 to support the first GPS IIIF test event and final capabilities must be delivered in 2024 to support the first rehearsal in January 2025.

(A) OCX Block 3F is a follow-on effort to continue development of OCX Block 1 & 2 (Contract No. FA8807-10- C-0001) which is a major Government system. OCX Block 1 & 2 is an Acquisition Category I (ACAT I) program costing approximately (to date). OCX Block 3F will acquire supplies necessary to modify/upgrade OCX Block 1 & 2. OCX Block 1 & 2 is currently in the test and integration phase and DD250 is required no later than September 2022, at which point the contract will be fulfilled. Capabilities of OCX Block 1 & 2 consist of command, control, and monitoring existing GPS constellations including GPS III SVs 1-10 and legacy GPS IIR, IIR/ M, and IIF. A competitive source selection process awarded the contract for OCX Block 1 & 2 in February 2010 to Raytheon. OCX Block 3F will build upon OCX Block 1 & 2 to maintain backward compatibility, to sustain the constellation, and to integrate the planned updates of GPS IIIF SVs 11-32 into the operational constellation. The GPS IIIF SVs 11-32 capabilities include: modernization of the Position, Navigation, and Timing (PNT) interface, Military Protection and Operations Capability, Constellation Management, and navigation signal-based satellite status information. Additionally, the effort will provide support for Search and Rescue, Laser Retroreflector Arrays, and redesigned US Nuclear Detonation Detection System payloads; Unified S-Band telemetry, tracking, and commanding; Regional Military Protection; and the ability to provide rapid warfighter effects. OCX Block 3F is planned as an ACAT II program to modify OCX Block 1 & 2 system to include new capabilities for GPS IIIF SV PNT and Payload upgrades. Therefore, this acquisition will be a follow-on contract for the continued development of a major system.

In order to successfully deliver these updates, the contractor must perform a number of specific tasks to execute and support including: program management, systems engineering, cybersecurity and program protection, software development, Product Testing, risk reduction testing, Formal Qualification Test, software release, segment verification, sustainment system testing, Functional and Physical Configuration Audits, hardware development and installation, operations and maintenance procedures, training materials and training development, rehearsals, system verification, and enterprise verification and testing.

(B) The contractor must procure, develop, test and integrate OCX Block 3F capabilities into various development, test, and operational environments such as Master Control Station (MCS) at Schriever Air Force Base (SAFB), Colorado, Alternate MCS at Vandenberg AFB, California, various monitoring stations, and Transition Support Facility at SAFB.

(C) The contractor must procure, develop, and deliver technical data, computer software, and program data consistent with product support strategy. Examples include conference agendas/minutes, operational concept description, software test reports, software version descriptions, integrated master schedule, technical performance measurements, design review data packages, key management architecture, designs, technical

March 2018 Page 4 of 6 manuals, training materials, transition plan, test procedures, software product specifications, and OCX Block 3F requirements and design. The effort will be funded in FY2021-FY2024 with Research, Development, Test and Evaluation funds and is forecast to cost $ .

The anticipated award date is March 2021.

CLINs structure will follow the format approved in the Acquisition Strategy Panel.

IV. Statutory authority permitting other than full and open competition.

10 USC 2304(c)(1), as implemented by FAR 6.302-1(a)(2) "When supplies or services required by the agency are available from only one responsible source, or, for DoD, NASA, and the Coast Guard, from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for."

10 USC 2304(d)(1)(B), as implemented by FAR 6.302-1(a)(2)(ii) "Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition; or (B) Unacceptable delays in fullfilling the agency's requirements...

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

On 31 May 2019, the Government issued a Sources Sought Synopsis (19-044_GPS_OCX_Block_3_Follow-on) through the Government Point of Entry (www.fbo.gov), requesting interested offerors to provide a Statement of Capabilities (SOC).

The Government received SOCs from Raytheon and .

As documented in the OCX Block 3F Market Research, the Government team reached consensus that only the current contractor for OCX (Raytheon) has the ability to perform the work based on the three schedule constraints given to OCX Block 3F. The first schedule constraint is the data rights for the OCX software code will not be available until DD250, projected no later than September 2022, for to begin OCX Block 3F development. Due to scope of work remaining, the OCX Block 1 schedule cannot be accelerated to provide data rights earlier. The second schedule constraint is GPS IIIF testing starts in January 2023.

Historically, the timeline for similar efforts to OCX Block 3F, assuming source code familiarity, is approximately . This means it is necessary to award OCX Block 3F in FY2021 to deliver initial capabilities to meet the testing need date of January 2023. The third schedule constraint is the availability of the OCX Software Factory (i.e., software development hardware and software infrastructure, software development tools, and build processes). The 3-year development timeline assumes the contractor has a mature OCX Software Factory, which allows developers to quickly and efficiently develop, test, and deploy the OCX system. However, the current OCX Software Factory developed by Raytheon is not an OCX Block 1 and 2 contract deliverable with the data rights at DD250 and will not be available to for use until OCX Block 1 and 2 Ready to Transition to Operations (RTO) (projected no later than April 2023). Raytheon would be able to use the current OCX Software Factory to begin OCX Block 3F development in FY2021.

Therefore, based on the availability of data rights for the OCX software code, the GPS IIIF testing need date, and the availability of the OCX Software Factory, Raytheon is the only contractor capable of fulfilling the agency's schedule requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

The Government posted a sources sought solicitation to FBO.gov on May 31, 2019 with responses due by 15 June 2019.

The sources sought included a brief description of the expected work to incorporate the capabilities to command, control, and monitor GPS IIIF SVs with the on-orbit GPS constellation. The sources sought also outlined seven capabilities

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(listed in Section VIII below) which each qualified sources must demonstrate as part of their Statement of Capabilities.

The Government evaluated these two SOCs as part of the Government's market research, which is discussed in Section VIII below.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer determines that the anticipated cost for this effort is expected to be fair and reasonable. The following describes the basis on which the Contracting Officer will consider the cost to be fair and reasonable. In accordance with FAR 15.403-4 (Requiring Cost or Pricing Data), the contractor will be required to submit certified cost and pricing data. The Government OCX Block 3F Program Office will perform a complete technical evaluation and will assess proposed cost elements, such as the number of direct labor hours and number and types of materials required.

Additionally, the Contracting Officer plans to request support from the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), as needed, to obtain recommended rates and factors, audits and other relevant data. The Contracting Officer will use the reports received from DCMA, DCAA, and the Government technical evaluation, to perform a cost and price analysis. The results of the Government's cost and price analysis of the contractor's certified cost and price data will form the basis of the Contracting Officer's determination of a fair and reasonable price.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

“As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties." The Government team received and evaluated two SOCs. The Government team, SMC/PCCX, reviewed the SOCs to evaluate the relevance of each company's stated capabilities and listed past performance to the seven capability areas described in the Sources Sought Synopsis. The Market Research concluded Raytheon is the only contractor that can perform the work based on the schedule constraints that are described in Section V above.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

The final as-built design for OCX Block 1 & 2 will not be available until DD250, projected no later than September 2022, per the OCX development contract. The software, platform, and documentation baseline, including test plans and reports will continue to mature and change through the end of the development contract with DD250 and through RTO. These technical updates will be needed by a contractor to develop OCX Block 3F. If a contractor other than Raytheon uses the previous design from Milestone B, then the contractor will be developing OCX Block 3F software that may not integrate into OCX Block 1. Furthermore, documentation of the software “factory” is not currently a base contract deliverable and will not be available to the Government until the Interim Contract Support options are refreshed and scope to document the modernized software factory (created post contract initiation) is placed on contract.

The software factory is also needed by a contractor to develop OCX Block 3F as it provides the environment to develop and test the software. Since the software factory won't be available to the Government or another contractor until RTO at the earliest (projected no later than April 2023), another contractor would need to build its own OCX development environment (which includes the OCX platform) or its own software factory to develop OCX Block 3F. Raytheon spent to develop the OCX Software Factory, and the Government estimates would need a similar investment. In addition to schedule constraint, if were awarded OCX Block 3F, the Government would incur duplicative cost to develop an additional OCX Software Factory. This duplicative cost would not be recoverable through competition based on each contractor's historicals and assuming has enough OCX knowledge, each contractor would have similar productivity.

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X. List of any sources that expressed, in writing, an interest in the acquisition.

Raytheon and

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

The first major barrier for an open competition is the lack of data rights that will not be available until DD250 (projected for no later than September 2022). The second major barrier is the lack of a software factory which will not be available until RTO (projected for no later than April 2023). Therefore, once the Government aquires the data rights and the software factory, any follow-on updates to OCX can be competed.

XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.