PAWSS JOTFOC 2.8.22 FINAL - Post-Awd Posting_Redacted.pdf

Vessel Traffic Service Ports and Waterways Safety System Support Services

VTS PAWSS Support Services Justification and Approval for Other than Full and Open Competition SOURCE SELECTION INFORMATION – SEE FAR 2.101 and 3.104 Page 2

0081K, Task Order No. HSCG23-06-F-THA003; Expiration Date - 1/2010 DHS Enterprise Acquisition Gateway for Leading-Edge Solutions (EAGLE) Contract

No. HSHQDC-06-D-00018, Task Order HSCG23-9-R-TED730; Expiration Date - 9/2012

DHS EAGLE Contract No. HSHQDC-06-D-00018, Task Order HSCG44-12-J- PCC013; Expiration Date - 2013

GSA FSS GS-23F-0081K, Task Order No. HSCG44-13-F-PC2036; Expired - 2/2016 USCG Contract No. HSCG44-16-C-001008; Expired 9/2017 USCG IDIQ Contract No HSCG44-17-D-17040; Expires 9/29/2022

e) Type of funding: Operating Expense (OE) funding will be utilized.

f) Year of funding: Fiscal Year (FY) 2022 - 2026.

g) Solicitation number: To Be Determined (TBD).

h) Background information about the requirement: The Maritime Traffic

Management (MTM) series software is the core Command & Control software within the PAWSS system and is proprietary to Lockheed Martin.

Lockheed Martin developed the MTM-series software for the PAWSS system and is the only known company that has the data rights to support and sustain the PAWSS core software.

3. Description of Supplies/Services.

The USCG requires PAWSS support services with Lockheed Martin Corporation. The services are limited to support related to the Lockheed-proprietary core MTM-series software product. The MTM-series software is the core Command & Control software within PAWSS. The software consolidates, processes and displays data from various remote sensors (Radar, Automatic Identification System [AIS]) allowing USCG personnel to perform federally-mandated maritime vessel traffic management activities in nine (9) US ports, including: (1) Valdez, AK; (2) Sault Ste Marie, MI; (3) Berwick Bay, LA; (4) Houston-Galveston, TX ; (5) New Orleans, LA; (6) Seattle, WA: (7) Port Arthur. TX: (8) San Francisco CA; and (9) New York, NY.

The PAWSS requirement is to provide for work associated with system support (including help desk) and maintenance (including planned maintenance and casualty response) and non-recurring engineering. Lockheed Martin will provide all management, supervision, engineering services and labor required to support, and provide preventative, corrective and adaptive maintenance for the MTM-series core software component of the PAWSS system.

The USCG has unlimited rights to the documentation that the system produces but has restrictive rights to the core operating software. Lockheed Martin Corporation is the only vendor that provides these services for this proprietary MTM-series software.

SOURCE SELECTION INFORMATION – SEE FAR 2.101 and 3.104 Page 3

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

This requirement is being conducted under the authority of 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. Identification of Exception to the Buy American Act.

No exceptions to the Buy American Act have been identified.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

The MTM-series software, which is the core Command & Control software within the PAWSS system, is proprietary to Lockheed Martin. Lockheed Martin developed the MTM-series software for the PAWSS system and is the only known company that has the data rights to support and sustain the PAWSS core software.

Initial efforts to acquire a Vessel Traffic Service (VTS) solution to the problem of maintaining ports and waterway operations began in the late 1990s and early 2000s and a Request for Proposal (RFP) was issued to obtain competitive proposals. Three (3) offers were received in response to the RFP and the U.S. Coast Guard determined the offer received from Lockheed Martin represented the best value with cost and other factors considered. Lockheed Martin provided the Commercial Off the Shelf (COTS) MTM-series software system solution. However, the USCG did not procure data rights to the Lockheed Martin’s MTM-series software system. The USCG's rationale for this decision was based on its workforce was insufficient to analyze, enhance or maintain the system’s source code at the time and in the future. Accordingly, it was determined it would be more cost effective for the USCG to continue procuring MTM support directly from Lockheed Martin for the initial lifecycle of appropriately 15-20 years. Recapitalization efforts have been made to extend the life cycle of the software throughout the years. In its current state, the MTM-series software system end-of-life cycle is 2023.

Attempts to pursue a competitive acquisition for the proposed contract would result in substantial duplication of cost and/or harm to the USCG that could not be recovered through competition.

As of 3rd quarter, FY21, USCG CG-7413, CG-761 and CG-NAV are spearheading efforts to identify new VTS requirements to replace PAWSS and currently adjudicating comments received from the Joint Requirements Council on the Mission Needs Statement (MNS).

The USCG does not anticipate finalization of the requirements to be completed that would allow for competition and award within the five year ordering period of the proposed action.

Maintaining the current system until such time that new specifications can be competed is essential in that the loss of preventative, corrective, and adaptive service support would lead

SOURCE SELECTION INFORMATION – SEE FAR 2.101 and 3.104 Page 4 to rapid loss of cyber compliance, core functionality and increase the chances that the Vessel Traffic Center would be unable to execute mission objectives and ensure safe navigation of the most hazardous waterways.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many

Potential Sources as is Practicable.

A synopsis of this non-competitive acquisition was posted on August 20, 2021 via the Government Point of Entry (GPE) pursuant to FAR Part 5.203 to solicit from as many potential sources as is practicable. As a result, one source (Priority 5 Holdings, Inc.)

expressed interest in this requirement. Priority 5 Holdings provided a solution to supplement the PAWSS system software with their own Touch-Assisted Command and Control System (TACCS) COTS software product to make the first step toward making Lockheed Martin’s proprietary software open source. Augmenting the software is not a viable option due the proprietary nature of Lockheed Martin’s software as it would require Lockheed Martin’s permission for Priority 5 Holdings to gain access to Lockheed Martin’s proprietary information. Furthermore, the USCG’s requirement is not to supplement system software but to keep the current system operational while the USCG reviews and confirms future VTS requirements. No other responsible sources have been identified or expressed interest at this time. Although any responsible source may submit a response, it is not anticipated that competition will be obtained.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The Contracting Officer will ensure that the proposed IDIQ contract and task orders issued to Lockheed Martin for the PAWSS support services will be fair and reasonable.

Labor rates will be established consistent with Lockheed Martin’s Defense Contract Management Agency (DCMA) Forward Pricing Rate Recommendation (FPRR) to ensure fair and reasonableness. Prior to issuance of each task order, the Contracting Officer will consider the level of effort and the mix of labor proposed to perform the specific task being ordered.

To ensure that the prices established at the IDIQ level are fair and reasonable, the Contracting Officer will conduct a cost analysis, require certified cost and pricing data and in conjunction with the technical evaluation team determine that the labor categories and associated hours are appropriate for the effort required. The Contracting Officer will also consider the Independent Government Cost Estimate (IGCE), prior acquisition history, current market conditions, and the technical considerations regarding the support & sustainment activities prior to making the award. In addition to the above methods, the Contracting Officer will also seek additional discounts.

9. Description of Market Research.

Before negotiation of the current contract, HSCG44-17-D-17040, market research was

SOURCE SELECTION INFORMATION – SEE FAR 2.101 and 3.104 Page 5 conducted to find additional sources. Market research consisted of issuance of a Request for Information (RFI) and review of various sources, including DHS advance acquisition plan, source lists of DHS and other Government agencies, existing DHS-wide and Multi- Component Contract Vehicles with DHS Strategic Sourcing Program Office and/or on DHS Enterprise-wide Contract Vehicle Portal. The RFI was issued to 69 vendors listed under the EAGLE II Function Category I (unrestricted). Three bidders indicated a “no bid” because they did not have the capability. The other 66 bidders did not respond at all. The market research also consisted of conversations with knowledgeable Government personnel having expertise and prior knowledge of efforts undertaken in the recent past that are pertinent to the scope of work envisioned for the PAWSS program. Due to the proprietary nature of the software, it was determined that the market research performed is still considered relevant to this requirement.

On June 2, 2021, the internet was searched for a list of contractors that would be able to provide support for the MTM-series software with negative results. The market research showed that only Lockheed Martin Corporation is able to provide the support services and there are no other distributors but the manufacturer.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

a) Lockheed Martin is currently performing only the software adaptive maintenance, and providing support to the core software application. They are the only entity to do this work since they own the rights. Lockheed Martin used their already developed MTM-series software in their proposed original solution to the RFP.

b) The USCG did not procure data rights to the Company's proposed MTM-series software system at the time of award. Prior to negotiating a sole source contract with Lockheed Martin, the Contracting Officer intends to request that Lockheed provide the Government with complete data rights to the software. However, Lockheed Martin has refused to provide the complete data rights in the past.

c) This action is limited to support related to the Lockheed-proprietary core MTM series software product, which is the core Command & Control software with the PAWSS system. No other source can obtain the proprietary access to the PAWSS Lockheed Martin MTM-series software code and data rights to perform the proposed work. Much of the total work required to maintain the Coast Guard PAWSS systems, which initially cost $60 million, has now been reduced to approximately $3.5M per year by incrementally transitioning the system to an open architecture and away from the need for proprietary Lockheed Martin support. The further development of an open architecture within PAWSS during the life of this IDIQ contract will support improved competition and offer the possibility for other core software suppliers to replace the MTM-series product in the future as it reaches end of life. To date, no alternative sources exist for the services in this requirement. Therefore, it is not practicable for any company other than Lockheed Martin to provide the required supplies & services at this time.

At the time of initial acquisition of the PAWSS valued at $60M, the planned support

SOURCE SELECTION INFORMATION – SEE FAR 2.101 and 3.104 Page 6 model involved full support for all components of the system by Lockheed Martin. Since that time, USCG has taken many steps to de-couple the PAWSS system to increase the potential for competition among various vendors and service providers while the life cycle of the current system is ending.

The support activities now performed by organic USCG or non-Lockheed Martin contractor exceeds $6M per year and includes:

Voice Communications Sub-system, Integrated Network Video Sub-system, Radar Sub-system Automatic Identification System (AIS) Sub-system Remote site facility and environmental/weather monitoring sensors Commercial T-1/Government microwave communication circuits & associated hardware

11. A Listing of the Sources, if Any, that Expressed, in Writing, an Interest in the

Acquisition.

As mentioned in paragraph seven above, Priority 5 Holdings expressed interest in this requirement. However, their solution was determined to be not viable. No other responsible sources have been identified or expressed interest at this time. However, any source who expresses an interest in this requirement will be reviewed for consideration.

12. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome

Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required.

The USCG has begun efforts to review and confirm VTS requirements. Once completed, the USCG will seek alternative sources in order to foster competition. Competition is expected to include a breakout of major components, subsystems or economically severable end items for separate competitive purchases.

In support of this effort, the USCG is requiring changes to the MTM series software which will help to modularize the system. This modularization will allow the eventual replacement of the MTM series software without requiring a simultaneous replacement of sensors such as radar and AIS. The USCG anticipates this will increase the ability for alternate vendors to compete for future services.

USCG has further developed the necessary organic expertise to perform the majority of routine support & maintenance of the MTM-series core software using a combination of Organic & non-Lockheed Martin's contract personnel. As a result, the need for Lockheed Martin support & maintenance services has been limited to the maximum extent possible without replacing the core software component.

13. Contracting Officer’s Certification.

SOURCE SELECTION INFORMATION – SEE FAR 2.101 and 3.104 Page 7

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Contracting Officer

14. Technical/Requirements Personnel Certification.

I certify that this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.

Technical Representative/COR

APPROVAL:

Contracting Officer

Chief of the Contracting Office

Coast Guard Procuring Activity Competition Advocate (CG PACA)