SDTW JA

COORDINATION AND APPROVAL DOCUMENT

Contracting Activity: SPACE AND MISS[LE SYSTEMS CENTER, SCNG Purchase RequestiLocalldentification Number: J&A 09-40 Program Name: Transportable Remote Tracking Station (RTS) Block Change (RBC) (TRBC) Core Electronics Configured Item (CI) also known as RBC Transportable Space Test and Evaluation Resource (TSTR) Estimated Contract Cost (including options): $9,800,000.00 Type Program: PEO Program Authority: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1 (a)(2)(ii) Type J&A: Individual

COORDINATION DATE:

Program Manager: ~ !\k2 20:5...... \0 ERIC 1. FELT, "Lt Col, USAF SDTWISTOS/CC Date Signed

DSN: 263-1254, COM: (505) 853-1254

Contracting Officer: ~1c'.~UMiJL ~ Ie MARILK. WASHINGTON SMC/SCNGIPK esigned

DSN: 633-2072, COM: (310) 653-2072

Chief of the Contracting Office: 16 (C13/0.

Date Signed SMC/SCNGIPK

Local Legal Reviewer:

KE TH R. LARSON

/C: reb JO

SMC/JAQ Date Signed

DSN: 633-3222, COM: (310) 653-3222

APPROVED:

Competition Advocate:

SMC/PKX

/:j-;~~cU?IO

Date Signed http:9,800,000.00

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

I. CONTRACTING ACTIVITY

Acquisition Office: HQ Space and Missile Systems Center

Contracting Office: SMC/SCNGIPK 483 N. Aviation Blvd EI Segundo, CA 90245

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

Satellite Control and Network Systems Group (SCNG) intends to issue a delivery order for the procurement of a Transportable Remote Tracking Station (RTS) Block Change (RBC) (TRBC) Core Electronics Configured Item (CI). The proposed sole-source action for the purchase of the TRBC Core CI is expected to be awarded as a Firm Fixed Price (FFP) contract type delivery order under the existing Satellite Control Network (SCN) Contract (SCNC) F04701-02-D-0006 as the basic contract. The TRBC Core CI, otherwise known as RBC Transportable Space Test and Evaluation Resource (TSTR) for the purpose ofthis J&A, is being purchased for the SMC Space Development and Test Wing (SDTW).

The Government awarded the SCNC, F04701-02-D-0006, for satellite and network control services and support after a competitive source selection on 21 Dec 01. The contract includes Cost Plus Award-Fee (CPAF), Cost Plus Incentive-Fee (CPIF), and FFP contract type CLINs.

The RBC TSTR was not acquired previously on this contract.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY'S NEED

The RBC TSTR consists of telemetry, tracking, and commanding (TT &C) core electronics hardware and software/finnware subsystems that represent the functionality of an RBC and is integrated into a single van for land, air, and sea shipment.

The Air Force Satellite Control Network (AFSCN) is the DoD's primary network for launch and early orbit operations. The AFSCN provides TT &C capability, mission data dissemination and processing, and is the world's only high-powered network for emergency recovery ofDoD space vehicles. The RBC TSTR is a key component that will be used to test satellite compatibility with the AFSCN RBC system either in the factory (Factory Compatibility Test) or at the launch site (Launch-Based Compatibility Test).

Currently the AFSCN consists of legacy Automated Remote Tracking Stations (ARTS) and is modernizing to state-of-the-art tracking stations through the projects. There are five RBC fixed site projects and one TRBC project on contract. TRBC consists of three vans: one each for the Core CI, Antenna CI, and HPA Trailer CI (power). The RBC TSTR will duplicate the TRBC Core CI van. The TRBC Core CI van is in development and expected to be delivered in FYI4.

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The RBC TSTR will be the only dedicated compatibility test resource. The award of this delivery order will prevent launch slips and on-orbit communication failures due to lack of pre launch compatibility tests. The RBC TSTR will include, but may not be limited to, the following deliverables:

1. Project Management

2. Project Systems Engineering

3. Configuration Management

4. Procurement

5. Production

6. System Integration, Assembly, Checkout, and Delivery

7. Test and Evaluation

8. Data & Documentation

9. Integrated Logistics Support

10. Environmental Engineering Compliance

The value of these items is estimated at approximately $9,800,000.00

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION

The statutory authority for this contract action is contracting by Other than Full and Open Competition, 10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1(a) 2(ii), "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements." The FAR states supplies or services may be deemed to be available only from the original source in the case of follow-on contracts 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 fulfilling 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)

Award to any source other than the incumbent contractor will result in substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the Air Force's requirements.

The Government will utilize the RBC TSTR to verify compatibility between satellites and the AFSCN's RBC architecture prior to launch. The RBC TSTR must be an exact replica of the RBC architecture as manufactured by the incumbent contractor. If the RBC TSTR system performance differs slightly from the RBC system, it may result in either a "false negative" or a "false positive" response. A "false negative" response could result in the satellite's program office expending valuable resources (time, money and personnel) to fix a satellite that is operating correctly. A "false positive" response may not be discovered until the satellite is at the

Page 3 of7 http:9,800,000.00 launch site and could lead to expensive, time consuming launch slips as seen during the

Wideband Global SATCOM launch. Additionally, a "false positive" response may not be detected until after the launch and result in extensive on-orbit anomaly resolution procedures as evidenced with TacSat-2. Having an RBC TSTR core electronics suite that is exactly the same as the RBC core electronics suite would allow RBC TSTR's tests to be qualified as high-fidelity.

An RBC TSTR developed by any company other than HTSI could only be considered capable of providing a low-fidelity test; therefore, defeating the purpose of trying to test in an operationally representative environment.

If the Government chose to increase competition for the purpose ofthis acquisition, there would be significant duplication ofcosts estimated to be between $23.2M and $28.2M to compete, certify, baseline, test and manage a second contractor; whereas, the purchase of a TSTR RBC

Van from the incumbent is estimated to cost less than $ 10M.

The duplicative costs would not be expected to be recovered through competition. These costs were derived from the SCNG cost estimates, with the appropriate scaling factor added for our level of effort (typically 113 scaling factor due to 113 of equipment being purchased). In addition, the estimated delay was taken from the SCNG time estimates. Synopses of the major duplicative costs and amount ofdelay are:

$O.2M - Source Selection;

$6M - Recertification/testing cost for new baseline;

$0.5M - Management cost for two contractor program offices during development;

$4.5M - Cost to CDR for new contractor;

$7M - New Integration and Support Test Facility;

$5-$10M - Redevelopment or purchase ofC&S software (based upon 113 ofSCNG's

$15M - $30M total system estimate);

Total cost of $23.2M to $28.2M, in FY09 dollars, in addition to a delay of 36-42 months.

In addition to additional costs, the cited FAR authority allows for an exception to the requirement for full and open competition when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency's requirements. Currently, there are no RBC compatible test systems in existence even though the Vandenberg Remote Tracking Station was operationally accepted by the 50th Space Wing in December 2008. The anticipated availability for the RBC TSTR is FY12 (20 months after award); therefore, the Air Force will not have a dedicated asset capable of performing high-fidelity RBC testing for approximately three years. If the Government chooses to certify a new contractor's system, it would cause a significant delay of at least three additional years to certify, baseline, and test a new system; the Air Force would still be without the necessary ability to conduct high-fidelity tests on new satellites. Based on the RBC upgrade experience to date, recertification to ensure a new RBC design will connect fully with the existing AFSCN network and satisfy all users could last up to two years beyond what other contractors assumed in the Government's market research. The incumbent contractor, HTSI, is the only company with the unique and highly specialized Air Force Satellite Control Network certification.

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To summarize, even the slightest variation in system perfonnance of the RBC TSTR (when compared to the RBC), has a high probability of affecting the RBC TSTR's ability to accurately test satellite compatibility with the AFSCN; therefore, only HTSI, the developer of the RBC Transportable, can provide the highly specialized RBC TSTR. Trying to expand competition would result in a significant duplication of costs which, as previously stated, is not expected to be recovered during competition. Furthennore, and as previously mentioned, the additional delay of three years required to certify, baseline, and test a new contractor's system would significantly inhibit the Air Force's capability to perfonn RBC compatible high-fidelity tests on new satellites. Forcing a source selection, in lieu ofusing the current contractor, would delay the RBC TSTR acquisition, add cost and risk, and expend bidders' time and money with a negligible probability of success.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

Market research was recently conducted prior to the decision to issue a sole source follow-on contract. A synopsis was issued on 7 Jul 09 on FEDBIZOPPS under the title of "RBC _ TSTR."

The notice stated the Government's intent to negotiate and award a sole-source contract action to the incumbent; however, all responsible sources that could provide a high-fidelity RBC TSTR were requested to provide a statement of capability within 15 days of issuance of the notice. No responses were received other than a phone call from the incumbent.

Based on the above information and the fact that even the slightest variation in system perfonnance between the RBC TSTR and the RBC Architecture would significantly affect the RBC TSTR's ability to accurately test satellite compatibility with the AFSCN, the incumbent is the only known source for RBC TSTR.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

In accordance with FAR 15.402, the Contracting Officer will ensure the proposed prices are fair and reasonable, using price and/or cost analysis techniques. Cost proposed for this effort will be based on previous SCNC RBC production efforts to include the ongoing TRBC CORE CI Van.

Past efforts will be used in the evaluation of the proposed price.

The contractor will be required to provide Basis of Estimate (BOE) with supporting hours, labor mix, and rates and factors. In accordance with FAR 15.403-4, "Requiring Cost or Pricing Data," certified cost and pricing data will be required for this effort estimated at less than $1 OM. In accordance with FAR 15.404-1, "Proposal Analysis Techniques," cost and price analysis shall be used. In addition, the Contracting Officer will judge the costs based on DCAA audit reports, DCMA recommendations, technical evaluations, and historical costs.

The Contracting Officer will use these reports and recommendations to establish negotiation objectives in order to achieve a fair and reasonable price.

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VIII. DESCRIPTION OF THE MARKET RESREACH CONDUCTED AND THE

RESULTS, OR THE REASON WHY MARKET RESREACH WAS NOT CONDUCTED

As described in Section VI above, market research was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquires from interested parties. The only contact was from the incumbent.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

One of the key test principles espoused in AFI 99-103, Capabilities-Based Test and Evaluation, is to test in an operationally-representative environment using operationally-representative equipment. The Space Vehicles Test and Evaluation Handbook TOR-2006 (8546)-4591, written by the Aerospace Corporation and funded by SMC and NRO, states the need for using high fidelity test assets that are as close to the operational system possible as the program matures.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE

ACQUISITION

As stated in Sections VI and VIII, no additional sources, other than the incumbent below, expressed interest in this acquisition.

Honeywell Technology Solutions, Inc (HTSI)

1110 Bayfield Drive

Colorado Springs, CO 80906

XI. STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING

SUBSEQUENT ACQUISTIONS FOR THE SUPPLIES OR SERVICES REQUIRED

It is unlikely there will be a need to acquire an additional TRBC CORE CI Van. However should the need arise for additional work to upgrade and sustain the AFSCN, the following actions will be taken.

• Future sustainment and upgrades of the AFSCN (and associated equipment) will be open for competition after this procurement effort ends.

• The Government will pursue obtaining appropriate data rights and technical data to ensure competition for future sustainment contracts.

XII. CONTRACTING OFFICER'S CERTIFICATION

The contracting officer's signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best ofhislher knowledge and belief as per FAR 6.303-2(a)( 12).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL'S CERTIFICATION

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As evidenced by their signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility is both accurate and complete as per FAR 6.303-2(b).

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