Redacted_BFT2_UCA_JA_9MAR17.pdf

Blue Force Tracker-2 (BFT-2)-JA17-032

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JUSTIFICATION FOR

OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Federal Acquisition Regulation (FAR) Part 6, Justification & Approval (J&A) Supporting Procurements under FAR Part 15

Purchase Request Number: To be determined (TBD) Contract Number: HC1028-17-C-0010 Task/Delivery Order Number: Not applicable Procurement Title: Blue Force Tracker-2 (BFT-2) Estimated Value:

Statutory Authority: 10 U.S.C. §2304(c)(1)

JUSTIFICATION FOR OTFAOC

Justification for OTFAOC Number: JA17-032

Upon the basis of the following justification, I, as the Head of the Contracting Activity, hereby approve the use of OTFAOC of the proposed contractual action, pursuant to the authority of 10 U.S.C. §2304(c)(1) and the regulatory authority of FAR 6.302-1, Defense FAR Supplement (DFARS) 206.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

a) Requiring Agency:

United States (U.S.) Army, Program Executive Office Command, Control, and

Communications-Tactical (PEO C3T) Project Manager, Mission Command (PM MC) 6007 Combat Drive Aberdeen Proving Ground, Maryland 21005-1848

b) Contracting Office:

Defense Information Systems Agency/Defense Information Technology Contracting Organization (DISA/DITCO/PL8322) 2300 East Drive, Building 3600 Scott Air Force Base, Illinois 62225-5406

2. NATURE/DESCRIPTION OF ACTION(S):

a) The nature of this action is to procure ground BFT-2 transceivers in support of the U.S.

Army PEO C3T, PM MC. This procurement will be accomplished via an undefinitized contract action (UCA) to the original equipment manufacturer (OEM), ViaSat, utilizing a firm-fixed-priced (FFP) type contract.

b) Based upon the lead time of six months for the transceivers, the required deliveries will commence six months after contract award and be delivered at a rate of 1,000 units per month until complete. The total not to exceed value of this acquisition is . The applicable North American Industry Classification System code is 334220, Radio and

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Television Broadcasting and Wireless Communications Equipment Manufacturing, with a size standard of 750 employees. In accordance with DFARS 217.7404-4, will be obligated at the time of award of the UCA. Remaining funds will be obligated upon definitization. All funding will be obligated using the appropriate fiscal year procurement funds and other customer funds.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a) The Army has a requirement to distribute accurate digital command control (C2) and situational awareness (SA) data at all echelons to the platform and dismounted domains, populating a common operating picture and reducing risk of fratricide. In addition, the Army requires a networking solution that utilizes commercial L-band satellite services as the communications media to share platform-level C2 and SA information. The requirement is to be comprised of ground and aviation transceivers, satellite ground stations (SGSs), and satellite network control centers (SNCCs); all products must be interoperable with the current infrastructure and products. Ground and aviation transceivers are required to withstand a myriad of environmental requirements related to tactical ground vehicles and aviation platforms while operating on a single L-band satellite channel to communicate data. SGSs are also required to receive this data and, via terrestrial or satellite link, transfer the data to the SNCCs located in network operating centers (NOCs) throughout the world. The SNCCs then must ensure each NOC has a complete military theater view of all platform data to support C2 and SA. The requirement is a “turn-key” solution where all components within the solution seamlessly operate together to maintain a network operational availability requirement of 99.95 percent.

b) The herein stated requirement is for ground transceivers only which are a component of the BFT-2 system. BFT-2 is a part of the Joint Battle Command - Platform (JBC-P) family of systems. The JBC-P is a networked battle command information system that enables units to share near real-time friendly and enemy SA information, operational maps and graphics, and C2 messages. JBC-P is an upgrade from the Force XXI Battle Command Brigade-and-Below (FBCB2) Joint Capabilities Release and is fielded in both mobile and command post versions. Platform communications will be supported by the required satellite for mobile operations and the tactical internet for command post operations. The JBC-P program fulfills its mission requirements through multiple products/systems: vehicle computer systems (i.e., JV5, mounted family of computer systems), satellite transceivers (i.e., BFT-1/2), encryption devices (i.e., KGV-72), JBC-P software, and associated installation kits. The program is managed by U.S. Army, PEO C3T, PM MC, Product Manager (PdM) JBC-P.

c) PM MC estimates procuring 6,500 ground transceivers via the proposed contract action based upon available funding and the projected new unit price. However, PM MC requires 8,500 ground transceivers based upon fielding requirements; in the event that sufficient funds are available upon definitization of the UCA, the quantity procured will be correspondingly increased to a maximum of 8,500. PM MC fielding requirements are subject to change, and PM MC was delegated by Army Acquisition Executive &

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Assistant Secretary, Acquisition, Logistics and Technology as the single office to acquire this specific requirement. This blanket responsibility forms the basis of the estimated number of ground transceivers necessary to facilitate other Army customers’ requirements.

4. IDENTIFICATION OF STATUTORY AUTHORITY:

This acquisition is conducted under the statutory authority of 10 U.S.C. § 2304(c)(1) and the regulatory authority of FAR 6.302-1/DFARS 206.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

5. DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS:

a) Description of events: Contract W15P7T-10-D-C420 was awarded by Army Contracting Command Aberdeen Proving Ground on July 20, 2010. The single-award ID/IQ contract, comprised of Firm Fixed Priced (FFP) and Cost Plus Fixed Fee (CPFF) contract line items (CLINs), was awarded via full and open competition to ViaSat with a $477M ordering ceiling and a 5-year base period plus one 1-year option period. The contract allowed for the procurement of BFT-2 ground and aviation transceivers, SGSs, SNCCs;

leasing of commercial L-band satellite and communication connectivity bandwidth, and BFT-2 network engineering support services. The BFT-2 was procured as a turn-key industry non-development item (NDI) solution to meet Government performance requirements. At the time, a BFT-2 turn-key NDI acquisition strategy was assessed to be the best strategy to leverage private industry technology advancements and investments while reducing development costs to the Army. Under Contract W15P7T-10-D-C420, technical data rights were not obtained by the Government from the OEM, ViaSat. This lack of data rights has resulted in BFT-2 being a propriety solution that can only be provided by ViaSat.

b) Justification.

(1) Minimum Government requirements. At a minimum, the Government requires 6,500 NDI ground transceivers.

(2) Proposed sole source contractor. The only contractor capable of providing the required ground transceivers that meet the Government’s requirements is ViaSat.

ViaSat is the OEM of the BFT-2 solution which includes the proprietary BFT-2 waveform and networking software, ground and air transceivers, SGSs, SNCCs, and engineering support. The BFT-2 waveform and networking software were developed at private expense by ViaSat and are not for sale. Failure to procure the required BFT-2 solution would result in the Government having to procure a new BFT solution and replace all existing BFT-2s in the field to meet JBC-P requirements.

This would result in significant duplication of cost for the Army, estimated at $324.9M in BFT-2 hardware and services procurements, $160M in installation kit procurements, and $76M in air-worthiness testing (a total of $560.9M, based upon actuals spent to date). Unacceptable delays would also be realized, as it would

Page 4 of 8 Pages require approximately 12 months to allow a new BFT solution to complete first article qualification testing based upon the time realized under the BFT-2 contract.

(3) Discussion regarding cause of the sole source situation. The Army did not obtain data rights on BFT-2 hardware, to include the ground transceiver, the waveform, and/or software when the original BFT-2 solution was procured since the acquisition strategy was for a turn-key, NDI product. This lack of data rights has resulted in BFT-2 being a propriety solution that can only be provided by ViaSat.

(4) Demonstration of unique source. The BFT-2 solution, to include the ground transceiver, is manufactured by only one source, ViaSat, as the intellectual property associated with the BFT-2 waveform and networking software were designed and developed at private expense. The BFT-2 waveform and networking software are the heart of the BFT-2 solution since they provide the ‘network.’ Without the proprietary BFT-2 waveform and networking software installed on the associated hardware, there is no way to access the network, resulting in no way to communicate.

(5) Procurement discussion. This proposed acquisition is constrained by ViaSat’s proprietary BFT-2 waveform and networking software. There are no other products available to meet JBC-P requirements without the BFT-2 waveform and networking software. The BFT-2 network runs on the proprietary BFT-2 waveform and networking software of ViaSat. As the waveform and networking software are proprietary to ViaSat, the Government cannot maintain the network without ViaSat, the OEM. As ViaSat is not willing to sell their proprietary waveform and networking software, the Government is limited to the procurement of ViaSat’s complete BFT-2 solution, including ground and aviation transceivers, SGS, and SNCCs, which are installed with propriety waveform and networking software, which results in component breakout not being possible. All other alternatives, to include ground transceivers, require the Government to purchase a complete new BFT solution, resulting in significant duplication of cost and disruption to JBC-P fielding requirements.

(6) Impact. If the required BFT-2 ground transceivers from ViaSat are not procured, a gap in fielding BFT-2 will occur as the current stock runs out in August 2017. Gaps in fielding any of the JBC-P products, to include BFT-2 ground transceivers, have far-reaching impacts: fielding delays drive cost and impact schedules of all vehicular platforms expected to receive the hardware; the capability of deployed units is affected resulting in diminished warfighting capabilities; and operation and sustainment costs are increased as older hardware is left in the field longer. Of these impacts, the most concerning to the Army is diminished warfighting capabilities.

Many units slated to receive JBC-P products, including the transceivers, are operating on older and/or obsolete communication systems that have a number of cyber vulnerabilities. If all JBC-P products, to include ground transceivers, are not available for a unit fielding then the unit cannot receive any of the JBC-P products, since they work synchronously. Therefore, those units will have to be deployed with their existing out-of-date communications systems, resulting in the unit’s operating

Page 5 of 8 Pages with a number of vulnerabilities that can be exploited by an adversary. This could ultimately lead to blind operational forces, a destruction of mission integrity, mission failure, and loss of life.

6. FEDBIZOPPS (FBO) ANNOUNCEMENT/POTENTIAL SOURCES:

On April 7, 2016, a Sources Sought/Sole Source Intent was posted by DISA in order to identify potential sources capable of producing, manufacturing, testing, and delivering BFT-2 ground and aviation transceivers, SGSs, and SNCCs to support PM MC-managed systems and related subsystems of PEO C3T requirements, as well as to inform industry that the Government intended to award a non-competitive contract to ViaSat. Additionally, the Notice of Intent encouraged interested sources to submit their interest in the procurement in writing to DITCO.

One response was received from industry: General Dynamics (GD), large business. GD's response proposed a BFT 2.5 capability that would be a complete replacement of the current BFT-2 solution with enhanced capability that was not requested and has not been tested or verified by the Government. Therefore the GD submission failed to meet BFT-2 requirements.

A Request for Information (RFI) was posted on September 15, 2015 thought October 30, 2015 on the FBO website. The Government received six responses from industry including Comtech Mobile, large business; Hughes Network Systems, small business; General Dynamics Mission Systems, large business; TrustComm, Inc, small business; ViaSat, Inc., large business; and Ultisat, small business.

7. DETERMINATION OF FAIR AND REASONABLE PRICE:

A determination will be made by the contracting officer that the anticipated price to the Government is fair and reasonable in accordance with FAR 15.4, based upon price comparison to the independent Government cost estimate, previous contract history, and other considerations.

Previous contract history includes OEM cost data for the transceivers.

8. MARKET RESEARCH:

On September 15, 2015 through October 30, 2015, the Government conducted market research in accordance with FAR Part 10 by issuing a RFI, PL83220020, via the FBO website. The intent of the RFI was to identify potential sources capable of producing, manufacturing, testing, and delivering BFT-2 ground and aviation transceivers, SGSs, and SNCCs to support PM MC-managed systems and related subsystems of PEO C3T requirements.

In response to the RFI, the Government received six responses from industry including Comtech Mobile, large business; Hughes Network Systems, small business; General Dynamics Mission Systems, large business; TrustComm, Inc, small business; ViaSat, Inc, large business; and Ultisat, small business. Each vendor addressed 18 specific areas outlined in the RFI which included, among other things: detailed descriptions of proposed transceiver; proposed equipment size; description of ability to meet delivery schedules; and proposed packaging of equipment. In addition to these formal responses, the Government received phone calls/emails from six additional vendors: STS Global, large business; Core Source Technologies, small business;

Glocom, Inc, small business; Alico Systems, small business; The Genus Group, small business;

Page 6 of 8 Pages and Lockheed Martin, large business, informally expressing their interest in this requirement.

However, none of the vendors that corresponded via phone or email provided complete responses to the RFI requests or questions to a degree where their adequacy to participate could be evaluated.

Government technical experts reviewed all responses and determined that there is only one source available to meet Government requirements, ViaSat. All other interested vendors, in their response to the RFI, either proposed a new “turn-key” BFT family of systems that exceeds the current performance envelope (which the Government did not request and cannot afford) or assumed the Government would provide the current BFT-2 waveform for use. As discussed, the BFT-2 waveform and network software are proprietary to ViaSat, and the Government cannot provide the BFT-2 waveform or network software to other potential offerors to support a competition. The requirement for the ground transceivers is part of the “turn key” BFT-2 solution, and all components within the solution must seamlessly operate together to maintain a network operational availability requirement of 99.95 percent. Therefore, the OEM of the BFT-2 solution, ViaSat, is the only available source for this proposed acquisition.

9. ANY OTHER SUPPORTING FACTS:

Not applicable.

10. LISTING OF INTERESTED SOURCES:

The BFT-2 RFI, released on September 15, 2015, received six responses from industry including Comtech Mobile, large business; Hughes Network Systems, small business; General Dynamics Mission Systems, large business; TrustComm, Inc, small business; ViaSat, Inc., large business;

and Ultisat, small business. In addition, on April 7, 2016, a Sources Sought/Sole Source Intent was posted by DISA. One response was received from General Dynamics, a large business.

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION:

a) Procurement History.

b) The Government is not currently able to procure the data rights to the BFT-2 waveform and networking software. However, the Government has established a BFT next

Contract/Delivery Order Number: W15P7T-10-D-C420 Brief Description: FBCB2 BFT-2 Contractor: ViaSat, Inc.

Business Type: Large business Life-Cycle Contract Value: $477M PoP (including all options): July 20, 2010 – July 19, 2016 Contract Type: FFP and CPFF Basis of Award: Full and Open Competition Previous Protests/Congressional Inquiries: None

Page 7 of 8 Pages generation integrated product team (IPT) with the general Army Science and Technology community and industry to assess options for the next generation of BFT. One of the main focuses of this IPT to finding a backwards-engineered compatible solution that will allow interoperability between BFT-2 and the next generation. This would ensure the Army can continue to capitalize on its current BFT-2 investment while also reducing its dependency on the sole source solution and introduce competition.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP):

An AP was developed and is in coordination for approval.