Redacted JA.pdf

CUI//SP-PROCURE//FEDCON

Control No: [Redacted]

Contractor: Applied Research Associates, Inc.

Supply/Service: Geospatial Intelligence (GEOINT) Production Systems (GPS)

REDACTED JUSTIFICATION REVIEW DOCUMENT

for Other than Full and Open Competition - FAR Part 6

Programs/Equipment: Geospatial Intelligence (GEOINT) Production Systems (GPS)

Authority: 10 U.S.C. 3204(a)(5) as implemented by FAR Part 6.302-5 -- Authorized or Required by Statute -- Section 874(b)(2) of the 2022 National Defense Authorization Act (NDAA) -- Pilot Program to Incentivize Contracting with Employee-Owned Businesses

Amount: [Redacted]

Prepared by: [Redacted]

Contracting Officer: Christopher R. Moy DSN: 290.2021 Contracting Officer Date: 01/18/2023 Email: christopher.r.moy.civ@army.mil

Technical: [Redacted]

Requirements: [Redacted]

Controlled by: US Army Controlled by: ACC-APG

CUI Category: General Procurement and Acquisition Distribution/Dissemination Control: FEDCON

POC: Christopher Moy, 301-394-2021

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager:

[Redacted]

Legal Counsel:

Command Advocate for Competition:

Justification and Approval for Other than Full and Open Competition – FAR Part 6

1. Contracting Activity: U.S. Army Contracting Command – Aberdeen Proving Ground (ACC-APG), Adelphi Contracting Division (CCAP-SCA), 2800 Powder Mill RD, Adelphi, MD 20783.

2. Description of Action: The National Geospatial Intelligence Agency (NGA) and the Army Research Laboratory (ARL) request a new Cost-Plus Fixed Fee (CPFF) contract with Applied Research Associates, Inc. (hereafter referred to as “ARA”), 4300 San Mateo Blvd NE, Suite A-220, Albuquerque, New Mexico, 87110-1295 (CAGE Code: 9R446). The Government projects award in May during Fiscal Year (FY) 2023 for an initial one (1) year base period of performance with two (2) one (1) year options. [Redacted] funds will be used. The required acquisition plan in accordance with FAR 16.301-3(a)(2) and/or DFARS 207.103(d)(i) and will be approved by the Senior Contracting Official (SCO).

Head of Contracting Activity approval is required for this Justification in accordance with Army Federal Acquisition Regulation Appendix GG and is delegable to a General Officer or Senior Executive Service level Senior Contracting Official (SCO). SCO approval is requested to authorize award to ARA, as ARA is currently leading projects supporting [Redacted] and sole source award to ARA is authorized under the Pilot Program to Incentivize Contracting with Employee-Owned Businesses. Awarding to ARA will ensure continued, seamless support for those projects.

3. Description of Supplies/Services:

The objective of this contract is to provide end-to-end support for the continued development, implementation, and extension of today’s evolving National System for Geospatial (NSG) architecture to the forward edge delivering Geospatial Intelligence (GEOINT) data, tools, and services to forward deployed warfighters, mission planners, and analysts. Multiple NGA Directorates are focused on this mission including [Redacted]. Each of these offices is focused on rapid identification and deployment of innovative and disruptive technologies, upgrades, and modifications to the current NSG architecture, and enhanced analytic capabilities in order to optimize detection, collection, processing, characterization, exploitation, and dissemination of GEOINT to NGA mission partners.

Period of Performance: One (1) base year with two (2) Option Years Estimated Dollar Value: [Redacted]

CLIN Description Period of Performance 0001 RDT&E Support 05/31/2023 – 05/30/2024 0002 O&M Support 05/31/2023 – 05/30/2024 0003 Option Year 1 RDT&E Support 05/31/2024 – 05/30/2025 0004 Option Year 1 O&M Support 05/31/2024 – 05/30/2025 0005 Option Year 2 RDT&E Support 05/31/2025 – 05/30/2026

0006 Option Year 2 O&M Support 05/31/2025 – 05/30/2026 0007 Deliverables 05/31/2023 – 05/30/2026

IGE includes labor categories, fully burdened rates for each fiscal year (FY), projected full-time equivalents (FTE) and estimated hours for each FTE. All estimates were based off the previous GEOINT Architecture Services (GAS) Task Order [Redacted] and account for a three (3) percent labor rate increase each year. This effort includes research, development, analysis, test, secure, document, train, demonstration, and implementation capabilities for traditional and disruptive technologies to GEOINT capabilities, algorithms, and analytic tools. It also includes architectural support for a robust infrastructure (whether on-premises, through the cloud, or at the tactical edge) and both the development of new concepts and improvements to existing systems and tools. Specific efforts include:

conducting basic research, applied research, and advanced development efforts;

analyzing technical data; experimental test planning; conceiving experimental, analytical, and numerical approaches to solve problems; conducting high performance computing (HPC) simulations/prototypes, market surveys and technical evaluation.

[Redacted]

4. Authority Cited: 10 U.S.C. 3204(a)(5) as implemented by FAR Part 6.302-5 -- Authorized or Required by Statute -- Section 874(b)(2) of the 2022 National Defense Authorization Act (NDAA) -- Pilot Program to Incentivize Contracting with Employee- Owned Businesses

5. Reason for Authority Cited:

On [Redacted], this anticipated procurement was approved by the Acting Director of Contract Policy (CP), Defense Pricing and Contracting (DPC), Office of the Under Secretary of Defense for Acquisition and Sustainment (OUSD(A&S)), under the Pilot Program to Incentivize Contracting with Employee-Owned Businesses authorized by Section 874 of the National Defense Authorization Act for FY 2022 (Pub. L. 117-81). This Pilot Program allows the noncompetitive award for certain follow-on contracts to an employee-owned business that meets the definition of a "qualified business." Section 874 defines a "qualified business" as an S corporation (as defined in section 1361(a)(l) of the Internal Revenue Code of 1986) for which 100 percent of the outstanding stock is held through an employee stock ownership plan as defined in section 4975(e)(7) of such code.

ARL received approval from Defense Pricing and Contracting to sole source this procurement to ARA under the Section 874 Pilot Program using the authority at FAR 6.302-5, Authorized or Required by Statute. ARA has certified that it meets the definition of a qualified business, wholly owned through an Employee Stock Ownership Plan (ESOP) and is a participant in this pilot program. Therefore, ARA is the sole source for the subject requirement for GEOINT Production Systems.

ARL will use this new contract to extend the existing ARA-lead projects currently supporting [Redacted]. The pilot authority will allow ARL to ensure that the truly mission critical work that ARA is performing will be seamlessly supported. The pilot program will result in a sole source extension. [Redacted]. As such, ARL will take advantage of ARA’s employee stock ownership plan (ESOP) status to enable/ensure continuous support of the projects they lead.

[Redacted]

Therefore, based upon the approval from Defense Pricing and Contracting to sole source this procurement to ARA under the Section 874 Pilot Program, this procurement will be sole sourced to ARA for the aforementioned GEOINT Production Systems. No other company is positioned to continue to provide seamless support to ongoing [Redacted].

6. Efforts to Obtain Competition: As required by FAR 5.201, a synopsis was posted to SAM.gov on 27 February 2023, and any responses from industry will be considered.

a. Effective competition. Effective competition is not anticipated for this procurement based upon the Government’s market research and approval from Defense Pricing and Contracting to sole source this procurement to ARA under the Section 874 Pilot Program using the authority at FAR 6.302-5, Authorized or Required by Statute. To date, no sources other than ARA have written to express interest in this acquisition.

b. Subcontracting competition. An Individual Subcontracting Plan will be required as this is a non-commercial purchase over $750,000.00 awarded to an other than small business. In order to promote subcontracting competition, the resultant contract will include FAR clauses, 52.219-8, Utilization of Small Business Concerns, and 52.244-5, Competition in Subcontracting.

7. Actions to Increase Competition: ARL will continue to monitor the market for other potential sources to increase future competition for this requirement and any associated services. ARL will continue to pursue web searches, consultations with knowledgeable Government, university, and industry personnel, and attend trade shows or web-based communications to help locate alternative sources that can provide the required services.

The Government does not plan to compete this requirement to other sources due to the approval from Defense Pricing and Contracting to sole source this procurement to ARA under the Section 874 Pilot Program using the authority at FAR 6.302-5, Authorized or Required by Statute. The Government will also continue to evaluate opportunities to promote competition by considering the feasibility of pulling out portions of future sole source requirements for competition.

8. Market Research: Market research was performed from June 2021 through September 2022 by the NGA Technical Executive and Contracting Officer’s Representative for the services being procured. The Government contacted knowledgeable people and subject matter experts within Government and industry to determine if other vendors have the capabilities to meet the requirements of the projects noted above. In addition, Government representatives continually provide market research surveillance by searching and reviewing catalogs, literature on manufacturers, distributors, and dealers, along with on-line sources, such as, Amazon Cloud Products Offering, The Drone Databook, and GSA

Technology & Services Online Capability Resource to seek qualified and interested vendors. There are currently no other companies offering the system services and associated training for the technical areas note above that meet the accreditation and security requirements with the associated NGA architecture. Thus, no other company is positioned to continue to provide the seamless support to [Redacted].

9. Interested Sources: To date, only the proposed vendor, ARA, has written to express interest in this acquisition.

10. Other Facts:

a. Procurement History

Contract: [Redacted] Contractor: Applied Research Associates Award Date: 26 September 2019 Period of Performance: 28 September 2018 – 8 March 2023 Dollar Value: [Redacted] Competitive Status: Competitive Task Order

Authority: Not Applicable

b. As required under this Pilot Program, ARA has certified:

It meets the definition of a qualified business as defined in the policy memo, They will not expend more than 50 percent of the amount paid on subcontracts, They agree to provide responses required by the Data Collection Template, and within 30 days of Contracting Officer request.

11. Technical Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Signer’s Title: [Redacted]

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Signer’s Title: [Redacted]

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using cost analysis and comparison to the IGE. As a part of this basis, certified cost and pricing data will be required.

As a part of this basis, certified cost, or pricing data will be required.

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Approval

Based on the foregoing justification, I hereby approve the procurement of Geospatial Production Systems (GPS) for an estimate of [Redacted] on an another than full and open competition basis pursuant to the authority of 10 U.S.C. 3204(a)(5) as implemented by FAR Part 6.302-5 -- Authorized or Required by Statute -- Section 874(b)(2) of the 2022 National Defense Authorization Act -- Pilot Program to Incentivize Contracting with Employee-Owned Businesses, subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition.

End of J&A