Redacted Justification and Approval - JA-20-Nat-145.pdf

Control No: JA-20-Nat-145 Contractor: Textron Systems

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

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

1. Contracting Activity: Army Contracting Command-Aberdeen Proving Ground, Natick Contracting Division, ATTN: CCAP-SCN, General Greene Avenue, Natick, MA 01760.

2. Description of Action: The Unmanned Aircraft Systems (UAS) Project Office requests a Firm Fixed Price new contract with Textron Systems (Textron), 124 Industry lane, Hunt Valley, MD 21030. The Government projects award for April 2020 and fiscal year 2019 and 2020, 2-Year Oversees Contingency Funding (OCO) funds will be used.

3. Description of Supplies/Services: This requirement is in support of FMS Case QE-B- UTU, implemented 23 July 2019, for three Aerosonde Mk4.7 Systems; one lot of Initial Spare Parts; one year of Contractor Logistics Support; two Field Service Representatives for twelve months; and Continental United States (CONUS) New Equipment Training.

Period of Performance is from date of award thru 30 September 2021. The total value is $25,610,000.00 and will be obligated at time of award.

Three Aerosonde Mk4.7 Systems $14,200,000.00 One lot of Initial Spare Parts $ 3,830,000.00 Contractor Logistics Support $ 1,100,000.00 Two Field Service Representatives $ 5,500,000.00 CONUS New Equipment Training $ 980,000.00

Total value $25,610,000.00

4. Authority Cited: The acquisition will be made under the statutory authority permitting other than full and open competition of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Reason for Authority Cited:

a. As described at FAR 6.302-1(a)(2), when the supplies or services required by the agency are available only from one responsible source, or for DoD, NASA and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for.

FOR OFFICIAL USE ONLY

Program/Equipment: Aerosonde Mk4.7

b. Textron, 124 Industry lane, Hunt Valley, MD 21030 is the only source capable of performing the required work based on the follow:

(1) The USG has an immediate need to provide the Government of Nigeria with an Unmanned Aircraft System (UAS) that meets all of the requirements outlined in the Sources Sought Notice (SSN), reference paragraph 8. In order to accomplish the USG's objective of building the capacity of Nigeria's security forces and enhancing their capability to conduct counterterrorism, counter drug, and counterinsurgency operations, and to support U.S. military and stability operations, multilateral peace operations, and other programs, a total package approach (TPA) for the Aerosonde Mk4.7 System is required. The required TPA must provide adequate spares, new equipment training, and contractor logistics support (CLS) for the UAS all within the compressed timeline requested by country.

(2) The required system must satisfy the salient characteristics identified in the FMS case and detailed at paragraph 8, below. These mandatory features are critical for operating in remote areas with minimal logistical support such as access to other than heavy fuel, continued operations in austere environmental conditions, and climate extremes, with a focus on simplicity of a single point trailer launch/recovery system. The system generally consists of the following basic components: unmanned aircraft vehicles (UAVs), payloads, ground control stations (GCS) with ground data terminals (GDTs), a single point launch and recovery trailer, ground support equipment, simulator and electronic technical manuals.

(3) The benefiting country, Nigeria, has provided details of its existing capabilities, capacity and security requirements and the USG has identified mandatory critical features, with country input, that satisfy the Building Partnership Capability (BPC) program objectives and aggressive schedule. On the basis of its market research outlined in paragraph 8, below, the USG has concluded Textron, is the only vendor whose system can fulfill the mandatory critical features of this requirement, including the support requirement within the specified time. Current program schedule (Figure

1) dictates the earliest possible production start date in order to enhance the Government of Nigeria's surveillance capabilities in support of the Department of policy objectives.

Figure 1

LOA Implements/Obligation: Jul 19 (T=0m)

CONTRACT AWARD: UAV Production /CLS/Training Mar 20

Aircraft DD250 Nov 20 Aircraft Delivery: Arrive in country Dec 20

2019 2020 2021

J F M A M J J A S O N D J F M A M J J A SJ A S O N D

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

The earliest possible award is necessary to enable the reduction in U.S.

forces deployed to Nigeria in support of Nigeria's struggle against Boko Haram and other jihadist insurgent factions. Delay in deployment of the systems creates a day for day slip in execution of the State Department's BPC mission and increases loss of life risk by extending deployments of supporting U.S. forces. Textron is the only vendor that meets all requirements and can perform all required tasks within the time constraints identified in the FMS case program schedule (Figure 1).

(4) Textron is currently commercially producing and supporting the Aerosonde Mk4.7 in area of operation and, as a result, has proven experience and a well-established supply chain between the area of operation and the United States. As the original equipment manufacturer (OEM), Textron owns, and has access to all of the Technical data relating to the Aerosonde Mk4.7 and, in turn, is able to quickly troubleshoot and correct previously unknown failures. Further, as the design authority, Textron continues to monitor the environmental effects on the Aerosonde Mk4.7 and approves any/all repair procedures.

(5) The Textron Aerosonde system has an approved Airworthiness Release (AWR). Having a current AWR decreases the schedule by as much as 180 days. The US Army Aviation Engineering Directorate (AED) has evaluated operational risk impacts and endorsed an Airworthiness Release (AWR) in support of the Textron Aerosonde Mk4.7 System Airworthiness. IAW AR 70-62 (Airworthiness of Aircraft Systems), a valid AWR is required in order for training to be administered via an Army contract, that is, training for FMS students is not authorized to begin until this requirement is met. The UAS Division Chief for AED System Engineering has indicated that a comparable system to the Aerosonde will take approximately 180 days to fully evaluate the scope of risk required for the organization to issue an AWR. Obtaining an AWR for another system would create an unacceptable delay.

(6) The Textron Aerosonde system holds a commercial off-the-shelf (COTS) waiver authorizing Department of Defense procurement and use of the UAS.

In general, UAS platforms that are not a Program of Record will require this waiver through the Office of the Secretary of Defense for each purchase of the UAS, with a lead time of approximately 60 days. The 180 day AWR approval must be completed prior to the 60 day processing window required for the COTS waiver, resulting in a total schedule delay of 240 days.

(7) The Aerosonde Mk4.7 system meets all requirements outlined in the SSN and upon award can immediately be produced. A change in the identified system or a system that does not best meet those requirements will require approval from the Government of Nigeria, DSCA, and endorsement from the Combatant Commander supported by a Country Team Assessment. Specific

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

timeline for all of these events to occur is unknown, but is estimated to take a minimum of 90 days. Upon receiving all required approvals/endorsements, a case modification to the FMS case will take an additional 120 days for approval prior to development of a new Contract Requirement Package.

Totaling a 210 day shift in program schedule for any deviation from the Aerosonde Mk4.7 UAS. Based on the requirements identified above, expected delay incurred is estimated at least 15 months in performance prior to development of the Contracts Requirement Package.

c. Alternatives: There are no other viable alternatives that will meet all requirements identified by the country of Nigeria in FMS Case QE-B-UTU.

and upon award can immediately be produced. A change in the identified system or a system that does not best meet those requirements will require approval from the Government of Nigeria, DSCA, and endorsement from the Combatant Commander supported by a Country Team Assessment. Specific timeline for all of these events to occur is unknown, but is estimated to take a minimum of 90 days. Upon receiving all required approvals/endorsements, a case modification to the FMS case will take an additional 120 days for approval prior to development of a new Contract Requirement Package. Totaling a 210 day shift in program schedule for any deviation from the Aerosonde Mk4.7 UAS.

d. Address the following as applicable.

(1) What are the verified minimum requirements of the Government? How much further will the current items/services carry you? How much additional items/period of performance will you require? Not Applicable

(2) If competition would have been feasible had more time been available, discuss other factors that had an impact on the decision to solicit only one or a limited number of sources to satisfy the requirement (e.g. time available versus time required, phase-in/phase-out time, complexity of requirement, etc.). The Textron Aerosonde system holds a commercial off-the-shelf (COTS) waiver authorizing Department of Defense procurement and use of the UAS. In general, UAS platforms that are not a Program of Record will require this waiver through the Office of the Secretary of Defense for each purchase of the UAS, with a lead time of approximately 60 days. The 180 day AWR approval must be completed prior to the 60 day processing window required for the COTS waiver, resulting in a total schedule delay of 240 days.

(3) Whenever the required action was "directed or mandated" by some higher level, be sure to include full information saying who imposed the requirement, how the mandate was communicated and the rationale for the mandate. Attach the applicable documentation (letter, message, etc.). FMS Case QE-B-UTU, attachment 01, identified Nigeria as the benefiting country. Nigeria, has provided details of its existing capabilities, capacity and security requirements and the USG has identified mandatory critical features, with country input, that satisfy the FMS Case objectives and aggressive schedule.

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

The Aerosonde Mk4.7 was specifically called out within the Case and on the basis the market research outlined in paragraph 8, below, the USG has concluded Textron, is the only vendor that manufactures the Aerosonde Mk4.7 and whose system can fulfill the mandatory critical features of this requirement, including the support requirement within the specified time.

Current program schedule (Figure 1) dictates the earliest possible production start date in order to enhance the Government of Nigeria's surveillance capabilities in support of the Department global policy objectives.

e. The following constraints restrict competition:

(1) Textron owns all technical data packages and training materials that support the Aerosonde Mk 4.7 UAS. Textron has confirmed that they will not provide or release any technical data packages and training materials to third party organizations.

(2) Compressed program schedule in order to enhance the Government of Nigeria's surveillance capabilities in support of the Department of global policy objectives.

6. Efforts to Obtain Competition:

a. No effective competition is anticipated. The proposed contract action was published in the Federal Business Opportunities portal (FedBizOpps) on 7 October 2019 as a SSN in accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 206.302- 1 specifically in support of this requirement. Based on the reasons documented in paragraph 5 above, Textron currently is the only source possessing the total system knowledge, expertise, and technical data necessary to provide a system and its support that satisfies the current USG requirement. The Contracting Officer shall publish the notices required by FAR 5.201 and any bids or proposals received shall be considered. The USG will monitor sources expressing an interest in this requirement as a result of the synopsis notice and any proposals or capability statements received shall be considered. See paragraph 8 Market Research.

DFAR 206.302-1 requires publication of a RFI or sources sought for the requirement and include the results of the inquiry in the J&A unless waived by the HCA.

b. A subcontracting plan IAW FAR 52.219-9, has been requested. In addition, FAR 52.219-8, which requires the contractor to utilize small businesses in subcontracting to the fullest extent consistent with efficient contract performance and FAR 52.244-5, which encourages the prime contractor to compete subcontracts to the maximum extent possible consistent with its commercial practices will be included.

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

7. Actions to Increase Competition:

Although the BPC program is continuing in nature, this is a one-time requirement and no future similar acquisitions are anticipated. However, if a similar requirement arises, every effort will be made to compete it to the maximum extent practicable. However, Textron owns all technical data packages and training materials that support the Aerosonde Mk 4.7 UAS.

Textron has confirmed that they will not provide or release any technical data packages and training materials to third party organizations. Textron is the only vendor that is capable of providing a total package approach support infrastructure required to support the Government of Nigeria. This total package approach includes system spares, tooling and the system technical data required for training and on site Field Support Representatives and no other supplies or services will satisfy the government's requirements.

8. Market Research:

a. In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a sources sought notice (SSN) was posted to the Federal Business Opportunities (FedBizOpps) on 7 October 2019 for 21 days and the results were three companies responded. Based on the country's specific requirements, market research was conducted to identify potential vendors with the ability to support the effort. A technical assessment was performed by the government TUAS Logistics Team Lead within the IPO. Of the responses received, Textron was the only vendor who could meet all of the requirements to provide the complete package OEM Aerosonde Mk 4.7 system, ISP, training, and CLS in the timeframe required. Based on reviewing commercial information available over the internet and confirmation that the vendor owns all Aerosonde Mk 4.7 data rights, no other vendor is able to deliver a total package approach support structure within the scope of system requirements.

b. The information below captures data submitted by vendors in response to SSN-19- 000-014835. Results from technical evaluations of the SSN responses show that only Textron demonstrated the ability to meet the salient characteristics addressed in the SSN.

(1) lnsitu provided capabilities and technical description for the ScanEagle3 UAS, which does not meet the requirement for runway independence with a single point launch and recovery trailer. lnsitu's response to the SSN outlines the ScanEagle3 performance capabilities, as they relate to the salient characteristics requirements within the SSN. In response to this requirement, lnsitu claims to exceed the requirement with a Hybrid Quadrotor Vertical Takeoff and Landing (HVTOL) kit that is currently in development and not production ready. However, this system does not offer a configuration with a single point launch and recovery trailer which has been identified as a requirement to support simplicity of operation. A single

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

trailer that reduces ground equipment footprint without the additional complexity of operation and maintenance of a HVTOL kit.

(2) Skylogic Solutions provided capabilities and technical description for the Flexrotor UAS, which does not meet several of the required salient characteristics including the datalink requirement of 140 km, full motion video payload requirement (outlined in below table), propulsion utilizing Heavy Fuel (JP-5, JP-8, Jet A/A1, F-24), datalink encryption criteria, and aircraft environmental condition requirement.

SALIENT CHARACTERISTICS

Capability

Met Y/N

Capability Met Y/N

Capabilit y Met

YIN

lnsitu Inc.

Skylogic Solutions

Inc Textron

The Air Vehicle (AV) will have an endurance of 14+ hours. y y y

The AV will have a range of 140 km from the Ground Control Station. y N y

The AV will have a service ceiling of 15,000 ft DA. y y y

The AV will have radio communications relay capability.

y y y

The system will be runway independent with a single point launch and recovery trailer.

N* y y

The AV will have ability to carry a minimum payload capacity of 15 lbs y y y

The AV will be equipped with a Full Motion Video (FMV) payload containing day and night imaging capability in a single sensor.

Daylight camera will be capable of continuous optical 36x zoom. Night camera will be mid wave IR camera with continuous optical 1Ox zoom and continuous digital 4x zoom with a resolution of 640x512.

y N y

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

* In reference to paragraph 8.0 (Current Application Summary) of lnsitu's response to the SSN, they appears to have incorrectly interpreted the requirement for a single point launch and recovery trailer to mean, "runway independent". Their prototype UAS does not meet the stated requirement, nor is their offered UAS out of prototyping, reference their submission to the SSN.

(3) Textron is the only vendor that responded to the SSN that is able to meet all salient characteristic requirements.

(4) The only vendor not listed below, Arcturus UAV, responded to the SSN past the submission deadline. However, the platform included in Arcturus UAV's response still did not meet the salient characteristic requirement for a Heavy Fuel engine.

SALIENT CHARACTERISTICS

Capabilit y Met Y/N

Capability Met Y/N

Capabili ty Met

YIN

lnsitu Inc.

Skylogic Solutions

Inc Textron

The AV propulsion will utilize Heavy Fuel (JP-5, JP-8, Jet A/A1,F-24).

y N y

The AV datalink will be exportable to non- NATO countries capable of UHF, Sand L band.

Additionally, datalink will have ability for

AES-

256 bit encryption.

y N y

The AV will be capable of launch, land and operation in winds up to 30 knots y y y

The AV will operate in -20°C to +50°C climatic conditions.

y N y

The AV will operate in up to 0.25 inch of rain per hour.

y y y

The system will be capable of full flight operations with three trained personnel.

y y y

The fully operational system will be capable of transport on single C-130 with all personnel.

y y y

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

9. Interested Sources: See Paragraph 6 for the synopsis information. To date, no other sources have written to express interest in the acquisition other than those who responded to the SSN-19-000- 014835. Those vendors, Insitu, Skylogic, and Textron, were evaluated based on their timely response to SSN-19-000- 014835. Reference paragraph 8.c. and supporting table for data evaluated from interested sources. The only source who met the requirements was Textron. The USG will monitor sources expressing an interest in this or future requirements through the utilization of SSNs.

Market research will continue to be gathered as technical advances are made and other viable competitive companies emerge.

10. Other Facts:

a. Procurement History:

(1) Contract W911QY-17-C-0120 was awarded on 15 September 2017 in support of another Partner Nation FMS requirement for one Aerosonde Mk4.7 System and Support. This was a non-competitive action. Contract W911QY-17-C-0120 was awarded under the statutory authority permitting Other Than Full and Open Competition is Title 10 USC 2304 (c) (1) as implemented by FAR 6.302-1, Only one responsible source and no other suppliers or services will satisfy agency requirements.

(2) No prior contract for this requirement was accomplished using full and open competition.

(3) No unusual patterns have been revealed by reviewing the purchase history of the Aerosonde Systems.

(4) Textron designed the Aerosonde Mk4.7 and currently retains title to technical data relating to the Aerosonde Mk4.7 Systems. Textron has confirmed that they will not provide or release any technical data packages and training materials to third party organizations. Therefore, Textron was and remains the only source capable of satisfying the FMS order.

b. Class J&A: NA

c. Discuss any other facts that should be addressed to support this action, e.g. unusual and compelling urgency, subcontracting competition requirements, etc.

(1) Acquisition Data Availability. NA

(2) Unusual and Compelling Urgency. NA

(3) Subcontracting Competition. NA

(4) Follow-on Contracts. NA

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

(5) Warranty: Textron provides a commercial warranty that for 12 months hardware is free of material defects and the warranty is not separately priced.

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

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.

Typed Name: William L. Givens Date:

Title: Director, International Program Office Signature:

UAS Project Office

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.

Typed Name: William L. Givens Date:

Title: Director, International Program Office Signature:

UAS Project Office

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

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 the following: cost analysis price analysis should cost IGCE audit: (identify the audit type) other:

As a part of this basis, certified cost or pricing data:

will be required.

will not be required and the following exception applies (FAR 15.403):

Prices that will be agreed upon are based on adequate price competition.

Prices that will be agreed upon are based on prices set by law or regulation.

A commercial item is being acquired.

A waiver has been granted by the head of the contracting activity (HCA) in accordance with DFARS PGI 215.403-1.

The contract action is a modification to a contract or subcontract for commercial item(s).

The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

Typed Name: Stephen E. Jones Date:

Title: Contracting Officer Signature:

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

Typed Name: Stephen E. Jones Date:

Title: Contracting Officer Signature:

Program/Equipment: Aerosonde Mk4.7

FOR OFFICIAL USE ONLY

Approval

Based on the foregoing justification, I hereby approve the procurement of three Aerosonde Mk4.7 Systems; one lot of Initial Spare Parts; one year of Contractor Logistics Support; two Field Service Representatives for twelve months; and Continental United States (CONUS) New Equipment Training for the estimated amount of $25,610,000.00 on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1) Title 10 subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

Date:

Senior Contracting Official Signature: