SkyView Services_ Final Redacted JA.pdf

UNITED STATES MARINE CORPS

MARINE CORPS SYSTEMS COMMAND

2200 LESTER STREET

QUANTICO, VIRGINIA 22134-5050

IN REPLY REFER TO:

CT Code: 028 J&A Number: 23,035

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity Marine Corps Systems Command (MARCORSYSCOM) Program Executive Officer Land Systems (PEO LS) Program Manager Ground Based Air Defense (PM GBAD) 2200 Lester Street Quantico, VA 22134-5050

2. Description of the Action Being Approved The use of other than full and open competition to procure SkyView Direction Indicator Version Ruggedized (DIVR) Mark (MK) II systems and the sustainment of software and technical support services for both SkyView-DI and SkyView-MP systems incorporated throughout the Marine Air Defense Integrated System (MADIS) Family of Systems (FoS). The anticipated action is for award of a sole source, firm-fixed price (FFP), indefinite delivery indefinite quantity (IDIQ) contract to Verus Technology Group, Inc., 920 Sycolin Rd, Suite 110. Leesburg, VA 20175.

3. Description of Supplies/Services The proposed contract action is to procure the following supplies and services:

Software technical support services for both SkyView-MP and SkyView-DI systems and its variants, that are integrated with the U.S. Marine Corps PM GBAD platforms and fixed sites;

USMC Software Support Activity reach-back for guidance, and assistance with maintenance diagnosis;

Correction of software issues approved by the GBAD Configuration Control Board;

Software cyber hardening as directed by the GBAD Information Systems Security Officer.

SkyView-DI and SkyView-MP maintenance and repair services on components that are malfunctioning, broken, damaged, and not serviceable by a Field Service Representative.

Up to five SkyView DIVR MKII systems This is a follow-on to services and supplies currently being performed under contract M67854- 20-C-0002, awarded on a sole source basis under approved Justification and Approval (J&A) dated 13 March 2020.

As a proprietary technology, Verus is the only authorized entity that can provide updates to the software baseline through secure software installation packages, cyber-hardening patches that are validated to not interfere with the software, and any maintenance and repair services (warranty or non-warranty) without voiding the product warranty. Verus has a dedicated Independent Research and Development initiative that delivers software updates and technical support for SkyView systems. Technical support services are provided by a license subscription (12-months). Verus is the only authorized party that can perform maintenance and service to SkyView CUAS sensors without voiding the warranty. Continued use of the hardware and software within PM GBAD require sustained support by the OEM provider, Verus, throughout the program’s test and evaluation events in order to follow the Test Analyze Fix re-Test (TAFT) process. Recurring application updates are required to reduce cybersecurity vulnerabilities and maintain the approved Authority to Operate (ATO). The passive RF detection system also must maintain interoperability with all the associated information systems, which are integrated into the overall L-MADIS and MADIS structures, as these systems continue to upgrade and refresh over time.

The alternative to a sole source effort would require the Program Office to competitively procure, integrate, and test an alternative passive RF detection solution while concurrently sustaining existing systems. This course of action is cost prohibitive, would result in unacceptable delays, and is not desirable to maintain the MADIS FoS fielding objectives.

Furthermore, the passive RF detection system must continue to maintain operational relevance, which will necessitate integration of new interfaces, features, and capabilities within the applications. Due to these activities, the program will require contractual arrangements with Verus to provide the products and services needed to support and sustain the operational relevance of MADIS and L-MADIS.

Table 2 represents a breakdown of the duplication of costs anticipated if the Government chose another vendor to develop a passive RF detection system sensors. The costs were derived by the cost estimating team from historical data on the current passive RF detection system, with adjustments for inflation by year. These are the costs for reprocurement, and do not include costs associated with personnel resources necessary to conduct a full and open competition for a new system.

Table 2 – Duplication of Costs through Inclusion of a New Source

Cost Category Assumptions/Calculations

$4.15M Development, Procurement, Integration and Testing of a new passive RF detection system

Cost to procure replacement passive RF detection system and integrate into existing Family of Systems

$0.13M Government Test and Test Support

Cost to fund functional team and testing to evaluate performance during Government test and Analyze data deliverables

$4.28M Total Duplication of Costs

Based on the aforementioned reasons, award to any source other than Verus would result in a substantial duplication of cost that is not expected to be recovered through competition. The Government would also incur additional program risks and lifecycle costs associated with the development and sustainment of numerous passive RF detection systems with unique HW/SW configurations.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

In accordance with FAR Part 10.002(b) (2) and 5.201, the Government released RFI M67854-22- I-0074 to industry via SAM.gov on 1 August 2022, with a follow-up Q&A memo to Interfuze Corporation on 29 September 2022. The RFI and subsequent Q&A memo were released to determine industry’s capability to provide SkyView sustainment and technical services.

The Government received a total of four responses to the RFI, which included Verus Technology Group, SRR International, Interfuze Corporation, and National Institutes of Health Information Technology Acquisition and Assessment Center. Each industry response was reviewed by the Government team for general comprehension of, and responsiveness to, the RFI’s requirements, history of ability to perform similar work (either as a single entity or by teaming with industry partners), and the ability to meet the stated performance requirements. The responses received are summarized as follows:

Verus Technology Group being the sole hardware and software proprietor of the SkyView system gives credence to the fact they can maintain and sustain their SkyView system.

SRR International’s response to the RFI was non-responsive.

Interfuze Corporation has the expertise to provide technical and managerial capability to execute a software and engineering sustainment program; however, without access to the SkyView proprietary data they cannot execute such a contract. A follow-up Q&A memo was sent to Interfuze Corporation on 29 September 2022 asking for further clarification of their responses. Interfuze’s Q&A responses indicate they have no “hands-on” experience with SkyView software and hardware. Additionally Interfuze stated there was no agreement reached between Verus and Interfuze to maintain Verus' proprietary Skyview hardware and software that affect the maintenance on the Skyview systems.

National Institutes of Health Information Technology Acquisition and Assessment Center’s response to the RFI was non-responsive.

The Product Manager Future Weapon Systems signed a market research assessment report on 7 November 2022. The market research assessment report concluded that Verus provides the only viable source solution to meet the requirements published in the RFI.

An Intent to Sole Source was posted on SAM.gov on 29 November 2022, with a closing date of 14 December 2022.

7. Determination of Fair and Reasonable Cost In accordance with FAR 15.402, the Contracting Officer will ensure that supplies and services procured as a result of this J&A are at fair and reasonable prices. The Contractor will be required to submit a formal proposal with sufficient information to support the accuracy and reliability of their estimate. The technical analysts from the MADIS Program Management Office and contract specialists, with the assistance of Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) auditors, as needed, will perform an analysis of the proposal.

The Contracting Officer will also consider other sources of data related to prices, relying first on data available within the Government and secondarily on data obtained from sources other than the offeror. Sources for all such data include but are not limited to the IGCE, cost and price analysis, historical pricing data and the Defense Contract Management Agency. Furthermore, the Government will also use the Program Management Office’s independent cost estimate as part of the evaluation of the proposal to validate that the overall price is fair and reasonable.

8. Actions to Remove Barriers to Future Competition For reasons set forth in Paragraph 5 above, PM GBAD has no plans to compete the SkyView sustainment and technical services requirement. If future procurements of the component described herein are necessary, and if another potential source emerges, GBAD will assess whether competition for future requirements is feasible. Any future actions will be reviewed by PM GBAD to offer competition to the greatest extent possible.

The previous J&A for the previous procurement states, “if another potential source emerges, PEO LS GBAD will assess whether competition for future requirements is feasible”. Based upon the market research conducted for the new procurement, no other sources emerged with the capabilities to perform the requirement.

For the reasons set forth in paragraph 5, PEO LS GBAD has no plans to compete the Skyview system hardware and software lifecycle management support.

A TDP for the Skyview system is not currently available to facilitate competition. If future procurements of the supplies and services described herein are necessary beyond the current procurement, and if another potential source emerges, then PEO LS GBAD will assess whether competition for future requirements is feasible.