SOLRS_II_EFO_STRIBOP_Posting_with_Redactions.pdf

Control No. PEO STRI 12-013

EXCEPTION TO FAIR OPPORTUNITY (EFO)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

NAVAL SPECIAL WARFARE CENTER (NSWC)

SPECIAL OPERATIONS LIVE REHEARSAL SYSTEM (SOLRS II)

1. Contracting Activity: U.S. Army Program Executive Office for Simulation, Training and Instrumentation (PEO STRI) Acquisition Center.

2. Description of Action: Pursuant to 10 U.S.C. 2304(c)(1) as implemented by Federal

Acquisition Regulation (FAR) 16.505(b)(2)(i)(B), the purpose of this document is to justify PEO STRI’s approval of a sole source award for a new Firm-Fixed Price (FFP)

Delivery Order (DO) under the multiple-award Indefinite Delivery / Indefinite Quantity

(IDIQ) PEO STRI Omnibus Contract (STOC II) for the procurement and delivery of a

Special Operations Live Rehearsal Training System II (SOLRS II) to the Naval Special

Warfare Center (NSWC). The effort will be awarded to SAAB Training USA LLC via

STOC II Contract W900KK-09-D-0405.

The new DO will procure and deliver a deployable laser instrumented live rehearsal training system to NSWC at Coronado Springs, CA to train U.S. Navy Sea, Air, and Land

(SEAL) teams that will provide littoral and urban warfare live training via simulated weapons engagement, unit tracking, and After Action Review (AAR) capabilities.

SOLRS II will integrate new training components and complement the SOLRS I system that was fielded in December of 2011 via STOC II DO W900KK-09-D-0003-0024.

SOLRS II has a proprietary software interface that limits interoperability without an additional software gateway, and provides the only salt water submersible instrumentation capability. SAAB Training USA developed and fielded SOLRS I as a subcontractor under the original DO.

The Government estimates this effort to cost $3,280,000.00. Fiscal Year (FY) 12 Office of the Secretary of Defense (OSD) Congressional Procurement (PROC) customer funding will be utilized for this effort. Delivery of the NSWC SOLRS II requirement will be 10 months after the date of contract award.

3. Description of Supplies/Services: SOLRS II is the solution identified to meet the requiring activity, NSWC’s, requirement for a deployable laser instrumented rehearsal training system tailored for U.S. Navy SEAL littoral and urban warfare exercises. SEAL teams are specifically trained to utilize a combination of specialized equipment and tactics in order to execute Special Operations missions on a global scale. SOLRS II will include five systems composed of Man portable instrumented system, Portable Command and Control, Personnel Training Devices, Targetry Equipment and Urban Operation

Training Devices that will provide SEAL Teams enhanced live rehearsal mission training via real-time individual unit tracking, simulated weapons engagements, and AAR feedback.

Each SOLRS II player unit/warfighter is equipped with a GPS-equipped instrumented vest that is compatible with the Multiple Integrated Laser Engagement System (MILES) and the SOLRS I system. Each vest is designed to operate flawlessly during humid and submerged training environments of up to one meter depth, including salt water, and provides audio cues of weapon accuracy and wound simulations.

SOLRS II also features JF12 Frequency approved radios and a communication sub-system that relays engagement results from each player unit to the training operation center, which generates the training scenarios and AAR packages.

The components of SOLRS II will be supplementary and interchangeable to components delivered with original SOLRS I delivery. This will prevent the need of additional software that would be required for separate systems to communicate to the currently fielded system, thereby reducing the lifecycle cost of having to support two independent

SOLRS training systems

4. Authority Cited: This action will be awarded in accordance with 10 U.S.C.

2304(c)(1), as implemented by FAR 16.505(b)(2)(i)(B), “Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.”

5. Reason For Authority Cited:

a. Background: The SOLRS II Statement of Work (SOW) requires the system components to be fully compatible with the SOLRS I system currently fielded at NSWC.

SOLRS I was manufactured and is currently maintained by SAAB Training Systems LLC and contains a proprietary software interface. Utilizing a sole source award for SOLRS II to SAAB Training USA LLC ensures that NSWC is able to maintain a single baseline of training equipment and spares while providing SEAL teams increased flexibility to hone their Tactics, Techniques and Procedures (TTPs) while avoiding any potential unnecessary training gaps or cost increases. Awarding to SAAB Training USA also secures rapid integration between SOLRS I and SOLRS II, providing a larger training environment with increased capability for unique, multi-team scenarios. In addition, SAAB Training USA has proven via SOLRS I that their training system meets the salt water submersible requirements identified in the SOW, and therefore any further development and testing would not be required.

A brief Independent Government Cost Estimate (IGCE) for this action is attached below:

Requirement Cost

Personnel Detection Device (Vests) $1,776,465

Small Arms Transmitters (Weapons Kits) $408,855

Wireless Target System (Vehicle Kits) $106,614

Personnel Tracking Device $115,385

Military Operations on Urban Terrain (MOUT) Kit $96,083

Wireless MANPACK (C2 System) $517,936

Accessories $100,028

Power $156,415

Total $3,277,781

Figure 1: Summary IGCE (Includes Freight and Installation)

b. Alternatives:

(1) Because SAAB Training USA owns proprietary rights for the SOLRS software interface, it would be cost prohibitive to have the Government pursue any alternative contractor’s solution which would have to purchase the rights and undergo a learning process to develop a comparable system, resulting in costly time delays for the requiring activity and its customer. In addition, utilizing an alternative source would result in two different spares packages for the SOLRS I and SOLRS II, leading to potential confusion and increased lifecycle support costs to sort, separate, store and install differing spares.

(2) Commercially available laser instrumentation rehearsal training systems do not meet the SOLRS II requirements of being salt water submersible. An alternative contractor would be required to obtain the commercial equipment and then re-engineer it to be effective in fresh and salt water, resulting in unnecessary cost increases and lengthy delays. Additionally, the alternative contractor would have to test and validate the system has the capabilities to function in the required salt water environment necessary for

SEAL Team training capabilities.

c. Justification: A sole source award to SAAB Training USA, LLC is in the best interest of the Government for the following reasons:

(1) As previously mentioned, awarding to any other source other than SAAB

Training USA would result in unnecessary costs and delivery date delays for the new vendor to purchase proprietary rights to develop a SOLRS II system that would integrate with the presently fielded SOLRS I system. In addition, an alternative vendor would be required to re-engineer any commercially purchased equipment to ensure effective operation while submerged in salt water. It is estimated that in order for a vendor other than SAAB Training USA to gain the experience and execute the system development needed to meet the NSWC requirements for a SOLRS II, an alternative vendor would cost the Government an additional $500,000, at a minimum, to meet the salt water submersion requirements and integrate a software gateway for the proprietary system.

The costs are accompanied by an estimated minimum 3,000 man hours that would be required to develop and test a new SOLRS system that meets the customers requirement.

(2) The SOLRS II equipment to be purchased must be fully interoperable with the existing SOLRS system and equipment. This procurement has unique requirements that only SAAB can provide within a reasonable time and at a reasonable cost. These unique requirements stem from the fact that the existing SOLRS systems contains proprietary code and/or data limiting the ability of other potential offers to interface and effectively interoperate with it, and the fact that the equipment must effectively perform in the unique Special Operations Forces (SOF) operational environment.

d. Impact: SAAB Training USA is the only source capable of providing the SOLRS

II system in an efficient, economical and timely manner to satisfy the NSWC immediate requirement and is capable of meeting the required 10 month delivery schedule. SAAB

Training USA has the knowledge to produce the SOLRS II system rapidly and via a cost-effective approach based on experience garnished from a learning curve on the current

SOLRS I contract, and has already proven that the SOLRS system meets the requirement to be operation while submerged in salt water. Utilization of a competition to obtain a new vendor at this time would be cost prohibitive and require an estimated two-year delay in providing the training system for NCWS. This delay would severely limit the readiness and effectiveness of the SEAL Teams. Furthermore, a delay or cost increase derived from providing these systems may have a negative impact on future customer funded, contracting partnership efforts with NSWC.

6. Efforts to Obtain Competition: Sources Sought Notice (SSN) / Notification of

Intent to Sole Source STOCII-12-KOV-SOLRS was released on the STOC II Business

Opportunities Portal (STRIBOP) on 10 April 2012. The posting closed on 18 April 2012.

Two companies responded to the SSN, and their responses are discussed below in section

8. Market Research. Based on the information in Paragraph 5, above, competition of this action was not feasible.

7. Actions to Increase Competition: The Product Manager for Special Operations

Forces Training Systems (PM STS) will continue to perform market research and explore potential sources during the performance of this contract to prepare for any potential future requirements. However, at this time SAAB Training USA is the only vendor capable of fulfilling NSWC’s requirements today while meeting the required ten month delivery schedule.

8. Market Research: Initial costs and market research were collected from the original

SOLRS I contract action, STOC II DO W900KK-09-D-0003-0024.

Two STOC II contractors, Zel Technologies and Cubic Simulation Systems, responded to the Intent to Sole Source Notice posted on 10 April 2012. The Government evaluation of the responses found that the two vendors below are not capable of meeting the NSWC requirements:

a. Zel Technologies

7123 University Boulevard

Winter Park, FL 32792

Zel Technologies responded to the SSN Notice of Intent to Sole Source but later withdrew their response after identifying that they could not meet the ten month delivery timeframe due to salt water environment testing requirements.

b. Cubic Simulation Systems Inc. (Cubic)

9333 Balboa Avenue

San Diego, CA 92123

Cubic responded to the Notice of Intent to Sole Source and identified that they are

“fully capable of providing a system solution meeting and in some cases exceeding, all stated requirements.” The response cited various past performance cases which are related to the SOLRS II requirement. Per Government request, Cubic provided

PEO STRI with the contact information of customers that are currently using the

Cubic proposed solution in an operational environment similar to what is required for

SOLRS II. The Government contacted the two individuals to inquire on the Cubic solution and received the following responses:

(1) John Floyd, Marine Simulations Coordinator, Department of Homeland

Security, 7 May 2012: “The evaluation was restricted to firing from boat to boat, both for disabling engine fire and body shots. We have had no experience with the

Cubic radio system, nor was any of the MILES gear submersed during our evaluation.”

(2) William J. Clark, Commander, Navy Installations Command, 1 May 2012:

“Our scenarios did not require submersion of the MILES equipment.”

Despite the two Government responses, Cubic attested that the solution proposed would be applicable to the SOLRS II effort and would meet the requirement for salt water submersion, and provided proof of a past Government test that showed the Cubic system would operate effectively when submerged in fresh water. The Government tests did not verify whether or not the equipment would operate in salt water.

The Government determined that the Cubic solution is not in the best interest for the

NSWC customer after meeting directly with Cubic representatives on May 17, 2012.

Cubic corroborated that their solution had not been “operationally tested” in a relevant environment and the fact that they could not meet the ten month delivery schedule.

Subsequent to the meeting, the Government concluded that Cubic solution could not meet the NSWC schedule requirements in terms of schedule due to additional development and testing requirements to ensure functionality in the salt water operational environment and the cost prohibitive requirement of purchasing the necessary SAAB Training USA’s license which would be required to interface with the existing SOLRS I training system.

Additional attempts to ascertain other qualified sources capable of satisfying the

SOLR II requirements were performed using the internet and during trade shows

(I/ITSEC, NGUS, AUSA). The Government did not have any success in identifying similar or duplicate systems with the required capabilities.

The results of this and previous market research have not identified any additional sources with the capability to provide the performance requirement as specified by

NSWC. All corresponding market research for these efforts signaled that the SAAB

Training USA system is the only product that can meet the specific NSWC requirements.

9. Interested Sources: Zel Technologies and Cubic Simulation Systems Inc. responded to the SSN Notice of Intent to Sole Source. Based on the information provided via

Market Research, SAAB Training USA is the only known source capable of providing a product that will be interoperable with the existing systems and has demonstrated capability to operate in the unique SOF environment, which includes the equipments ability to be submerged in salt water. This requirement was not synopsized pursuant to the exception in FAR 5.202(a)(6).

10. Other Facts:

a. Procurement History: Initial costs and market research were collected from the original sole source SOLRS I contract action, STOC II DO W900KK-09-D-

0003-0024, dated 14 March 2011.

b. Acquisition Data Availability: Acquisition Data required for a full and open competition is restricted due to the proprietary nature of the SOLRS equipment anf software. The hardware package for the SOLRS system has been proven and tested by the Original Equipment Manufacturer (OEM) to be salt-water submersible and the specifications for the package is proprietary information. In addition, the software package providing interoperability between SOLRS units is also proprietary. Utilizing any other vendor for this action would result in increased costs for the new vendor to acquire both sets of proprietary data. In addition, the tangible and opportunity costs for the Government to procure this data in order to hold a full and open competition are not in the Government’s best interest, as there are no future SOLRS efforts forecasted.

c. Unusual and Compelling Urgency: N/A

d. Subcontracting Competition: FAR Clauses 52.219-8, entitled, "Utilization of

Small Business Concerns", 52.219-9 entitled, "Small Business Subcontracting

Plan" and 52.244-5 entitled, "Competition in Subcontracting" are included in the basic STOC II contract and will be utilized to ensure that the prime contractor obtains as much competition as possible in its subcontracting. The contractor will be required to submit a small business subcontracting plan as part of their proposal. The contractor is also required to report the progress toward achieving those goals in the electronic subcontracting reporting system (ESRS) online. This information is then reviewed and evaluated for compliance.

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."

NAME: __Mr. William Sanchez __________ DATE: 07 / 12 / 2012

TITLE: __Senior Engineer, SOLRS PM STS SIGNATURE: ____________________

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."

NAME: _Mr. Rick Matthews____________ DATE: 07 / 12 / 2012

TITLE: _PM STS – APM Ground________ SIGNATURE: ____________________

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

Contractor will submit a price proposal with certified cost and pricing data and sufficient information to support the accuracy and reliability of the estimate. Experienced

Technical Analysts and the Contract Specialist will review the contractor’s proposed costs. Analyses will be based on historical cost information and rate data provided by field support agencies. The Contracting Officer will utilize cost and price analysis as the basis for negotiating a fair and reasonable price.

NAME: __Ms. Lovisa Parks____________ DATE: 27 July 2012

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."

NAME: __Lovisa Parks_______________ DATE: 27 July 2012

TITLE: Contracting Officer___________ SIGNATURE: ___________________

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the SOLRS II system requirement on an other than full and open competition basis pursuant to the authority of 16.505(b)(2)(i)(B), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

DATE: 08 August 2012 SIGNATURE: ________________________

LESLEY A. SULLIVAN

Special Competition Advocate