A11-J+A_SPRBL118R0056_sec-PAO_Redacted_043.pdf

SOURCE SELECTION INFORMATION & SENSITIVE- SEE FAR 2.101 & 3.104

3. Description of Supplies/Services:

New Part The Amplifier is a low noise, compact, reliable Amplifier with the ability to operate remotely at the antenna using a direct current (DC) power inserter. It provides up to 100 Watts Peak Envelope Power and average Radio Frequency output power in eight selectable steps over the 290 to 320 MHz frequency range. It is designed for the tactical environment with it has a 22 dB gain preamp with 3 dB noise figure, Demand Assigned Multiple Access (DAMA) compliance, DC supplied over coax capable and multiple mounting configurations. The Amplifier is housed in a single weatherproof package configuration.

The UHF SATCOM Power Amplifier is a component of the A2C2S console, which is part of the Command and Control (C2) mission kit that serves as the airborne tactical command post (TAACP). It provides battlefield information and situational awareness to the helicopter commander, similar to the ground tactical command post.

Repair Services for the UHF Satcom Amplifier The repair service is for the Amplifier.

The solicitation will state that Elbit Systems, CAGE 0WEC9, is the approved manufacturing source.

4. Authority Cited:

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c) (1), as implemented by FAR 6.302-1, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

5. Reason for Authority Cited:

The proposed source is Elbit Systems, 4700 Marine Creek Parkway, Fort Worth, TX 76179 (CAGE 0WEC9).

Elbit Systems is the only known manufacturer that provides this Amplifier with Air Worthiness Release (AWR) Certification. Airworthiness is the property of an air system configuration to safely attain, sustain, and complete flight in accordance with approved usage limits.1 Army aircraft, and associated systems, require AWR Certification prior to operation. 2 Since the Amplifier supports the A2C2S console used in the Army EH- 60/UH-60 Helicopter, it must be AWR certified by the Army airworthiness authority.

Elbit is the only known manufacturer that can repair the Amplifier to an AWR certified status. The Army Technical Expert advised on June 21, 2018 that Elbit will repair the Amplifier to AWR certified status because Elbit owns the technical data, will use the same parts as a newly manufactured item, and will perform the same acceptance test procedure as a newly manufactured item.

When the Government identified a need and acquired the A2C2S Console from Elbit, the Government paid for airworthiness certification for it and its components, which included the Amplifier. Initial AWR certification costs can be nearly $1 million, and these costs are unrecoverable. However, if a new potential manufacturing source wants to be qualified and provides an amplifier that meets the required form, fit, function, and interface requirements, the potential source would pay for airworthiness certification because the Government has one certified source. If the potential source wants to pursue certification and agrees to fund, the source submits the

1 Army Regulation 70-62, Airworthiness of Aircraft Systems, May 11, 2016, page 19.

2 Ibid. page 3.

item to the Army, who then assesses it for air worthiness, tests it, and certifies it for air worthiness. For initial or new potential sources, the AWR certification process can take more than two years depending on the availability of an Army test aircraft, technical support personnel and other resources. But, Elbit’s Amplifier is currently AWR certified. Without the Amplifier, the Government would lose critical tactical communications, which will adversely impact mission capabilities and result in loss of warfighter lives and helicopter.

The Acquisition Method Reason Code (AMRC) for the spare part is 3Z. A “3” means acquire, for the second or subsequent time, directly from the actual manufacturer. A “Z” means that this part is a commercial/nondevelopmental/off-the-shelf item.

The category of service code for the repair of the Amplifier is 2571, Operations and Maintenance Repair of Equipment.

6. Efforts to Obtain Competition:

Market research was performed, details of which are in Paragraph 8.

7. Fair and Reasonable Cost Determination As the Contracting Officer, I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable. In accordance with FAR 15.403-1(b)(c), certified cost and pricing data will be not be required for this commercial part. If required to determine fair and reasonable pricing, data other than certified cost and price data will be obtained.

8. Market Research:

On August 9, 2017, the Technical Expert from the Communications-Electronics Research, Development and Engineering Center (CERDEC), published a Sources Sought Announcement (SSA) on the Federal Business Opportunities (FedBizOpps) website for the TC-100D Amplifier. The SSA closed on August 23, 2017, and at the time of closing, Elbit Systems (CAGE 0WEC9) was the only source to respond. Per their website, Elbit does not have any authorized distributors or partners.

Anderson Group Consulting LLC responded to the synopsis posted on April 27, 2018 to FedBizOpps. Their webpage was not active, but their Facebook page stated that they specialized in management, scientific, and technical consulting. They could not be contacted because their email address on their Facebook page directs the email to their non-active webpage.

During the time period June 6-12, 2018, the Contract Specialist performed additional market research through an internet searches, WebFLIS query, and Army i2Log, with the results that no additional sources were found that could manufacture the Amplifier with an Army approved AWR. Both WebFLIS and Army i2Log showed the only manufacturing source was Elbit (CAGE OWEC9). In addition, the Contract Specialist in conjunction with the Army Technical Expert, found similar amplifiers offered by Liberty Test Equipment, Satcom, National Test Equipment, and LCF Enterprises, but these amplifiers did not meet the Army form-fit-function requirements and did not have AWR certification. Both WebFLIS and Army i2Log showed the only manufacturing source was Elbit (CAGE OWEC9).

The Contract Specialist searched the internet and found companies that can repair similar amplifiers, among them Duotech Services and Digitron Electronics. Although companies provide repair services for U.S. military systems, they do not have AWR certification for this particular Amplifier. As explained in section 5. Reason for

Authority Cited, because Elbit has AWR certification for the new part, only Elbit can repair the item to an AWR certified status.

9. Other Facts:

The most previous award for this item is shown in the table below.

Contract Number Award Date Contractor Competitive/ Sole Source

W911W6-17-C-0013 12/30/2016 ELBIT SYSTEMS OF AMERICA LLC Sole Source FAR 6.302-1

DFARS 206.304(a)(4)(S-70) requires the procedures at DFARS PGI 206.304(a)(S-70) be followed for a non-competitive follow-on acquisition. The Justification and Approval (J&A) for the previous contract W911W6- 17-C-0013 stated that due to the mechanical and electrical interfaces along with the installation of the proposed Amplifier on the existing systems, which have been validated as successful, no other efforts to increase competition are anticipated. The J&A stated that future competition will be addressed as specific needs are identified. Per DFARS PGI 206.304(a)(S-70)(ii), the market research efforts identified in section 8. Market Research above address the planned actions to remove barriers to competition in this previous J&A.

10. Interested Sources:

Elbit Systems, Tactical Communications, CAGE 0WEC9, 4700 Marine Creek Parkway, Fort Worth, TX 76179 is the only contractor that expressed interest in this requirement from the SSA.

The synopsis was posted to FedBizOpps website on April 27, 2018. Anderson Group Consulting LLC, 4800 Lamar Street, Suite 200 Austin, TX 78756, expressed interest. Their webpage is not active, but their Facebook page stated they specialize in management, scientific, and technical consulting.

11. Actions to Increase Competition:

The Government will continue to conduct market research to determine if there are changes in the market place that would enable future requirements to be obtained using full and open competition.