Tab 1 - AMIC USAFCENT JADSI J_A_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

SOURCE SELECTION SENSITIVE

March 2018 SOURCE SELECTION SENSITIVE Page 1 of 7

NOTE: If a Justification and Approval was approved for the preceding acquisition, a copy of the approved J&A for the predecessor action must be included in the staff package for approval of the instant J&A. This applies to J&A staff packages that are submitted for review and approval at a level above the contracting officer. The predecessor J&A will be used as a reference document by the approving official.

Is this a new or amended J&A Document? New Amended ( Prior to Award Only! )

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Funding level for this acquisition: < $700K > $700K and < $13.5M > $13.5M and < $93M > $93M

Contracting Activity: Acquisition Management Integration Center (AMIC), Langley AFB, VA

Purchase Request / Local ID Number: TBD

Program / Project (and PE, if applicable): Joint Air Defense Systems Integrator (JADSI) Field Services Engineering Support

Program Type (PEO or Other Contracting): Other

Authority: 6.302-1 – 10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Estimated Contract Cost (including options): J&A Type: Class Individual

COORDINATION (AFFARS 5306.304(a) )

Date

Signature

Date Contracting Officer

Date Local Legal Reviewer

Date Chief of the Contracting Office (COCO)

Competition Advocate

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APPROVAL (AFFARS 5306.304(a) )

Date Head of Procuring Activity

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I. Contracting Activity.

Department of the Air Force

HQ ACC AMIC/PKF

129 Andrews St, Ste 110 Joint Base Langley-Eustis, VA 23665

II. Nature and/or description of the action being processed.

United States Air Force Central Command (USAFCENT) requires a new sole source, performance-based contract for the Engineering, Technical, and Management (ET&M) services in support of the Joint Air Defense Systems Integrator (JADSI). This Justification and Approval (J&A) for Other Than Full and Open Competition has been prepared to award a new hybrid contract with Firm Fixed Price (FFP) labor CLINS and Cost Reimbursable No Fee travel CLINS.

The period of performance (PoP) for this contract will be 15 Jun 2020 - 14 Jun 2025 with one (1) base year and four (4) 12-month annual option periods. The inclusion of FAR 52.217-8, Option to Extend Services, could add up to six (6) months of performance or up to 14 December 2025. The estimated dollar value for this contract action is , and the anticipated award date is .

III. Description of supplies/services required to meet agency needs.

The JADSI is proprietary equipment that integrates military air/land-based assets into an operational air picture allowing the Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) capabilities for the Combined Forces Air Component Commander (CFACC). It is a vital part of mission operations throughout Central Command's (CENTCOM) area of responsibility (AOR).

This requirement will provide field service engineer support services to for the JADSI system. JADSI is a command and control system that serves as a real-time bridge between tactical data links, radar, and intelligence data. The JADSI receives, processes, correlates, and displays up to 416,000 tracks from local radars, tactical data links, and intelligence sources with minimal user interaction. The JADSI provides a fused, correlated, real-time picture of the battle space required to conduct operational missions. The Air Force has approximately . The objective of the JADSI is to provide a low-cost airspace surveillance system for efficient mission planning, rehearsal, and verification of mission objectives.

Contractor support is required due to the complexity of the JADSI system. Additionally, there are a limited number of fully trained military personnel available to fill JADSI maintenance and operator positions in the

. The is responsible for ensuring that , have the required support needed for all JADSI equipment controlled at each location.

The estimated cost is approximately with a twelve (12) month base year, four 12-month option periods, and option to extend period of performance up to an additional six months. Appropriated Operations & Maintenance (O&M) (3400) funds are provided for these requirements.

Base Period, 15 June 2020 - 14 June 2021 :

CLIN 0001 Labor FFP CLIN 0002 Travel CR CLIN 0003 ODCs CR

Option Period 1, 15 June 2022 - 14 June 2022 :

CLIN 1001 Labor FFP CLIN 1002 Travel CR CLIN 1003 ODCs CR

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Option Period 2, 15 June 2022 - 14 June 2023 :

CLIN 2001 Labor FFP CLIN 2002 Travel CR CLIN 2003 ODCs CR

Option Period 3, 15 June 2023 - 14 June 2024 :

CLIN 3001 Labor FFP CLIN 3002 Travel CR CLIN 3003 ODCs CR

Option Period 4, 15 June 2024 - 14 June 2025 :

CLIN 4001 Labor FFP CLIN 4002 Travel CR CLIN 4003 ODCs CR

Option Period 5, 15 June 2025 - 14 November 2025 :

CLIN 5001 Labor FFP CLIN 5002 Travel CR CLIN 5003 ODCs CR

The CLIN structure is based on the current task order's structure, which includes line items for labor, travel and ODCs.

There is an anticipated need for similar services beyond the initial contract period. Inclusion of option periods will allow for continuity of service and eliminate potential cost of disrupted support and the need to re-solicit the requirement.

IV. Statutory authority permitting other than full and open competition.

10 USC 2304(c)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements as implemented by FAR 6.302-1.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

a. The JADSI system is comprised of mostly Commercial-Off-The-Shelf (COTS) hardware combined with highly specialized software developed and customized to support the Joint and Air Force's Air Defense mission. Most of the COTS hardware components and subcomponents which make up the JADSI system are items which are purchased from vendors and configured and assembled by Ultra ATS into the final unit. However, , is a proprietary design of Ultra ATS to which they maintain data rights. Ultra ATS also maintains data rights to the hardware design of the entire JADSI system as the original equipment manufacturer (OEM).

The current task order number is GSQ0115BK0138, and it was awarded using GSA Multiple Award Schedule Contract # GS35F0407K. GSA attempted to compete the incumbent task order. At that time, it was determined that the solicitation would generate adequate competition, and the solicitation was issued under Schedule 70 SIN 132-51. However, only one offer was received in response to the solicitation, further demonstrating that Ultra ATS is the only vendor capable of providing these highly specialized services.

The JADSI software is highly specialized because it correlates, forwards and translates various tactical data link languages as well as other intelligence digital messages into one fused data link picture. The JADSI software is composed of a number of software modules. Many of the JADSI software modules, along with a number of additional JADSI-related applications, were developed at private expense by Ultra ATS. Those modules and applications are enhanced and maintained by Ultra ATS using their own private funding. Attachment A provides a list of the software modules for which Ultra ATS maintains restricted data rights.

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Furthermore, Ultra ATS has developed unique manufacturing and testing equipment that is required for the repair of the JADSI system. Ultra ATS also has a comprehensive and unique engineering knowledge base required to adequately research problems and develop engineering changes involving hardware and software modifications, upgrades, and sustainment. No other source is able to meet this level of expertise. Therefore, this acquisition is for continued performance of a highly specialized service.

b. The Government does not possess the technical data to compete this effort. The Government did not purchase a complete re-procurement data package under the original production contract, so Ultra ATS has maintained the data rights to the software. The Government also did not purchase the rights to the basic engineering data and technical manuals for the currently fielded JADSI configuration and associated support equipment. In order to remove the barriers to competition, the Government would have to purchase the technical data for which Ultra ATS maintains restricted data rights. Technical drawings and data packages would need to be created. The acquisition cycle for a procurement of this magnitude and complexity is estimated at anywhere from 12 to 18 months. The current task order expires on 14 June 2020. Additionally, significant lead time would be required in order for a new contractor to acquire the level of expertise to operationally support and fulfill the field engineering support requirement.

An inquiry was made as to whether Ultra ATS would consider selling/licensing the restricted data rights to the Government. The contractor responded in writing stating they would not consider an offer for access to the restricted data rights and stated they are valued , shown in Attachment B. The process of purchasing data rights and time required to compile the required technical drawings and data packages would create unacceptable delays in fulfilling the agency's requirement and create substantial duplication of cost to the Government which is not expected to be recovered through competition. The US Air Force would suffer unacceptable delays estimated at approximately 3 years when assuming two (2) years to acquire the funding, compete an acquisition, and to purchase the data rights, which includes time to create a technical data package and drawings, and approximately 12 months required for a new vendor to become operationally ready to provide field engineering support at the required level of expertise.

c. Accordingly, Ultra ATS is the only firm capable of providing the highly specialized services described in Section III above without the U.S. Air Force experiencing negative operational impacts, substantial duplications of cost, and unacceptable delays in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

Market research was conducted by Government posted Sources Sought Notice on the www.beta.sam.gov on 10 January 2020 under solicitation number FA489020RJADSI. The notice sought to identify potential sources that may have the expertise, experience, and/or capabilities to meet qualification requirements to repair, maintain, test and operate JADSI components. Interested parties were requested to specifically describe their capability to meet the requirement with regards to technical data rights.

The incumbent contractor, Ultra Electronics ATS, was the only firm who provided a capability statement in response to the sources sought notice. Their response failed to address technical data rights. Additional information was requested, and Ultra responded with their restricted data rights assertion in the form of the table from DFARS 252.227-7014, included as Attachment A.

This action requires a Notice of Proposed Contract Action (NOCA). IAW with FAR 5.203(a) the notice was posted on 28 Feb 20, with no industry response expected based on market research results. Should a response be received from any company alleging the capability to competitively fulfill this requirement, the justification will be revised as appropriate.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Price and cost analysis will be performed in accordance with FAR 15.305 in order to establish the reasonableness of the offeror's proposed price. The acquisition history and prices paid for the same or similar services will also be relied upon for the fair and reasonable price determination. Additionally, the Government will require Certified Cost and Pricing Data in accordance with (IAW) FAR 15.4 procedures, DoD procedures, as supplemented and will utilize pricing

March 2018 SOURCE SELECTION SENSITIVE Page 6 of 7 assistance support through the AMIC cost/price analyst IAW AFFARS 5315.4. The contract cost will be determined fair and reasonable prior to award.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquires from interested parties.

GSA attempted to compete the incumbent task order. At that time, it was determined that the solicitation would generate adequate competition, and the solicitation was issued under Schedule 70 SIN 132-51. Only one offer was received in response to the solicitation. A review of the incumbent contract also revealed it was modified to add the additional operating location of Shaw AFB, SC. A limited sources justification was completed by GSA because it was determined that Ultra ATS is the sole source provider of the services.

Further market research was performed using the website www.fpds.gov. The review revealed that multiple Defense Department agencies have contracted for the same or similar services from Ultra ATS, and each contract was awarded on a sole source basis.

The market research performed concluded Ultra ATS is the only uniquely qualified, viable source available with the design and system data, as well as the unique experience and expertise necessary to satisfy the government's requirements for the field engineering support requirement.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None

X. List of any sources that expressed, in writing, an interest in the acquisition.

identified itself as a small business interested in subcontracting opportunities. The firm requested information on who the incumbent is, what the incumbent contract number was, and whether a modification or new contract award would be issued as a result of this acquisition effort. Their website indicated their capabilities lies in big data, government spending analysis, and market intelligence for the defense contracting industry.

Ultra ATS responded to a Government RFI stating that they do not currently work with any subcontractors to meet the field engineering support requirement for the JADSI system.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

An inquiry was made as to whether Ultra ATS would consider selling/licensing the restricted data rights to the Government. The contractor responded in writing stating they would not consider an offer for access to the restricted data rights, included as Attachment B. The contractor did express they currently value the restricted data at a value

. The current task order expires on 14 June 2020. Reverse engineering of the JADSI system is not feasible in order to avoid a disruption to these mission critical services.

This requirement cannot currently be supported internally. Contractor support is required due to the complexity of the Joint Air Defense System Integrator (JADSI) system, limited number of fully trained military personnel available to fill maintenance and operator positions , and limitations on data rights. The Government will continue to monitor the proprietary elements of the JADSI equipment and look for opportunities to promote competition.

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XII. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

XIII. Certification by the technical/requirements personnel.

As evidenced by my signature above, I certify that any supporting data contained herein, which is my responsibility, is both accurate and complete.