TAB B - JA for MARS_PSD_Rev2 (signed)_Redacted.pdf

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Control Number: JA-23-E-405

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Justification Review Document for Other than Full and Open Competition - FAR Part 6

Program/Equipment: AN/ARC-231/A Multi-mode Aviation Radio Suite (MARS) Hardware Components, Repair Services, and Technical/Engineering/Logistic Support for Program Executive Office (PEO) Aviation, Project Manager Aviation Mission Systems and Architecture (PM AMSA), Product Manager Aerial Communications and Mission Command (PdM ACMC).

Authority: 10 United States Code (U.S.C.), Section 3204(a)(1) as implemented in FAR 6.302-1(a)(2) Only one responsible source and no other supplies or services will satisfy agency requirements, and 6.302-1(a)(2)(ii)(B) Unacceptable delays in fulfilling the agency’s requirements.

Amount:

Prepared by:

Controlled by: U.S. Army Controlled by: Program Executive Office Aviation, Aviation Mission Systems & Architecture (AMSA) CUI Category: General Procurement and Acquisition Distribution/Limited Dissemination Control: FEDCON

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Reviews

I have reviewed this justification and find it adequate to support other than full and open competition.

Date:

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

1. Contracting Activity: Army Contracting Command – Aberdeen Proving Ground

(ACC-APG), Division E, 6565 Surveillance Loop, Building 6001, Aberdeen Proving Ground, MD 21005-1846

2. Description of Action: Program Executive Office (PEO) Aviation, Project Manager (PM) Aviation Mission systems and Architecture (AMSA), Product Manager (PdM) Aerial Communications and Mission Command (ACMC) requests a follow-on ten-year Firm-Fixed-Price (FFP), Cost-Plus-Fixed-Fee (CPFF), and Cost No Fee (CNF) single award Indefinite Delivery, Indefinite Quantity (IDIQ) Contract with an ordering ceiling of

, for procurement of the AN/ARC-231/A Multi-mode Aviation Radio Suite (MARS) hardware components, repair services, and technical/engineering/logistic support. The proposed awardee is BAE Systems Information and Electronic Systems Integration, Inc. (BAE), 5001 US Highway 30 W, Fort Wayne, IN 46818-9701. The Government projects award for April 2024. Initial funding for this effort will be FY2024 Aircraft Procurement Army (APA), Army Working Capital Funds (AWCF), and Foreign Military Sales (FMS) funds. The anticipated period of performance is April 2024 to April 2034. The contract will have a base five year ordering period with an optional five year ordering period. The contract strategy of having a five year ordering period and an optional five year ordering period ensures the continuity of operations with no additional variation in risk due to nonperformance. Negotiating a longer-term contract will allow a reduction in the redundant administrative work (both pre-award and post-award). Market research conducted has not indicated there will likely be a change in the marketplace anytime in the foreseeable future that would change the acquisition strategy for this sole source effort. This action is a follow-on to contract W56JSR-19-D-0014, which was a sole source action under 10 U.S.C. 2304(c)(1), as implemented in Federal Acquisition Regulation (FAR) 6.302-1(a)(2)(ii)(A) (sole source due to substantial duplication of costs to the Government that are not expected to be recovered through competition). The previous contract’s procurement history is addressed in Section 10 below. This action seeks to use FAR 6.302-1(a)(2) Only one responsible source and no other supplies or services will satisfy agency requirements and 6.302-1(a)(2)(ii)(B) Unacceptable delays in fulfilling the agency’s requirements as the basis for a sole source award to BAE.

3. Description of Supplies/Services: PdM ACMC has a requirement to procure and sustain multi-mode radios and associated components that provide Line of Sight (LOS) and Non-LOS communications on manned and unmanned Army Aviation platforms.

Required capabilities include secure/non-secure two-way voice and data communications over the 30–512- megahertz (MHz) frequency range with improved cryptographic algorithm and processing capabilities and 9.33 kilohertz channel spacing for Global Air Traffic Management compliance. The required radio must provide the frequency hopping capability of the ARC-164/KY-58 HAVEQUICK Ultra High Frequency

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(UHF) waveform, the air traffic control capability of the ARC-186/KY-58 Very High Frequency (VHF) Amplitude Modulation/Frequency Modulation (AM/FM) radio waveforms, the beyond line of sight UHF Military Satellite Communications (SATCOM) capability, the ability to communicate with local authorities via Civil Land Mobile Radio (LMR), and the capability to communicate with ground warfighters via limited Single Channel Ground and Airborne Radios System.

The AN/ARC-231/A MARS is a multi-mode radio that provides LOS and Non-LOS communications on Army Aviation platforms to meet communication requirements. The program includes both the legacy AN/ARC-231/A and the next-generation AN/ARC- 231A, with AN/ARC-231/A indicating both versions. The AN/ARC-231/A MARS is required for successful accomplishment of airborne combat missions and is used in manned and unmanned Army Aviation aircraft platforms. The AN/ARC-231/A MARS components consist of the RT-1808 (for AN/ARC-231)/RT-1987 (for AN/ARC-231A) Receiver/Transmitter (RT) with embedded Communications Security, C-12601 Control Indicator, C-12608 Fill Panel 28V, C-12608 Fill Panel 5V, AM-7568/AM-7667 Pre- Amplifier, AM-7565/AM-7668 RF Amplifier, MT-7321 RT Mounting Base, MT-7166 Amplifier Mounting Base, and other additional AN/ARC-231/A MARS ancillaries. The AN/ARC-231/A MARS components chosen for each aircraft platform are tailored to meet the specific requirements of that platform as part of platform systems integration.

The AN/ARC-231/A MARS will support the following communication features:

• Civil LMR voice in the 30 to 512 MHz range to communicate with commercial police/fire/rescue radios.

• HAVEQUICK voice and data in the 225 to 400 MHz frequency range. VHF AM/FM (25 kHz channel spacing) voice and data; and Air Traffic Control voice (25 and 8.33 kHz channel spacing) in the 108 to 156 MHz frequency range.

• Military SATCOM Dedicated Channel, Demand Assigned Multiple Access (DAMA) and Demand Assigned Single Access voice and data in the 240 to 270 MHz frequency range for receive and 290 to 320 MHz frequency range for transmit.

• Single Channel Ground and Airborne Radio Systems voice in the 30 to 88 MHz frequency range. Maritime voice in the 156 to 162 MHz frequency range.

The AN/ARC-231/A MARS must be compatible with AH-64, UH-60, CH-47, Unmanned Aircraft Systems (UAS), and Fixed Wing Aircraft. The contractor is required to provide systems to support aircraft production lines, initial fielding of the National Security Agency (NSA) mandated Cryptographic Modernization, sustainment requirements (such as repairs and logistical support), and engineering services (such as future AN/ARC- 231A MARS system upgrades or updates). FFP Orders will be issued for legacy AN/ARC-231/A MARS hardware components. FFP and CPFF orders will be issued for repair and engineering support services. It is estimated that 93% of the contract will be FFP for hardware procurement and repair services, while 7% will be CPFF for engineering and sustainment services. Less than 1% will be CNF. CNF portion will consist of Materials, Other Direct Costs, and Travel.

Planned engineering support tasks include the Software Block II upgrade, which will add North Atlantic Treaty Organization (NATO) specification capability for Second-generation Anti-jam Tactical UHF Radio for NATO (SATURN) Edition 4 and Tactical Secure Voice (TSV) 3.1.1, and the Software Block III upgrade, which will add SATURN Edition 4 US specification capability and DAMA SATCOM orderwire updates.

The following table breaks down the estimated cost for procurement, repair, travel, and engineering and support services over the life of the contract. General and administrative (G&A) costs and an estimated 10% fee are listed separately. Services estimates include a 20% risk factor to account for variable labor rates and hours. All non-repair services and travel will be funded with APA funding. Procurement and repairs will be funded with APA, AWCF, and FMS funding.

APA AWCF FMS Total Hardware

The Independent Government Cost Estimate (IGCE) was developed based on the number of production line aircraft requiring installation of the AN/ARC-231A MARS over a ten-year period, the quantity of projected repairs, and the anticipated engineering services identified in the Performance Work Statement. The unit price for the hardware was developed using historical data including a Forward Pricing Rate Agreement, labor categories, labor hours, and material quotations from the contractor’s suppliers. The repair unit price is calculated based on historical data, the anticipated failure rate, and associated labor categories and hours to complete a repair. The cost for engineering support services was developed based on similar tasks performed in the previous contract, W56JSR-19-D-0014. All future labor rates are escalated with the appropriate factor using Global Insight Data.

4. Authority Cited: 10 United States Code (U.S.C.), Section 3204(a)(1) as implemented in FAR 6.302-1(a)(2) Only one responsible source and no other supplies or services will satisfy agency requirements and 6.302-1(a)(2)(ii)(B) Unacceptable delays in fulfilling the agency’s requirements.

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5. Reason for Authority Cited: Only one responsible source is cited because award to any other source would result in unacceptable delays in fulfilling the agency’s requirements and secondarily, substantial duplication of cost to the Government that is not expected to be recovered through competition. A significant amount of time, resulting in unacceptable delays, would be required for sources other than BAE to develop the ability to manufacture, service, and repair the AN/ARC-231/A MARS. The Government maintains Government Purpose Rights but does not possess a production-level Technical Data Package (TDP) for the AN/ARC-231/A MARS. BAE, as the current manufacturer has declined to offer the TDP for purchase as recently as 24 May 2023.

Currently, BAE is projected to have a Full Rate Production (FRP) decision in August 2023 and initiate and complete Air Worthiness Qualifications in September of 2023. If the requirements were competed the total effort would take an estimated 84 months.

Additionally, competing the requirements to produce a radio with the same capabilities and qualifications would result in substantial duplication of effort and cost. Based on PdM ACMC Business Office’s comparative cost analysis, the potential cost associated newly developing the MARS or recreating the TDP is estimated to be more than

Unacceptable Delays

BAE has been the Original Equipment Manufacturer (OEM) of the AN/ARC231 MARS and its components since October 2021 as the result of a Novation Agreement recognizing BAE as the successor of Raytheon Company (Raytheon), the previous OEM for over 15 years. As part of the transfer, BAE received the equipment, key personnel, and proprietary Intellectual Property (IP), TDP rights, and software rights previously held by Raytheon.

Accordingly, BAE is the only offeror with the IP and TDP to meet the Army’s requirements. The total effort for any other offer to newly develop the MARS would take an estimated 84 months based on similar avionics qualification and retrofit efforts, with at least 18 months for development and procurement lead time, 18 months for testing and qualification, and 48 months for platform integration and airworthiness qualification.

Timelines are estimated by the PdM ACMC technical team based on extensive experience with similar efforts for avionics system qualification.

Instead of newly developing the MARS, the other alternative is to take the portion of the TDP in which the Government has rights and procure or develop software/hardware to replace proprietary components to effectively re-design the current product. Delays based on this approach are expected to be an unacceptable time period of approximately 96 months, which is longer than the total effort estimated to newly develop the MARS due to the design difficulties associated with developing new hardware/software components to interface with existing design. This is because it would still take 18 months for testing and 48 months for platform integration and airworthiness qualification. It is possible that an offeror may be able to improve slightly on the 30 months for development and procurement lead time, but the Army does not expect a significant change. Overall, the very lengthy delay remains unacceptable.

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We are currently 20 years into the prototyping, qualifications, certification, and production of the AN/ARC-231 MARS RT-1808A. The AN/ARC-231 MARS RT-1808A is being replaced by the AN/ARC-231A RT-1987 by the sole proprietor, BAE, as the newest generation of multi-band, multi-mission, airborne communications system with a modernized NSA, Type 1 embedded cryptographic solution. The Software Communications Architecture /Software-Defined Radio design of the RT-1987 provides a design reserve capacity for software-only deployment of future operational, mission, and end user deployment focused configurability.

BAE developed the first upgrade to the AN/ARC-231 MARS 1808A since 2005. The upgrade to the AN/ARC-231A RT-1987 for the Army Aviation Fleet began in 2014. The RT-1987 is projected to receive a FRP decision and initiate and complete Air Worthiness Qualifications, as stated above. Once FRP and Airworthiness is achieved BAE is anticipated to deliver the RT-1987s 14-months after receipt of order for fleet integration. It is imperative that the RT-1987 is delivered in the projected time frame as the RT-1808A sustainment faces challenges as it goes into obsolescence. There have been multiple quality escapes to the RT-1808A due to unapproved consumable materials used in components delivered from the contractor’s vendors, diminishing manufacturing sources and materiel shortages of components, and supply chain issues.

It is imperative that BAE gain FRP to keep the fleet mission capable.

To effectively redesign the AN/ARC-231A RT-1987 would cause an interruption of up to 96 months to a fully mission capable Army Aviation Fleet. This process could set operational readiness back years.

Failure to maintain operational readiness of the AN/ARC-231/A MARS will result in decreased functional communication capabilities that will increase the risk of serious injury or loss of life for Soldiers engaged in missions that support worldwide operations, to include Overseas Contingency Operations.

Accordingly, the AN/ARC-231/A MARS is the only radio that meets the required security, waveform, and radio band requirements currently qualified for use on AH-64, UH-60, CH-47, UAS, and Fixed Wing Aircraft platforms. The AN/ARC-231/A was originally procured commercially as an interim solution to Joint Tactical Radio System (JTRS) requirements but became the enduring Army solution upon the cancellation of JTRS. The Aviation Radio Guidelines Memorandum from Headquarters United States Army Aviation Warfighting Center and Fort Rucker, ATZQ-CD, dated 15 October 2007, directed the use of AN/ARC-231/A MARS radio as the SATCOM solution for Army Aviation aircraft as the future need for Crypto Modernization (CM) capability. AN/ARC- 231/A MARS will be provided as Government Furnished Equipment to current and future Army Aviation platform production lines for AH 64-D/E, CH-47F, UAS, and UH- 60M/V.

The AN/ARC-231/A MARS was established as non-commercial in accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 212.102, Acquisition of Commercial Products and Commercial Services, by a determination and finding on 21

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February 2013. This was a result of it being firmly established that the encryption-enabled subject AN/ARC-231/A CM/Mobile User Object System (MUOS)/ and Soldier Radio Waveform integration requirement has been directed for military purposes only.

BAE possesses the expertise and knowledge to manufacture the AN/ARC-231/A MARS components and provide repair and engineering support services that are required to provide continuous support to aviation assets. BAE is currently performing software and firmware updates to meet the latest Department of the Army system integration and secure communications requirements under Contract Number W56JSR- 19-D-0014 under ongoing task orders.

The current memorandum driving NSA and Central Security Service (CSS) requirements is NSA/CSS Policy 3-9 Cryptographic Modernization. The next required date for the MARS system to meet is a 31 December 2024, requiring for TSV 3.1.1. A change from the current procurement strategy would result in significant schedule delays to meet NSA/CSS Cryptographic Architecture Compliance Management Board approval.

Each airframe on which the AN/ARC-231/A MARS has been installed has been modified to accommodate the radio system. There are no other material solutions that meet the current Form, Fit, and Function (F3) requirements of the AN/ARC-231/A MARS. The AN/ARC-210 radio performs many of the same functions as the AN/ARC-231/A but is not an F3 replacement approved for use on the aviation platforms supported by the AN/ARC-231/A due to differences in size, weight, and interfaces. A non-F3 radio will require NSA and airworthiness qualification of the system, as well as extensive redesign of each aircraft platform operational flight program, integration kit redesign, and airworthiness qualification at a substantial schedule impact. The schedule impact would be approximately 96 months as detailed above.

Substantial Duplication of Cost

The development and approval of an alternative source would be required for sources other than BAE to develop the ability to manufacture, service, and repair the AN/ARC- 231/A MARS and would result in substantial duplication of effort and cost. The potential cost associated with non-recurring engineering efforts in the form of requalifying a newly redesigned radio and retrofitting the Army Aviation fleet is estimated to be more than

, excluding the cost of hardware, based on the PdM ACMC Business Office’s comparative cost analysis, the Government finds the cost would be too risky and extensive for like manufacturers to redesign and retrofit the AN/ARC-231. The below table details the costs for requalification and retrofitting. A transition to a new system platform would require multiple configurations resulting in severe operational impacts to Army Aviation such as additional maintenance, training, tracking, and configuration management.

Requirement Cost Software Development, Integration, and Flight Qualification Non-Recurring Engineering

Environmental Qualification Training Package Platform Retrofit Labor Total

A Sources Sought Announcement (SSA) was released to industry in May 2022; three vendors responded. Subsequently, a SSA was released to industry in May 2023; two vendors responded. As addressed in the Market Research, detailed in Section 8 below, based on the responses to the SSAs there are no known vendors that can provide the capabilities and F3 requirements of the AN/ARC-231/A MARS.

Failure to approve this J&A will lead to an inability to procure required hardware, an inability to sustain existing systems, and a failure to maintain operational readiness of the AN/ARC-231/A MARS. Failure to maintain operational readiness of the AN/ARC- 231/A MARS will result in decreased functional communications capabilities, which will increase the risk of serious injury or loss of life for warfighters conducting critical missions in support of worldwide operations to include overseas contingency operations.

6. Efforts to Obtain Competition:

The Contracting Officer published the notices as a combined synopsis/SSA, required by FAR 5.201, Publicizing Contract Actions, and all responses were considered, as detailed in Section 8 below.

a. Effective competition. Because this is a sole source action, effective competition is not applicable.

b. Subcontracting competition: The Government will ensure the prime contractor obtains as much subcontracting competition as possible through the inclusion of the following clauses in the solicitation and in the contract: FAR 52.244-5, Competition in Subcontracting, FAR 52.219-8, Utilization of Small Business Concerns, FAR 52.219-9, Small Business Subcontracting Plan, and DFARS 252.219-7003, Small Business Subcontracting Plan (DoD contracts)—Basic.

The clauses ensure that BAE considers small business concerns and participation in performance of the proposed contract.

BAE has demonstrated use of competition in subcontractors in previous engineering and supply efforts, including during administration of the current contract W56JSR-19-D-0014.This is performed to reduce costs, increase

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competition and meet small business concern goals.

7. Actions to Increase Competition: During this follow-on contract, the Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions to be competed. PdM ACMC will actively monitor competitor developments and possible redesign solutions.

PEO Aviation is currently exploring potential options for transitioning to an open system architecture for its aviation platforms to increase and establish future competition. PEO Aviation is exploring the use of Modular Open Systems Architecture (MOSA). MOSA aims to standardize avionics software, drive software reuse, slash development costs, and reduce time to market for the aviation community by using a common hardware box with shared interfaces, and functions encapsulated on individual modules or cards installed in the common box as needed. The standardization of software, interfaces, and form factor will reduce integration and airworthiness approval costs and lead times, improving the Army’s ability to seek, develop, and field alternatives to existing systems and components and increase opportunities for competition.

8. Market Research:

SSA Posted on 23 May 2023

Technical experts within PdM ACMC and the PdM ACMC Field Office developed the requirements, and the KO published a SSA on the System for Award Management web portal SAM.GOV Contracting Opportunities seeking potential sources for hardware production, repair, and engineering support (including system integration, training, software and hardware updates, studies, analyses, testing, and obsolescence management) of AN/ARC-231/A MARS radios. In addition to current capabilities, the SSA included a request for additional information on current or planned implementation of the SATURN waveform and TSV cryptologic algorithms. The SSA stated a need for first time manufacturers to undergo testing at the Contractor’s expense.

There were two (2) sources, including the incumbent BAE who responded to the SSA.

a. BAE, the incumbent and OEM contractor, provided a detailed response on 16 June 2022, and provided a response 06 June 2023 restating the continued interest and validity of the information provided in their 16 June 2022 response.

BAE’s response indicated an interest in all production, repair, and services required by the SSN. They also provided datasheets and program plans for requested information on expanded capabilities, including examples of cryptographic modernization efforts on other systems. The BAE-produced RT- 1987 is currently undergoing NSA and airworthiness qualification. FRP approval of the RT-1987 is on schedule for July 2023. Other AN/ARC-231/A components delivered by BAE are currently qualified on Army aviation

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platforms. The responses provided by BAE provide sufficient information for the Government to conclude that they are fully qualified to meet the requirements of the MARS contract.

b. Bren-Tronics, Inc. responded on 30 May 2023 with a request to be considered only for production of the Keep Alive Battery component. They provided no additional information when informed that the contracting focus was on supporting the AN/ARC-231/A system as a whole. As the OEM vendor of the Keep Alive Battery, they are a valid source for that component but are not able to meet the other requirements of the contract.

SSA Posted on 17 May 2022

A preceding SSA resulted in three sources, including the incumbent BAE.

a. Carolina Microwave Associates responded on 17 May 2022 with interest in providing manufacturing and repair for a limited set of the requested items.

Item Interested

Service Keep Alive Battery Box Production MT-7166 Mounting Base Production MT-7168 Mounting Base Production Battery Production RT-1808A Radio Repair RT-1987 Radio Repair

Carolina Microwave Associates did not indicate ownership or a plan to purchase a production-level TDP, or the desire or capability to support future production of key components, including ARC-231/A receiver-transmitters, or to provide further engineering support. Their information on past projects indicates experience with design, manufacturing, and repair of terrestrial antennas, but not with the software, cryptographic, or avionics requirements of the AN/ARC- 231/A. The respondent did not address the requirement for system qualification, which would represent a significant cost to the company if accepted. Due to the very limited list of items in which Carolina Microwave Associates expressed an interest, the lack of interest or demonstrated capability in producing the crucial RT-1987 radio, and a lack of information on additional engineering services, the Government does not consider them a viable option as a primary source for the MARS program. Carolina Microwave Associates did not provide a response to the 06 June 2023 SSA.

b. Aerospace Maintenance Solutions, LLC responded on 18 May 2022 with a request for a TDP for repair, but not production, of AN/ARC-231/A components.

The Government reviewed available data and replied to Aerospace

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Maintenance Solutions on 25 May 2022 that it did not own the requested data at a level required to perform full repair of components. The respondent did not further identify any components they wished to be considered for producing or repairing, or for engineering support. With no further responses or any detail on the items or services that Aerospace Maintenance Solutions, LLC wished to be considered for, the Government assesses that this potential offeror has limited capabilities and is not a potential source to meet the full requirements.

Aerospace Maintenance Solutions, LLC did not provide a response to the 06 June 2023 SSA.

c. BAE, the incumbent and OEM contractor, provided a detailed response 16 June 2022. BAE’s response indicated an interest in all production, repair, and services required by the SSN. They also provided datasheets and program plans for requested information on expanded capabilities, including examples of cryptographic modernization efforts on other systems. Other AN/ARC-231/A components delivered by BAE are currently qualified on Army aviation platforms. The response provided by BAE provides sufficient information for the Government to conclude that they are fully qualified to meet the requirements of the MARS contract.

After careful consideration and analysis of the above capabilities, the Government determines that BAE is the only responsible source qualified for fielding and sustainment of the Army MARS system and components. BAE has been the only source of this capability to produce a system qualified for Army aviation platforms. Due to the significant time and cost of qualification, in addition to future capabilities requirements, the MARS program requires a contractor with immediate capability to support deployment of Army aircraft. Of the above respondents, only BAE, the incumbent contractor, provided interest in the full scope of requirement and information to support the technical capability to meet those requirements.

Results

While the respondents other than the incumbent did not express interest or capability in the full scope of required actions, they may be considered as subcontractors or alternate sources of limited repair or production in efforts to improve competition.

The requirement is not commercial, and the market research responses confirmed that the requirement is not commercial. The Government does not own the data rights to procure this effort through the Federal Supply Schedule or issue a competitive order under an omnibus contract.

Based on the market research responses provided and the Government analysis the Government finds BAE is the only contractor capable of executing the AN/ARC-231/A MARS radios requirement without interruption.

The Government continually conducts market research through the use of catalogs, CUI periodicals, publications; and other sources; other generally available product literature;

and by contacting knowledgeable individuals in Government and Industry regarding market capabilities that could provide opportunities for competition of the required services. No opportunities have been identified that would afford the required support and uninterrupted deliverables and service of the radios to sustain the AN/ARC-231/A MARS program requirements.

9. Interested Sources:

As detailed Section 8, above, the only sources that have written to express an interest in the requirement are the respondents to the SSAs posted in May 2023 and May 2022.

Of these respondents, only BAE, the incumbent contractor and owner of the TDP, IP, and software rights, is qualified and has the ability to perform the full scope of requirements.

10. Other Facts:

a. Procurement history.

Contract Number Period of Performance (PoP)

Contractor Extent Competed/ FAR Exception

W56JSR-19-D-0014 02/07/2019 -

12/31/2023

Raytheon

*Novated to BAE* Sole Source/FAR 6.302-1

W15P7T-14-D-0055 09/24/2014 - 09/29/2017 Raytheon

Sole Source/FAR 6.302-1

W15P7T-10-D-D406/

09/30/2013 – 09/29/2014 Raytheon

Sole Source/FAR 6.302-1

SPRBL1-13-D-0004 12/12/2012 –

10/31/2015 Raytheon Sole Source/FAR

6.302-1

W15P7T-06-D- A008

12/30/2005 – 04/29/2016 Raytheon Competitive

W56JSR-19-D-0014 (PoP: 02/07/2019 – 12/31/2023)

Contract W56JSR-19-D-0014 is a five year FFP, CPFF, CNF, Fixed-Price, Incentive- Firm Target IDIQ contract for MARS. It was awarded 07 February 2019 to Raytheon on a sole source basis. The contract ceiling is to procure AN/ARC-231/A MARS hardware components, repair services, engineering/logistical support services and travel. During the performance of this contract, on 06 October 2021, the contract was novated from Raytheon to BAE. BAE /Raytheon supported production and repair of hardware components, including a Production Line Verification process to address the change from Raytheon to BAE production of the RT-1987 radio. Under this contract, task order W6JSR-20-F-0012 required BAE /Raytheon to perform significant software

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development and testing to support upgrading of the AN/ARC-231/A radios to include the SATURN waveform. Additional software upgrades and studies were or are being performed under task orders W56JSR-21-F-0027 (Code Coverage), W56JSR-22-F- 0013 (Data at Rest Study), and W56JSR-22-F-0052 (engineering services in support of platform integration). Manufacture and repair services under W56KSR-19-D-0014 have supported PdM ACMC fielding and testing efforts, Integrated Logistics Support Center sustainment efforts, and FMS efforts.

The previous J&A, Control Number JA 16-173, approved 20 October 2016 by the Senior Procurement Executive outlined actions to increase competition during the current contract W56JSR-19-D-0014. Actions were that the Government will continue to conduct market research to ascertain if changes occur in the marketplace that would enable future actions to be competed. PdM-AME will actively monitor competitor developments and redesigns of possible solutions. PEO Aviation is currently exploring potential options for transitioning to an open system architecture for its aviation platforms in an effort to establish future competition. PEO Aviation is exploring the use of Future Airborne Capability Environment (FACE). FACE aims to standardize avionics software, drive software reuse, slash development costs and reduce time to market for the aviation community. To promote competition, the solicitation will include FAR Clause 52.219-8, Utilization of Small Business Concerns, and FAR 52.219-9, Small Business Subcontracting Plan. The clauses ensure that BAE considers small business concerns and participation in this follow-on contract. BAE has demonstrated utilization of competition in sub-contractors in previous engineering efforts.

All of the actions have been completed and/or are continuing. The contract was novated from Raytheon to BAE in October 2021. BAE has an approved corporate subcontracting plan and PEO Aviation is consistently performing market research and looking for viable alternative solutions.

W15P7T-14-D-0055 (PoP: 09/24/2014 – 09/29/2017)

Contract W15P7T-14-D-0055, MARS repair was a three year, CPFF, Level of Effort, IDIQ type contract that was awarded on 25 September 2014 to Raytheon on a sole source basis. This was a sole source effort with J&A revalidation, Control Number 14- 024, approved by the Special Advocate for competition on 14 September 2014. The contract ceiling was to procure repair services for the AN/ARC-231 MARS, including its Line Replaceable Units (LRUs) and their Circuit Card Assemblies. There were five task orders issued under this MARS repair contract. Repair services were primarily for items that cannot be organically repaired at the depot.

W15P7T-10-D-D406/0007 (PoP: 09/30/2013 – 09/29/2014)

Contract W15P7T-10-D-D406/0007, was a single award, twelve-month period of performance, CPFF Task Order that was awarded to Raytheon on 30 September 2013.

The order was for repairs for the AN/ARC-231 MARS. The contract was valued at

The J&A, Control Number 11-062, was signed by the Special Competition Advocate. This task order, performed under the Multiple Award IDIQ Rapid Response

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Third Generation Contract, was issued due to the delay in awarding Contract W15P7T- 14-D-0055.

SPRBL1-13-D-0004 (PoP: 12/12/2012 – 10/31/2015)

Contract Number SPRBL1-13-D-0004 was awarded on 12 December 2012 on a sole source basis to Raytheon for procurement of the AN/ARC-231 MARS Shop Replaceable Units to support the organic screening and repair program to reduce the equipment down time and improve the equipment readiness. The contract was valued at . The J&A, Control Number SPRBL1-12-R-0029, was signed by the Head of the Contracting Activity (HCA).

W15P7T-06-D-A008 (PoP: 12/30/2005 – 04/29/2016)

Contract W15P7T-06-D-A008 was an FFP IDIQ contract with a five-year base and one five-year option period awarded on 30 December 2005 to Raytheon on a competitive basis using FAR Part 12 procedures. The contract was awarded with a ceiling of for the procurement of the AN/ARC-231 MARS LRU hardware, warranty repairs, and engineering support services.

In 2009, NSA mandated an update to the Proteus Cryptographic Module (PCM) capabilities of communication systems. As a result, it was determined the AN/ARC-231 MARS receiver/transmitter needed to be upgraded to meet the mandate and be NSA compliant. Additionally in 2009, PdM Aviation Mission Equipment (AME) was informed that the current Ultra-high Frequency Follow-On (UFO) SATCOM constellation was being replaced by the MUOS SATCOM Constellation by 2010. Being that AN/ARC-231 MARS was intended to interface with the UFO SATCOM constellation, PdM-AME began an effort to address obsolescence concerns with the AN/ARC-231 MARS to enable the mandated NSA cryptographic compliance as well as the MUOS compatibility in support of the SATCOM constellation change. The effort for the CM/MUOS integration into the AN/ARC-231/A MARS consists of six phases. The first five phases were awarded between 2009 and 2015 as task orders for engineering services issued against contract W15P7T-06-D-A008. The sixth and final phase of the CM/MUOS effort was anticipated to be awarded as a task order against the AN/ARC-231/A MARS follow-on contract prior to removal of MUOS support as a requirement by PdM ACMC in 2021.

In 2012, demand increases in both production lines and sustainment of the AN/ARC- 231 MARS, as well as the delay of the published Joint Tactical Radio System product schedule, established a need to increase the ordering ceiling of contract W15P7T-06-D- A008 to support aircraft production lines through the life of the contract. As such, ACC- APG increased the contract ceiling by to on 28 September 2012 via contract modification P00028. Since this was considered new work against the contract, a J&A, control number 11-1008, was approved to award the ceiling increase as a sole source award to Raytheon. Additionally, because the AN/ARC-231/A MARS was being developed for Government purposes and only being sold to Government end-users, it was determined that the MARS radio was no longer deemed commercial pursuant to

CUI

the FAR Part 2 definition of a commercial item.

CUI

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.

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.

6/28/23

11. Technical Certification:

Date:

Date: 6/28/23

CUI

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature: Date:

6/28/23

Signature:

Date: 6/28/23