TEN TUC SAM JA Posting.pdf

DEPARTMENT OF THE NAVY

NAVAL AIR WARFARE CENTER TRAINING SYSTEMS DIVISION

12211 SCIENCE DRIVE

ORLANDO FLORIDA 32826-3224

GT-24000

J&A 21-0220

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

Naval Air Warfare Center Training Systems Division (NAWCTSD)

2. Description of the Action Being Approved.

This Justification and Approval (J&A) authorizes and approves on a sole source basis a contract to Veraxx Engineering Corporation (Veraxx), Chantilly, VA, for an Indefinite Delivery / Indefinite Quantity (ID/IQ) contract to upgrade, complete, integrate and field a completed baseline version of the United States Marine Corps (USMC) Tactical Environment (TEn) for all four Marine Air Wings (MAW), with associated interoperability bridges, and complete integration of the USMC TEn with USMC Aviation Training Systems (MC ATS) and devices.

3. Description of Supplies/Services.

The USMC TEn is a primary and key subsystem of the Aviation Distributed Virtual Training Environment (ADVTE) enabling MC ATS training devices to connect for distributed networked training, while also serving as the USMC Semi-automated Forces (SAF) solution. USMC TEn consists of software and hardware components that are installed in the majority of MC ATS training devices. This subsystem also enables networked modes of trainer operation through applicable Distributed Interactive Simulation (DIS) and Navy Aviation Simulation Master Plan (NASMP) bridges when connecting to non-TEn based trainers. The requirements provide for finalizing the TEn software baseline and bridges, with technical documentation, for implementation at all four MAW MCATS sites to fully integrate all existing MC ATS and training devices. This includes addressing interoperability shortfalls affecting current and emerging USMC Aviation mission training and readiness requirements, such as integrating with US Navy (USN) trainers, and integrating the TEn to support aircrew using Marine Air Ground Tablets in the simulator. Additionally, upgrade and completion of the USMC TEn requires updating operational software in MC ATS and other training devices such that TEn integration can occur as required. Finally, hardware updates and initial spares will be acquired. The estimated value of the contract is $38.912M.

Estimated Dollar Value ($Thousands)

($K) FY22 FY23 FY24 FY25 FY26 Total

APN-7 12936 4397 4485 9722 6417 37957

APN-6 270 196 489 955

Total 13206 4397 4681 9722 6906 $38912

4. Statutory Authority Permitting Other Than Full and Open Competition.

10 U.S.C. 2304(c)(1), Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Statutory Authority.

Veraxx is the original developer of the highly specialized TEn subsystem coding and associated coding of the DIS and NASMP bridges, containing over a million lines of software code.

Further, Veraxx is the only company with the highly specialized knowledge and experience with the current TEn software code, and who could modify it without unacceptable delay in meeting the Government’s requirement to provide full-scale integration into USMC trainers and ADVTE infrastructure. The original development work was accomplished through Veraxx’s performance as a subcontractor on a 2000 MV-22 Basic Ordering Agreement with Bell Helicopter and as a subcontractor on a 2001 contract with Lockheed Martin. Following these initial smaller scale efforts, Veraxx was competitively awarded an Indefinite Delivery contract in 2006 for substantial TEn development, integration, and deployment. The only other TEn work accomplished was a small scale effort in 2014, for which the purpose was to meet the DoD mandated requirement for a more secure operating system. While the Government obtained unlimited rights to the TEn/Bridges software code, the highly specialized nature of modifying the software code requires Veraxx’s unique knowledge and familiarity with the TEn coding to support the fleet’s time-sensitive requirements for networked training in a common synthetic environment. No other contractor possesses the knowledge or technical data required to modify the software code. At its inception, the TEn was only intended to network USMC devices, whereas it is now intended to expand its networking capability beyond the USMC. However, during the acquisition planning, as these requirements matured, it was recognized that without the necessary data to modify the software code, no other company can accomplish this effort without unacceptable schedule delay. This action is critical to complete TEn upgrades and make necessary changes on the trainers to integrate the TEn.

Notwithstanding the lack of technical data, an effort to compete this action requires a significant learning curve that any potential new developer would encounter given the amount of software code involved, thus resulting in a substantial duplication of costs and negatively affecting the program and Fleet schedule. The program conservatively estimates it would cost any other company $4.62 million (or 60% more) and a minimum 11.6-month (or 28% longer) schedule impact for the first delivery order. Beyond the initial delay, the cumulative effect of subsequent delays, combined with a high risk of interoperability failures of existing and newly fitted training devices, presents an unquantifiable risk to the Marine Corps in receiving the required integrated training across all USMC-USN training devices.

A single and complete TEn baseline across all four MAWs, fully documented, is the only viable solution for ensuring networking and interoperability of the MC ATS training devices as well as connections to other non-TEN based USN and Joint trainers. Accordingly, Veraxx is the only firm capable of providing the supplies and services described in paragraph 3 above without unacceptable schedule delays and a substantial duplication of cost, which would result in further adverse impacts to assets currently deployed and operating in the fleet.

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

To comply with PGI 206.302-1, market research was conducted through a sources sought notice (SSN) that was posted to beta.SAM.gov on 30 Aug 2019 and closed on 12 Sep 2019. The sources sought notice summarized the requirements for the actions described herein and requested interested parties to provide capability summaries. The Government received four (4) responses – three (3) large businesses and (1) small business. Overall, all respondents to the SSN, except Veraxx, were determined to demonstrate a substantial risk in their ability to complete the required actions and do not possess the needed capabilities to satisfy the requirements outlined in the SSN. Veraxx was deemed as fully capable. With attention to this, each respondent was issued a letter on 15 Jan 2021 detailing the Government’s assessment of its capability. The Government did not receive any further feedback from the respondents following receipt confirmation of their letter.

In accordance with FAR 5.201, the Government posted a Synopsis to beta.SAM.gov on 18 Feb 2021, which closed on 08 Mar 2021. The Government did not receive responses to the synopsis.

With no changes in the current market situation; the highly specialized nature of the equipment, which involves a substantial amount of software code; the unique capabilities presented by Veraxx in providing the supplies; and the lack of critical TEn technical data necessary for future procurements, the Government has determined that Veraxx is the only responsible source capable of satisfying the requirement.

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

While there are no known future requirements at this time, the Government expects to obtain a technical data package that will support competition for future acquisitions of the same or similar items.

Estimated Dollar Value ($Thousands)