J AASFIPOSTING.pdf

Control Number: 11-019

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: Force XXI Battle Command Brigade and Below (FBCB2) Systems and

Movement Tracking Systems and respective components

Authority: 10 U.S.C. 2304(c)(1) and FAR 6.302-1 Amount: $85.17M

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: U.S. Army Contracting Command

CECOM Contracting Center

AMSCC-CCCE-CBK-B

6001 Combat Drive

Aberdeen Proving Ground, MD 21005

2. Description of Action: This proposed action is for a modification to Firm-Fixed-Price/Time and Materials, Indefinite Delivery Indefinite Quantity Contract Number W15P7T-06-D-J405, with DRS Tactical Systems, Inc (DRS), to increase the ordering ceiling from $1,062,569,477 to

$1,147,747,311 to enable additional Delivery Orders (DOs) to be issued for the Force XXI Battle

Command Brigade and Below Computer Systems (FBCB2) and components, and to expand the scope of the contract to allow DOs to be issued for Movement Tracking Systems (MTS) and components. Other Procurement, Army appropriations will be used for this action.

3. Description of Supplies and Services: The FBCB2 is the Army’s digital battle command information system at the brigade and below level. The FBCB2 System provides soldiers and leaders with combat support, and provides service support units at brigade and below level with on-the-move, near-real-time situational awareness and command and control information. It also provides a means for brigade and battalion commanders to lead when away from their Tactical

Operations Centers. The MTS is a communication platform within the Army Battle Command

System which is designed for commanders to track friendly forces on the battlefield with encrypted text messaging. It is a satellite-based tracking and communicating system designed to provide command and control over distributed assets supporting and conducting theater operations. The MTS will become a component of FBCB2 in October 2011. The Government requires additional FBCB2s and MTSs, and their respective components, to support the Army’s fielding plans for additional systems. Contract Number W15P7T-06-D-J405 currently has an ordering ceiling of $1,062,569,477 and DOs with a value of approximately $1,054,569,477 have been issued to date. The contract ordering period expires on 31 May 2011, and it is anticipated that the option period will be awarded to extend the contract to 31 May 2012. The proposed ceiling increase is needed to allow DOs, with a total estimated value of $93,170,000, to be issued through May 2012. The total estimated amount of the proposed action is $85.17M.

4. Authority Cited: 10 U.S.C. 2304(c)(1) and FAR 6.302-1, Only One Responsible

5. Reason for Authority Cited: The source for this action is DRS, 1110 West Hibiscus

Boulevard, Melbourne, Florida 32901. Initially the Government contracted with Northrop

Grumman Mission Systems (NGMS), the developer of the computer systems for the FBCB2 program. However, since NGMS subcontracted with DRS to produce the items, the Government subsequently contracted directly with DRS to reduce the costs. DRS is the only source that has produced the FBCB2 and MTS and their respective components during the past several years.

DRS is the only source with detailed knowledge of the FBCB2 and MTS and their respective components. While there are a number of other sources that can produce computers and have expertise building custom ruggedized computers, only DRS has produced computers that meet the Government’s current performance requirements. The Government does not possess detailed technical data on the proprietary, internal designs of the computers that have been produced by

DRS. The Government requires computer systems that are form, fit, and functionally interchangeable with previously acquired computers to ensure operation and installation on the

Services’ vehicular platforms. The Government requires these items as soon as possible and utilizing another source would significantly delay the production of these systems. In order to switch manufacturers a substantial amount of software integration needs to occur as well as interoperability testing, risk reduction testing, First Article Testing (FAT), and logistical planning. Therefore it is estimated that any other source would need at least 1-2 years, including

FAT, before it could commence deliveries for a computer system that meets the Government’s requirements; whereas the current producer, DRS can deliver in less than four months.

Additionally, it is estimated that this would result in duplication of costs of upwards of $10M that is not expected to be recovered through competition. Failure to field additional FBCB2s and

MTSs and their respective components will result in increased risks of serious injury or loss of life to the Warfighters.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section of this document. This effort did not yield any additional potential sources that can meet the Government’s requirement. There is no competition anticipated for this effort.

7. Actions to Increase Competition: An updated performance specification and top-level drawings are anticipated to be delivered in 3rd Quarter FY11 following reliability demonstration and interoperability testing which will allow for competitive follow-on acquisitions. Based upon the market research discussed in Paragraph 8, multiple sources are interested and may be capable of meeting the Government’s requirements. It is anticipated that a competitive action will be possible for the follow-on contract with a projected award date of May 2012.

8. Market Research: Technical experts from Product Manager FBCB2 performed market research for this effort by posting a Sources Sought Announcement on the Federal Business

Opportunities (FedBizOps) Page on 17 October 2010 for FBCB2 Computer Systems. Responses were received by the following companies and an extract of the technical review is provided below:

World Access USA: No proof was provided of its ability to meet current computer space claims, ability to fit into current installation kits, interoperability with currently fielded systems, or ability to provide support services.

VT Miltope: The response received from VT Miltope didn’t specifically discuss many of the topics mentioned as areas of discussion in the market survey. No mention was made of interoperability with current systems or installation kits, nor was its ability to perform support services.

Smartronix: Smartronix utilized a Panasonic CF-19 tablet laptop solution. While its supplied computer solution may meet space claims, the addition of breakout docks that would be required to add all of the necessary physical connectors would likely make it as big, if not larger, than current JPT and JV5 solutions. Smartronix provided no details of its solution fitting in current installation kits, or any information to demonstrate interoperability with current FBCB2 systems.

SIE: Response received did not provide details to the Market Survey. Its submission was a presentation about the company. SIE did not address questions in the market survey or solutions of the replacement of the JV5 or JPT.

Northrop Grumman (NG): Provided two paths forward for this effort. First they provided all of the information requested through replacing both the JV5 and JPT with the Multi-Domain Atlas

(MDA). Next they provided information on a Build to Print way ahead stating they could easily provide an in depth proposal and have a qualified identical JV5 and JPT replacement for deliveries starting in June 2011. However, the Government does not own detailed build-to-print drawings which would make this at all feasible, instead the JV5 is controlled via a performance specification which provides only the external envelope, performance and environmental requirements. Currently NG states that the production rate for Multi Domain Atlas being delivered to WIN-T is only 50/month. However, it has already invested in new manufacturing equipment to enable it to ramp that up to 1200/month by early 2011, after which time adding additional shifts would allow it to reach the required 600/week. There are two major risk factors associated with this proposal. First there is a large amount of risk associated with ramping up production by an order of magnitude more than what NG is currently producing computer quantities at. Secondly to utilize the provided solution NG would need to perform a government sponsored, and witnessed, FAT as well as the associated Risk Reduction Testing and interoperability testing to prove out the system’s full functionality with the existing FBCB2 systems and their communications devices. The Government predicts this would take at a minimum 1 full year to accomplish based on prior experience. As such without showing current proof of the required production capacity and government sponsored FAQT and Risk Reduction

Testing, this is an unacceptable risk.

Lockheed Martin: Lockheed Martin stated interest in being a qualified second source for computer hardware. However, FBCB2 is currently approaching the end of its Army Acquisition

Objective (AAO) and to qualify a second source at this current juncture is not economically beneficial to the Government.

General Dynamics C4 Systems (GD): GD provided evidence of its past support services integration experience with the FBCB2 software in conjunction with PM Soldier, as well as past abilities to deliver systems within 4-months of a DO. Currently GD states that all of its current production requirements are met using a single shift; however, it would need to add additional shifts to allow it to reach the required 600/week. There are two major risk factors associated with this proposal. First there is a large amount of risk associated with ramping up production by an order of magnitude more than what GD is currently producing computer quantities at.

Secondly to utilize the provided solution GD would need to perform a government sponsored, and witnessed, FAT as well as the associated Risk Reduction Testing and interoperability testing to prove out the system’s full functionality with the existing FBCB2 systems and their communications devices. The Government predicts this would take at a minimum 1 full year to accomplish based on prior experience. As such without showing current proof of the required production capacity and government sponsored FAQT and Risk Reduction Testing, this is an unacceptable risk.

DRS: DRS is the current computer hardware producer for FBCB2 and MTS. DRS re-stated how it meets each one of the market survey questions posed throughout its response. Overall, DRS provides a near zero risk solution to the short timeframe, immediate requirements that

FBCB2 and MTS currently has until June 2012 in order to support the Warfighter.

All respondents were informed of the results of the technical analysis performed by the

Government. Two respondents expressed concerns with the Government’s analysis; they were

NG and GD. The technical team considered those concerns and determined that there was a disconnect in the understanding of the purpose for this market research effort. Both sources were addressing possible future requirements with their suggested remedies and solutions. For both

GD and NG those solutions may work for the follow-on contract and future requirements but that was not the intent of this current market survey/ceiling increase effort. This market research effort was only for the current FBCB2 requirements set to be ordered in this bridging year. In follow-on communications, both NG and GD were notified of this analysis. To date, neither source has expressed any further objection to the Government’s approach for this action. A market research effort for the future FBCB2 requirements and follow-on contract will be coming out shortly. The Government’s technical experts have determined that no other sources have the production line capabilities or delivery turnaround time needed to produce these items for the

FBCB2 Computer Systems, and therefore cannot meet the Governments requirements for MTS.

Therefore, based on this market research, the Government’s technical experts determined that only DRS can meet the Governments immediate, short timeframe requirements.

9. Interested Sources: In accordance with FAR 5.201, the solicitation for the proposed action will be synopsized on the FedBizOps Page. Any proposals received shall be evaluated.

10. Other Facts:

a. Procurement History: Contract Number W15P7T-06-D-J405 was awarded on 1 June 2006 on a sole source basis to DRS. The most recent action for the FBCB2 Computer Systems was

P00016 to this contract. This modification was awarded to DRS on 24 September 2008 on a sole source basis, under the authority of FAR 6.302-2, Unusual and Compelling Urgency, for a Firm-

Fixed-Price/Time & Materials to increase the contract’s ordering ceiling from $972,436,054 to

$1,062,569,477, to enable a DO to be issued for required FBCB2 Computer Systems. Paragraph

7 of the J&A document associated with that contract action stated that an updated performance specification and top-level drawings were anticipated to be delivered in June 2008 following reliability demonstration and interoperability testing. After review of the updated information, the Government would conduct additional market research, and if multiple sources were interested and capable of meeting the Government’s requirements, a follow-on competitive acquisition would be initiated. An updated performance specification and top-level drawings are anticipated to be delivered in 3rd Quarter FY11, and the Government currently intends to award a follow-on competitive acquisition in May 2012. The Market Research Analysis (detailed in paragraph 8) has yielded several responses and should provide adequate competition.

Additionally, Modification Number P00014 to Contract Number W15P7T-06-D-J405 was awarded to DRS on 24 September 2008 on a sole source basis under the authority of FAR 6.302-

2, Unusual and Compelling Urgency, to increase the contract’s ordering ceiling from

$441,436,054.00 to $972,436,054. Modification Number P00015 to Contract Number W15P7T-

06-D-J405 was awarded to DRS on 14 January 2008 on a sole source basis under the authority of

FAR 6.302-2, Unusual and Compelling Urgency, to increase the contract’s ordering ceiling from

$397,896,959 to $441,436,054. Modification Number P00005 to Contract Number W15P7T-06-

D-J405 was awarded to DRS on 24 January 2007, on a sole source basis under the authority of

FAR 6.302-4, International Agreement, to increase the contract’s ordering ceiling from

$396,643,689 to $397,896,959 and from $396,641,169 to $396,643,689. Modification Number

P00003 to Contract Number W15P7T-06-D-J405 was awarded to DRS on 23 October 2006,on a sole source basis under the authority of FAR 6.302-4, International Agreement, to increase the contract’s ordering ceiling from $396,588,774 to $396,641,169. Modification Number P00002 to

Contract Number W15P7T-06-D-J405 was awarded to DRS on 27 July 2006 on a sole source basis under the authority of FAR 6.302-4, International Agreement, to increase the contract’s basic ordering ceiling from $396,000,000 to $396,588,774.

Previous contract actions are listed in the below table:

Contract/Modification

Number

Award Date Contractor Extent

Competed/Authority

W15P7T-04-D-G204/P00014 21 September 2005 DRS Sole Source/FAR 6.302-2

W15P7T-04-D-G204/P00013 14 July 2005 DRS Sole Source/FAR 6.302-2

W15P7T-04-D-G204/P00008 18 April 2005 DRS Sole Source/FAR 6.302-2

W15P7T-04-D-G204 21 May 2004 DRS Sole Source/FAR 6.302-1

W15P7T-04-C-G201 3 November 2003 DRS Sole Source/FAR 6.302-2

DAAB07-00-D-E501 26 January 2000 NGMS Sole Source/FAR 6.302-1

b. Availability of Data: The Government only possesses a performance-based Statement of

Work, a performance specification, and top-level drawings. Updated specifications and top-level drawings for the JPT were received and are being reviewed to encourage competition in the future for the follow-on contract.

c. Subcontracting Competition: FAR 52.244-5, Competition in Subcontracting, is included in

Contract Number W15P7T-06-D-J405, and will be applicable to the proposed modification.