JandAAmendment01December2014Redacted.pdf

Control Number: 13-100 A001

AMENDMENT TO JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Amendment # 01 to Control Number 13-100

1. CONTRACTING AGENCY: United States Army Contracting Command

Aberdeen Proving Ground (ACC-APG)

CCAP-CCC

6001 Combat Drive Aberdeen Proving Ground, Maryland 21005

2. DESCRIPTION OF ACTION: The proposed contract action will result in the award of a thirty-six (36) month indefinite delivery, indefinite quantity (IDIQ) commercial contract with firm-fixed-price (FFP) contract line items (CLINs) and a total ordering ceiling of $84.7M. The proposed contract will provide interim contractor support (ICS) for the MX Sensor Systems for Program Executive Office (PEO) Intelligence, Electronic Warfare and Sensors (IEW&S) on a sole source basis. The contract will provide for the procurement of MX Sensors, spare parts, repair parts, and MX Emulators and Simulators; modification of MX Sensors; and services to include platform integration, field service representatives (FSRs), repair services, program management support, engineering support, integrated product support, safety, quality assurance and configuration management. The appropriation funds utilized for this effort will be Fiscal Year (FY) 13-FY17 Other Procurement Army (OPA), FY13-FY17 Aircraft Procurement Army (APA), FY15-FY17 Operations and Maintenance (OMA) and FY14-FY17 Research, Development, Test and Evaluation (RDTE) funding. Award is anticipated in

FY15.

3. DESCRIPTION OF SUPPLIES/SERVICES: The contract will provide for the procurement of MX Sensors, spare and repair parts, and MX Emulators and Simulators;

modification of MX Sensors; and services to include platform integration, field service representatives, repair services, program management support, engineering support, integrated product support, safety, quality assurance and configuration management.

The MX Sensor Systems are commercial items developed by WESCAM, Inc., a wholly owned subsidiary of L-3 Communications (hereby referred to as “L-3 WESCAM”). The MX Sensor Systems are Electro-Optical/Infrared (EO/IR) imaging sensor systems with laser illumination and range finding capabilities. Product Manager (PdM) EO/IR Payloads manages the MX Sensor Systems for PEO IEW&S. MX Sensor Systems are currently operational in Afghanistan, and the continental United States (CONUS). The systems are mounted on airborne platforms and offer the battle commander a full motion video (FMV) surveillance capability allowing forces to find, fix, track, target and engage direct/indirect fire threats. PdM EO/IR Payloads will provide centralized management of the PEO IEW&S current fleet of MX Sensor Systems. This effort will allow the Government to maintain MX Sensor Systems operational availability and continue to provide reconnaissance and surveillance capabilities in support of contingency operations.

BASIC J&A: The basic J&A for MX Sensors Total Support (Hardware and Services) was approved on 10 May 2013 with a total ordering ceiling of $84.7M.

AMENDED J&A: Because the proposed contract action was not awarded within 180 days from the date of the approved J&A (10 May 2013) the Contracting Officer requested the Competition Advocate revalidate the document. The J&A has also been updated to reflect specific fact of life changes that have occurred since the basic J&A was approved. The changes are identified in paragraph 10 of this J&A amendment.

4. AUTHORITY CITED: No change.

5. REASON FOR AUTHORITY CITED: The proposed source is Canadian Commercial Corporation (CCC), North Atlantic Treaty Organization (NATO) Commercial and Government Entity (NCAGE) Code 98247 (50 O’Connor Street, Suite 1100, Ottawa, Ontario, K1A 0S6, Canada), on behalf of L-3 WESCAM, NCAGE Code 3AC24 (649 North Service Road, Burlington, Ontario, L7P 5B9, Canada). In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 225.870-4 which states, “…award individual contracts covering purchases from suppliers located in Canada to the Canadian Commercial Corporation,” this requirement will be awarded to the CCC on behalf of L-3 WESCAM. L-3 WESCAM is the original equipment manufacturer (OEM) and the owner of the MX Sensor Systems technical data package (TDP) and intellectual property (IP). The OEM has a family of products that fit into the MX line, all of which were developed exclusively at private company expense. The Government requested that the OEM provide cost information to acquire the rights to the MX Sensor System TDP and IP. The company’s response on 31 January 2013 (revalidated on 17 March 2014) was that a TDP did not exist and the IP associated with MX Sensors is not for sale. This results in the Government not having access to the necessary data required to produce spare systems or components, provide necessary depot repair services, or provide integration support. Additionally, the spare components associated with MX Sensors are not currently centrally managed and do not have a national stock number.

Moreover, suitable technical data, Government data rights, or manufacturing knowledge is not available to permit acquisition, qualification testing of another component or use of a second source part in the intended application from sources other than L-3 WESCAM. There are no alternative sources to L-3 WESCAM’s MX Sensor Systems spare components and there are no other components that are compatible with the systems. No other company has the expertise needed to repair and test the MX Sensor Systems or support a Government organic depot through work-share agreements.

Therefore, contracting directly with CCC on behalf of L-3 WESCAM provides the only solution available to support the PEO IEW&S current inventory of MX Sensor Systems.

6. EFFORTS TO OBTAIN COMPETITION: Market research was conducted via an updated Sources Sought Notice (SSN), details of which are in the market research section of this document.

7. ACTIONS TO INCREASE COMPETITION: No change.

8. MARKET RESEARCH: PdM EO/IR Payloads conducted additional market research by posting a second SSN on 18 March 2014, with a requested response date of 24 March 2014. The SSN sought potential sources for sustainment capabilities for EO/IR sensors to support airborne platforms, including aerostats, unmanned aerial systems, and manned aircraft.

As a result, PdM EO/IR Payloads created an addendum to the initial market research report based on this additional market research SSN.

The information provided in the new and updated responses did not demonstrate additional source capability to meet the performance and maintenance requirements.

Based upon the responses to both SSNs, the Government’s technical experts determined that no sources other than L-3 WESCAM can deliver the products and services required, since the latter companies do not possess the required MX Sensor Systems TDP or IP. L-3 WESCAM remains the only viable source that meets the performance and maintenance requirements.

9. INTERESTED SOURCES: The additional market research resulted in four (4) new sources that responded to the SSN:

, none of the new respondents meet the performance and maintenance capabilities of the proposed requirement.

10. OTHER FACTS:

The following subparagraphs include changes from the Basic J&A, approved 10 May 2013.

a. The period of performance has changed from twenty-four (24) months to thirty-six (36) months. The ordering ceiling will remain the same at $84.7M.

b. In accordance with DFARS 225.870-4, the contract will be awarded to the CCC on behalf of L-3 WESCAM. L-3 WESCAM is a wholly owned subsidiary of L-3. L-3 was the prime contractor identified in the Basic J&A as a route to contract with L-3 WESCAM, a Canadian company.

c. The requirement has changed from non-commercial to commercial (FAR part 12). The original solicitation was issued to the contractor as non-commercial. On 18 December 2013, the Contracting Officer determined that the items and services to be procured under this contract action are commercial in accordance with the definition of "Commercial Item" in FAR 2.101.

d. Due to the change in the commerciality determination, the contract type has changed from cost-plus-fixed-fee. Since this contract will be awarded in FY15, funding types and years have been changed from FY11 through FY15 OPA, FY13 through

FY15 OMA, and FY12 through FY15 RDT&E funding to FY13-FY17 OPA, FY13-FY17 APA, FY15-FY17 OMA and FY14-FY17 RDTE funding. Award is anticipated in FY15.

f. A reorganization and name change occurred within PEO IEW&S after signature of the original J&A. Therefore, all references to PdM Robotic and Unmanned Sensors (RUS) have changed to PdM EO/IR Payloads; signature authorities have also changed.

g. The PWS has been modified to state that no classified work will be performed under this contract. No DD Form 254 is required. All FSR support, platform integration support and engineering support must be conducted by U.S. citizens.

11. AMENDED TECHNICAL CERTIFICATION: I certify that the supporting data under my cognizance which are included in the amended J&A are accurate and complete to the best of my knowledge and belief.

12. AMENDED REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the amended J&A are accurate and complete to the best of my knowledge and belief.

13. AMENDED FAIR AND REASONABLE PRICE/COST DETERMINATION: I hereby determine that the anticipated cost to the government for this contract action will be fair and reasonable. Determination of fair and reasonable price will be based on the proposal received, price analysis, historical data, independent Government estimates, and negotiations and the audit performed by the Government of Canada.

14. AMENDED CONTRACTING OFFICER CERTIFICATION: I certify that this amended J&A is accurate and complete to the best of my knowledge and belief.

APPROVAL

Based on the foregoing amended justification, I hereby approve this effort on an other than full and open competition basis pursuant to the authority of 10 U.S.C. § 2304(c)(1), in the amount of $84.7M, subject to the availability of funds, and provided the property herein described has otherwise been authorized for acquisition. If the proposed contract action is not completed within 180 days from the approval date, this J&A will be returned to the Competition Advocate for revalidation. Additionally, if any changes to the requirements, basis for the justification, market conditions or increases in the estimated value of the proposed action occur at any time, the Contracting Officer will document the changes in a memorandum and obtain review/concurrence from the Competition Advocate.

Date: Oct 28 2014 Signature: