Signed_JA_ADSI_W31P4Q-18-D-0050_Redacted.pdf

FOR OFFICIAL USE ONLY

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

COUNTER-ROCKET, ARTILLERY, MORTAR PROGRAM DIRECTORATE (PD)

AIR DEFENSE SYSTEMS INTEGRATOR (ADSI)

1. Contracting Activity: Department of the Army, Army Contracting Command-Redstone, (ACC-R), CCAM-SM-B, Redstone Arsenal, AL 35898-5280.

2. Description of Action:

requests approval to award a new hybrid firm-fixed-price (FFP) and cost-reimbursable, indefinite-delivery, indefinite-quantity (IDIQ) contract with

. The Government projects award for 01 April 2018, with an estimated ordering period of five (5) years. The anticipated type of funding will be Operations and Maintenance, Army (OMA), and Other Procurement, Army (OPA). FFP Contract Line Item Numbers (CLINs) are anticipated for the software deliveries and new and upgraded hardware. CPFF CLINs are anticipated for help desk support, engineering, special exercise, and Field Services Representative (FSR) support, training, and reset of Air Defense Airspace Management (ADAM) ADSI and standalone ADSI. All travel will be cost-reimbursable with no fee. The total estimated cost of this effort is

3. Description of Supplies/Services: This acquisition is for services for the maintenance, testing, training, software deliveries, resetting, fielding, and continuing support of ADSI systems, both hardware and software, for the Army and other Department of Defense organizations. This acquisition will include hardware, software deliveries (from and follow-on baselines), improvements to ADSI interoperability and integration with other tactical systems, software and hardware maintenance, maintenance of technical and training material, and conduct of training as specified in individual delivery orders. Support shall be provided to units and organizations within CONUS, in garrisons OCONUS, during deployments to in-theater areas of operations, during redeployment from areas of operation, and during contingencies and exercises.

The contract ordering period for this effort will be five (5) years, with five one-year ordering periods as follows:

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302- 1(a)(2)(iii)(A) and (B), "Only one responsible source and no other supplies and services will satisfy agency requirements."

5. Reason for Authority Cited: The proposed contractor is

a. is the contractor responsible for design, maintenance, and production of the ADSI software, as well as the hardware upon which the software is dependent. The ADSI software is proprietary to . No formal documentation or source code exists from which any other source could provide the required services. developed the source code with corporate funding. The Government has not funded the development of ADSI software code and has no proprietary rights to the source code. Due to proprietary restrictions, no other source can fulfill the requirements of this contract. The ADSI serves as a tactical data link processor that receives, processes, and displays over 2000 air and missile tracks from multiple tactical data links and intelligence sources to provide an integrated air and missile picture. This information is then provided to command and control for EO, the air and missile defense workstation for situational awareness (SA), and the tactical airspace integration system (TAIS) airspace workstation for airspace de-confliction in support of Air and Missile Defense Planning and Control System (AMDPCS) FO. No other tactical system can provide these critical capabilities which provide brigade combat teams, maneuver division tactical operation centers, air defense artillery brigades, and Army air and missile defense commands’ airspace situational awareness to support the assessment, planning, direction, and control of engagement operations (EO), and support the force operations (FO), and the planning component, of air and missile defense operations. Award of a contract to a contractor other than would result in substantial duplication of cost not expected to be recovered through competition and unacceptable delays in fulfilling the requirements.

b. In addition to the Army, the ADSI is used by the Navy, Marine Corps, and Air Force.

There are currently more than 900 ADSI systems deployed worldwide. The ADSI systems are operated daily, supporting joint and Army air and missile defense operations, and exercises in such critical areas of responsibility as Southwest Asia, Korea, and elsewhere around the world. The ability to exchange tactical data with joint systems is critical; it is critical that the same ADSI hardware and software architecture is shared with the joint services and coalition forces to ensure joint interoperability.

c. The latest release of ADSI software, , is tailored for the unique architecture found in ADSI hardware. The complexity of the ADSI mission, and its reliance on specific hardware drivers, renders the hardware proprietary. Being an independently developed product of , ADSI software cannot be provided to another contractor for modification/enhancements. A contract award to provides the only means of supporting existing Army deployed ADSI systems with the latest of ADSI software, maintaining the support to the user community, and maintaining ADSI systems to meet requirements.

d. As the sole developer and provider of ADSI systems, only has the capability of meeting the Government's need for these services. If the J&A is not approved, and there is no support for ADSI, the ADAM soldiers lose the ability to receive tactical data links. If no tactical data is being received, soldiers lose the capability of external air pictures and situational awareness of possible attacks. This potentially puts soldiers’ lives and safety in jeopardy, could lead to loss of Government property, and mission failure.

6. Efforts to Obtain Competition:

a. Effective competition: Based on the information contained in paragraph 5, no effective competition is anticipated for this acquisition. An Army Aviation and Missile Life Cycle Management Command (AMCOM) Competition Advocate’s Shopping List (CASL) record was published on 11 August 2016 and revised on 18 August 2017. Also, on 06 April 2016, a Request for Information (RFI) was published on the Federal Business Opportunities (FedBizOpps) website, and it was determined that none of the sources that responded could meet the needs of the requirement. An additional RFI was published to FedBizOpps, on 02 August 2017, and it was again determined that none of the respondents could meet the needs of the requirement. As required by FAR 5.201, a synopsis will be published to the FedBizOpps website after the J&A is approved and prior to the release of the solicitation.

b. Subcontractor Competition: Solicitation W31P4Q-17-R-0131 will contain all of the appropriate FAR and Defense Federal Acquisition Regulation Supplement (DFARS) clauses to require the contractor to maximize participation by small businesses. FAR 52.219-8, “Utilization of Small Business Concerns”, FAR 52.219-9, “Small Business Subcontracting Plan”, FAR 52.219-16, “Liquidated Damages—Subcontracting Plan”, FAR 52.219-28, “Post- Award Small Business Program Representation”, and DFARS 252.219-7003, “Small Business Subcontracting Plan (DoD Contracts),” outline the small business participation requirements and will be included in the solicitation and contract award. The contractor’s procurement system has provisions for competing awards to subcontractors. The competition requirements for subcontractors are outlined in accordance with FAR 52.244-5, “Competition in Subcontracting,” and will be included in the contract.

7. Actions to Increase Competition: The technical data package (TDP) for the ADSI software is proprietary to . Due to the proprietary software of the ADSI TDP, it is not sufficient for full and open competition. Efforts to identify components and other items that may be purchased competitively have been considered, as well as continuous research into hosting the software on generic hardware, and potential replacement of the ADSI hardware/software with command and control data link processing. has not yet identified any cost-effective opportunities to increase competition, however, competition on future actions will be considered on the basis of schedule and cost constraints as well as other relevant factors that could pose significant risks to the ADSI.

8. Market Research: Market research was conducted in accordance with FAR Part 10. The Competition Management Office concurred on the Market Research Report on 06 September 2016 and on 06 September 2017. Market research was conducted for this acquisition utilizing personal knowledge in procuring supplies and services of this type. Contact with knowledgeable persons in Government (ADSI Lead Engineer, , the Command and Control Systems Technician, and the Air Force Data Links Program Manager) from October 2015 through July 2017, and knowledgeable persons in industry (field service representative, Northrop Grumman Systems Corporation (NGSC), and systems engineer, CAS/Wyle) in August 2017, regarding the commercial nature of this requirement and standard industry practices in this area of supplies and services. Additionally, contact with knowledgeable persons (Systems Engineers, was made in March 2016, regarding the commercial nature of this requirement and to identify any standard industry practices in this area of supplies and services.

Additional market research involved a review of results for similar or identical supplies and services, and a review of vendors’ briefings, as well as observing and discussing vendors’ evolving capabilities and products. The team reviewed a briefing for Joint Range Extension (JRE), an Engility product. In addition, the team reviewed a briefing for Link Monitoring and Management Tool (LMMT), a Navy product. The team reviewed Scalable Portable Integrated Data Router (SPIDR), an Air Force product. The most recent briefings reviewed were in August 2017. Initially, several prospective vendors were found to have some limited capabilities to satisfy the unique requirements. However, the prospective systems were not readily deployable (SPIDR), did not contain all needed capabilities (LMMT), or would not be cost effective to replace the current fleet with a comparable product (JRE).

Each system would require a minimum of 24-months of testing and certification before fielding could occur.

The requirement was published in the AMCOM CASL on 11 August 2016 and revised on 18 August 2017, to search for vendors with similar and/or related business.

Based upon the market research conducted, no other companies or corporations have the technical knowledge that is required for technical services, materials, and hardware to continue functional enhancements, deployment, and support of the ADSI at a cost that is affordable and timely for the Government. The ADSI is a classified system and was developed to meet specific military standards for tactical data link communications. The ADSI interfaces with other military developed command and control systems and intelligence sources. All of these items are specific to mission sets and tactical operations. The software and hardware were developed based upon military standards and ruggedized connectors.

The level of software interface and engineering required for the system is not readily available in the commercial marketplace. Therefore, FAR Part 12 will not meet the needs of this requirement and will not be utilized.

In accordance with DFARS 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), an RFI was posted to FedBizOpps on 06 April 2016 for 15 days and 02 August 2017 for 14 days.

were the only respondents to the 06 April 2016 RFI.

were the only respondents to the 02 August 2017 RFI. As discussed below, after carefully reviewing and considering the responses to the RFI, the concluded that none of these respondents are qualified sources to perform this requirement.

9. Interested Sources:

responded to the RFI on 20 April 2016. However, The concluded that does not possess the necessary knowledge, expertise, and capabilities to perform this requirement.

, responded to the RFI on 21 April 2016. However, t would not be a cost effective or efficient use of resources to contract with responded to the RFI on 16 August 2017.

To date, no other sources have written to express an interest. In accordance with FAR 5.201, a synopsis will be published to the FedBizOpps website prior to the release of the solicitation. In accordance with FAR 6.302-1(d)(2), any bids, proposals, quotations, or capability statements will be considered.

10. Other Facts:

a. Procurement History:

(1) A FFP IDIQ contract W31P4Q-14-D-0058, with an ordering period of 30 September 2014 through 30 September 2017, (extended to 31 March 2018 to align with schedule requirements and funding allocations), was awarded on a sole-source basis in the amount of to This award was made with a maximum number of hours o he award was made under authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1(a)(2)(iii)(A),"Only one responsible source and no other supplies and services will satisfy agency requirements.

(2) A time and materials (T&M) contract W31P4Q-10-D-0072, with an ordering period of 27 September 2010 through 30 September 2013, was awarded on a sole-source basis for a total of to The award was made under authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” Two (2) modifications were accomplished to extend W31P4-10-D-0072 for a total of nine (9) months. The reason for the extensions, was to "extend the contract ordering period until follow-on contract is awarded". Modification P00011 extended the ordering period by three (3) months from 30 September 2013 through 31 December 2013, and modification P00013 extended the ordering period by six (6) months from 31 December 2013 through 30 June 2014. Note: There was coverage for Reset Monitors (Qty 20), under Order 0029, which expired 10 October 2014, and Reset coverage under Order 0028, which expired 31 December 2014. Therefore, based upon obtainable records, it appears to be a gap in service for all other requirements, except for Reset.

(3) A T&M contract W31P4Q-04-D-0046, with an ordering period of 18 May 2004 through 31 December 2008, was awarded on a sole-source basis in the amount of hours to (formerly Advanced Programming Concepts, Inc.). The award was made under authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Three (3) modifications were accomplished to extend W31P4-04-D- 0046 for a total of 18 months. Reason for the extensions, was to "extend the contract ordering period until follow-on contract is awarded". Modification P00001 extended the ordering period by seven (7) months from 15 May 2008 through 31 December 2008;

modification P00004 extended the ordering period by nine (9) months from 31 December 2008 through 31 Aug 2009, and modification P00007 extended the ordering period by two (2) months from 31 August 2009 through 31 October 2009. Note: The following five (5) Orders expired after 31 October 2009 they are; Order 0035 for Reset Support, expired 12 January 2010; Order 0032 for with TACVIEW Delta Training, expired 30 April 2010; Order 0041 for FSR Support, expired 08 May 2010; Order 0034 for FSR Support, expired 30 June 2010; and Order 0040 for Sustainment Support, expired 06 Sep 2010. So, based upon obtainable records, there appears to be a break in service/support before award of W31P4- 10-D-0072, which was awarded on 27 September 2010.

(4) , was awarded a FFP order W31P4Q-05-F-0011 on a sole-source basis against General Services Administration (GSA) Federal Supply Schedule GS35F0407K, with an ordering period of 01 December 2004 through 02 April 2005, in the amount of . The award was made under authority of Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et.

Seq) and Title 40 U.S.C. 501, Services for Executive Agencies, as implemented by FAR 8.405-6(a)(1)(i)(B), “Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.”

(5) was awarded FFP contract DAAH01-02-C-0091, with an ordering period of 06 June 2002 through 02 October 2005, on a sole-source basis in the amount of The award was made under authority of 10 USC 2304(c)(1), as implemented by FAR 6.302- 1(a)(2), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

(6) A T&M contract DAAH01-02-D-0024, with an ordering period of 02 May 2002 through 02 May 2004, in the amount of was awarded on a sole-source basis to APC. The award was made under authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

(7) was awarded a FFP order W31P4Q-04-F-0148 on a sole-source basis against GSA Federal Supply Schedule GS35F0407K, with an ordering period of 26 May 2004 through 31 August 2004, in the amount of Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et. Seq) and Title 40 U.S.C 501, Services for Executive Agencies, as implemented by FAR 8.405-6(a)(1)(i)(B), “Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.”

(8) There are no prior awards that were accomplished by full and open competition.

(9) There have been no unusual patterns revealed by the procurement history.

(10) The previous J&A, was approved for contract W31P4Q-14-D-0058 on 28 July 2013. Paragraph 7 of that J&A stated as follows: “The technical data package (TDP) for ADSI software is proprietary to Due to the proprietary software of ADSI TDP, it is not sufficient for full and open competition. Efforts to identify components and other items that may be purchased competitively are being considered and competition on future actions will be considered on the basis of schedule and cost constraints as well as other relevant factors that could pose significant risks to ADSI. The Government’s estimate, based on the total cost since inception of the ADSI hardware and software, to develop functionality equivalent to the current ADSI. This estimate includes, but is not limited to, software development across multiple operating systems, hardware design, development, testing and multiple certifications and accreditations”

b. Other facts: None.

12. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination is based on the fact that the Army Contracting Command-Redstone’s internal procedures, which require cost and price analysis, negotiations with the contractor, comparison with the IGCE, comparison with historical cost data, and price reconciliation, will ensure that the anticipated cost will be fair and reasonable. In accordance with FAR 15.403- 4, this action will require the submission of certified cost or pricing data.

13. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

NAME:

TITLE:

Approval

Based on the foregoing justification, I hereby approve the procurement of services, for the maintenance, testing, training, software deliveries, resetting, fielding, and continuing sustainment of ADSI systems on an other than full and open competition basis pursuant to 10 U.S.C. 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(2) (iii)(A) and (B),"Only one responsible source and no other supplies and services will satisfy agency requirements," subject to availability of funds and provided that the services herein described have otherwise been authorized for acquisition. The award will be to

The anticipated contract ordering period will be a five (5) year IDIQ contract from 01

April 2018 to 31 March 2023.

DATE: