GETS J&A Final.pdf

W31 P4O-19-R-0046

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER

THAN FULL AND OPEN COMPETITION

PATRIOT GENERALPURPOSE ELECTRONIC TEST STATION (GETS) TEST

EQUIPMENT AND TEST PROGRAM SETS (TPSs)

Program/Equipment: This contract procures General Purpose Electronic Test Station (GETS-1000) test equipment and Test Program Set (TPS) hardware and software, test equipment upgrades, and repair parts. Services include test equipment installation, training, in-country technical assistance, and engineering services support.

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

Amount: $92,780,234

Prepared by:

Contracting Officer:

Technical/ Requirements:

Typed Name: Evonne Jordan Title: Acquisition Analyst E-mail: evonne.r.jordan.civ@mail.mil

Typed Name: Jeffrey S. Fussell Title: Contracting Officer E-mail: jeffrey .s. fussell. civ@mail.mil

Typed Name: William A. Breffeilh Title: Deputy Project Manager, L TPO E-mail: william.a.breffeilh.civ@mail.mil

Date: 12 Feb 2019

DSN: 313-1117

Date: 9 May 2019

DSN: 842-7481

Date: 4,. 4,, DSN:6�

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

Deputy Project Manager: Typed Name: ��- Breffe� DSN: 645-3242 Signature: _, _'9 :J'f'�'l- Date: �

Legal Counsel: Typed Name: Matthew R, wnson DSN: 645-3862 Signature: ::so"••rn<•WRAY""'" t�.f-::';;':'" Date: 5/9/2019

FOR OFFICIAL USE ONLY

W31 P4Q-19-R-0046

Special Advocate for Competition/Alternate:

Typed Name: John W. Mayes DSN: 842-6066 Signature: MAYEsJoHN.W.1364398979 :::,-:.��.�:'.'::';;�·"·""'" Date: ___ _

CONTROL NUMBER: W31P4Q-19-R-0046

CLASS JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

FOR PHASED ARRAY TRACKING RADAR TO INTERCEPT ON TARGET

(PATRIOT) GENERAL PURPOSE ELECTRONIC TEST STATION (GETS)

1. Contracting Activity: Department of the Army, Army Contracting Command – Redstone (ACC-RSA), CCAM-LTB, Redstone Arsenal, Alabama 35898-5000.

2. Description of Action: The Lower Tier Project Office (LTPO) requests approval of a Class J&A of new contract actions in support of the GETS-1000 test equipment and test program set (TPS) requirements on a sole-source basis with Leidos Innovations Corporation, 700 North Frederick Avenue, Gaithersburg, Maryland, 20879, Commercial and Government Entity (CAGE) code 7LQ18. The intent is to award new contract actions, (85 percent Firm Fixed Price (FFP) and 15 percent Cost Plus Fixed Fee (CPFF), during successive Fiscal Years (FY) 2020 through 2024. The CPFF efforts will be for engineering services and travel. The resulting contract action(s) will utilize funds consisting of Missile Procurement, Army Appropriation (MIPA) and Foreign Military Sales (FMS) funds. The following FMS countries are supported by existing Letters of Offer and Acceptance: United Arab Emirates (UAE) Case AE-B-ZUG, Qatar QA-B- UAP, and Saudi Arabia Case SR-B-JBV. The anticipated FMS requirements are not source directed at this time; therefore, all known potential FMS requirements are contained in this document. The required need date is 01 January 2020.

Requirements exist and have been validated in the FY 2020 budget for the base year requirements. This justification is on a class basis for contract actions which includes current United States (US), current FMS, and potential FMS requirements some of which have yet to be identified. It is anticipated that additional FMS requirements for newly identified International partners will materialize and will be for the same or related supplies, services, or other contract actions which would require essentially identical justifications. A class justification will provide an administrative efficiency by allowing for multiple contract actions which would otherwise require the same justification.

3. Description of Supplies/Services: The proposed contract action is for the procurement of the GETS-1000 test equipment and TPS hardware and software, test equipment upgrades, and repair parts. The contractor shall provide services including test equipment installation, training, in-country technical assistance, and engineering services support.

The contract Period of Performance is 60 months, 1 January 2020 through 31 December 2024. The FY20 base efforts is estimated to be awarded on 1 January 2020.

The 1st option will be exercised 12 months after the base award. The 2nd option will be exercised 24 months after the base award. The 3rd option will be 36 months after the base award and the 4th option will be 48 months after the base award.

The estimated base and options shall include award of the GETS requirements, indicated in Table 1 below:

Table 1

20 US Engineering Services CY2020 $824,765 MIPA 21 US Engineering Services CY2021 $843,804 MIPA 22 US Engineering Services CY2022 $867,369 MIPA 23 US Engineering Services CY2023 $891,081 MIPA 24 US Engineering Services CY2024 $914,916 MIPA

TOTAL US ESTIMATED REQUIREMENTS $4,341,935

FMS FMS Engineering Services CY2020 $1,872,002 FMS FMS FMS Engineering Services CY2021 $1,915,130 FMS FMS FMS Engineering Services CY2022 $1,968,574 FMS

FMS Partner FMS Engineering Services CY2023 $2,022,349 FMS FMS Partner FMS Engineering Services CY2024 $2,076,401 FMS

Taiwan GETS Hardware and On-site Technical Support $6,871,011 FMS Republic of

Korea GETS Hardware and On-site Technical Support $8,690,906 FMS

Turkey GETS Hardware and On-site Technical Support $9,279,527 FMS Qatar GETS Hardware and On-site Technical Support $9,529,706 FMS

Kuwait GETS Hardware and On-site Technical Support $11,778,624 FMS United Arab

Emirates GETS Hardware and On-site Technical Support $11,705,072 FMS

Saudi Arabia GETS Hardware and On-site Technical Support $15,662,231 FMS Israel GETS Hardware $5,066,766 FMS

TOTAL FMS ESTIMATED REQUIREMENTS $88,438,299

TOTAL US AND FMS ESTIMATED REQUIREMENTS $92,780,234

FY REQUIREMENT

COUNTRY REQUIREMENT

ESTIMATED US REQUIREMENTS

ESTIMATED

VALUE

TYPE OF

FUNDS

ESTIMATED FMS REQUIREMENTS

ESTIMATED

VALUE

TYPE OF

FUNDS

The total estimated dollar value of the US contracts is $4,341,935. The total estimated dollar value of the potential FMS contracts is $88,438,299. The total estimated dollar value of the US and FMS contracts actions (base and options) is $92,780,234.

4. Authority Cited: The statutory authority permitting other than full and open competition is Title 10 United States Code Section (U.S.C) 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1 (a)(2)(iii)(A) and (B) entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Reason for Authority Cited: As described at FAR 6.302-1(a)(2), “When the supplies or services required by the agency are available only from one responsible source, or for the Department of Defense, National Aeronautics and Space Administration and the Coast Guard, from only one or a limited number of responsible sources, and no other types of supplies or services will satisfy agency requirements, full and open competition need not be provided for.”

The proposed source for this effort is Leidos Innovations Corporation, 700 N. Frederick Avenue, Gaithersburg, Maryland, 20879, CAGE Code 7LQ18, a large business. Leidos is the only contractor with the technical expertise and resources needed to continue producing, maintaining and upgrading the GETS and TPS.

Based on economic and technical analysis, the cost to qualify a second source to promote a competitive procurement would require a minimum cost to the US Government of $25M to duplicate required Government Furnished Equipment and provide training. In addition, the US Government would be required to purchase proprietary data rights from Leidos in order to compete the contract action.

Procurement of proprietary data rights would be required to promote competition because the GETS Programmable Interface Unit (PIU) is a proprietary General Electric design for which Leidos Innovations Corporation owns proprietary rights. The PIU controller is an assembly containing four proprietary VXI circuit cards for control and switching of the signal and measurement circuits. Access to PIU proprietary data is essential to produce and maintain the GETS system and TPS, and associated maintenance and technical assistance. Leidos is the only contractor with the technical expertise as well as the documentation needed to maintain and upgrade this equipment and developing TPS. The documentation contains a restricted legend limiting its use to the Government verification and validation function only.

The $25M minimum duplication of cost includes procuring new test equipment, test accessories, ancillary equipment and TPS, training of TPS engineers, system software engineers and maintenance personnel, procuring tooling to manufacture TPS and other GETS-1000 unique hardware, developing a manufacturing technical data package and transferring manufacturing capability. These costs are not expected to be recovered over the remaining life of the system.

In addition, the time required to fabricate equipment and train a second source will delay required delivery of equipment by at least four years and will result in a break in in-country, on-site technical support by at least four years. Qualifying a second source will also require initiating a new sole-source US Government funded contract action to fabricate additional test equipment and provide training for a second source. Once funds are available, developing and awarding a new contract will further delay, in-process, pending US and FMS GETS equipment and service procurements by at least four years. Procurement and delivery delays incurred in qualification of another contractor would have serious impacts on the US and International partners’ ability to maintain PATRIOT weapon systems in operational condition. The GETS equipment is PATRIOT unique depot test equipment.

Based upon the aforementioned, no other alternative can satisfy the Government’s need. Disapproval of a Class J&A will result in delays in the ability to procure new equipment, upgrade, and services procurements for up to four years, for existing and new FMS procurements of GETS test equipment, TPSs and engineering support services. Additionally, there would be a lapse in on-site and other engineering support services for existing FMS customers of up to four years. Once contractual coverage is re-established, the GETS prime contractor will likely be required to hire and train new technical support engineers, which can take up to two years. A lapse in country support and associated engineering services will impact GETS system maintenance and result in the deterioration of GETS depot test capabilities, which will significantly reduce the countries’ ability to maintain PATRIOT operational readiness.

6. Efforts to Obtain Competition:

a. Effective competition is not anticipated for this procurement due to the equipment and resources needed to fulfill this requirement within time and cost constraints, as discussed in paragraph five. This acquisition was published in the US Army Aviation and Missile Command (AMCOM) Competition Advocates Shopping List (CASL) on 17 December 2018, as required by FAR 5.201. A Request for Information (RFI) for this effort was published in the Federal Business Opportunities (FedBizOpps) in accordance with FAR 5.404 on 26 July 2018, nine companies responded to the RFI. See details regarding the nine responses to the RFI in paragraph 8 below.

b. Subcontracting Competition: The resulting contract actions for this requirement will include FAR 52.244-5, Competition in Subcontracting, FAR 52.219-8, Utilization of Small Business Concerns, and Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7004, Small Business Subcontracting Plan (Test Program).

Interested sources, including small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns which are identified through the synopsis will receive due consideration as required by law. Applicable clauses pertaining to subcontracting will be included in any resultant contracts.

The Contracting Officer will encourage the contractor to compete subcontracts when it is reasonable to expect that competition is feasible and will produce equal or better performance with components at lower prices.

7. Actions to Increase Competition: No competition is expected based upon the result of the RFI, and the equipment and resources needed to fulfill this requirement, within the time and cost constraints. LTPO will evaluate any future system requirements to determine whether competition would be economically feasible and in the best interest of the Government. In the process of identifying new requirements, LTPO will continue to review these requirements for possible competitive procurement opportunities.

Leidos is encouraged to compete subcontracts when it is reasonable to expect that competition is feasible and will produce equal or better performance with components at lower prices. Leidos is also required to submit and adhere to an approved small business subcontracting plan.

8. Market Research: In accordance with FAR Part 10, Market Research was conducted for this acquisition by Logistics Management Specialist, Logistics Development Division, and LTPO, August 2017 through August 2018. Market Research Report/Commerciality Determination number 190487, was approved by the AMCOM competition Advocate on 11 February 2019, and included personal knowledge in procuring supplies/services of this type, contact with knowledgeable persons in Government, review of recent Market Research results for similar and identical items, publication of a formal RFI and review of responses, review of the Thomas Register, interchange meetings with potential offerors, and publication in the AMCOM Competition Advocates Shopping List (CASL).

In accordance with DFARS 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a RFI was posted to FedBizOpps, 26 July 2018, for a total of 21 business days. The following nine companies responded to the RFI:

1. ATTY Company, General Trading Contracting, Baghdad, Iraq

2. Amjad Balad Company For General Contracts, Balad- Baghdad, Iraq

3. Ardh –Al-Saaada Company, Baghdad, Iraq

4. Ramin Adel Construction Company, Baghdad, Iraq

5. Lina Eyes Company for General Contracting, Baghdad, Iraq

6. Al Nawars Company, Baghdad, Iraq

7. Ultra Dream Construction Company, Kabul, Afghanistan

8. Rawnak Al-Banafsaj Company, Baghdad/Mosul/Ramadi, Iraq

9. Leidos Innovations Corporation, Huntsville, Alabama

The LTPO technical team evaluated documentation submitted by companies 1-8 and provided the following response for each: “The US Government has received and reviewed your company's response to RFI W31P4Q-18-R-0150, posted on FedBizOpps, 26 July 2018. Your company is considered nonresponsive in that you did not respond to all questions or otherwise provide requested expertise, capabilities, and approach information as it relates to requirements specified in the RFI.” Leidos is currently performing this requirement on existing contracts, which were awarded on a sole-source basis and is technically capable to perform this work. Therefore, there are no other sources other than Leidos that can perform the requirements of the GETS- 1000 test equipment and TPS hardware and software, test equipment upgrades, and repair parts, within the required timeframe and budget.

FAR Part 12, Acquisition of Commercial Items will not be used in this procurement since the GETS test equipment and TPS are highly specialized, Army-unique items and requirements cannot be satisfied using commercial or non-developmental items.

9. Interested Sources: The notices required by FAR 5.201 were published in the FedBizOpps on 26 July 2018 and entered into the AMCOM CASL on 17 December 2018. No qualified sources responded to the RFI other than Leidos, and to date, no other source(s) other than those listed in paragraph 8 above have expressed an interest in writing, in this acquisition. The notices required by FAR 5.201 will be published in FedBizOpps for all contract actions covered by this Class J&A, and any proposals received will be considered. It is anticipated that a pre-solicitation synopsis will be posted in the fourth quarter of FY19.

10. Other Facts:

a. Procurement History

Table 2

Contract Number Contractor Award Date Contract Value Authority

Cited in J&A W31P4Q-04-C-0056 Lockheed Feb 2004 $11,528,311 FAR 6.302.1 W31P4Q-05-C-0006 Lockheed Oct 2004 $6,612,228 FAR 6.302.1 W31P4Q-06-C-0046 Lockheed Oct 2005 $29,082,921 FAR 6.302.1 W31P4Q-09-C-0592 Lockheed Oct 2009 $1,143,983 FAR 6.302.1 W31P4Q-10-C-0240 Lockheed Jun 2010 $37,043,909 FAR 6.302.1 W31P4Q-10-C-0213 Lockheed Jun 2010 $7,621,139 FAR 6.302.1 W31P4Q-11-C-0206 Lockheed Apr 2011 $10,353,484 FAR 6.302.1 W31P4Q-15-C-0044 Leidos Dec 2014 $4,652,447 FAR 6.302.1 W31P4Q-15-C-0099 Leidos Jun 2015 $36,319,060 FAR 6.302.1

The contracts listed in Table 2 above were not competed pursuant to the provisions of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(A) and (B), “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

Contract W31P4Q-15-C-0044 was awarded on 30 December 2014 and contract W31P4Q-15-C-0099 was awarded on 30 June 2015, both on a sole source basis to Lockheed Martin Missiles Corporation (LMMC). LMMC, Leidos Holdings, Inc and certain of their subsidiaries consummated the merger of the former Lockheed Martin Information Systems & Global Solutions business segment with Leidos (the “Transaction”) on 16 August 2016. As part of the Transaction LMMC submitted a novation package to DCMA on August 26, 2016. During the period prior to the formal novation, all work on contracts W31P4Q-15-C-0044 and W31P4Q-15-C-0099 was being performed by Leidos, as a subcontractor. On 5 December 2016, in accordance with FAR 42.1203 the Government approved the Novation Agreement. The Government recognizes Leidos Innovations Corporation as the successor in interest of Lockheed

Martin Corporation. As a result, Leidos Innovations became entitled to all rights and titles of interest of LMMC for contracts W31P4Q-15-C-0044 and W31P4Q-15-C-0099.

Contract W31P4Q-15-C-0044 novated on 01 June 2017, via modification A00001 and Contract W31P4Q-15-C-0099 was novated on 1 March 2017, via modification A00001.

b. Acquisition Data Availability: Cost and logistical impacts associated with procuring data rights to develop a complete Technical Data Package (TDP) and costs associated with procuring new GETS equipment in order to qualify a second source are not expected to be recovered through competition over the remaining life of the system.

c. Unusual and Compelling Urgency: Not applicable to this requirement.

d. Request for Class Authorization: This Class J&A will cover contract actions for GETS-1000 and TPS efforts required during the FY 2020 through 2024 time period.

The class J&A is required based on the anticipation that additional FMS requirements for newly identified International partners will materialize and will be for the same or related supplies, services, or other contract actions which would require essentially identical justifications. A class justification will provide an administrative efficiency by allowing for multiple contract actions which would otherwise require the same justification. Each contract action will require a Memorandum for Record with supporting rationale that the action is within the scope of the Class J&A.

SOURCE SELECTION INFORMATION-SEE FAR 3.104

Control No: W31 P4Q-19-R-0046

Contractor: Leidos Program: PATRIOT

11. Technical/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. 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.

Name: William A. Breffeilh

Title: Deputy Project Manager

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, based on comparison of proposed prices with an Independent Government Cost Estimate, technical evaluation, rate information provided by the Defense Contract Management Agency and cost/price analysis. Additionally, certified cost or pricing data will be obtained pursuant to FAR 15.403-4.

Name: Jeffrey S. Fussell Title: Contracting Officer

Date: 9 May 2019

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Signature: 1109114045 ��:::Eio�9���o�i

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

Name: Jeffrey S. Fussell_

Title:_Contracting Officer_

Date: 9 May 2019

FUSSELLJEFFREY.SCOTT.1 Dig1ta11y,1gne<111Y

FUSSELLJEFFREY.SCOTT.110911-5

Signature: 10 91 104 o allJJ19 0S.0!110:31:43-<li'0O'

APPROVAL

Based on the foregoing justification, I hereby approve a class justification for contract actions during the period from Fiscal Year 2020 through 2024 for the procurement of GETS-1000 test equipment and test program set hardware and software, test equipment upgrades, repair parts and services including test equipment installation, training, in-country technical assistance, and engineering services support on a sole source basis from Leidos Innovations Corporation, 700 North Frederick Avenue, Gaithersburg, Maryland, 20879, Commercial and Government Entity (CAGE) code 7LQ18, on an Other Than Full and Open Competition basis pursuant to the authority of Title 10, United States Code 2304(c)(1), as implemented by Federal Acquisition Regulation 6.302-1(a)(2)(iii)(A) and (B), “Only One Responsible Source, and No Other Supplies or Services Will Satisfy Agency Requirements.” This acquisition is subject to the availability of funds and provided that the equipment and services herein described have otherwise been authorized for acquisition. This effort will utilize Missile Procurement, Army Appropriation (MIPA) and Foreign Military Sales (FMS) funds. The total estimated value for both United States and Foreign Military Sales contract actions is $92,780,234.

Date JOSEPH A. GIUNTA, JR.

Senior Contracting Official