GETS Maintenance JA Final.pdf

WILSON.MATTHEW.RAY.14

11097338

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WILSON.MATTHEW.RAY.1411097338

Date: 2019.08.27 11:46:03 -05'00'

Control No: W31P4Q-19-R-0062

FOR OFFICIAL USE ONLY

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION FOR

FIELD MAINTENANCE AND LOGISTICAL SUPPORT FOR THE PHASED ARRAY

TRACKING RADAR TO INTERCEPT ON TARGET (PATRIOT) GENERAL-PURPOSE

ELECTRONIC TEST STATION (GETS)-1000 PROGRAM

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

2. Description of Action: The Lower Tier Project Office (LTPO) requests approval to award a sole source follow-on contract for field maintenance and logistical support for the PATRIOT GETS-1000 program to Leidos Innovations Corporation, 700 N. Frederick Avenue, Gaithersburg, Maryland, 20879, Commercial and Government Entity (CAGE) code 7LQ18. The intent is to award a hybrid contract comprised of 97% Cost-Plus- Incentive-Fee (CPIF) and 3% Cost-Reimbursement (CR) utilizing Operation and Maintenance, Army (O&MA) funds. This will be a follow-on to Contract W31P4Q-15-C- 0044. The required need is 12 November 2019.

3. Description of Supplies/Services: The proposed contract action is for the procurement of US field maintenance and logistical support required to maintain PATRIOT GETS-1000 automatic test equipment (ATE) systems; the antenna element test stations; power supply test stations; ancillary equipment and associated test hardware; and software and test accessories in operational condition. The contract will include a base year and four option years and will include support in the continental US (CONUS) as well as mobile GETS and contingency deployment options for support outside the continental US (OCONUS) in Korea, Europe and Southwest Asia. Services, material and travel are required to provide this support.

The estimated base and options are indicated in the table below:

The estimated period of performance for the base effort is from 12 November 2019 to 11 November 2020. This requirement also includes four (4) additional option years for

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fiscal year (FY) 21 through FY 24. Option exercise periods are 12 months. Estimated dollar amount for the FY20 base year is $901,473. The estimated dollar amounts for the option years are as follows: $983,521 for FY21, $983,618 for FY22, $983,714 for FY23, $983,809 for FY24, and $163,984 for FY25. Total estimated contract value is $5,000,119.

4. Authority Cited: The statutory authority permitting other than full and open competition is Title 10 United States Code Section 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 (DoD), 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.”

a. The proposed source for this effort is Leidos Innovations Corporation, 700 N.

Frederick Avenue, Gaithersburg, MD 20879, CAGE Code 7LQ18. Leidos, a large business, is the only contractor with the technical expertise and resources needed to continue maintaining and upgrading the GETS-1000 and Test Power Set (TPS).

b. GETS is the standard US depot test equipment required to maintain the PATRIOT missile system in operational condition. This requirement for field maintenance and logistical support is a follow-on effort to Contract W31P4Q-15-C-0044. Immediately upon contract award, the contractor will be required to support the US in CONUS and in OCONUS locations within 72 hours of a request for support.

c. This is a PATRIOT military-unique requirement and is not available in the commercial marketplace.

d. 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 (GFE) and provide training. In addition, the US Government would be required to purchase proprietary data rights from Leidos in order to compete this 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. These rights were held by Lockheed Martin Services until the transfer of its Information Systems and Global Services group (including the GETS 1000 program) to Leidos in 2016. 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

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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 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 may also delay funded, in-process, and pending US and FMS GETS equipment and services 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. GETS equipment is PATRIOT-unique depot test equipment. Therefore, no other type of hardware can satisfy the Government’s need.

This cost is not expected to be recovered over the remaining life of the system. In addition, diverting contractor resources necessary to train and furnish a second source with required equipment and training may delay GETS-1000 deliveries and services on current US and FMS contracts up to 36 months.

e. Based upon the aforementioned, no other alternative can satisfy the Government’s need. Disapproval of the J&A will result in delays in the ability to procure US field maintenance and logistical support required to maintain PATRIOT GETS-1000 ATE systems; the antenna element test stations; power supply test stations; ancillary equipment and associated test hardware; and software and test accessories in operational condition in CONUS as well as mobile GETS and contingency deployment support for OCONUS locations in Korea, Europe and Southwest Asia. A lapse in in this field maintenance and logistical support will impact GETS system maintenance and may significantly reduce PATRIOT operational readiness.

6. Efforts to Obtain Competition:

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a. Effective competition is not anticipated for this procurement due to the technical expertise and resources needed to fulfill this requirement within time and cost constraints as discussed in paragraph five. Leidos is the only contractor with the technical knowledge and expertise needed to fulfill this requirement in a timely and cost effective manner without duplication of cost to the Government that is not expected to be recovered through competition. Pursuant to FAR 5.404, this acquisition was published in the AMCOM Competition Advocate’s Shopping List (CASL) on 24 May 2018. In addition, a request for information (RFI) for the proposed acquisition was published via Federal Business Opportunities (FedBizOpps) in accordance with FAR

5.201 on July 25, 2018.

b. Subcontracting Competition: The solicitation and resulting contract will include the clauses FAR 52.244-5, Competition in Subcontracting, FAR 52.219-8, Utilization of Small Business Concerns, and 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: Market research for the GETS-1000 program requirements was conducted, in accordance with (IAW) FAR Part 10, on 25 June 2019. Market Research 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).

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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.

This effort was entered into the AMCOM Competition Advocate’s Shopping List (CASL) May 24, 2018. The CASL provides a list of the planned acquisitions anticipated by the Command, and is made available to interested potential offerors. The Market Research Report was concurred on by the Competition Advocate on 25 June 2019.

FAR Part 12, Acquisition of Commercial Items will not be used in this procurement since GETS test equipment is a highly specialized, Army-unique item 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 FedBizOps on 25 July 2018 and entered into the AMCOM CASL on 24 May 2018. No qualified sources responded to the RFI other than Leidos, and to date, no other sources have written to express an interest in this acquisition. Any bids or proposals received shall be considered as required by law.

10. Other Facts:

a. Procurement History:

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Contract Number Contractor Award Date Contract Value

W31P4Q-15-C-0044 Leidos, Inc. Nov 2015 $9,354,721.00

W31P4Q-10-C-0213 Lockheed Martin Jun 2010 $7,621,139.00

W31P4Q-05-C-0006 Lockheed Martin Oct 2004 $6,612,228.00

DAAH01-00-C-0001 Lockheed Martin Apr 2011 $2,838,894.54

DAAH01-97-C-0015 Lockheed Martin Sep 1996 NA

DAAH01-94-C-0007 Lockheed Martin Nov 1993 NA

DAAH01-91-C-0015 Lockheed Martin Oct 1990 NA

The above contracts 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.” The actions to increase competition stated in the J&A prepared to support prior acquisitions are the same as included in this J&A resulting in no source change. There was no prior award accomplished by full and open competition.

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.

There are no unusual patterns revealed by history. During the life of the GETS program, no source with related experience other than Leidos expressed an interest in writing. For reasons cited in Item 5 above, it was determined that competing the contract was not feasible or cost effective.

b. Acquisition Data Availability: Costs associated with procuring data rights to develop a complete technical data package and costs associated with procuring spare equipment are not expected to be recovered over the remaining life of the system.

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

28 Aug 2019

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APPROVAL

Based upon the foregoing justification, I hereby approve a justification for the procurement of field maintenance and logistical support required to maintain PATRIOT GETS-1000 automatic test equipment (ATE) systems; the antenna element test stations; power supply test stations; ancillary equipment and associated test hardware;

and software and test accessories for FY20 through FY24 on a sole source basis from Leidos Innovations Corporation, 700 N. Frederick Avenue, Gaithersburg, Maryland, 20879, CAGE code 7LQ18, on an Other Than Full and Open Competition basis pursuant to the statutory authority of 10 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.”

This acquisition is subject to the availability of funds and provided that the services and property described herein have otherwise been authorized for acquisition. This effort will utilize OMA funds. This action is planned to be awarded to

, with an anticipated period of performance of 60 months after date of award. The total estimated dollar value is $5,000,119.

Date John W. Mayes

Competition Advocate