JA_for_IAMD_RIU_Support_IDIQ_-_27_Sep_19_-_Redacted.pdf

Control No. W31P4Q-19-R-0003 Contractor: Raytheon IDS

Program: Radar Interface Unit Support IDIQ

Special Advocate for Competition/Alternate: DSN:

FAR Part 6 Justification and Approval for Other than Full and Open Competition

Risk Assessment: LOW- Raytheon Integrated Defense Systems is the only source with the knowledge, technical expertise, facilities, and the Technical Data Package (TDP) to perform the required services to support the Army Integrated Air and Missile Defense program’s integration, development and testing efforts

1. Contracting Activity: Army Contracting Command-Redstone (ACC-RSA), CCAM-SM-C, Redstone Arsenal, Alabama 35898-5280.

2. Description of Action: The Integrated Air and Missile Defense (IAMD) Project Office requests a new Indefinite Delivery Indefinite Quantity (IDIQ) contract with Raytheon Integrated Defense Systems (IDS), 401 Jan Davis Drive, Huntsville, AL 35806, Commercial and Government Entity (CAGE) Code OHG55. This action is for the Army Integrated Air and Missile Defense (AIAMD) Plug & Fight (P&F) A-Kit, materials and support to use for the IAMD Integrated Battle Command System (IBCS) Program in support of Engineering and Manufacturing Development (EMD), Low Rate Initial Production (LRIP), and Full Rate Production (FRP). The Government contemplates award of a hybrid IDIQ fixed price and cost-reimbursable contract for this action. This action will include both Research, Development, Test and Evaluation (RDT&E) and Procurement funds. RDT&E funds are used for the efforts leading up to Milestone C.

Procurement funds are planned to be utilized for appropriate efforts after a Milestone C approval decision for the LRIP/FRP A-Kits and associated services.

3. Description of Supplies/Services: The supplies and services to be acquired under this contract include engineering, hardware (HW) and software (SW). The Radar Interface Unit (RIU) Support IDIQ effort is a hardware/software based end item integrated into the Patriot weapon system’s Engagement Control System (ECS) Major End Item (MEI) forming a new ECS MEI variant named the RIU, which interfaces with the IAMD System of Systems (SoS). The requirements of this acquisition are to update P&F A-Kit end items incorporating product fixes and interface modifications; produce, deliver, and install 16 new P&F A-Kit product LRIP/FRP end items; deliver Modification Work Orders (MWO) for installing and uninstalling the RIU A-KITs; and provide AIAMD integration, test, and evaluation (IT&E) support including the use of a Hardware-in-the- Loop (HWIL) test bed capability. This capability is to address critical IAMD risks, verify key AIAMD requirements, supply critical required high fidelity Pre-Flight Test Performance and Prediction (PFTPP) data, and identify P&F A-Kit software/interfaces problems/fixes. The RIU Support IDIQ effort could also include P&F A-Kit modifications to provide interoperability with planned/ongoing Patriot Post Deployment Build 8.x software efforts. The Government estimated date of award is in March 2020.

The proposed contract is planned to cover four (4) ordering periods from FY 20 through FY 24, totaling 48 months. The total estimated value of this proposed contract is

. The estimated value for this acquisition was derived from an Independent Government Cost Estimate approved on 20 May 2019.

The following Period of Performance (PoP) outlines approximately when the events will occur and the estimated cost:

Description Ordering

Period 1 (1 Mar 2020 – 28 Feb 2021)

Ordering Period 2

(1 Mar 2021 – 28 Feb 2022)

Ordering Period 3

(1 Mar 2022 – 28 Feb 2023)

Ordering Period 4

(1 Mar 2023 – 28 Feb 2024)

Totals (Mar 2020 – Feb 2024)

Hardware Quantity Materials Labor Hours Labor Dollars Other Direct Costs G&A/COM/Fee Totals

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

5. Reason for Authority Cited: Pursuant to FAR 6.302-1, this requirement is available only from the original equipment manufacturer (OEM), Raytheon Company – Integrated Defense Systems (Raytheon IDS), 401 Jan Davis Drive, Huntsville, AL 35806, CAGE Code 0HG55, for the services and materials described above. Award to any other source would result in substantial duplication of cost to the Government, which is not expected to be recovered through competition. There would be additional costs and unacceptable delays to the AIAMD program schedule.

Raytheon IDS is the OEM and sole developer for the weapon and sensor component/platform end item systems for the Patriot system, the RIU/P&F A-Kit developer/integrator, and is the owner/operator of the Integrated Air Defense Capability (IADC) Hardware in the Loop (HWIL) test bed at Andover, Massachusetts. The Patriot Test Facility, modified and renamed the IADC Test Bed, is uniquely capable of supplying near-term IAMD schedule-sensitive activities to perform critical IAMD risk reduction activities, verify key AIAMD requirements, supply required PFTPP data, and assess P&F A-Kit software/interface performance.

The Lower Tier Project Office (LTPO) manages the Patriot system and has identified that Raytheon IDS retains proprietary data rights to key Patriot components, including the ECS, which would be necessary to perform the required P&F A-Kit software code changes and other associated equipment modifications. The RIU A-Kit development is conducted incrementally, tracking closely with Patriot efforts as PDB 8.x evolves.

Changes driven by the RIU A-Kit development will be incorporated into the TDP under this scope of work to facilitate future competition potential for RIU A-kit hardware and software that resides on the Single Board Computer. However, this software uses ASPEN message handler, a tool set that is used to generate A-Kit code that has proprietary assertions. The code is auto-generated from these tools. The software also uses the Radar Common Computer Environment (RCCE) product line for data recording infrastructure. There is also an assertion for associated A-Kit SW functionality that resides on the Combined Aggregate Program (CAP) (legacy Patriot); this K7 software source code is not a deliverable to the Government and will not be in the future. Raytheon IDS’ participation will facilitate access to ECS data and software which is not available to other potential bidders, for the Patriot ECS and pre- Patriot Advanced Capability (PAC)-3 missiles. For the above reasons, there are no other potential bidders or alternatives that can effectively compete for this contract.

It is not feasible to acquire the P&F A-Kit, ECS, nor pre-PAC-3 knowledge, data, HWIL integration, and test facilities through competition in a cost effective and timely manner.

The AIAMD P&F A-Kit efforts identified must be synchronized and programmatically integrated with the ongoing overarching AIAMD IT&E efforts to support IAMD Battle Command System (IBCS) software integration, developmental test, limited user test and initial operational capability through 2022. To assign Patriot P&F A-Kit development and post-implementation responsibility to another contractor would add an unacceptable delay and increase the likelihood of significant additional cost and schedule risk to the AIAMD program. The cost to establish another source for the redevelopment and re-qualification of a comparable P&F A-Kit would duplicate the costs of the original A-Kit investment of (Table 1) developed and delivered under two previous contracts executed by the AIAMD PO to Raytheon, and would add approximately 24 months of schedule slip to conduct the first IAMD flight test event.

Table 1: Cost impact of having to redevelop/re-qualify the A-Kit:

Redevelopment of the A-Kit

Contract #1 A-Kit IDIQ Contract to RTN, 2016-2018

Contract #2 A-Kit Implementation Contract to RTN, 2012-2016

Total

Additionally, significant re-investment in the redevelopment and re-validation of an IADC test bed capability would be required. If another source were sought, the IADC test bed redevelopment is estimated to cost in excess of (Table 2), based on estimated cost of duplicate test equipment, facilities and associated labor. Additionally, the IADC test bed includes special technical capabilities that cannot be replicated elsewhere.

Building this duplicate capability with another vendor would result in a probable schedule delay of approximately two years, in addition to significant Government furnished property (equipment, software and facility) responsibilities/risks. This number is based on the schedule delay of two years which would adversely impact the overarching AIAMD development, integration and test efforts for the entire AIAMD program.

Table 2: Cost impact of having to recreate the Andover Lab:

IADC Lab Reconstitution

2015 Cost From 2015 J&A 2018 Cost Adjusted 10% for inflation

Due to the required synchronization for developing capabilities across multiple contractors the impacts of competing this effort would have significant impacts to the entire AIAMD program. Other AIAMD contract execution would have to be delayed to ensure synchronized capability development, integration and testing can be achieved.

The IBCS development program would be adversely impacted by the two years schedule delay and duplicate interface engineering costs resulting in an additional expense to the program of (Table 3).

Table 3: 2 year slip cost impact justification:

Activities Required To Be Extended

$ / Month Slip (months) Result

IAMD

Integration & Test Capability

Government Developmental and operational testing

Facilities (NG

CSIL,

Government

GSIL & TSIL)

Test facilities infrastructure and support

Developmental Testing Efforts

Contractor SW Qualification Testing for A Kit SW. Contractor Verification Testing for A Kit SW

TOTAL /

Month

There are additional program impacts to other development contractors and Government entities that are developing capabilities to support the AIAMD program. It is estimated that reducing the entire AIAMD efforts in half while waiting for a new contractor to develop the A-Kit capability for two years would have a cost impact of

(Table 4). The duplication of cost to the Government is not expected to be recovered through competition. The schedule delays would result in an IAMD Acquisition Program Baseline breach, requiring approval to continue the program by the Office of Secretary of Defense.

Table 4: Total Cost Impact to the IAMD Program

Redevelop/requalify the A-Kit Table 1

Recreating Andover Lab Table 2

2 Yr Slip Table 3

Raytheon IDS maintains the knowledge, skilled labor force, and detailed technical data concerning the manufacturing processes, system operations, and software/hardware detailed designs necessary to perform the critical engineering activities associated with the Patriot system/P&F A-Kits hardware and software. These modifications are necessary to successfully integrate the P&F A-Kit into the Patriot ECS system.

Modifications to the existing A-Kit TDP are required in this effort, however, the modifications required are directly associated with the Patriot ECS system and must be developed and modified by Raytheon to ensure compatibility with the U.S. Patriot baseline system. The LTPO’s prime vendor for the ECS System is Raytheon.

Additionally, P&F A-Kit enabled ECS (i.e., the RIU) must be integrated with the IBCS and the Launcher Interface Networking Kit (LINK) enabled PAC-3 Launcher, developed by Lockheed Martin, into the Raytheon owned and operated Patriot Test Facility – Andover, Massachusetts. The AIAMD P&F A-Kit effort is a constituent part of the overall AIAMD System of Systems (SoS) program and must be programmatically synchronized with both the IBCS development contract and with the contracts for the overarching AIAMD IT&E efforts. The planned efforts are so integrally related that only the P&F A-Kit developer can reasonably perform the work.

If approval is not granted, the Government would not have access to key Raytheon-proprietary Patriot data required to integrate the radar and launcher system components, resulting in inability to execute the IAMD mission to develop, integrate, and field the IBCS system of systems with Patriot sensor and weapon components which will impact the warfighter and result in mission failure of the IBCS SoS. Delayed development of the RIU would result in the warfighter being without an adapted Patriot sensor within the AIAMD ASoS architecture. The ECS must be modified to incorporate product upgrades and interface updates that are necessary to successfully integrate the P&F A-Kit functionality into the ECS resulting in a RIU. The AIAMD P&F A-Kit effort is a integral part of the overall AIAMD SoS program and must be programmatically synchronized with both the AIAMD Battlefield Command System (IBCS) development contract and with the contracts for the overarching AIAMD IT&E efforts. Without contract coverage, AIAMD will not have the connecting Patriot sensors for Patriot fire control software, which enables successful interceptor engagement. This is a critical requirement for the AIAMD Limited User Test (LUT) scheduled in FY 2020, as well as system developmental and operational testing, and ultimately system fielding.

6. Efforts to Obtain Competition: The Contracting Officer shall publish the notices required by FAR 5.201 and any bids or proposals received shall be considered.

a. Effective Competition: This requirement was posted in the U.S. Army Aviation and Missile Command’s (AMCOM) Competition Advocates Shopping List (CASL) on 21 May 2019.

A Sources Sought (SS) notice was published in Federal Business Opportunities (FedBizOpps) on 07 February 2019 to solicit information in order to determine if there were sources having the technical capabilities, knowledge, and experience required for performance of this effort. Raytheon IDS, the OEM for the Patriot system/P&F A-Kit, was the only respondent.

Effective competition is not available as a result of Raytheon IDS having proprietary capabilities that would be costly and untimely to duplicate as the current OEM for this effort. However, the notice required by FAR 52.01 will be published upon approval of the J&A and any bids or proposals received shall be considered, as prescribed by law, although a source must be approved in order to have a proposal evaluated for this requirement.

b. Subcontracting Competition: Per FAR 19.702 and FAR 19.704, a Subcontracting Plan is required for large businesses on acquisitions that exceed .

According to FAR 19.704, the contractor must include FAR 52.219-8, entitled “Utilization of Small Business Concerns”, in all subcontracts that offer further subcontracting opportunities and shall require all subcontracts that offer further contracting opportunities, except small businesses, to adopt a plan that complies with the requirements of the clause at FAR 52.219-9, “Small Business Subcontracting Plan”. Per FAR 44.204(c), the solicitation and resulting contract will include the FAR clause 52.244-5, entitled “Competition in Subcontracting” and Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.219-7004, entitled “Small Business Subcontracting Plan (Test Program)” to ensure that all subcontracts are awarded on a competitive basis of the maximum extent possible. Raytheon IDS (CAGE Code 0HG55) will be required to comply with these requirements since they are a large business and the estimated dollar value of the contract exceeds . Efforts will be made during the collaborative contracting process to obtain increased small business subcontracting opportunities throughout the life of the contract. The objective will be to structure the contract such that small business subcontracting opportunities are utilized in all categories of small businesses, to include Women Owned Small Business, Disabled Veteran Owned Small Business, Small Disadvantaged Business, and HUB Zone Small Business. The contract will include the above clauses.

7. Actions to Increase Competition: The Government intends to continue to secure all requisite data rights for newly developed or modified P&F A-Kit hardware and software design technical data associated with the proposed contract including a Level III TDP for modified P&F A-Kit hardware and software in order to increase competition for future requirements. The Government will require a full set of data rights assertions as described in DFARS clauses 252.227-7017 or 252.227-7013(e)(3) and 252.227- 7014(e)(3) pertaining to rights in non-commercial items, as well as non-commercial software and software documentation which the Government may seek delivery. Where possible, the Government will seek to develop potential additional sources for A-Kit installation and production for future requirements.

Acquisition Data Availability – Under the AIAMD P&F A-Kit Design Implementation contract (W31P4Q-12-C-0120), Government Purpose Rights for P&F A-Kit technical data were acquired. The P&F A-Kit technical data package was initially delivered to the

Government on 5 September 2012. Updates were provided on 30 April 2014, 28 August 2014, and 14 January 2015; however, these deliveries do not include the latest required baseline updates driven by the Patriot program changes of the US ECS baseline to the Qatar ECS configuration and PDB-8. Those changes will continue being developed and completed under the SOW for this IDIQ and will support competition of future RIU A- Kits.

For all hardware and software technical data updates associated with the P&F A-Kit planned effort, the following DFARS clauses (252.227-7013, -7014, -7015, -7016, - 7017, -7019, -7025, -7027, -7030, -7034, -7037, and -7038) will be incorporated into the contract, as well as the requirement for delivery of the product baseline technical data

IAW DI-SESS-81000.

As a result of P&F A-Kit capability improvements or hardware upgrades, delta Functional Configuration Audit and Physical Configuration Audit will be conducted to verify requirements, acceptance test plans, verification matrices, artifacts, and test cases to ensure technical data completeness and accuracy.

Raytheon IDS retains important technical data and proprietary data rights to key Patriot system software source code and TDPs primarily due to historical acquisitions that did not provide sufficient technical data and/or rights to enable competition, as well as access technologies developed through company-sponsored Independent Research and Development. These Raytheon IDS technical data and proprietary data rights for the Patriot system apply to IADC Testbed and tools used to develop and verify the P&F A-Kit. The Patriot system software source code and TDPs are controlled by LTPO.

8. Market Research: In accordance with DFARS 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a SS was posted to FedBizOpps on 07 February 2019, and Raytheon IDS, the OEM for the Patriot system/P&F A-Kit, was the only respondent.

Based upon the market research conducted, this military-unique requirement cannot be met by existing and known commercial items. Therefore, FAR Part 12 will not be used to procure these services. In view of the circumstances cited above, offers will not be solicited from any other source.

In accordance with FAR 10.002, market research was conducted for this acquisition.

Market research was conducted during the period May 2019. The following paragraph identifies the market research techniques used and the associated results.

The RFI/SS was posted to solicit information in order to determine if there were sources having the capability to develop and update the P&F A-Kit incorporating product fixes and interface modifications; deliver and install new P&F A-Kit product end items;

provide AIAMD IT&E support including the use of HWIL test bed capability; address critical IAMD risk, verify key AIAMD requirements; supply critical required high fidelity pre-flight test performance predictions (PFTPP) data; and identify P&F A-Kit software/interface problems/fixes.

a. Knowledgeable persons in the Government were interviewed regarding the commercial nature and industry practices for this type of hardware and services.

The individuals are: IAMD Technical Director – May 2019; IAMD A-Kit P&F Contracting Officer Representative – May 2019; IAMD, Deputy Project Manager - May 2019.

b. Internet searches were conducted May 2019 using key words to search reports of businesses that would have the capability to support the supplies and services for the P&F A-kit. The results from the searches concluded that these requirements cannot be met by commercial items, commercial items with customary or minor modifications, or non-developmental items. Further, a re-evaluation has been made in accordance with FAR 10.002(b), and the Government requirement cannot be modified in a way that will allow a commercial item to meet the need.

This is a military-unique item.

c. The requirement was posted in the AMCOM CASL on 21 May 2019.

d. FAR Part 12 will not be utilized for this effort. A Market Research

Report/Commerciality Determination (MRR/CD) that details the approach and incorporates the results of the market research was concurred on by the AMCOM Competition Advocate on 29 May 2019.

9. Interested Sources: A SS was released to industry on 07 February 2019 to solicit information to determine if there were sources having the capability to develop and update the P&F A-Kit incorporating product fixes and interface modifications; deliver and install new P&F A-Kit product end items; provide Army IAMD IT&E support including the use of HWIL test bed capability; address critical IAMD risk, verify key AIAMD requirements; supply critical required high fidelity PFTPP data; and identify P&F A-Kit software/interface problems/fixes. To date, no other sources have written to express interest in the acquisition. Efforts will be made during the collaborative contracting process to obtain increased small business subcontracting opportunities throughout the life of the contract. The objective will be to structure the contract such that small business subcontracting opportunities are utilized in all categories of small businesses, to include Women Owned Small Business, Disabled Veteran Owned Small Business, Small Disadvantaged Business, and HUB Zone Small Business. Raytheon IDS is a large business and will be required to comply with this requirement. Anticipate release of synopsis by 10 October 2019.

The notices required by FAR 5.201 shall be published and any sources expressing interest in participating in some aspect of the procurement action will receive due consideration as required by law and regulation. Any potential sources will be encouraged to submit a Source Approval Request (SAR) package. There is a reasonable basis to conclude at this time, that the agency’s minimum needs can only be satisfied by Raytheon IDS (CAGE Code 0HG55).

10. Other Facts: Other factors supporting the use of other than full and open competition are as follows:

a. Procurement History.

(1) In FY 09, prior to the down select to a single IBCS contract, the Product Offices for the Army air defense systems affected by the IAMD program conducted preliminary engineering studies with Raytheon Company Integrated Defense Systems (IDS) under contracts W9113M-09-C-0202 (JLENS), W31P4Q-05-C-0117 (SLAMRAAM), and W31P4Q-09-C-0057 (PATRIOT) using various task order contracting mechanisms for engineering services. This separate contracting approach resulted in duplicative, un-synchronized, and inconsistent study reports. As such, the decision was made to consolidate all of the engineering studies into a single contract to be managed by the AIAMD Project Office. This had the effect of dividing the AIAMD Engineering and Manufacturing Development into two phases – Phase I (Design/Definition) and Phase II (Design Implementation) as shown below. In FY 16, an A-Kit IDIQ was awarded that provided AIAMD P&F A-Kit hardware/software based end items integrated into the Patriot weapon system’s ECS MEI, forming a new ECS MEI called RIU which interfaces with the IAMD SoS. This contract developed and updated P&F A-Kit incorporating product fixes and interface modifications, as well as delivered and installed new P&F A-Kit product end items and provided AMD integration, test and evaluation support to include HWIL test bed capability.

Contract Number Award Date Description of Action Contract Dollar Value W31P4Q-10-C-0167 25 Mar 2010 Design Definition W31P4Q-12-C-0120 14 Feb 2012 Design Implementation W31P4Q-16-D-0020 29 Apr 2016 A-Kit IDIQ

(2) The contracts listed above were awarded to Raytheon Company Integrated Defense Systems (IDS) using other than full and open competition under the authority of 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1 “Only one responsible source and no other supplies or services will satisfy agency requirements.”

(3) The J&A to support the previous A-Kit IDIQ (contract # W31P4Q-16-D-0020) effort was approved on 13 April 2015 and was amended on 14 February 2019. The amendment was required to increase the ceiling value for 6 (six) months of effort to avoid a undefinitize Contract Action (UCA). Based on the approval therein, limited data rights and the lack of a TDP made the effort unsuitable for competition. As described herein, the Government intends to continue the pursuit of sufficient technical data as the

P&F A-Kit matures. The Government intends to continue to secure all requisite data rights for newly developed or modified P&F A-Kit hardware and software design technical data associated with the proposed contract including a Level III TDP for modified P&F A-Kit hardware and software. The Government will require a full set of data rights assertions as described in Defense Federal Acquisition Regulation Supplement (DFARS) clauses 252.227-7017 or 252.227-7013(e)(3) and 252.227- 7014(e)(3) pertaining to rights in non-commercial items, as well as non-commercial software and software documentation which the Government may seek delivery. Where possible, the Government will seek to develop potential additional sources for A-Kit installation and production.

(4) There were no unusual patterns revealed by the P&F A-Kit history.

(5) The justification prepared to support the previous procurements sole sourced to Raytheon IDS under the authority of 10 USC 2304(c)(1), as implemented by FAR 6.302-1, “Only one responsible source and no other supplies or services will satisfy agency requirements.” The circumstances justifying the sole source action for the prior procurements have not changed.

c. Unusual and Compelling Urgency – Not applicable.

APPROVAL

Based on the foregoing justification, I hereby approve the procurement of the supplies and services described above from Raytheon IDS, Commercial and Government Entity (CAGE) Code OHG55, 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 6.302-1(a)(2)(ii)(A) and(B) and (iii) (A) and (B) “Only One Responsible Source and no other supplies or services will satisfy agency requirements.” These supplies and services include P&F A-Kit end items, incorporating product fixes and interface modifications; delivering and installing new P&F A-Kit product end items;

providing AIAMD IT&E support including the use of a HWIL test bed capability, addressing critical IAMD risks, verifying key AIAMD requirements, supplying critical required high fidelity Pre-Flight Test Performance and Prediction (PFTPP) data, identifying P&F A-Kit software/interfaces problems/fixes, and modifying the P&F A-Kit to support the planned/ongoing Patriot Post Deployment Build 8 software effort. The Government contemplates award of a hybrid IDIQ fixed price and cost-reimbursable contract for this action. This action will include fixed price and cost reimbursable contract line item numbers and will include both Research, Development, Test and Evaluation (RDT&E) and Procurement funds. The estimated PoP for this contract will be from contract award to 28 February 2024. The estimated total value of this action is

. The approval is subject to availability of funds and provided that the services and supplies herein described have otherwise been authorized for acquisition.

Date: ___________________ _____________________________________

MR. JOSEPH A. GIUNTA, JR.

Senior Contracting Official

GIUNTA.JOSEPH.ANT

HONY.JR.1067543137

Digitally signed by

GIUNTA.JOSEPH.ANTHONY.JR.1067

543137 Date: 2019.10.18 17:49:56 -05'00'