J A-Brand_Name_Redacted.pdf

Control Number:

Justification review Document For Other Than Full and Open Competition

Program/Equipment: Persistent Ground Surveillance System (PGSS) critical spares, Program Director (PD) Aerostats.

Authority: 10 U.S.C. § 2304(c)(5) and FAR 6.302-1 Amount: $5.327M

Prepared By:

DSN:

Date: 11/17/2014

Procuring Contracting Officer:

DSN:

Date:

Technical Representative:

DSN:

Date:

Requirements Representative:

DSN:

Date:

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

Product Director, Aerostats LTC Gregory J Gastan DSN:

Date:

Signature:

Legal Counsel David R. White DSN:

Date:

Signature:

11/25/14

11/25/2014

11/25/14

11/25/14

11/25/2014

Justification and Approval For Other Than Full and Open Competition

1. Contracting Activity: U.S. Army Contracting Command Aberdeen Proving Ground

ATTN: CCAP-CCC

6001 Combat Drive Aberdeen Proving Ground, MD 21005

2. Description of Action: This Justification and Approval (J&A) is for the use of brand name components as part of the PGSS support engineering, logistics, operations, and support contract being solicited under solicitation number W56KGY-15-R-0001. The proposed single award, two (2) year indefinite delivery, indefinite quantity (IDIQ) contract includes a firm fixed price (FFP) CLIN for the procurement of five (5) separately priced components, The IDIQ is being competed under full and open competition, after the exclusion of sources. The contract value is being estimated at $49.7 million, with the brand name components being valued at . The proposed contract task/delivery orders will require acquisition, repair, and integration of hardware and software in the PGSS. Certain PGSS spare parts will be specified by brand name without allowing for brand name or equal substitution. This approach represents a limitation on competition and thereby requires this J&A. A combination of Other Procurement, Army and Operation and Maintenance, Army appropriations will be utilized for this effort.

3. Description of Supplies/Services: The PGSS is an intelligence, surveillance, and reconnaissance (ISR) platform that is self contained, self sufficient, and transportable.

The major components of the baseline system include: a ground control station (GCS), a tethered aerostat connected to a mobile mooring platform (MMP); aerostat payload(s) including electro-optical and infrared (EOIR), communications, navigation, radar, and ISR capabilities i.e., MX-15 cameras, Vista Smart Sensor Radar System (SSRS), Kestrel cameras, and High Antenna Radio Communications (HARC). The PGSS system consists of commercial off the shelf and proprietary materials. This contract will require the contractor to provide engineering, logistics, operations, and operations support for the PGSS requirement. As part of that requirement, the contractor will be required to provide spare PGSS subsystems and components needed for repairs, to include form, fit, and function replacement parts and parts from brand name vendors. The brand name components provide capability, particular to the brand name manufacturer, including specific safety, security, and operational performance capabilities. No provision can be made for brand name or equal substitution of these specified components.

4. Authority Cited: 10 U.S.C. § 2304(c)(5) and FAR 6.302-1(c), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency requirements;

Application for Brand Name Descriptions.

5. Reason for Authority Cited: The PGSS is an established capability supporting Continental United States (CONUS) and Outside the Continental United States (OCONUS) operations. To satisfy prior PGSS requirements, the Navy’s contracting strategy used a series of basic ordering agreements with a number of different vendors to provide portions of the integration, support and operations efforts. The Navy tested and evaluated component solutions to optimize safety, security, compatibility, and operational capabilities based on specific PGSS configuration baselines. Five (5) critical spares have been identified as components that are integral to meet the PGSS baseline requirement.

The possibility of providing “brand name or equal” salient characteristic descriptions for the critical spare items was considered to resolve potential and actual limitations on competition. However, the brand name or equal approach is not viable as PGSS is entering the Army inventory as a post-milestone C capability. The critical spares have undergone testing and evaluation for compatibility, safety, security, and operational efficacy. Further, the Army does not currently have research, development, testing, and evaluation (RDT&E) funding available to test new components. Providing brand name equivalents for the specified components would require significant rework to include the following:

Army test and evaluation command (ATEC) testing and reporting Examination of information assurance (IA) posture and possible recertification Sparing multiple versions of components at deployed sites Training of trainers, operators, and field service representatives (FSR)

The Government estimates that allowing brand name equivalents will lead to schedule delays of an estimate of 2 to 3 years and cost approximately $2.5 million to properly test, to include all verification and validation requirements changes to the PGSS baseline. The schedule delay could put the warfighter at risk by delaying deployment of systems or shipment of component level spares to operational sites. Introduction of substitutions that are not properly tested and evaluated would present unacceptable levels of technology risk to the interoperability of the PGSS system as a whole.

The Government has identified five (5) critical spare parts that must be procured on a brand name basis. These items are listed in the chart below:

Executing this contract without directed sourcing for these components will result in significant risk of systems becoming non-mission capable and issues of meeting Warfighter capability will result in an increased risk of injury or loss of life to deployed Warfighters.

6. Efforts to Obtain Competition: The Government will complete this procurement using full and open competition, after exclusion of sources. The goal of this procurement is to make an a award to a single small business product support integrator (PSI), notwithstanding the fact that certain brand name parts are essential to ensure the system remains fully operational and seamlessly updated to continue functioning properly in the hands of the deployed warfighter.

7. Actions to Increase Competition: The Government will continue to do market research to identify opportunities to increase competition.

, but the Government has issued a contract to develop the TDP for the PGSS system.

This will allow the Government the opportunity to better consider alternatives to the current specified components. The Government will continue to do market research to stay abreast of changing technologies within the aerostat and ISR market space. The goal of this market research will be to decrease the Government’s reliance upon parts that are available only through limited sources. Increasing the number of sources of supply will increase competition and thus provide more opportunity for offerors. Over the next 18-24 months, the Army intends to pursue a future competitive acquisition that will include current PGSS capabilities. Transitioning from brand name items to alternative sources will increase interoperability between PGSS other Army ISR assets.

8. Market Research: A technical assessment of the cited components was conducted by PD Aerostats personnel during the development and assessment process with consideration from the current original equipment manufacturers (OEMs). The resulting estimates in support of section 5 above were calculated in May 2014. The PD Aerostats team considered the overall form, fit and function of the components and the risks associated with recertification and retesting of substitute components. It was determined that no alternative or “equal” components could replace the brand name items identified herein in order to meet the current need for deployed systems. Market research was conducted via a request for information (RFI) posted to FedBizOps (FBO) in May 2014 and 11 respondents expressed interest in a PGSS requirement. The RFI encouraged offerors to engage in teaming. However, the Government did not specifically provide a required parts list at the time. Despite the lack of a discrete parts list, the majority of the respondents interested in a PGSS requirement outlined an approach to sourcing and sparing that included establishing relationships with original equipment manufacturers (OEMs).

Control Number: 15-C006

9. Interested Sources: As stated above, multiple potential market research respondents expressed interest in the procurement as a whole and none to date have disclosed any substantive issues with the brand names specified or provided information with regard to compatible components.

10.Other Facts:

a. Procurement History:

b. Acquisition Data Availability:

A performance work statement has been completed for this procurement.

c. Subcontracting Competition: FAR 52.244-5, Competition in Subcontracting, does not apply to this procurement, per FAR 44.204(c)(1).

11. Technical Certification:

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Date:__________________________________

Senior Engineer

12. Requirements Certification:

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Date:_________________________________

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated price to the Government for this contact action will be fair and reasonable based on adequate price competition for the overall requirement. Certified cost or pricing data for this item swill not be obtained in accordance with FAR 15.403-1(c)(1)(iii).

Date: ________________________________

Procuring Contracting Officer

14. Procuring Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Date: ________________________________

Procuring Contracting Officer

11/25/2014

11/25/2014

APPROVAL

Based on the foregoing justification, I hereby approve the FFP CLIN for brand name components as part of the PGSS support engineering, logistics, operations, and support IDIQ contract under solicitation number W56KGY-15-R-0001 in the amount of $5.327M to meet the PGSS safety, security, and operational performance capability requirements. This action is authorized on an other than full and open competition basis pursuant to the authority of 10 U.S.C. § 2304(c)(5) and FAR 6.302-1(c), subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition. If the proposed contract action is not completed within 180 days from the below date, this Justification and Approval shall be returned to the Special Advocate for Competition for revalidation. Additionally, should there be changes to the requirements, basis for the justification, market conditions or increases in the estimated value of the proposed action, the Contracting Officer shall document these changes in a memorandum and obtain review/concurrence from the Special Advocate for Competition.

Special Advocate for Competition

25 November 2014