A03_-_JA_-_16_April_2018_-_Redact_(MD_2).pdf

Control No: JA-18-C-132 Contractor: GPS Source

Program/Equipment: GPS-Army (PM PNT) ED3M

FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: This procurement is for Defense Advanced Global Positioning System (GPS) Receiver (DAGR) Distributed Device (D3) with Military GPS User Equipment (MGUE) integration and technical services in support of Program Manager, Positioning, Navigation, and Timing (PM PNT). This product is referred to as the Enhanced D3 for Military Code (ED3M).

Authority: 10 U.S.C. 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) Part 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: $5,582,104.96

Prepared by: Kevin Lee DSN: 848-2212 Contracting Officer Representative Date: 2-8-2018 Email: kevin.f.lee.civ@mail.mil

Contracting Officer: Kristen Weiman DSN: 848-4771 Contracting Officer Date:

Email: kristen.l.weiman.civ@mail.mil

Technical: Benson Malto DSN: 633-4064 Deputy Program Manager Date: 2-8-2018 Email: benson.o.malto.civ@mail.mil

Requirements: LTC Luis Rojas DSN: 633-2763 GPS-Army Director Date: 2-7-2018 Email: luis.e.rojas.mil@mail.mil

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

Program Manager:

Typed Name: Mr. Michael Trzeciak

DSN: 848-2258

Signature:

Legal Counsel:

Typed Name: Nate G. Hummel

DSN: 848-5229

Signature:

FAR Part 6 Justification and Approval for Other than

Full and Open Competition

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

(ACC-APG), ATTN: CCAP-CCC

6565 Surveillance Loop, Bldg. 6001

Aberdeen Proving Ground, MD 21005

2. Description of Action: Program Manager Positioning, Navigation, and Timing (PM PNT) requests a cost plus fixed fee (CPFF) contract modification to contract W56KGY- 16-C-0017 with GPS Source, Inc. (Commercial and Government Entity (CAGE) code:

1RTJ5), located at 64 N Mission Drive, Pueblo West, CO 81007-1427. The Government projects award for March 2018 and Fiscal Year (FY) 18–20 Air Force Research, Development, Test, and Evaluation (RDT&E) funds will be used. This modification adds new work, increases the ceiling by $5,582,104.96, and adds a 12 month period of performance (PoP) extension to Option Period Two through 14 September 2020. The additional ceiling will be broken out as follows:

Option Period 1: $1,823,158.73 Option Period 2: $2,378,579.79 Option Period 2 PoP Extension: $1,380,366.44 $5,582,104.96

The current total contract ceiling value is $3,485,934.81 ($3,057,837.55 cost and $428,097.26 fee (14%)). With the inclusion of the additional ceiling ($5,582,104.96), the revised total contract ceiling value is estimated to be $9,068,039.77.

An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement (DFARS) 207.103(d).

3. Description of Supplies/Services: PM PNT’s mission is to provide optimal and affordable positioning, navigation, and timing capabilities with designs, products, and solutions that promote decisive action in all Army operations. In support of its mission and in accordance with Section 913 of Public Law 111-383, PM PNT is responsible for upgrading the current Defense Advanced Global Positioning System (GPS) Receiver (DAGR) Distributed Device (D3) product (formerly named GLI-FLO-G) so it is compatible with the United States Air Force (USAF) developed Military GPS User Equipment (MGUE) Increment 1 version of the Small Serial Interface (SSI) Ground-Based GPS Receiver Application Module for M-Code (GB-GRAM-M) cards. Section 913 does not allow any funds to be obligated or expended to purchase user equipment for Global Positioning Systems (GPS) after FY17 unless the equipment is capable of receiving M-code. PM PNT is dependent on the delivery of these cards for the upgrade to the current D3 product.

On 15 September 2016, contract W56KGY-16-C-0017 was awarded sole source to GPS Source to provide engineering and technical services related to the integration of the

MGUE cards into 15 D3s. Services include supporting host and platform integration, resolving installation issues, identifying operationally-critical issues, performing impact assessments, providing engineering support for designing, prototyping and testing of modifications to the D3, and conducting studies or analyses of proposed hardware (HW)/software(SW) changes to the GB-GRAM-M or the D3 relative to its use as the host for MGUE.

This proposed contract modification to contract W56KGY-16-C-0017 includes the supplies/services described above as well as the following additions:

a. Procurement of 21 additional ED3Ms to support integration into the Stryker Family of Vehicles (FoV) Client Systems and Army evaluation of the ED3M.

b. Procurement of an Integrated Master Schedule (Contract Data Requirements List (CDRL) for the purpose of verifying GPS Source’s attainability of contract, program, and schedule objectives.

c. Procurement of a Risk Management Framework (RMF) Package (CDRL) to satisfy the requirements of Department of Defense Instruction (DoDI) 8510.01, Risk Management Framework (RMF) for DoD Information Technology (IT) dated 12 March 2014.

The above additional items were not originally bid at contract award, and therefore, added to the requested ceiling increase.

Current Value:

Base Period: 15 Sep 2016 to 14 Sep 2017 Value: $2,946,518.09 Option Period 1: 15 Sep 2017 to 14 Sep 2018 Value: $ 400,486.09 Option Period 2: 15 Sep 2018 to 14 Sep 2019 Value: $ 138,930.64

Total Value: $3,485,934.82

Proposed Modification Increase:

Option Period 1: 15 Sep 2017 to 14 Sep 2018 Value: $1,823,158.73 Option Period 2: 15 Sep 2018 to 14 Sep 2019 Value: $2,378,579.79 Option Period 2 Extension: 15 Sep 2018 to 14 Sep 2020 Value: $1,380,366.44 Total Ceiling Increase Value: $5,582,104.96

Total Revised Contract Ceiling Value: $9,068,039.78

4. Authority Cited: 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.

5. Reason for Authority Cited:

a. 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 Department of Defense (DoD), National Aeronautics and Space Administration (NASA) 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. Pursuant to FAR 6.302-1(a)(2)(ii), supplies may be deemed to be available from only one source when it is likely that award to any other source would result in a substantial duplication of cost to the Government that is not expected to be recovered through competition, or award to any other source would cause unacceptable delays in fulfilling the agency’s requirements.

(1) The Government intends to award this proposed modification on a sole source basis to GPS Source, Inc., 64 N. Mission Drive, Pueblo West, CO 81007-1427. GPS Source is the original equipment manufacturer (OEM) of the D3, which was initially procured as a non-developmental item (NDI) under contract W15P7T-13-D-C116. GPS Source redesigned the D3, using Independent Research and Development (IR&D) funding, into an Enhanced D3 (ED3).

Under the current contract, W56KGY-16-C-0017, GPS Source has further developed the ED3 into the ED3M. The ED3M product on the Stryker Family of Vehicles has been selected by the US Army to be the lead platform for the USAF MGUE integration, which must be upgraded in accordance with Section 913 of Public Law 111-383. Section 913 does not allow funds to be obligated to purchase user equipment for Global Positioning Systems (GPS) after FY17, unless the equipment is capable of receiving M-code. GPS Source is the only vendor that can upgrade the ED3 to ED3M, which will enable programs that currently use a D3 or ED3 to meet Section 913 of Public Law 111-383.

(2) Previously, the Government procured fifteen (15) ED3Ms as an NDI under the baseline MITS Contract. The Government does not own any technical data rights to compete a “build-to-print contract” to produce additional exact copies. To award this contract to any vendor other than GPS Source, would require either full access to the Technical Data Package (TDP) or necessitate reverse engineering of the system. The Government has assessed the feasibility of reverse engineering the ED3M to enable competition, however, the reverse engineering effort is considered unviable. A reverse engineering effort would present unacceptable levels of performance, schedule, and cost risk to the program. In evaluating and assessing the associated cost risk of reverse engineering, the ED3M, PM PNT searched for historical data on similar efforts throughout its program offices at Aberdeen Proving Ground and Los Angeles Airforce Base. PM PNT also utilized its Integrated Product Team conference (from 19 March 2018 to 23 March 2018) as a forum to engage subject matter experts for this information.

Ultimately, these research methods did not yield any information on similar efforts of comparison that would allow PM PNT to quantify the cost of reverse engineering the ED3M. Ultimately, it would not be feasible for another company to build an exact replica of the GPS Source ED3M without the build-to-print TDP of the ED3M. If another company attempted to build a similar product, but not exactly the same product, there may be variations in testing and performance. The GPS Source ED3M with GFE MGUE card functions and performs in such a way that complies with Government requirements, but not necessarily in the same way. For example, where the GPS Source ED3M complies with a requirement without any issues, bringing in an alternate developer could result in a product development with functional or performance issues for a requirements already resolved with GPS Source. The ED3M has been evaluated so far based partially on how the product depends on the GPS card to meet requirements versus ED3M software/hardware. A different developer's approach may result in a significant difference in dependency on the card resulting in a difference in overall behavior with ED3M, despite both using the same GPS card.

The ED3M has a critical requirement to be backwards compatible with the DAGR, meaning it will work with a system known to work with DAGR without requiring modification, and fit into the DAGR mount. The current contract started with GPS Source's off the shelf product, ED3, which is a "drop in" replacement for AN/PSN-13 (aka DAGR) in the existing mount. There is currently no other product on the market that does this. Any third party attempting to develop to the specification would have to go through a learning curve to understand the technical requirements and how DAGR functions in order to backward compatible. A reverse engineering effort, given the totality of requirements, could potentially take up to 52 months with test and validation, requiring an additional 12 months lead time to get to a usable product. This estimated sixty-four

(64) months would present an unacceptable delay that would not support the warfighter or the Government’s critical requirements, discussed further below.

In January 2018, the Government contacted GPS Source to request an estimated cost for purchase of the level 3 TDP for the D3, ED3, and the ED3M. On 8 February 2018, GPS Source responded that the TDP is not for sale.

(3) The program schedule also presents a constraint to competition. The Army

Lead Platform effort of the USAF MGUE Program has an Acquisition Program Baseline (APB) milestone of FY2020 to complete Program Executive Office (PEO) Certification to enter an Operational Utility Evaluation (OUE). Five other major milestones are dependent on this contract modification prior to PEO Certification including: HW/SW verification of the ED3M with final MGUE SW, completion of First Article Test (FAT) of the ED3M, client system integration with the ED3M, MGUE Phase 4 Developmental Test, and Safety Confirmation of the Stryker FoV. Current schedule has less than six months of margin remaining before breaching the USAF MGUE APB milestone.

GB-GRAM-M Software Delivery Schedule

Vendor A Build 1 Build 2 Build 3 Build 4 Build 4.1 Build 5 Build 6 Baselined Delivery Sep-15 Mar-16 Jul-16 Sep-16 Feb-18 NOC Actual (estimated) Delivery Oct-15 Jun-16 Dec-16 Mar-17 Jul-17

(Apr-

18) NOC

Vendor B Build 1 Build 2 Build 3 Build 4 Build 4.9 Build 5.1

Build

6.0 Build 7 Build 8

(4) It is estimated that the existing contract ceiling will be exhausted by the end of

March 2018 due to late and interim Government Furnished Equipment (GFE) deliveries by the USAF MGUE program, resulting in GPS Source incurring higher costs than expected from working on underdeveloped MGUE cards. The original intention of the contract was to integrate and test final hardware (HW) and software (SW) from each USAF MGUE vendor. The awarded contract did not account for the amount of integration and test required on multiple interim hardware (HW) and software (SW) versions of the MGUE card from different Air Force vendors. The awarded contract could not account for the multiple delays in delivery of the aforementioned HW/SW versions of the MGUE card. The contractor has not received final hardware or software for integration into the ED3M. For these reasons, this proposed modification to the contract is to continue the work described in the base year and will include delayed work from the base year to include MGUE, ED3M, and Stryker Client System test and integration support, HW/SW updates to the GB-GRAM-M or ED3M relative to its use as the host for MGUE, and the delivery of 21 additional ED3M units to be used for MGUE test efforts. MGUE test efforts include risk reduction and early assessment testing at Communications-Electronic Research, Development and Engineering Center (CERDEC) labs, GB-GRAM-M verification at Aerospace/Space and Naval Warfare Systems Command (SPAWAR), continued HW/SW integration at GPS Source and early integration into Stryker Client Systems. If this contract modification is not approved, the impacts to PM PNT and the Air Force MGUE ACAT I program would be significant. PM PNT would be unable to comply with the ASA (ALT) designation of D3 as Lead Platform for MGUE, unable to support Air Force testing of MGUE, and would likely delay fielding of M-code to the Army, potentially causing non-compliance with Public Law 111-383, which does not allow funds to be obligated to purchase user equipment for GPS after FY17, unless the equipment is capable of receiving M-code.

b. Alternatives: No other alternatives exist. The period of performance for the present contract is scheduled to end on 14 September 2019. However, due to late and interim Government Furnished Equipment (GFE) deliveries by the USAF MGUE program, GPS Source incurred higher costs than expected from working on underdeveloped MGUE cards. This Government caused delay will ultimately result in the total contract ceiling being completely exhausted by the end of March 2018. The only feasible alternative is to increase the ceiling, extend the period of performance until 14 September 2020 and expand the number of ED3M units tested and integrated of this contract W56KGY-16-C- 0017 to allow GPS Source to continue working toward final hardware and software versions to meet the APB milestone. These interventions will permit PM PNT to meet its mission and agency requirements on this effort.

Baselined Delivery Oct-14 Jan-15 Mar-16 Sep-16 Sep-16 Sep-16

May- 17 Jun-19 NOC

Actual (estimated) Delivery Oct-14 Feb-15 Mar-16 Nov-16 Nov-16 Mar-17

(Sep-

18) NOC

Vendor C Build 1 Build 2 Build 3 Build 3.5 Build 4 Build 5 Build 6 Build 7 Build 8

Baselined Delivery Oct-15 May-16 Jul-16 Jul-16 Dec-16 Jul-17 Jul-18

NOC

Oct-18

Actual (estimated) Delivery Jun-15 Oct-15 Jun-16 May-17 Jul-17

(Jul- 18)

(Apr- 19)

(Jul- 19)

c. The minimum requirements of the Government to accomplish PM PNT’s mission and comply with Section 913 of Public Law 111-383 on this effort can be found in paragraphs 2 and 3 of this J&A. In essence, this proposed modification is intended solely to integrate the USAF MGUE cards on up to 36 ED3Ms being built by GPS Source, which requires an estimated $5,582,104.96 ceiling increase and 12 month period of performance extension. As explained in paragraph 5a(2) above, it is not feasible to compete this requirement due to the Government not owning the technical data rights to the ED3M, and GPS Source refusing to sell the TDP. When also considering the schedule constraints involved, and GPS Source’s unique technical expertise as the OEM, the prospect of competition for this effort is not possible. Furthermore, if this request and modification is not approved, the Government would not be able to comply with the United States Assistant Secretary of the Army for Acquisition, Logistics and Technology (ASA (ALT)) designation of ED3M as the Lead Platform for MGUE. The Government would also be unable to support Air Force testing of MGUE, and would likely cause an unacceptable delay in fielding M-code to the Army, potentially causing non-compliance with Public Law 111-383, which requires all new GPS systems to be equipped with M-code or have a DoD waiver with an approved implementation schedule after 2017. GPS Source is the only known responsible source capable of meeting the Government’s requirement to support timely fielding of M-code capability. Without GPS Source’s ED3M, the ability to field M-code in systems currently integrating multiple DAGRs will be delayed by a number of years, during which the threat environment to current GPS can result in denial of service or misinformation, where either has the potential to result in loss of life to the warfighter.

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: Because this is a sole source action, effective competition is not applicable.

b. Subcontracting Competition: FAR 52.244-5, Competition in Subcontracting, is in contract W56KGY-16-C-0017.

7. Actions to Increase Competition: The modification from the D3 to the ED3M is a one-time requirement, and no future similar acquisitions are anticipated as the ED3M will incorporate the new/updated requirements. However, if a similar requirement arises, every effort will be made to compete it to the maximum extent practical. Additionally, the Government does not currently own and cannot obtain unlimited technical rights for the D3 as GPS Source has stated these data rights are not for sale. Based on the DFARS Clause 252.227-7013, Rights in technical data and noncommercial items, these rights will not be obtained from GPS Source, Inc.

8. Market Research: Technical experts from PM PNT performed market research to identify businesses capable of providing engineering/technical, operations, and logistics support for the Government’s plan to upgrade the existing D3 with a Ground Base-GPS Receiver Application Module (GB-GRAM) receiver and replacing/integrating the GB- GRAM with a Ground Base-GPS Receiver Application Module-M-Code (GB-GRAM-M)

1020445412E Highlight receiver card. In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71 and DFARS Procedures, Guidance and Information (PGI) 206.302- 1(d), a Request for Information (RFI)/Sources Sought Notice (SSN) number W56KGY- 17-X-MGUE was posted on the FedBizOpps website from 22 November 2017 to 07 December 2017.

One response to the FedBizOpps market research announcement was received from GPS Source, Inc. GPS Source Inc. was the only company who indicated they could meet the Government’s requirements. Due to the limited market, no new vendors have entered the marketplace. No commercial market exists for the ED3M. GPS Source Inc. is the sole source vendor in the original MITS Contract and they delivered 15 ED3Ms. An additional 21 ED3Ms is required to continue testing of the ED3Ms. GPS Source is the only vendor that has the technical and engineering expertise to produce the additional ED3M to the exact specifications provided in the base MITS contract.

Based upon industry response and the information and facts presented herein, PM PNT technical experts concluded that this Government requirement to support the FY18 and beyond Air Force MGUE technology development Integrated System Test (IST 3-3) schedule and Army responsibilities inherent in the designation of ED3M as the Army lead platform for MGUE integration should be awarded to GPS Source Inc.

9. Interested Sources: In accordance with FAR 5.201, a synopsis will be issued on FedBizOpps. Any proposal that is received will be evaluated.

10. Other Facts:

a) Procurement History:

On February 2012, PM PNT hosted a PNT Solutions Industry Day. Twenty vendors participated in the general session, and a subset of 14 participated in the one-on-one sessions. Following this market survey, an RFP for an NDI was released to execute a full and open competition for the D3. The down-select process included a multiple solution/multiple step technical competition (test-evaluation-award-build) for D3, and a three year IDIQ FFP contract was awarded on 18 July 2013 to GPS Source, Inc.

D3 IDIQ contract W15P7T-13-D-C116 was awarded competitively on 18 July 2013 as a one-year base, one-year option, FFP contract. The Government awarded this IDIQ contract as a competitive procurement based upon technical merits. As this is an NDI, the data rights for the hardware, software, and firmware of the current D3 are owned exclusively by GPS Source, Inc.

Contract No. Award Date Current Ending PoP Competitive Status

W15P7T-13-D-C116 07/18/2013 01/17/2017 Full and Open Competition

SPM8EJ-14-D-0005 03/07/2014 03/06/2017 100% Small Business Set Aside

W56KGY-16-C-0017 09/15/2016 09/14/2019 Sole Source, FAR 6.302-1

This production-only contract has had the period of performance extended 18 months until 17 January 2017. This production contract has CLINS for D3 procurement only and none for D3 HW or SW modifications. This was the first contract awarded for the D3 production requirement; no prior awards.

As a result of operationally critical issues, GPS Source completely redesigned the product resulting in the Enhanced D3 (ED3). ED3 development was funded as a GPS Source Independent Research and Development (IR&D) project (i.e. it was developed at private expense). The Government later procured the ED3 via Defense Logistics Agency (DLA) Contract SPM8EJ-14-D-0005, awarded to Atlantic Diving Supply, Inc. of which GPS Source was a subcontractor, which was awarded on 7 March 2014 and consisted of a one-year base period and three one-year option periods. Option year 1 was the only option period exercised, resulting in the contract expiring on 06 March 2017.

On 15 September 2016, Contract W56KGY-16-C-0017, MGUE Integration and Technical Services (MITS) contract was awarded to modify the original D3 for integration of Air Force developed MGUE cards. The MITS contract period of performance was one-year base and two one-year option years. The MITS contract period of performance was originally aligned with the Air Force MGUE development and test schedule. The Air Force test schedule has been delayed causing the need for this modification and an at least one additional option year. Option year 1 was awarded on 15 September 2017.

b) Unusual and Compelling Urgency: Not Applicable.

11. Technical 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.

Typed Name: Benson Malto Date:

Title: Deputy Program Manager Signature:

12. 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.

Typed Name: Mr. Michael Trzeciak Date:

Title: Program Manager Signature:

13. 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 upon a comparison of proposed prices with an Independent Government Cost Estimate.

Certified cost and pricing data will be obtained.

Typed Name: Kristen Weiman Date:

Title: Contracting Officer Signature:

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

Typed Name: Kristen Weiman Date:

Title: Contracting Officer Signature:

Approval

Based on the foregoing justification, I hereby approve the procurement of the ED3M with associated HW/SW, test and integration cost in the amount of $5,582,104.96, on an other than full and open competition basis pursuant to 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, subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

Cynthia A. Jackson Date:

Special Advocate for Competition Signature: