Signed_JA_2013-09-04_Redacted.pdf

SAAL-PP

DEPARTMENT OF THE ARMY

OFFICE OF THE ASSISTANT SECRETARY OF THE ARMY

ACQUISITION LOGISTICS AND TECHNOLOGY

103 ARMY PENTAGON

WASHINGTON DC 20310-0103

'JUN T9 2C!l

MEMORANDUM FOR HEAD OF CONTRACTING ACTIVITY, UNITED STATES ARMY

AVIATION AND MISSILE COMMAND, 5300 MARTIN ROAD, REDSTONE ARSENAL,

AL 35898

SUBJECT: Justification and Approval (J&A) for Other than Full and Open Competition for Continued Operations, Sustainment, and Integration of Deployed Desert Owl Aircraft

1. I have approved the enclosed J&A for the Continued Operations, Sustainment, and Integration of the Deployed Desert Owl Aircraft contract.

2. Retain the original copy of this memorandum in the contract file.

Encl <J~:hy~ Assistant Secretary of the Army

(Acquisition, Logistics and Technology)

Control Number W58RGZ-13-R-0100

Justification Review Document For Other Than Full and Open Competition

Program/Equipment: Continued Operations, Sustainment, and Integration of Deployed Desert Owl Aircraft

Authority: 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

Amount:

Prepared by:

Typed Name: Luis R. Gely Title: Contract Specialist/Procurement Analyst Email: luis.gely@us.army.mil

Contracting Officer:

Typed Name:Karen Fletcher Email: Karen.fletcher3@us.army.mil

Technical I Requirements Representative:

Typed Name: LTC Brian Forrest Title: Product Manager SEMA

DSN: 897-4474

Date Prepared 12 Dec 2012

DSN: 746-5137

Date Reviewed [q feb J 8

DSN: 645-0031 ~~

Date Reviewed • -' f"?la i :Z

SOURCE SELECTION INFORMATION-SEE FAR 3.104

Reviews: I have reviewed this J&A and find the justification adequate to support other than full and open competition.

Program Manager

Name: COL Brian R. T achias

Signature: p__:._ f?. -/~

PEO

Name: M'~ Signature:~~..,,.~----~~--~_,,._ _____ _

Legal Counsel

Name: Fred W. Allen

Signatu~ VA/(,.__ Principal Assistant Responsible for Contracting

Special Advocate for Competition

N~me: ~:Muhammad i]\ S1gnatur~:z ~-

• Head of the Contracting Activity

Name: Lynn A. Collyar

Signatur~~

DSN: 746-5510

Date: 27 Jt\N'Zo15

DSN: 897-4000

D t . -2 6 MAR 2013 ae.~------

DSN: 7 46-3405

Date: 11.4p;fJ-.P15

DSN:~

Date:~/3

DSN: 7 46-2485

Date:tl< f£B. 21>1.3

DSN: 746-2485

Date: z. fl//'() 1::s

SOURCE SELECTION INFORMATION -SEE FAR 3.104

JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

FOR CONTINUED OPERATIONS, SUSTAINMENT, AND INTEGRATION

OF DESERT OWL AIRCRAFT

1. Contracting Activity: U.S. Army Contracting Command-Redstone, Redstone Arsenal, AL 35898-5000.

2. Description of Action: The proposed action is a new services contract that provides continued operations and sustainment of aircraft platforms configured to host a suite of sensors designed to accomplish day and night operations of the ultra high frequency (UHF) and foilage penetrating (FOP EN) sympathetic aperature radar (SAR) system, known as Desert Owl, currently deployed in support of Operation Enduring Freedom (OEF). It is anticipated that the contract type will be a hybrid utilizing both fixed-price and cost-type line items. The basic period of performance will be 12 months starting 1 September 2013. Options for up to an additional 13 months of continued performance are also contemplated (one 4-month period and three 3-month periods).

These option periods will allow flexibility to complete current theater requirements and any additional requirements that may emerge for other locations across the globe.

Funds to be utilized for this contract will be Fiscal Year (FY) 2013 - 2015 overseas contingency operations, operations and maintenance, Army. This action complies with Ms. Shyu's memo dated 28 October 2011, and has been fully coordinated with PM

ARES (PEO IEW&S).

3. Description of Services: The Desert Owl aerial system provides a day and night critical quick reaction capability (QRC) of UHF and FOPEN SAR imagery of suspected special targets along military service routes. The Government has a need to continue Desert Owl operations with contractor-owned contractor-operated aerial surveillance platforms (De Havilland DHC-8 aircraft) that utilize Government-owned onboard sensors to conduct reconnaissance and detection of special targets of interest over named areas of interest within Central Command's area of responsibility. The services consist of the conduct of UHF and FOP EN SAR imagery missions in the current theater of operations utilizing two un·1quely modified Desert Owl configured aircraft and the ability to provide that data to in theater ground stations for analysis. There is also a requirement to sustain one Desert Owl training and test aircraft located in the continental United States.

Personnel required to perform this effort include pilots, sensor operators, and aircraft mechanics. The continuation of these services is needed to assure continued uninterrupted performance of the hyperspectral imaging mission in OEF.

The cost of the basic 12-month effort is estimated at , and is comprised of approximately manhours ( ) and estimated flying hour costs of to achieve monthly operations tempo. The estimated combined cost of the 13-months that include multiple option periods (one 4-month period and three 3-month periods), and retrograde activities, is estimated at , and is comprised of

SOURCE SELECTION INFORMATION -SEE FAR 3.104

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HayesSD Highlight approximately manhours ( ) and estimated flying hour costs of to achieve monthly operations tempo. These amounts include retrograde

.activities. The total cost of this J&A is estimated at , and consists of approximately total manhours and estimated flying hour costs of

4, Authority Cited: This action is authorized under the provisions of 10 United States Code (U.S.C.) 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1 (a)(2)(iii), "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

5. Reason for Authority Cited: The services are planned to be procured from Stanford Research Incorporated (SRI), 333 Ravenswood Ave., Menlo Park, CA 94025 (CAGE Code 03652). Since August 2009, SRI has developed the unique qualifications and technical expertise necessary to operate and sustain the UHF/FOP EN SAR imaging missions through the expedited development, integration, test, and deployment of the Desert Owl aerial system. Additionally, an award to a source other than SRI would cause the Desert Owl platforms to be removed from theater support operations and create a gap in the UHF/FOPEN SAR imaging mission capabilities. Based on in house engineering estimates, it will take at least 18 months at an estimated cost of $44,000,000 per aircraft to duplicate the design, integration, qualification, and testing effort previously performed by SRI and train a new team of sensor operators to utilize this FOPEN imaging system at the level Desert Owl is currently performing against U.S.

and Coalition Forces counter insurgency operations. Due to the expected September 2015 end date for the Desert Owl program, an 18-month gap in continuous operations would result in program termination and an increased risk of serious injury or loss of life to deployed forces.

No other QRC intelligence, surveillance, and reconnaissance (ISR) system, such as Highlighter, Saturn Arch or Night Eagle, can perform all of the critical day and night functions that Desert Owl provides in the battle space. This day/night UHF/FOPEN SAR imaging capability represents a one of a kind JSR capability in the theater commanders counter improvised explosive device (CIED) detection operations. Loss of the Desert Owl UHF/FOPEN imaging service would create an unacceptable CIED capabilities gap increasing risk to United States and Allied forces if the services were interrupted in order to procure from a source other than SRI.

6. Efforts to Obtain Competition: In an effort to obtain competition, this requirement was entered into the Competition Advocate's Shopping List (CASL) on 20 September 2012 and later revised on 27 February 2013. Also, it is planned to publicize this requirement in the FedBizOpps, but no effective competition is anticipated.

7. Actions to Increase Competition: The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future procurements to be competed; as well, if the Army determines this to be an enduring capability they will attempt to obtain the technical data required to pursue future competition. As it stands, the Desert Owl program was initiated as a QRC

SOURCE SELECTION INFORMATION -SEE FAR 3.104

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HayesSD Highlight program and support for the aircraft is only anticipated to be required through FY 2015, it is highly unlikely that competition is v'1able or cost effective.

8. Market Research: Market research was pertormed for this requirement in accordance with FAR Part 10. Techniques utilized included personal knowledge in procuring supplies and/or services of this type, and contact with knowledgeable persons in the Government. A formal sources sought synopsis was posted on 3 April 2012 to FedBizzOpps, and was subsequently amended on 19 April 2012 and 25 April 2012.

Additionally, research into technical and non-technical databases such as the technical reports collection, research and engineering summaries, and independent research and development reports collection was conducted from 27 September 2012 - 9 October 2012 by the Redstone Scientific Information Center, Redstone Arsenal, Alabama, for relevant information regarding the Desert Owl system. During this same time period, the following periodicals were searched: Jane's Electronic Mission Aircraft (April 2012), International Defense Review (September 2008), Defense Technology International (April 2012), and Aerospace Daily & Defense Report (March 2012). In addition, the following indexes were searched during the period 2 - 9 October 2012:

Institute of Electrical and Electronic Engineers Explore, Engineering Village, Aviation Week and Space Technology, Jane's Online, ProQuest, Cambridge Scientific Abstracts, and American Institute of Aerodynamics and Astronautics. No relevant information was found in any of the aforementioned searches of databases or periodicals.

This requirement was entered into the CASL on 20 September 2012 and later revised on 27 February 2013. To date, no other sources have submitted an interest in writing.

Based on the above research, SRI is considered to be the only viable source. Market research indicates that there are no commercial or non-developmental items that can be used in whole or in part in meeting this requirement. It has been determined that Government needs cannot be met by an item available in the commercial marketplace;

therefore, FAR Part 12 is not applicable.

Market Research was conducted by the following:

Rodney Hill Procurement Analyst Christy Wells Procurement Analyst Lea Ann Barnett Procurement Analyst

FWPO

FWPO

FWPO

September 2012 September 2012 September 2012

9. Interested Sources: The notices required by FAR 5.201 shall be published on or about June 2013. Any proposal received shall be considered as prescribed by law. To date no sources have submitted an interest in writing.

1 O. Other Facts/Other Factors:

a. Procurement History: The following contracts have been awarded in support of the Desert Owl Program:

(1) The U.S. Army Corps of Engineers, Engineering Research Development Center (ERDC) Contracting Office, awarded contract W912HZ-09-C-0078 to SRI on

18 August 2009. The initial award was in the amount of The total amount currently obligated under this contract is Contract W912HZ-09-C- 0078 resulted from the submission of a proposal by SRI in response to a Broad Agency Announcement (BAA) released by ERDC. The BAA, published in FedBizOpps, describes broadly defined areas of interest in accordance with FAR 35.016(b)(1 ), and proposals received are evaluated through a peer or scientific review process, unlike the more traditional technique for evaluation of proposals under FAR 15.3. An award resulting from a proposal submitted in response to a BAA is treated as meeting the statutory requirement in the Competition of Contracting Act tor full and open competition. Due to funding and period of performance limitations in the original award, a J&A in the amount of was required for follow-on work on this contract.

The authority cited in the J&A supporting the award was 10 U.S.C. 2304 (c)(1) as implemented by FAR 6.302-1 (a)(2)(iii), "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

(2) The most recent contract action (W912HZ-11-C-0029) resulted from the submission of a proposal by SRI in response to a BAA released by ERDC. This contract was awarded to SRI on 25 March 2011 for successful completion of research and development. was obligated at time of the basic contract award.

The total amount currently obligated under this contract is

(3) Due to the unique capabilities developed by SRI personnel since 2009 and the critical need for the Desert Owl systems to successfully detect targets of interest without interruption in theater, SRI is the only viable source that can fulfill the Army's requirements without a substantial duplication of time (an additional 18 months to convert a commercial DHC-8 300 aircraft), effort and cost ( to produce a Desert Owl weapons system) to the Government.

(4) There are no unusual patterns in the procurement history. There have been no significant changes in the circumstances justifying this procurement and the previous J&A supporting the aforementioned period of performance extension.

b. Acquisition Data Availability: Because the Desert Owl system was initiated as a QRC program and its mission is expected to end in September 2015, it was not conducive to purchase technical data due to the timeframe and the cost. Due to this and the other issues called out in paragraph 5 above, a performance work statement suitable for full and open competition cannot be developed.

c. Unusual and Compelling Urgency: Not applicable.

d. Subcontracting Competition: The Government will ensure that the contractor obtains competition in subcontracting to the maximum extent possible by including FAR clauses 52.219-8, "Utilization of Small Business Concerns," 52.219-9" Small Business Subcontracting Plan." FAR 52.244-5, "Competition in Subcontracting," and DFARS clause 252.219-7003, "Small Business Subcontracting Plan (DoD Contracts)," in the contract. In accordance with DFAR 252.219-7003, "Small Business Subcontracting Plan(DoD Contracts)," SRI International will be required to furnish a subcontracting plan which will be evaluated and negotiated as appropriate.

Control Number WSBRGZ-13-R-0100

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.

Name: "J?A! 1 AN

Trtle: Cc L /7,"'11 rCJ Signature: --Z. R • /£.:,

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.

Tltle: Col Signature:

13. Fair and Reasonable Cost Determination:

I hereby detennine that the anticipated cost to the Government for this contract action will be fair and reasonable. An independent government cost estimate (IGCE) has been prepared based on the requirements. A combination of IGCE, audit, cost analysis, and negotiations will be used to determine fair and reasonable cost. Certified cost or pricing data will also be obtained.

14. Procuring Contracting Officer Certification:

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

SOURCE SELECTION INFORMATION - SEE FAR 3.104

(ii

Approval

Based on the foregoing justification, I hereby approve the procurement of services for the Continued Operations, Sustainment, and Integration of the day and night operations of the Ultra High Frequency and Foilage Penetrating Sympathetic Aperature Radar system, known as Desert Owl, currently deployed in support of Operation Enduring Freedom, on an Other Than Full and Open Competition pursuant to the authority of Section 2304(c)(1) of title 10, United States Code as implemented by Federal Acquisition Regulation 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. The estimated value of the 12-month basic requirement is . The estimated value of the total 13-month option requirements is . The estimated total value for this action is This effort is subject to the availability of funds, and provided that the property and services herein described have otherwise been authorized for acquisition.

Date: JUN 2 9 2013

SOURCE SELECTION INFORMATION -SEE FAR 3.104

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