A03_-_J&A_-_Redacted.pdf

11/23/2016

Control No: JA-Belv-17-056 Contractor: MTEQ

Supplies/Services: Tactical Spectral Imaging

Version – MAY 2016

Department of the Army FAR Part 16 Exception to Fair Opportunity Justification

Under Multiple Award Indefinite Delivery Contracts For Actions Exceeding the Simplified Acquisition Threshold (SAT)

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

ATTN: CCAP-CCV-B-4

10205 Burbeck Road, Building 362 Fort Belvoir, VA 22060-5863

2. Description of Action: The Night Vision and Electronic Sensors Directorate (NVESD) requests a Cost-Plus-Fixed-Fee (CPFF) modification to contract number W909MY-12-D- 0008 Task Order (TO) 0012 with Manufacturing Techniques, Inc. (MTEQ), 140 Technology Park Drive, Kilmarnock, VA 22482-3837. The requested modification is to extend the period of performance (PoP) for twelve (12) months, and increase the ceiling for task order 0012 by from to . Contract number W909MY-12-D-0008-0012 was awarded on 16 September 2014 for a 30 month period of performance and expires on 15 March 2017. The ceiling increase allows for work to be completed through the new period of performance (POP) that will end March 15, 2018.

The Government projects award of the modification by December 2016 in which fiscal year 2017 (FY 17) RDT&E funds will be used as appropriate. An Acquisition Plan (AP) was written and approved for the overarching WEBS MA/IDIQ at time of award. A separate AP is not required for this modification because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement (DFARS) Subpart 207.103(d)(i)(B).

3. Description of Supplies/Services: The purpose of the Tactical Spectral Imaging task is to advance the state-of-the-art in Infrared Focal Plane Arrays. This shall be accomplished through a number of individual development tasks – each focused on improving specific components of the currently used spectral sensors. Each task shall make incremental advancements to currently used technologies. The combined effort then will result in a significant advancement compared to performance of spectral imaging sensors that are in use today. None of the current tasks have decreased or materially changed; but the more refined details are not supported by the current period of performance and funding ceiling.

In addition, a few necessary new tasks have been added that have been discovered to be necessary in the performance of the existing tasks. These include further development of readout integrated circuits to support spectral imaging sensor development, an investigation of a potential application for image intensifier technology, and a task to look at an uncooled longwave infrared solution for spectral imaging needs. Finally, the quantities desired of a few of the existing tasks has been increased due to increased demand from Army Program Management customers in reaction to a newly issued Joint Urgent Operational Needs Statement (JUONS). A modified PWS has been generated that maintains all the previous tasks, and adds new tasks as described above in support of the original scope of the PWS, to advance the state-of-the-art in Infrared Focal Plane Arrays (FPA) and spectral imaging technology. Additional field testing and lab-based risk reduction activities are required to demonstrate and prove out new technology and sensors for use with spectral imaging applications. Therefore, an extension and ceiling increase is required. After award the new period of performance and task order value will be:

Period of Performance: 16 September 2014 to 15 March 2018 Total Value:

4. Authority Cited: 10 U.S.C. 2304c(b)(2) as implemented by FAR 16.505(b)(2)(i)(B) – Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

5. Reason for Authority Cited: The proposed source of this action is Manufacturing Techniques, Inc. (MTEQ). MTEQ has been providing support under TO 12 that was issued against Contract Number W909MY-12-D-0008 since 16 September 2014, which was awarded competitively under fair opportunity, and has the resources in place to continue mission support. Specifically, MTEQ’s team (specifically BAE Systems) has been producing FPAs that are being built into the Big Green class of hyperspectral sensors.

These sensors are being deployed in support of Task Force ODIN under a much accelerated schedule. In order to ensure a timely fielding schedule for the Big Green sensors, no delay is possible in the FPA delivery schedule from BAE Systems. If this task order is not extended, then a potentially significant delay may result. The same is true of the SB-500 based FPAs being built under this effort for the Grey Eagle Program of Record.

That program requires a full up sensor demonstration within 18 months. In order to meet that schedule, the FPA work being done under this task order must continue for the next nine months, without interruption.

During the current period of performance, MTEQ has gained critical expertise in the areas of spectral FPA manufacturability and spectral sensor development for spectral imaging applications that is required in meeting the requirement and delivery in timely manner without break in service. This expertise includes, but is not limited to the development of FPAs for spectral imaging, building of spectral sensor systems, operations and maintenance for these spectral systems, spectral data collection methodology, spectral data analysis, and field testing A significant amount of time would be required for a different contractor to come up to speed on these technologies and specific sensors. The above expertise is required in senor system development in order to meet fielding schedule and JUONS requirement. MTEQ, and their team of subcontractors has been able to deliver FPAs and sensors to Army Project Manager Sensors Aerial Intelligence (PM SAI) customers in a timely manner and this has enabled the fielding of these sensors in support of current operations. The need for continued timely support to PM SAI and TF ODIN and the Grey Eagle program continues due to the recent issuance of a new JUONS.

This JUONS was not initially anticipated, and therefore, the most expedient method for continuing this support is through the extension and increase of this current task order.

The JUONS recognizes the contribution that spectral imaging has made to the current efforts in Southwest Asia and calls for an increase in these type of sensors.

The work to be completed under TO 0012 is based on the Government’s and contractor’s increased understanding and refinement of the requirements set forth in the scope. The original scope has increased and the work, which will not be part of the Performance Work Statement (PWS) for the follow-on, must l be completed and utilized by the contractor of the follow-on order. A follow-on to contract number W909MY-12-D-0008-0012 is planned, and the anticipated award date is 30 September 2017. To stay on schedule and prevent delays or break in service occurring under the follow-on delivery order, and maintain consistency with the efforts involved, the work under the scope of this contract must be completed by 15 March 2018. The overlap in schedules is required as the items being purchased under the current effort have a 12 month lead time; and a 15 month window is anticipated allowing for delivery, and integration of these components. This would require a contract end date of 15 March 2018. In order to allow for the next iteration of focal plane deliveries and start the clock on the next series of 12 month lead time orders, the follow-on task will need to be awarded by the end of FY17, so that the next series of parts can be delivered in a timely fashion near the end of FY18 for incorporation into the next set of sensors.

Award to another contractor would result in the Government incurring duplication cost of approximately (based on current contract expenditures under TO 0012). This figure consists of the historical design & procurement cost of a ROIC ( ), the historical cost to perform a detector growth and processing ( ), the cost to perform FPA hybridization and testing ( ), plus the cost to familiarize a team of four senior test engineers on a complex existing system ), plus the cost to equip a test lab with specialized equipment to work on this class of sensor ( ). This approximation assumes six months for the new awardee to familiarize itself with the critical programs and systems supported, which is based on past experience for training and familiarization of products and fielded systems. This would create a significant gap in support to deployed and integrating sensors and systems. This delay would lead to a gap in support to a program for which is already being asked to accelerate timelines for in theater deployment. Any other contractor would have to build a complete team with a sufficient number of subject matter experts with detailed knowledge and understanding of the inner workings of the spectral sensor technology being used, as well as experienced ready personnel to research, develop, test, support integration designs and integrate program management (PM) and Programs of Record (POR) to support initial fielding of systems in FY17 and FY19. The duplication of cost and schedule is not expected to be recovered through competition due to the nature of this task order modification. Failure to extend this effort would cause great harm to our soldiers in theater due to a lack of timely, spectral based intelligence products supporting operations by TF ODIN.

The spectral sensors that are being produced in this action are used in theater to provide critical intelligence for mission planning and hazard identification. The soldiers have come to rely on this information in order to safely and effectively locate IED production facilities and combat hostile enemy forces. As the number of missions has increased recently, the demand for this information has also increased, leading to the JUONs asking for more sensors. If we do not meet this need, then either missions will be cancelled, or coalition forces will conduct operations without the desired mission intel. This will likely reduce the effectiveness of the forces, or at worse put forces at increased risk of attack. The fabrication of these spectral sensors requires a specialized team of experts that have all been assembled under the current MTEQ task order. If this extension and ceiling increase is not awarded, then there will be at least a six month delay in the delivery schedule for these sensors. This will lead to failure to meet the required deployment schedules and increased risk to the soldiers.

The notional schedule for the increased work is as follows:

Approximate Date Primary Tasks March 2017 3-D Readout Integrated Circuit (ROIC) Design completed April 2017 Order placed for 3-D ROIC build (26 week lead time)

Final Detector array growth begins (20 week lead time) May 2017 Detectors return from previous growth for testing

2-D ROICs return from fabrication June 2017 Detector array testing

Night sky field testing begins (several sites during summer 2017) July 2017 Camera build for 2-D ROIC system begins August 2017 Firmware and electronics for 2-D ROIC system are developed.

September 2017 Final detector array growth completed, testing begins.

2-D DROIC camera completed October 2017 3-D ROICs return from fabrication. Testing begins

Detector array testing completes November 2017 FPA hybridization with new 3-D ROICs January 2018 New 3-D ROIC based camera system build begins February 2018 Camera testing and user interface development March 2018 Final sensor deliveries

The Government’s estimate will sustain production of additional focal plane arrays, development of improved ROICs – including multispectral and multichannel ROICs to work with these detector arrays, additional field test support for evaluation of spectral sensors, and continued laboratory support to NVESD scientists and engineers.

6. Actions to Increase Competition: The Army is currently in the process of drafting solicitation documentation to re-compete the Tactical Spectral Imaging program in support of Army, DoD, and other Government organizations. It is anticipated that a follow-on effort, which will incorporate results from TO 0012, will be competed under Fair Opportunity under the WEBS contract vehicle and awarded by Q4 FY2017.

7. Market Research: NVESD held a WEBS Industry Day on June 8, 2016 with the six (6) WEBS vendors. This effort revealed that , , and MTEQ have the relevant experience and capabilities to perform the work required under this PWS. However, neither nor have the facilities and personnel currently available to meet the immediate timeframe necessary to ensure that no break in service occurs. As a result, MTEQ was the only contractor that had the knowledge and experience needed to perform the requirement in the required timeframe, without a break in service.

Additionally, in accordance with FAR 10.002(b)(2), NVESD is continually performing market research to support its requirements by contacting knowledgeable individuals in

Supplies/Services: Tactical Spectral Imaging

Version – MAY 2016

Government and industry regarding market capabilities and reviewing the results of recent market research undertaken to meet similar or identical requirements.

8. Other Facts:

a. Procurement History:

Contract: W909MY-12-D-0008/0012 Contractor: Manufacturing Techniques, Inc.

Award Date: 16 September 2014 Competitive Status: Fair Opportunity Period of Performance: 16 September 2014 – 15 March 2017 Amount of Award: $30,792,320.08

b. Additional Supporting Facts: Not applicable.

9. 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: Date:

Title: Branch Chief – Camera Technology Branch Signature:

10. 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: Date:

Title: Branch Chief – Camera Technology Branch Signature:

11. 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. This determination will be made using a cost analysis by a government representative. As a part of this basis, certified cost or pricing data will be required.

This determination will be made using the following: cost analysis price analysis should cost IGCE audit: identify the audit type other: identify the methodology or combination of methodologies that will be used

As a part of this basis, certified cost or pricing data:

will be required.

will not be required and the following exception applies (FAR 15.403):

Prices that will be agreed upon are based on adequate price competition.

11/22/2016

11/22/2016

Supplies/Services: Tactical Spectral Imaging

Version – MAY 2016

Prices that were established during the original competition that are not subject to negotiation.

Prices that will be agreed upon are based on prices set by law or regulation.

A commercial item is being acquired.

A waiver has been granted by the head of the contracting activity (HCA) in accordance with DFARS PGI 215.403-1.

The contract action is a modification to a contract or subcontract for commercial item(s).

The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

Date:

Title: Contracting Officer Signature:

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

Date:

Title: Contracting Officer Signature:

23 November 2016

23 November 2016

Approval

Based on the foregoing justification, I hereby approve the procurement of Tactical Spectral Imaging support, in the amount of ; and the extension of the period of performance (PoP) for a period of twelve (12) months under contract number W909MY- 12-D-0008-0012, to MTEQ using exception to Fair Opportunity FAR 16.505(b)(2)(i)(B) Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized, subject to availability of funds, and provided that the services or supplies herein described have otherwise been authorized for acquisition. If the proposed contract action is not completed within 180 days from the date below or if there is a change to the substance of this J&A that does not meet the AFARS 5106.303-1-90 conditions for an amended J&A, the Contracting Officer shall document these changes in a memorandum for file and obtain revalidation from the approval authority below.

Date:

Special Advocate for Competition Signature: