TAB_A_-_Justifcation_and_Approval_-__NE_Gimbals_Redacted2.pdf

Control Number: 15-BELV-0009

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: United States Army Contracting Command – CAC-W

ATTN: CCCE-CW-TB

10205 Burbeck Road, Bldg. 362, Suite 105

Fort Belvoir, VA 22060

2. Description of Action: The proposed action is for a Cost Plus Fixed Fee (CPFF) contract for the purchase of two (2) 2111X HR4 Airborne Optical Change Detection (AOCD) gimbal sensor systems with acceptance testing and operational testing to the delivered hardware. The period of performance is for a total of eighteen (18) months. The estimated award date is 15

September 2015. Fiscal Year 2013 Aircraft Procurement, Army appropriations funds will be used for this effort.

3. Description of Supplies/Services: The AOCD gimbal system is a high altitude

Electro-Optical/Infrared stabilized imaging system capable of long range surveillance and reconnaissance on airborne platforms. The gimbal sensor system combines long focal length visibility, image stabilization, and geo-location and geo-pointing technologies capabilities into a 360 degree turreted package to provide complete hemispherical coverage from aircraft. The new AOCD gimbal sensor systems must be compatible with the Army’s current AOCD system being used on the . The is a Counter-Improvised

Explosive Device (C-IED) system with the capability to detect emplaced IEDs utilizing airborne sensors and advanced imagery processing installed on two Beach King 200 series aircraft. The provides high resolution, day and night sensors that are capable of detecting environmental changes that are reflective of emplaced IEDs. The gimbal sensor system enables the to rapidly scan large segments of roadways, precisely locating possible IED emplacements, and then data link the possible emplacement sites to its ground command center and supported ground forces. The proposed action will provide two (2) additional AOCD gimbal sensor systems to maintain continued AOCD C-IED operations

. The first system must be delivered not later than 12 months after contract award. The second system must be delivered not later than 18 months after contract award.

The total estimate price of this action is .

4. Authority Cited: 10 U.S.C. § 2304(c) (1) and FAR 6.302-1(a) (2) (iii) (A) Only One

Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reasons for Authority Cited: The source for this action is L-3 Communications Sonoma EO

(L-3), 428 Aviation Blvd., Santa Rosa, CA, 95403. In 2006, L-3 was awarded a contract by the

Prime Systems Integrator (SAIC, now known as Leidos, Inc.) for the initial AOCD gimbal sensor system (Model ). This gimbal sensor system was integrated into the as part of a Quick Reaction Capability (QRC) for aerial C-IED capability. During the development phase the Government did not procure the data rights for software or the

Technical Data Package (TDP) for the , both of which were and modified to fit into the various systems within the system. Four (4) additional

Model AOCD gimbal sensor systems were subsequently procured by Night Vision

Electronic Sensors Directorate (NVESD) in the 2007-2008 timeframe. All gimbal sensor systems have been used to support operations in

. L-3 is the only source of the gimbal system which has been successfully integrated into the and related sensor management and imagery exploitation systems. The AOCD system is expected to remain deployed conducting C-IED operations through the end of operations in Afghanistan.

The deployed AOCD gimbal systems are reaching end-of-life status due to extensive use in support of deployed military operations and parts obsolescence. The model has gone obsolete and L-3 no longer offers it for sale. While L-3 continues to support this model, the ongoing obsolescence issues and wear on the deployed systems makes long-term support for these models untenable at the current operational tempo. In order to sustain ongoing AOCD support to and prevent loss of life, new backwards compatible gimbals are needed as soon as possible. Gimbal system manufacture times makes these systems a long-lead item. The required schedule is delivery of the first system not later than 12 months after award and delivery of the second system not later than 18 months after award.

The original OEM, L-3, has brought its next generation of gimbal sensor system, the 2111X, for demonstration to NVESD as an alternative to the obsolete part . The 2111X has the same software and new internal hardware not in obsolescence. An exploratory study under task order , delivery order demonstrated that the 2111X was largely compatible with the current requiring only a few minor changes to the control system. Based on the demonstration the Government concluded that L-3 has a capable, backwards compatible gimbal which can be used in the AOCD system. A telephone call on

11 March 2015 confirmed L-3 is interested in providing the 2111X for the Government. The

Government does not possess the data rights nor the technical data package for the gimbal sensor system. Key components of the system, to include the gimbal software, all software, the schematics, interface design, fabrication drawings and design, assembly drawings, manufacturing procedures, and manufacturing process, are all within the category of restricted and limited rights .

The Government has determined that a new contract must be awarded to L-3 using other than full and open competition. No other source is capable of meeting the Government need without substantial duplication of cost and within the schedule required. The hardware is critical to support of the . No other gimbal sensor system is capable of performing the AOCD mission. Funding and time are not available to develop, test, certify, train, deploy and operate an alternative system. Modifying another gimbal sensor system to be fully interoperable with the existing system cost anywhere from to and require a minimum of months based on the broad range of existing gimbal sensor systems and required alterations to hardware and software. This cost is based on estimates using historical cost to reverse engineer and develop software patches to ensure interoperability without redesign to the AOCD system, redesign gimbal hardware configuration, test and reconfigure gimbal sensor systems. Failure to procure additional AOCD gimbal sensor systems will disrupt the availability of the , which would adversely impact the Army’s ability to successfully support operations and would increase the risk of serious injury or loss of life to U.S. Warfighters, civilian support personnel and Allies.

6. Efforts to Obtain Competition: A sources sought notice was issued to Federal Business

Opportunities on 3 March 2015 for 25 days. No interested businesses responded. The details of the market research are in the market research section of this document. No additional known sources have been identified that can meet the Government’s requirements. Based on the required time-frame and the results of the market research there is no competition anticipated for this action.

There are no known subcontracts necessary to manufacture this product.

7. Actions to Increase Competition: Technical and operational experts within the NVESD continually monitor the technology marketplace to identify opportunities for competition. The utilizes unique, highly specialized hardware and software that was further developed over the course of the development effort prior to its .

Reconfiguring this system around new gimbal software would require down-time in at least one system to configure, test and debug new equipment. These planes currently require uninterrupted services to . This plus the cost and time required to obtain a new system limits the opportunity to increase competition in the near term. However, NVESD continuously works to improve all U.S. Army sensor capability, including that resident in the

. Efforts to improve the and move this capability to will present opportunities for competition after the current requirement is satisfied. A request for a rough order of magnitude of the cost to procure the Technical Data Package (TDP) and

. No competition will be held for the current gimbals or subsequent iterations as they will all be using the proprietary information in this TDP. Any competition for alternative systems is not anticipated until after the current requirement is satisfied and is contingent upon Congressional approval to make the capability part of a program of record.

8. Market Research: Technical experts within NVESD have performed extensive market research, including participation at symposia, technology conferences and industry trade shows to discuss emerging Counter-IED technologies. NVESD’s review indicates that there is no source capable of providing AOCD gimbal sensor systems that are compatible with the

From 3 March 2015 to 28 March 2015 a sources sought notice was posted on Federal Business

Opportunities (FedBizOpps) website requesting sources interested in providing gimbal sensor systems capable of being made compatible with the respond with a capabilities statement. Respondents were instructed to provide answers to 15 technical questions to illustrate capabilities of current gimbal systems and potential ways to adjust for compatibility.

No vendors responded.

Over the past year the original OEM, L-3, has brought its next generation gimbal sensor system, the 2111X, for demonstration as an alternative to obsolete part . The OEM no longer sells the , however the 2111X has the same software and new internal hardware not in obsolescence. An exploratory study under task order demonstrated that the 2111X was largely compatible with the current system requiring only a few minor changes to the control system. Based on this the Government concluded that L-3 has a capable, backwards compatible gimbal which can be used in the AOCD system. A telephone call on 11 March 2015 confirmed L-3 is interested in providing the 2111X for the

Government.

Based on this market research, the Government has determined that L-3, the current provider of

Army AOCD gimbal sensor systems, is the only known source capable of providing additional gimbals to support the continuation of AOCD services in theater in the required timeframe without substantial duplication of cost that will not be recouped with competition.

9. Interested Sources: This action will be synopsized on the FedBizOpps Page in accordance with FAR 5.201. A sources Sought notice was posted to FedBizOpps and did not receive a response. To date, no other sources have written to express an interest

10. Other Facts:

a. Procurement History: This contract for the procurement of two (2) AOCD gimbal sensor systems will be awarded as a sole source, Cost Plus Fixed Fee (CPFF) contract. NVESD is currently preparing the requirements package for this award.

All gimbal sensor systems procured to date have previously been purchased from L-3 through subcontracts. The initial gimbal system was fielded through development via the initial

QRC program. Subsequent purchases were made on a sole source basis by the prime.

b. Acquisition Data Availability: The Government possesses a Performance Work

Statement and Technical Manuals for the AOCD System. Key components of the system, to include the , the schematics, interface design, fabrication drawings and design, assembly drawings, manufacturing procedures, l design and manufacturing process, are all within the category of restricted and limited rights

The current gimbal system was utilized in its entirety with only minor modifications and remaining operation integrated around the gimbals to enable high altitude C-IED support.

c. Subcontracting Competition: FAR 52.244-5, Competition in Subcontracting, will be included in the proposed contract. As a large business, the resulting contract to L-3

Communications Sonoma EO shall also include FAR 52.219-9 and 252.219-7003.