A03-AT_Kearney_IDIQ_JA_Final_REDATED.pdf

Control Number: JA-18-BELV-564

FAR Part 6 Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: Army Contracting Command Aberdeen Proving Ground (ACC-APG), Belvoir is the procuring activity for this action.

2. Description of Action: Program Executive Office (PEO) Intelligence Electronic Warfare and Sensors (IEW&S) requests a new firm-fixed-price, single award, Indefinite Delivery Indefinite Quantity (IDIQ) contract with A.T. Kearney (ATK) Public Sector and Defense Services; located at 1300 Wilson BLVD, Suite 1050 Arlington, Virginia 22209.

The proposed award will consist of a one year ordering period with the pre-priced inclusion of FAR 52.217-8 Option to Extend Services not to exceed 6 months for a maximum contract ceiling amount of $10,161,195. The proposed task orders will be funded by FY 2018-2020 Other Procurement Army (OPA), and Operation and Maintenance (OMA) FY 2018. The anticipated award is September 2018.

3. Description of Supplies/Services: The required services are in support of the PEO IEW&S mission. PEO IEW&S provides affordable, world-class sensor and electronic warfare capabilities, enabling rapid situational understanding and decisive actions. This is achieved by delivering relevant and timely sensor information. This can be used for target acquisition, force protection, intelligence, reconnaissance, and surveillance, and overall situational awareness. Headquartered at APG, MD, PEO IEW&S has seven subordinate Program Managers (PMs); PM Aircraft Survivability Equipment, PM DoD Biometrics, PM Distributed Common Ground System- Army, PM Electronic Warfare & Cyber, PM Positioning, Navigation, and Timing, PM Sensors- Aerial Intelligence, and PM Terrestrial Sensors. These PMs work closely with their counterparts from the requirements, research and development, testing and operational communities to ensure systems are fielded in the quickest and most cost effective manner possible. This team of PMs and partnering organizations allows for programs to be developed with a system of systems architecture in mind which improves the configuration process for all systems fielded by PEO IEW&S.

This action is to develop analyses, studies, assessments, and initiatives that cover a wide range of areas related to improving effectiveness, efficiency, cost, capacity, capability and affordability in design, manufacturing, and support specifically tied to PEO IEW&S, the portfolio, and their specific industrial base. Requirements will often be generated because of a critical weakness in a program status that has been raised to the highest levels of Army, Department of Defense and/or Congressional Leadership. Tasks must begin immediately, and recommendations must normally be made within 90 days.

Recommendations must be suited for Senior Leader briefing and Product Manager implementation.

PEO IEW&S has two immediate requirements that will need to be completed simultaneously. The first requirement is to evaluate the pre-production and quality assurance activities of the Limited Interim Missile Warning System (LIMWS) leading up to the formal Production Readiness Review. The following tasks that must be completed are the following: conduct site assessments; identify critical assembly procedures;

identify metrics; identify or assess supplier risks; conduct on-site independent assessment of pre-production activities and documentation at the prime and/or sub-tier supplier facilities. This evaluation will result in a report to aid in the Milestone Decision Authority's Production Decision. In order to influence the Production Decision, this study must begin within the next 90 days.

The second requirement is to conduct an independent assessment of the operating model and governance for the Biometrics Enabling Capability (BEC) and the potential opportunities for cost savings and avoidance associated thereto. Product Manager (PdM) BEC requires an immediate set of analyses to assess the affordability of the BEC Increment 1 program to support Army decision making. The assessment will result in the development of potential system architecture courses of action (COAs) for the future BEC along with business case analyses, cost, benefit and risk analyses, cost models and cost saving initiatives. In order to inform Army Senior Leaders, this assessment must also begin within the next 90 days.

Additional tasks include but are not limited to: (1) Organization, program or product assessments and recommendations, (2) Market and industry assessments, (3) Production readiness assessments, (4) Cost assessment and recommendation, and (5) Sustainment and maintenance strategy development.

IDIQ Ordering Period: 30 September 2018 through 29 September 2019 with the pre-priced inclusion of FAR 52.217-8 Option to Extend Services not to exceed 6 months.

IDIQ Maximum Value: $10,161,195.

*The totals in this table were developed as part of the Independent Government Cost Estimate (IGCE).

W56HZV-15-A- to any (but not limited to) the following locations: Aberdeen Proving Ground, MD, Fort Meade, MD, Fort Belvoir, VA, Redstone Arsenal, AL, Yuma, AZ, Ft. Hood, TX, and Los Angeles Air Force Base, CA.

Lastly, Other Direct Costs (ODCs) include presentation materials.

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 services required by the agency are available only from one responsible source, or for DoD 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.

The proposed source is ATK Public Sector and Defense Services; located in Arlington, Virginia CAGE CODE 4WJB5. ATK's history within the Army on similar industrial base analysis, studies on Architecture and Usability for other Government agencies has proven that it can complete a detailed assessment that supports the PEO portfolio to assist with major programmatic execution decisions and needs throughout Army Leadership. More detail of these procurements can be found in the procurement history, paragraph 10 below.

The market place for IEW&S capabilities enabling rapid situational understanding and decisive action have changed dramatically as technology capabilities have gone

-peers China and Russia are advancing in the field at an alarming rate. The drive from Army leadership for a speedier, more agile, less costly and more likely to produce better outcomes acquisition process is necessary in order to keep up with our near peer adversaries. This has caused the need to develop analyses, studies, assessments, and initiatives that cover a wide range of areas related to improving effectiveness, efficiency, cost, capacity, capability and affordability in design, manufacturing, and support specifically tied to PEO IEW&S portfolio. Although ATK may not be the only source whom could perform portions of these requirements, they were the only company to provide the breadth of experience necessary to assume they likely could meet the full scope of requirements with low risk. ATK provides unique analysis tools, methodologies, databases, benchmarks, and processes that are critical to effectively supporting these tasks within the required timeframe. ATK employs an architecture framework model that has been successfully utilized to analyze other programs in the PEO IEW&S portfolio and will be used for this action as well. The model employs an architecture evaluation framework across key layers and critical quality attributes that provide effectiveness measurements, performance predictability, security, availability, maintainability, scalability, interoperability, and usability. This exclusive model has been proven in both Government and commercial sectors to provide architecture and system analyses and has resulted in significant cost savings as discussed below. ATK has adopted a zero cost base approach to engineering and cost which can significantly reduce costs, and improve efficiency and competitiveness. Additionally, ATK has developed a Digital practice which incorporates the lessons learned from their experience in strategic IT and digital transformation to provide tailored solutions and has been successful with

ATK has proven its ability to provide successful large-scale, transformational projects supporting various Federal agency programs. In FY16, ATK conducted a complex Industrial Base Study (IBS) for Distributed Common Ground System-Army (DCGS-A) within the PEO IEW&S portfolio. ATK will leverage the assessment structure from the DCGS-A effort to conduct PEO studies and assessments in an expeditious manner in order to meet U.S. Army senior leadership decision milestone dates. Additionally, ATK has demonstrated success for the U.S. Air Force F-22 architecture assessment by evaluating all levels of architecture in order to understand the current state, estimate future costs, and review current architecture components resulting in $65M of savings. For the U.S. Coast Guard Command, Control, and Communications Engineering Center (C3CEN) baseline analysis, ATK provided an independent review of the current-management experience and software development management tools used in this assessment will help the U.S. Army determine the best path forward for the PEO studies and assessments to drive architecture improvements at lower costs as discussed below.

portfolio, and unique architecture evaluation model make it uniquely qualified to support PEO IEW&S and the full scope of the requirements. ATK has the unique capabilities to successfully complete analyses, studies, assessments, and initiatives that cover a wide range of areas related to improving effectiveness, efficiency, cost, capacity, capability and affordability in design, manufacturing, and support. A market research analysis revealed several duplicative costs along with an unacceptable delay caused by competing the efforts.

(1) It would take another contractor up to 60 days to develop a general understanding of the inter-workings of the PEO, the PM and their relationship with their industrial partners, which would delay commencement of performance of these efforts by another contractor and add additional costs associated with that time. The duplication of cost is estimated to be $554,072 which is inclusive of about 1530 hours broken out into seven labor categories using historical rates for similar requirements. Failure to provide more immediate analytically-based recommendations will potentially impact the PM s and result in missed opportunities for cost savings and efficiencies when identified. In contrast, based on ATK's detailed understanding of PEO IEW&S, its portfolio industrial base, ATK can begin performance of requirements immediately upon award without a learning curve.

(2) Schedule is a constraint to competition. The accelerated pace of changes to tactics, techniques and procedures used by adversaries has heightened the need for rapid response and to identify mitigating corrective actions. These actions need to rapidly identify and field new capabilities quickly to avoid the failure of the operational mission or catastrophic events. The program usually cannot afford to wait for a competitive source selection to occur prior to efforts being initiated. As stated in paragraph 3 of this document, tasks must begin immediately, and recommendations must normally be provided within 90 days. Currently the PEO

IEW&S is executing 12 Joint Urgent Operational Need (JUONS) and 45 Operational Needs Statements (ONSs) in which the associated PM needs to quickly support. With the accelerated pace of change in the tactics, techniques, and procedures used by adversaries this environment has led to the need for a rapid response to new threats. The need for evaluating a true capability gap in an effective and systematic way will involve operations and research and analysis of alternatives. Addressing urgent needs statements that describe a mission need or capability gap rather than a specific solution is critical to mission success. ATK is adequately staffed with experts in the field of Intelligence Electronic Warfare and Sensors to help meet and assess the most effective solutions, with proven technology, and a driven schedule to meet critical Army capability gaps.

The verified minimum requirement is to evaluate the pre-production and quality assurance activities of the LIMWS effort leading up to the formal Production Readiness Review. In order to influence the Production Decision, this study must begin within the next 90 days. Also, the BEC effort requires an immediate set of analyses to assess the affordability of the BEC Increment 1 program to support Army decision making. The Government requires COAs on this effort to begin the Increment 2 posthaste. These are only two examples of PMs requiring a quick action support for a major milestone decision. Others are anticipated but are unknown at this time. A twelve (12) month PoP (with a 6 month pre-priced Option to Extend Services) for this single award IDIQ is requested to address current and short term requirements and to provide the most effective and flexible way to satisfy mission requirements to acquire these required services whi at the product/ program level going forward.

(b) Alternatives: Possible alternatives would be (1) use in-house personnel with appropriate expertise. ated

-sourcing was evaluated and determined not to be feasible. Although major weapons systems are unique to the DoD, evolving technologies are not. The Army needs to adapt to commercial practices including utilizing outside consultants to help see into the future, to have a peripheral view of the market, including leveraging commercial innovation, and to be able to see around corners to anticipate changes that will affect their business. Typical government programs can be slow to adopt and natural focus tends to be on short-term strategies. Instead, our PEO would like the programs to focus on external trends, and new technologies that are changing the industry landscape going forward. Additional oversight including sufficient organic Government expertise to

Contracting Officers Representative. Additionally, the Secretary of the Army and Chief of Staff, Army directed each command to nominate reductions equal to 10 percent for funding and manpower. This reduction may impact the use of in-house personnel to perform these services. (2) compete individual requirements once they become known. By breaking the requirements apart there may be the possibility of more competition at each specific requirement level. This approach is not preferred and may not support the mission due to the unpredictability of these assessments.

The PEO requires a vehicle to quickly execute independent studies and analysis which provide cost, capacity and capabilities insights into the complexity of the PEO portfolio and the help identify risks associated with different outcomes. Failure to provide more immediate analytically-based recommendations will potentially impact when identified.

(c) Competing individual requirements and performing source selection would be impractical due to the requirements often being generated because of a critical weakness in a program where action must begin immediately, and recommendations must be suited for Senior Leader briefings and Product Manager implementation. Use of a single-source IDIQ contract provides the Government with the most effective and flexible way to satisfy mission requirements to acquire analyses, studies, assessments, and initiatives that cover a wide range of areas related to improving effectiveness, efficiency, cost, capacity, capability and affordability in design, manufacturing, and support.

analysis and study requirements within their future contracts at the product or program level.

(d) Impact if not approved: Due to the potential need for immediate performance to commence to meet the Senior Army, DoD, and/or Congressional leadership directions, JUONS and ONS requirements and the potential for serious injury that would result if there is a delay in award, ATK would be the One Responsible Source for this procurement that precludes competition.

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: Based on the information contained in Paragraph 5 above, as well as market research, ATK is the only contractor able to immediately complete recommendations for programmatic execution decisions, detailed assessment, IBS, and initiatives that cover all aspects of the scope which is a wide range of areas related to improving effectiveness, efficiency, cost, capacity, capability and affordability in design, manufacturing, and support that supports the PEO portfolio without delays in schedule of critical and substantial duplication of cost. The Government include analysis and assessments in their future requirements and competition will be sought.

b. Subcontracting Competition: ATK has an approved Commercial Subcontracting Plan which expires 31 December 2018. In an effort to ensure subcontracting competition, the contract will include the following provisions: FAR 52.219-

-5 the maximum practical competition in subcontracting.

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 actions related to analyses and assessments of PEO IEW&S programs. Once this action is awarded, the PEO plans to start working are including the required analysis and assessments in their future acquisition requirements package. Should market changes arise, we will review the changes for the ability to compete future contract actions.

8. Market Research: In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 205.205-71, DFARS 206.302-1(d), and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a request for information was posted to FedBizOpps on 14 May 2018 for 30 days. Six responses to the RFI were received by ACC-APG Belvoir. A thorough review of the responses was conducted and each response was examined against the five specific tasks identified in the RFI.

A PEO technical expert reviewed the responses associated with the five task areas. The five task areas were further broke into 27 evaluated sub-tasks. Although most of the respondents have done some of the requirements only one, ATK, adequately addresses all requirements. A second response, Deloitte, only partially addressed all five task areas but only 16 of the total 27 sub-tasks, which would be considered high risk because of the partial responses. It is determined that Deloitte would not be a viable supplier for this RFI. The remaining four responses, Creatrix (partially addressed 2 of 5 tasks and addressed two of 27 sub-tasks), Supply Chain Visions (partially addressed 5 of 5 tasks and addressed 10 of 27 sub-tasks), Lone Star Aerospace (partially addressed 3 of 5 tasks and addressed four of 27 sub-tasks), Principle Info-Tech (partially addressed 2 of 5 tasks and addressed two of 27 sub-tasks), provided inadequate responses and should not be considered as viable suppliers.

Only ATK provided a comprehensive response that addressed all five task areas and addressed all 27 evaluated sub-tasks in detail and gave substantive examples of performance for both commercial and DoD customers including three current PEO IEW&S products. Its response also directly addressed involvement at a Congressional level. The breadth of experience presented and depth of responses to the five task tasks. Based upon the response provided, the PEO technical expert assessed that ATK could meet the requirements in the RFI with low risk.

unique architecture evaluation model make it uniquely qualified to support PEO IEW&S (as detailed in Paragraph 5). ATK has the unique capabilities to successfully complete this much needed IBS and assessments.

9. Interested Sources: See Paragraph 8 for the RFI specifics. The six interested sources include Deloitte Consulting LLP, Creatrix Inc., ATK, Supply Chain Visions, Inc., Lone Star Aerospace, Inc. and Principle Info-Tech. To date, only ATK provided an adequate written response for this acquisition.

10. Other Facts:

a. Procurement History: Basic Purchase Agreement W56HZV-15-A-0007, Call Order 0002, awarded 31 August 2016 to ATK acquired an independent analysis and evaluation of its Distributed Common Ground System Army (DCGS-A) Increment 1, Release 2 System of Systems (SoS) architecture and its User Interface (UI) and User Experience (UE) on behalf of PEO IEW&S. This was a sole source action awarded pursuant to FAR

Approval

Based on the foregoing justification, I hereby approve the procurement of services required to execute analyses, studies, assessments, and initiatives that cover a wide range of areas within PEO IEW&S related to improving effectiveness, efficiency, cost, capacity, capability and affordability in design, manufacturing, and support on an other than full and open competition basis pursuant U.S.C. § 2304(c)(1) and 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. The total estimated value of this action is $10,161,195. There will be no additional extensions for this effort.