J&A_2016-72_W9124Q-16-R-JMIT,_FH_28_July_2016_Redact1_Redacted.pdf

For Official Use Only

Control No: 2016- Contractor: SciTec Inc.

Services

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Supply/Service: This is a non-personal services contract to provide highly specialized analysis, electronic hardware design, software capabilities, and technical support in all aspects of the operation, maintenance, repair, and upgrades of the Joint Mobile Infrared Countermeasures Simulator Test Systems (JMITS) and Multi-Spectral Sea and Land Target Test Simulator’s (MSALTS) missile simulators for Center for Countermeasures (CCM), Operational Test and Evaluation (T&E) tenant organization located at White Sands Missile Range (WSMR), New Mexico.

Authority: 10 United States Code 2304(c)(1) as implemented in Federal Acquisition Regulation 6.302-1(a)(2)(iii), Only one responsible source and no other supplies or services will satisfy agency requirements.

Amount: $

Prepared by:

Name: DSN:

Title: Contract Specialist Date:

Email:

Procuring Contracting Officer:

Name: DSN:

Title: Contracting Officer Date:

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Technical/Requirements Representative:

Name: DSN:

Title: Electronics Engineer Date:

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

Program Manager Name: DSN:

Signature: Date:

Local Small Business Specialist Name: Phone:

Signature: Date:

WSMR Local Legal Counsel Name: Phone:

Signature: Date:

ASD-Division Chief Name: DSN:

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Chief Attorney, 418th CSB

Name: Date: 20160727

Department of Army FAR Part 6 Justification and Approval for Other than

Full and Open Competition

1. Contracting Activity: Mission and Installation Contracting Command (MICC)-Fort Hood, ATEC Support Division, 1001 761st Tank Battalion Ave, Room W103, Fort Hood, TX 76544-5025

2. Description of Action: The Center for Countermeasures (CCM) requests a Cost Plus Fixed-Fee, Indefinite Delivery, Indefinite Quantity (IDIQ) contract with SciTec Inc., 100 Wall Street, Princeton, NJ 08540. The Government projects award in December 2016 Fiscal Year (FY) 2017. This acquisition will be funded using Research Development Test & Evaluation (RDT&E) and Operational, and Maintenance (O&M) funds.

The required acquisition plan in accordance with DFARS 207.103(d)(i)(B) is currently waiting PARC approval.

3. Description of Supplies/Services: This procurement will sustain and improve the core capabilities that are interchangeable amongst the JMITS and MSALTS missile simulators. The improvements will validate high fidelity missile threat simulations, data collection, and reduction to provide Air Force Aircraft Survival Equipment (ASE) with accurate testing information for use in combat. The missile simulator improvements will provide critical and unique acquisition, evaluation, and training as a capability resource to the Department of Defense (DOD) on testing of Infrared Countermeasure (IRCM) systems. The MSS are utilized in Developmental Test and Evaluation (DT&E), and Operational Test and Evaluation (OT&E) events for the Army, Navy, Marines, and Air Force Aircraft Survival Equipment (ASE). Its mission is to provide test platforms to various defensive aid suites employing missile-launch detection systems deployed worldwide and their associated countermeasures.

The requirement shall provide technical support in all aspects of operation, maintenance, repair, and upgrades for both the JMITS, and MSALTS missile simulators to include:

Engineering analysis and technical support Data Reduction and Analysis Test Standards and Methodologies Development Signature Development Radiometer and Emitter Calibration Spiral Upgrades and System Improvements/Enhancements Hardware Maintenance and Repair Software Maintenance and Support Duplicate and Companion Systems Emergency Response Capability

Although the MSALTS was built after the JMITS, the core instrumentation and control functionality are the same as the JMITS technology.

Period of Performance: 29 December 2016 – 28 December 2021 Total Estimated Cost: $12,784,514.89

4. Authority Cited: The statutory authority permitting sole source procurement is 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: 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 DoD, 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 missile simulator sustainment and improvement.

a. Justification: SciTec Inc. developed the original JMITS with the core capabilities that include custom built electronics, hardware, and software necessary to generate missile plume signatures, UV, Red, and Blue emitters design, functionality, flex-play and dynamic slant range software and capabilities, radiometers to collect jam-beam signatures, data collection, and reduction and analysis software. The same core capabilities developed for JMITS was also implemented in the development of MSALTS. SciTec Inc. is the sole proprietor of the core capabilities platform used on both the JMITS and MSALTS systems.

1) Most of the equipment provided by Sparta/Parsons for the development of MSALTS are Commercial Off the Shelf (COTS) items and can be maintained, serviced, and upgraded by CCM personnel. Sparta/Parsons was the primary contractor on the MSALTS development. Parsons developed the vehicle on which the simulator is mounted. This vehicle is comprised of mostly COTS which CCM personnel can maintain, and therefore would not require Parson’s support. However, the critical core capabilities of MSALTS were sub-contracted to SciTec. The simulator portion of MSALTS which was developed by SciTec is a combination of unique high specialized hardware and software which is proprietary in nature and owned by SciTec. CCM personnel has neither the technical experience nor the facilities to provide complete maintenance and upgrades necessary for support of aircraft survivability equipment (ASE) testing. Many types of ASE variations are deployed by military services. With the constant improvement and development of new systems, CCM with SciTec’s support must update, modify and “develop” new capabilities timely, in order to keep up with emerging technologies and processes. SciTec would service, maintain and update the core technical capabilities as described above that are knowledge base, and proprietary to SciTec. Because the technical expertise and proprietary information resides with SciTec Inc., any other contractor that was awarded this contract would have to sub-contract work to SciTec. This would create administrative and other additional costs that would pass through a “middle man” and create inefficient workflow, and communication between CCM and the contractor performing the actual work.

2) SciTec, is uniquely qualified to perform the requirements of this procurement.

As demonstrated through its successful performance on the current JMITS contract, annotated in the Contracting Officer Representative (COR) monthly reports and Contractor Performance Assessment Reporting System (CPARS) evaluations, SciTec Inc. already has on hand the specialized expertise necessary for specialized technical support in the operation and maintenance of the Missile Simulator Systems. Similar skills are readily available in the commercial workforce; however, the time required to analyze and gain the expertise on the missile simulators would cause a lapse in service to the Government, and an increase in cost to the Government, which would have a negative impact on the military programs that these systems were designed to support.

Another contractor would not be able to assemble knowledge based and a trained workforce on short notice to assume the performance of this support seamlessly. If openly bidding this requirement were a viable option at this time, a new contractor would have to purchase proprietary data from SciTec, Inc., and outsource the expertise needed to decipher, and gain the knowledge necessary to operate the JMITS and MSALT. The costs associated with competing this action are beyond any expectation of savings that could be achieved through that competition.

3) Proprietary data: The Government does not own the intellectual property or detailed written documentation associated with most of the major custom-built hardware/software systems (core capabilities) of the JMITS and MSALTS. Because of the proprietary information and the high level of complexity of the hardware and software incorporated in the JMITS and MSALTS, a new contractor would also have to construct specialized laboratory and calibration facilities, and hire specialized technical talent, all of which would again require time and funding at the expense of the Government. Purchasing the complete proprietary design package and engineering levels directly from SciTec, Inc. is an option over and above committing to a reverse engineering effort and require an exorbitant amount of unavailable funding, as evidenced in the original MSALTS development contract, which cost the government $33.9 million dollars to complete the development and delivery of three MSALTS vehicles. This amount does not include the purchase of SciTec’s proprietary information which includes the data links and SciLink interface technologies which SciTec also uses in support of other business ventures. Money has already been invested for SciTec to build equipment and facilities to provide support to these missile simulators. All of this would duplicate money already spent and this substantial duplication of cost to the Government is not expected to be recovered through competition. Even if all of the above-mentioned resources are expended towards a new contractor, it is not guaranteed that the new contractor would be able to reach the level of knowledge and expertise that SciTec Inc. has already obtained. These are the only simulators that are used by DOD and other Government agencies to detect various missile-launch systems deployed worldwide and their associated countermeasures.

b. Alternatives: Currently there are no other alternative sources within the Government available to meet the needs of this requirement and there are no other systems within the Government that can be modified to meet the needs of this requirement. Additionally, market research conducted has not identified any commercial equivalent services that can be modified to meet the needs of this requirement.

1) The Missile Simulator Systems provide a critical and unique testing capability to the Department of Defense (DOD) that allows for the testing and evaluation of infrared countermeasure protection systems that are currently used and are being developed to protect U.S. aircraft from infrared guided missile threats. DOD foresees these systems as an ongoing mission and evolving in the next ten years. Eliminating these systems would remove this testing capability from the DOD, which would mean that deployed U.S. aircraft would have untested infrared countermeasure protection systems, resulting in unacceptable vulnerabilities.

2) As stated earlier, to award to another contractor would require additional resources in terms of personnel, time, and funding that have already been invested by the Government in the original development of JMITS and MSALTS. Although, there are other contractors available to produce new missile simulator systems with similar capabilities, a prospective contractor that does not possess the specific JMITS or MSALTS knowledge would take approximately two or more years to learn the methodology, software algorithms, electrical, and optical specifications of the system.

This is based on the complexity of the missile simulators, and the fact that these systems as constructed are unique, and there is not a large pool of experienced personnel, that are able to step in and assume support of the missile simulators, as demonstrated in the market research. This would result in a high risk of unacceptable delays in fulfilling the DOD test support needs because of the long-lead time to gain the technical expertise to perform depot level repairs and calibrations on these missile simulators. Using the costs associated with the original JMITS and MSALTS development contracts, it cost the government $53 million dollars to develop and build five missile simulators. Therefore it would be impractical, time consuming, and too costly to contract another company to build duplicate missile simulator systems rather than improve the current ones that the CCM is using.

3) The CCM is an Office of the Secretary of Defense (OSD), OT&E tenant organization located at WSMR, New Mexico. Their continued mission directed by DOD as a joint activity is to direct, coordinate, support, and conduct independent Countermeasure/Counter-Countermeasure (CM/CCM) test and evaluation activities for DOD weapon systems. The JMITS and MSALTS are utilized in support of ongoing scheduled DOD, Developmental Test and Evaluation (DT&E), and OT&E events. The JMITS and MSALTS is owned and operated by the CCM and are designed to provide a critical and unique testing capability and resource to the DOD for the testing of Infrared Countermeasure (IRCM) systems. The DOD has scheduled events for the next ten years that involves using these missile simulators systems.

4) The Government did not negotiate a components traceability clause as part of the original JMITS or MSALTS development contract. This is because, the Government does not have technical personnel with the capability to modify, improve, or build improvements to these systems. The contractor would have to purchase an executable code at an estimated cost of approximately $250K to allow the contractor software access just to operate the instrumentation on the JMITS and MSALTS. Further, the Government does not own the necessary data rights nor has the ability to either purchase or sub-contract the manufacturing of various custom-made electronic-hardware parts proprietary to SciTec Inc. In addition, any replacement, repairs, or maintenance of these systems would require calibration testing in which SciTec has ownership of the specialized diagnostic testing to checkout and verify the operational specifications of these systems.

Because of the complexity of these systems, and the specialized and custom-built nature of their electronics, hardware and software, SciTec is the only vendor who has the resources or extensive knowledge on hand to provide the necessary technical support to maintain the high level of reliability and availability of these systems to meet the continuous unstable testing needs of DOD. SciTec Inc. owns and retains all technical specifications, drawings, design, production processes, and software programing associated with the core capabilities of the JMITS and MSALTS missile simulator systems, therefore taking into consideration the proprietary nature of the core capabilities of the missile simulators, SciTec Inc. is the only contractor that can continue performance of these requirements.

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.

SciTec Inc. is a small business therefore a subcontracting plan is not required in accordance with FAR 19.702.

7. Actions to Increase Competition: JMITS and MSALTS where procured competitively under the Office of the Secretary of Defense (OSD) for Developmental Test & Evaluation, Test Resource Management Center’s (TRC) Central Test and Evaluation Investment Program (CTEIP). Through CTEIP, DoD manages its strategic plans for all of DoD’s Test and Evaluation (T&E) resources. Continuous Science and Technology development efforts are ongoing through this program to update and replace T&E resources. In the next ten years development and procurement of test resources like these missile simulator systems will be conducted by OSD to meet DOD testing needs. As with JMITS and MSALTS, these efforts are likely to be procured using full and open competition.

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 Sources Sought Synopsis (SSS) was posted to Federal Business Opportunities on 22 January 2016 for 23 calendar days and the results were four (4) responses to include the incumbent.

The SSS included a copy of the draft Performance Work Statement (PWS), the notice of intent to sole source, total small business set aside, the notice of contract type, CPFF, and the applicable NAICS code. An amended SSS was posted on 11 February 2016 with a closing date of 17 February 2016, that changed the North American Industry Classification System (NAICS) from 541712- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) to 541330- Engineering Services Except Military Aerospace Equipment and Military Weapons. This was based on further discussions with the customer and redefining the current requirement. The SSS requested specific information that would help the organizations technical experts gain knowledge of each vendors experience in working with missile simulators and the JMITS and MSALTS type in particular.

The aforementioned SSS posted to FedBizOpps resulted in capability statements from four (4) vendors (Santa Fe Research LLC, Level Ops Inc., EWA Government Systems, and SciTec Inc.) who expressed interest in this requirement. The customer included a questionnaire with the sources sought to define further specific qualifications within this requirement. The requiring activity (technical experts) reviewed each of the capability statements and responses to the questionnaire.

These technical experts from the requiring activity advised the Government that Santa Fe Research LLC, and Level Ops Inc. have no demonstrated experience in missile simulators, missile signature generations, aircraft survivability equipment (ASE) testing, and the technical expertise required to provide adequate service and support of JMITS and MSALTS. EWA Government Systems provided similar or like systems but did not show required expertise needed such as signature generation and radiometrics in Infrared type emitter band for the JMITS and MSALTS technology. Instead, EWA provided information regarding ultra violet type emitter bands. SciTec Inc. is the only contractor that possesses the experience in missile simulators, missile signature generations and aircraft survivability equipment (ASE) testing, and has provided the necessary expertise in performing the service and support of the JMITS and MSALTS, outlined in the Performance Work Statement.

Because of the complexity of these systems, and the specialized and proprietary nature of their electronics, hardware and software, the incumbent is the only vendor who has the resources or extensive knowledge on hand to provide the necessary technical support to maintain the high level of reliability and availability of these systems to meet the continuous unstable testing needs of DOD. The incumbent owns and retains all technical specifications, drawings, design, production processes, and software programing associated with the core capabilities of the JMITS and MSALTS missile simulator systems, therefore taking into consideration the proprietary nature of the core capabilities of the missile simulators, the incumbent is the only contractor that can continue performance of these requirements.

Based on customer feedback, acquisition history and market research a determination was made to continue to award this requirement as a sole source award to the incumbent who is a small business under NAICS 541330. A search of the Small Business Administration (SBA) Dynamic Small Business Search (DSBS) under NAICS Code 541330 was also conducted. The search identified over fifty thousand small business concerns under the applicable NAICS. Although the search revealed numerous vendors under this NAICS, due to the proprietary nature of the requirement only SciTec can provide the missile simulator support needed.

9. Interested Sources: To date, no other sources have written to express interest in the acquisition.

10. Other Facts: Procurement History: The current contract for JMITS, W9124Q-12-D- 0002 is a Requirements contract utilizing CPFF task orders with an award date of 29 December 2011 with an estimated dollar value of $23,070,816.20. This was a sole source requirement awarded to SciTec, Inc., 100 Wall Street, Princeton, NJ 08540, with a period of performance of 29 December 2011 through 28 December 2016.

This requirement will include the MSALTS sustainment services that entail specialized analysis, electronic hardware design, software capabilities, and technical support in all aspects of the operation, maintenance, repair, and upgrades. It is more cost effective for the Government to include the MSALTS in this requirement as MSALTS and JMITS both use the same electronic hardware and software technology that was developed and maintained by Sci Tec, Inc.

The current contract for MSALTS, W900KK-09-D-0345 is an Indefinite Delivery Indefinite Quantity utilizing CPFF task orders with an award date of 7 December 2010 with an estimated dollar value of $33,946,125. This was a full and open competition awarded to Sparta/Parsons Government Services Inc., 25531 Commercentre Drive, Suite 120, Lake Forest, CA 92630, with a period of performance of 7 December 2010 – 6 December 2015.

The current contractor has provided more than satisfactory technical support in all required aspects of the JMITS and MSALTS missile simulator operations, maintenance, repair, and upgrade tasks as outlined and defined in the current support contract. The monthly reports and vouchers are submitted in a timely manner and all services provided met the customer’s needs.

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.

Date:

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.

Date:

7/19/2016

7/19/2016

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The techniques identified at FAR 15.404-1(c) will be used to ensure award will be at a fair and reasonable cost. The Contracting Officer will use a comparison of industry cost for similar work. The Independent Government Cost Estimate (IGCE) will primarily be an analysis of the contractor’s proposed cost. Certified Cost and Pricing Data will be obtained.

This determination will be made using the following: cost analysis x price Analysis should cost IGCE x audit: other:

As a part of this basis, certified cost or pricing data will be required.

Date:

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

Date:

Approval:

Based on the foregoing justification, I hereby approve the procurement of the Missile Simulator sustainment Support (JMITS and MSALTS) on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1) subject to availability of funds, and provided that the services or

Date:

Dean Carsello Advocate for Competition

28 JUL 2016