10-D-0011RedactedJ A.pdf

Control Number W911W6-10-D-OOll

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. CONTRACTING ACTIVITY:

Army Contracting Command, ATTN: Contracting Division (CCAM-RDT), Bldg. 401 Lee Blvd., Ft. Eustis, V A 23604-5577

2. DESCRIPTION OF ACTION:

The nature of the contractual action will be to establish a new firm fixed price, commercial items, indefinite delivery, indefinite quantity (IDIQ) contract with a maximum ordering amount of

$5,340,000 and an ordering period of five (5) years. The contract will purchase Satellite

Communication (SATCOM) Radio Frequency (RF) Amplifiers for integration into Army fixed and rotary wing aviation platforms. These components are required to provide capability as described further in this document to units that are deploying in support of overseas contingency operations. The delivery orders will cite funds appropriate for each action. O&M funds are anticipated for funding of delivery orders.

3. DESCRIPTION OF SUPPLIES/SERVICES:

a. The contract will be awarded to procure RF Amplifiers, PIN's: TC-100D, TC-lOOL, and TC 150M. The Amplifiers will be incorporated into the Satellite Communications (SATCOM) system kit, a non-standard kit used to provide SATCOM capability to Army units supporting overseas contingency operations.

b. The maximum estimated value is $5,340,000. These components are required in order to support the installation of SA TCOM retrofit kits into Army fixed and rotary wing air vehicles.

The maximum estimated value of $5,340,000 and five (5) year ordering period were arrived at by way of the followi~sumptions: 1) !9uipping 2 full Battalion~r year ($. x • TC-1 OOD units)(5 years) = $_; 2) providing. C2 systems pe~ar[$. x. TC-I00D units)(5 years) == $,,; I) providing spare quantities of.% ($. x I TC-l OOD units 2£.years) =

$,,; and lastly 4) providing miscellaneous TC-I00L and TC-150M units ($. x I TC 100LlTC-150M units)(5 years) $•. The total ceiling for the proposed IDIQ will be at $5,340,000. Delivery or~uest has been received for a minimum quantity of • each PIN: TC-lOOD at $_per unit for a total estimated minimum value of

c. This is an IDIQ contract. The ordering period will be for five (5) years.

4. AUTHORITY CITED:

This sole source commercial acquisition is undertaken under the authority of the test program for commercial items (Section 4202 of the Clinger-Cohen Act of 1996) as implemented by

Federal Acquisition Regulation (FAR) 13.501(a)(1).

SOURCE SELECTION INFORMA nON

SEE FAR PAR 3.104

FOR OFFICIAL USE ONLY

Control Number W911W6-10-D-OOll

5. REASONS FOR AUTHORITY CITED:

a. The proposed contractor is Tana-Com, Inc. (Elbit Systems of America), 1721 West Paul Dirac Dr., Tallahassee, FL 32310; Cage Code: OHGX8. Talla-Com, Inc. is the legal business name, and the name with which we will have the IDIQ contract. Elbit Systems is the corporate name. Talla-Com, Inc is the manufacturer and their SA TCOM RF amplifiers offer the only acceptable components toward meeting Army aviation unit communications requirements on particular type Army rotorcraft for the intended application and area of operations. The proposed acquisition requires the use of cited authority because this directorate has been tasked to support current operations in forward deployed areas. The Aviation Applied Technology Directorate (AATD), the requiring activity, uses the components procured by this proposed contract action to produce SA TCOM / C2 communication retrofit kits. The kits are used to provide SATCOM capability for Army aircraft supporting overseas contingency operations.

The components and quantities identified above for acquisition under this contract vehicle are to fill an urgent requirement to support mUltiple Combat Aviation Brigade (CAB) units. These units are either currently in the process of deploying to overseas contingency operations theaters or will receive notification for deployment in the months ahead and will require use of this equipment as soon as possible for training and mission support.

b. Use of the SATCOM (Satellite Communications) radio, as complemented by the subject RF communication amplifiers, in ongoing overseas contingency operations, has been identified as an operational necessity by previous and currently deployed units and validated by Headquarters, Department of the Army (HQDA). This supplemental communications capability provides commanders the ability to communicate with units both within line of sight as well as past the line of sight. Due to the distances and terrain involved in operations in these theaters, SA TCOM is the only solution to ensure communications between base stations and operating vehicles 'on-the-move'. This capability is a matter of operational needs and soldier safety by providing increased reliability of communications and command and control of operational units.

c. AA TD received the tasking in early calendar year 2002 to design an aviation SA TCOM kit to meet this operational requirement. After design, development, and qualification efforts, AA TD obtained an airworthiness release (A WR) for the developed SA TCOM kit. The complete, currently approved installation consists of a single or dual AN/PRC-117F transceiver compatible with the cited RF power amplifiers, specially designed Government manufactured wiring harnesses specific to the approved amplifier, power supply, and SATCOM/C2 shelfunit (CH-47D) and floor console/pallet (UH-60A/L) also manufactured at a Government installation.

d. AATD has produced and installed in excess of450 SA TCOM / C2 kits since 2002.

Procurements of past kits have been principally addressed through use of an IDIQ contract.

Estimation of requirements has been difficult due to the nature of contingency operations and the number of aircraft requiring SATCOM kits (the proportion of aircraft so equipped has been increasing based upon deploying units' urgent need statements (UNS)). Units generate requirements based upon notification of deployment through unit submitted UNSs. The current IDIQ contract cost ceiling has been exhausted although approximately two (2) years remains in the current ordering period. The number, ordering period and production rate to be acquired under this new IDIQ is calculated to allow equipage of designated aircraft already in theater, to

SOURCE SELECTION INFORMATION

3 Control Number W911W6-10-D-OOll equip a reasonable number of unit fleet aircraft prior to deployment instead of in theatre, and to provide an additional quantity for sustainment. The quantity solicited, in terms of contract ceiling cost, also allows for a potential variation due to near term operational tempo ('surge') and loss oflbattle damage to aircraft. The requested contract cost ceiling of $5,340,000 together with the desired five (5) year ordering period are calculated to allow for only a presumed density ofSATCOM/C2 kit provisioning. However, even this level of commitment will not provide for entire fleet upgrades should the Army require such activity over time. As stated earlier, AA TD is tasked by the individual units and the gaining commands in support of overseas contingency operations to meet the communications capability addressed with the SATCOM/C2 kit on a perpetual case by case basis. AATD could not conduct acquisition planning for a hardware solution that has not up until now been recognized as the "standard" solution.

e. Use ofan alternative RF amplifier assembly would likely require 500 to 2000 Government engineering hours that would be consumed in the preliminary and final, engineering design, fabrication, flight test and airworthiness approval, plus an additional potential several hundred hours to redesign and fabricate wiring harnesses, amplifier mounts and other components.

These represent costs already sunk on the existing unit. In addition, the economic loss of one aircraft due to delay in acquiring the capability in the near term will dwarf the total amount of this acquisition, not to mention the risk of life and mission. These costs and risks are not recoverable in the near term covered by acquisition.

f. Although currently fully tested and airworthiness approved, changing significant components ofthe SATCOM/C2 kit collectively potentially causes a domino effect of successive redesign of other kit components. This perhaps necessitates individual and collective re qualification/airworthiness approval of all kit components and the assembly as a whole. All individual components of the kit and the entire kit are subject to separate preliminary airworthiness evaluation, flight-testing, and final airworthiness evaluation approval. Further, if alternate (non-Talla-Com Inc.) components were identified to perform the same function, they most likely would not be compatible with the 450+ systems that have already been fielded which would in turn cause a logistical issue considering some of the components are theater provided equipment expected to be compatible with new aircraft and old aircraft alike as they arrive in theater. EMllEMC testing has also ensured interchangeability, mutual compatibility, and non-interference of the elements of the total assembly with other systems. This EMIlEMC testing would have to be repeated for any alternative or altered design with no recoup of sunk costs. It is estimated acquisition of different design/source RF communication amplifier equipment on a competitive basis would consume several months of effort before production could be commenced on an airworthiness-approved air vehicle assembly and configuration.

g. The aircraft program managers (PMs) are presently considering integration of a SATCOM capability. Thus far, the aircraft PMs have not made a final decision regarding such a capability.

This non-standard SATCOM kit is therefore the only kit that provides the capability required pending action by the PMs.

h. The SATCOM hardware has been previously tested and deployed with Government Contingency Operations (CONOPS) and is compatible particularly with the required airborne platforms and their existing mounting hardware designs requiring no further modifications. In

4 Control Number W911W6-10-D-OOll addition, the Talla-Com, Inc. components have an added benefit in that the Talla-Com, Inc. RF communications amplifiers have been previously integrated on specifically required Army rotorcraft. Effort required to substantiate airworthiness of any other 'like' component(s) may preclude meeting the stated objectives and timelines. Further, in an effort to maintain commonality among the more than 450+ field kits, the Talla-Com, Inc. communication equipment provides the most efficient approach. Therefore, Talla-Com, Inc. is the manufacturer and their SATCOM and multi band RF amplifier communications equipment offers the only acceptable components toward meeting Army aviation unit communications requirements on particular type Army rotorcraft for the intended area of operations and within the timelines required.

i. There is no staffed performance specification for this requirement or design parameters applicable to installations other than that which has already been developed and approved for specific Army rotary aircraft. Changing the design of any portion of the SATCOM kits potentially causes a domino effect of successive redesign of other kit components. This necessitates individual and collective re-qualification/airworthiness approval of all kit components and the assembly as a whole. All individual components of the kit and the entire kit are subject to separate preliminary airworthiness evaluation, flight-testing, and final airworthiness evaluation approval. EMI/EMC testing has also ensured interchangeability, mutual compatibility, and non-interference of the elements of the total assembly with other systems. This EMIIEMC testing would have to be repeated for any alternative or altered design.

After thorough market research, this manufacturer (Talla-Com, Inc.) was again identified as the sole supplier of the specific electronic components required per this acquisition. As the TC 100D and TC-l OOL amplifiers 1) have already been integrated with over 450 fielded non standard SATCOM pallet / Command and Control (C2) console systems (while the TC-150M offers potential enhancements should this be deemed necessary), 2) meet the performance and ruggedized environment requirements, and 3) alleviate ALL technical risk toward meeting further fielded system integration success and schedule. The Talla-Com, Inc. products cited above are the recommended solution to provide the required communication power amplification interface for the continuing SATCOM / C2 requirements. The integration of any similar, but not completely qualified RF amplifier would adversely impact technical risk, commonality of logistics and schedule, and as such potentially harm the Government. As mentioned, the Talla-Com, Inc. amplifiers have the added benefit in that no other such devices have been previously integrated on specific Army rotary wing aircraft for this application and the associated design documentation and qualification testing required to substantiate performance and airworthiness of any other such component may preclude meeting the project schedule.

6. EFFORTS TO OBTAIN COMPETITION:

This Directorate synopsized this non-competitive effort in the Government wide Point of Entry (GPE) and subsequently posted it in the Federal Business Opportunities (FedBizOps) website pursuant to FAR 5.201. The combined synopsis/solicitation was posted in FedBizOps on 8 June 2010. Acquisition of similar SAT COM equipment was synopsized in December 2009 and in April 2010, though it was not for the same items identified for this procurement. No competition was anticipated because of the cost and risk of integration and qualification of alternate

Control Number W911 W6-10-D-OOll components to those manufactured by Talla-Com, Inc. That coupled with the fact that Talla Com, Inc does not rely on 3rd party distributors to sell their products would reasonably indicate that they remain the only source of the required components. However, in response to the synopsis/solici there was another response other than Talla-Com, Inc. On June 11,2010, a cornp.mv called responded bye-mail. I submitted the information to •

Test and Instrumentation Branch at AA TD, for technical review. Upon review, has decided that does not offer the specific product that we need to fulfill the requirement needed by AA TD under the proposed ID I Qcontract. AA TD' s requirement is for very specific RF amplifiers that will enable AA TD to continue to provide already qualified and approved capabilities to deploying forces. does appear to provide SATCOM capable amplifiers, but none that meet our specific need. The second response was from Talla-Com, Inc. Talla-Com, Inc. responded to the announcement by submitting their pricing table, a copy of their Standard Terms and Conditions of Sale, and their subcontracting plan.

7. ACTIONS TO INCREASE COMPETITION:

Due to the unique qualifications of the proposed contractor, Talla-Com, Inc, and due to the fact that the mechanical and electrical interfaces of the proposed equipment and related installation have been qualified and in operation for years, as well as compatibility and commonality with previously issued elements of the current SATCOM ~ other efforts to increase competition for this acquisition are anticipated. Per ___, Chief Test and Instrumentation Branch of the Rapid Prototyping Division, there are other sources ofRF amplifiers, but switching to any other options would require additional airworthiness testing, additional design work for modifications to the existing kits, and subsequently would create logistics problems in the field as we attempted to support multiple fielded configurations. If there were a change to other vendor's products, it would require a redesign of the mounting structure, and potentially the SATCOM antenna components, then this redesign would have to be approved in terms of airworthiness. Further, the system with alternate amplifier would require testing for EMIIEMC interaction with existing aircraft systems; each process involving time and money. If all of the preceding exercises were successful and the alternate amplifier was adopted, then the tactical units using the systems would then have to work with multiple configurations in the field that would limit their flexibility in terms of being able to move aircraft between units (the amplifier is an 'aircraft-fixed' A-kit item) and in terms of providing spare parts ~ sustainment. The estimate to redesign and to substantiate a new effort would be a $__ effort that would take about 4 to 6 months. However, that does not capture the intangible costs to the tactical units that would be perpetuated because of the multiple configurations and the potential restrictions to their operational capability caused therein. It would truly be a hindrance to our warfighters. Other vendors and their products have been and will continue to be considered by the PM offices for other or follow-on efforts. Further, the US Army has not acquired proprietary rights to the design data, manufacturing processes, and/or test data required to competitively procure these very RF amplifier products. For this reason, it is cost effective for the Government to procure these commercially available RF amplifier units directly from Talla Com, Inc. No Source Approval Requests have been submitted for this acquisition.

(j Control Number W911W6-10-D-OOll

8. MARKET RESEARCH:

FAR Part 12 will be utilized for this acquisition. The proposed acquisition was published in CASL in June 2010. Exhaustive Market Research, as defined in FAR 2.101 and described in Part 10, was conducted when the capability was identified. This research was performed primarily by Project Engineers, AA TD, and who were assisted by the technical expertise of Chief, Test and Instrumentation Branch, AA TD. They did thorough research to evaluate the commercial off-the-shelf SATCOM kit components that could be integrated into a communication insertion capability. Most recently market research was conducted from June 2009 thru January 2010 and again from March thru May 2010 to ensure that the commercial marketplace has the required components available.

This market research consisted of conversations with knowledgeable Government personnel and various industry personnel having expertise and prior knowledge of similar efforts undertaken in the recent past that are pertinent to the scope of work envisioned for this contract, as well as internet searches for compatible RF Amplifiers. Talla-Com, Inc, the original equipment manufacturer of the required commercially available RF amplifier, is the only continued source for this acquisition. AA TD engineers remain vigilant regarding emerging technologies and who are very familiar with on-going initiatives to modernize the Army fleet.

9. INTERESTED SOURCES:

A combined synopsis/solicitation was posted onto FedBizOps on 8 June 2010 in support of this acquisition in accordance with FAR 5.201. A sole source acquisition to Talla-Com, Inc. is anticipated. Please see ~dditional information concerning a response to the synopsis/solicitation by _. Any other sources expressing interest in writing will receive due consideration as required by law.

10. OTHER FACTORS:

a. Procurement History: Under separate small purchase orders from September 2003 through October 2004, and subsequently through a sole source IDIQ contract, AATD purchased the same RF amplifier units as required under this base authorization from Talla-Com, Inc. (sole manufacturer and distributor of these components) to provide SATCOM capability in support of aircraft deployed in support of overseas contingency operations. The IDIQ contract identified below was awarded on an other than full and open competition basis in order to permit the continued purchase of the required components.

Contractor: Talla-Com, Inc IDIQ Contract#: W911 W6-04-D-0007 Award Date: April 28, 2004 Dollar Value: $2,500,000 Qty:Indefinite DeliverylIndefinite Quantity PoP: 3 yrs

SOURCE SELECTION INFORMA nON

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Contract Mod Date: June 6, 2006 (modification P00002 to increase ceiling by $2.5 million to $5.0 Million and extend the POP an additional 2 years to 5 years total) Dollar Value Increase: $2.5 million Qty:Indefinite DeliverylIndefinite Quantity PoP extension: 2 years

Contract Mod Date: June 1, 2009 (modification P00005 to increase ceiling by $2.5 million to $7.5 Million and extend the POP an additional 3 years to 8 years total) Dollar Value Increase: $2.5 million Qty:Indefinite DeliverylIndefinite Quantity PoP extension: 3 years

The authority cited for the previous base IDIQ contract is under Section 4202 of the Clinger Cohen Act of 1996, Test Program for Commercial Items. In 2006 and 2009 this IDIQ contract was modified, with supporting J&As, to increase the award ceiling and period of performance to continue supporting deploying units. At that time, no responses to the synopsis/solicitation, other than Talla-Com, were received. There have been no recent contract awards to Talla-Com other than via IDIQ Delivery Orders.

b. Acquisition data availability. The Government does not possess nor can it obtain a technical data package in sufficient detail to foster a competitive acquisition for the amplifier. The subject Talla-Com RF communication amplifiers are commercial off-the-shelf elements for which technical data was not purchased or priced.

c. There have been no delays in initiating this acquisition.

d. Follow-On Contracts: None.

e. Subcontracting Clause: No subcontracting is anticipated. The proposed contractor is a large business. As required by FAR 19.708(b), this acquisition will require submission of a small business subcontracting plan in accordance with FAR 52.219-9, if subcontracting is deemed necessary. All applicable subcontracting clauses will be included in the contract, including FAR 52.244-5, Competition in Subcontracting.

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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 ofmy knowledge and belief.

NAME: DATE

TITLE: Chief, Test and Instrumentation Branch SIGNATURE

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 ofmy knowledge and belief.

NAME: DATE

TITLE: Chief, Test and Instrumentation Branch SIGNATURE

13. FAIR AND REASONABLE COST DETERMINATION: I hereby determine that the anticipated cost for this contract action will be fair and reasonable. This determination will be based on use of techniques, which include price analysis, cost analysis, and technical evaluation.

A certificate of cost and pricing data is not required for this commercial hardware lAW 15.403-1 (b)(3)

14. CONTRACTING OFFICER CERTIFICATION: I certify that this Justification is accurate and complete to the best ofmy knowledge and belief.

NAME: DATE

TITLE: Contracting Officer SIGNATURE

15. CONCURRENCES:

NAME: DATE

TITLE: Counsel/Legal SIGNATURE

NAME: DATE

TITLE: Chief, Contracting Division SIGNATURE

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APPROVAL

Based on the foregoing justification, I hereby approve proposed establishment of new firm fixed price, commercial items, Indefinite Delivery / Indefinite Quantity (IDIQ) contract with a ceiling value of $5,340,000 and ordering period of five (5) years for the purchase ofRadio Frequency (RF) Amplifiers, Part Number TC-l OOD, TC-IOOL, and TC-150M for continued integration into a large portion of the Army's rotary wing platforms in support of overseas contingency operations, on an other than full and open competition basis, pursuant to the authority of Section 4202 of the Clinger-Cohen Act of 1996 as implemented by Federal Acquisition Regulation (FAR) 13.501 (a) (1), subject to the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. Contractor: Talla- Com, Inc.' . Value: $5,340,000. The 1 st anticipated d~order shall be for a minimum quantity of PIN: TC-IOOD amplifiers at $_ per unit for a total estimated minimum value of

DATE:_ SIGNATURE: