JAredacted.pdf

Control No. JA2011-12

Approved for public release

CLASS JUSTIFICATION AND APPROVAL (J&A)

FOR OTHER THAN FULL AND OPEN COMPETITION

CONCEPTS AND OPERATIONS FOR SPACE AND MISSILE DEFENSE

INTEGRATION AND CAPABILITIES (COSMIC)

1. Contracting Activity: U.S. Army Space and Missile Defense Command/Army Forces Strategic Command (USASMDC/ARSTRAT) Contracting and Acquisition Management Office (CAMO), Directorate C, Peterson AFB, CO 80914.

2. Description of Action: Approval is being requested for modification actions to extend two COSMIC contracts for one year. As a contingency in the event more than one year is required, two six month options will also be added. The COSMIC contracts were initially procured as a best value source selection under full and open competition with a small business reservation.

Two contracts were awarded: W91260-06-D-0005, awarded to BAE Systems Technology Solutions & Services, Inc. (large business), and W91260-06-D-0006 awarded to Quantum Research International (QRI) (small business). Both Indefinite Delivery Indefinite Quantity (IDIQ) contracts are Cost Plus Fixed Fee (CPFF), that have the same scope of work, with a period of performance expiring on 30 September 2011. There are no options on these contracts.

Each contract has its own separate ceiling of $561M and $449M respectively. No increase in the contract ceilings are being requested to continue the existing requirements. No funding will be provided in the stated modifications. Task orders awarded under these contracts are individually funded with the funding type appropriate for the stated requirement. Funding is provided from multiple sources such as the Future Warfare Center, Northern Command, Air Force Space Command and other sources listed below in paragraph 3.

This action is being executed for efficiency purposes, as a “class J&A.” This J&A only covers contracts that are currently being executed and does not cover contracts that are to be awarded in successive fiscal years.

3. Description of Supplies and Services: The requirements for this extension are unchanged from the basic IDIQ contracts. Approval of this J&A will result in the execution of modifications to each of these contracts to change the period of performance end date from 30 September 2011 to 30 September 2012. One six month option from 1 October 2012 to 31 March 2013, and a second six month option from 1 April 2013 to 30 September 2013 will be added.

The estimated dollar value of these modifications are zero. The ceiling amounts are not being increased. These actions are only to extend the period of performance.

The COSMIC contracts are Research and Development (R&D) services IDIQ contracts. The primary purpose of COSMIC is to simultaneously support the entire range of Future Warfare Center (FWC) responsibilities from Future Concept Development to Command, Control, Communications, and Computer, Intelligence, Surveillance, and Reconnaissance (C4ISR) system integration. The services require system integrator expertise in the disciplines of Combat Development, Force Development, System Engineering and Doctrine, Organization, Training, Materiel, Leadership and Education, Personnel, and Facilities (DOTMLPF). FWC as the USASMDC/ARSTRAT primary Concept, Development and Experimentation (CDE) agency requires services for development of strategic direction (vision); wargame planning and execution; concept development and refinement; experiment planning and execution; new technology search, rapid prototyping, system production, demonstration, and deployment; and all aspects of operational support which includes complete design, build and integration of joint C4ISR nodes such as the Space Support Element Toolset, Future Operational Capabilities Tactical Operations Center and the Joint Functional Component Command Operations Centers.

The FWC mission involves capabilities definition and development, to include identifying, assessing, and documenting space, near space and missile defense based on DOTMLPF solutions that collectively produce the force capabilities and attributes prescribed in approved Joint and Army concepts.

System integrator services for this program occur in multiple geographical locations throughout CONUS and in theater locations OCONUS. The principal agencies supported include, but are not limited to: USASMDC/ARSTRAT; USASMDC FWC; U.S. Strategic Command; U.S. Northern Command; U.S. Central Command; U.S. Special Operations Command; North Atlantic Treaty Organization; U.S. Joint Forces Command; U.S. Air Force Space Command; U.S. Army Training and Doctrine Command (TRADOC); and all U.S. Army TRADOC Battle Labs; Program Executive Office, Force XXI Battle Command, Brigade-and- Below; Program Executive Officer Intelligence, Electronic Warfare and Sensors; Program Executive Office Missiles and Space; Air Force Research Lab; Army Research Laboratory;

Missile Defense Agency and Homeland Defense Agencies. Relevant efforts by other Department of Defense (DoD) agencies are also supported by these contracts.

COSMIC contractors perform system integrator services to execute the above program description. Services include, but are not limited to, appropriate component, cross-service, interagency and future force expertise; recognition of sources who may provide space, near space and missile defense capabilities; knowledge of Science and Technology community initiatives and Commercial-Off-The-Shelf technology exploration and identification; technical/system integration and development of operational prototypes; wargaming and concept development/prototype experimentation planning, technical support, execution, evaluation and analysis; generating capabilities documents; designing/building Joint Functional Component Command Operations Centers; configuration management and software development and helpdesk capability; capacity to initiate limited rate initial production of large-scale technologies;

and field/training support to demonstrations and operational contingencies in multiple geographic areas.

4. Authority Cited: 10 U.S.C. 2304(c)(1) as implemented by Federal Acquisition Regulation 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Reason for Authority Cited:

Contracts W91260-06-D-0005 (BAE), XXXXXXXXXXXXXXXXXXXXX and W91260-06- D-0006 (QRI), XXXXXXXXXXXXXXXXXXXX were awarded in September 2006. The current period of performance ends 30 September 2011. Acquisition planning for the COSMIC follow-on competition called ASTEROID (Army SMD Technology, Experimentation, Research, Operations, Integration and Development) was initiated in January 2010 and it was fully anticipated a new contract would be awarded no later than August 2011 for a contract start date of 1 October 2011. However, unexpected delays associated with staffing shortages within the contracting office, the merger of SMDC contracting with AMCOM contracting, policy changes affecting the peer review process, and pending changes to the acquisition strategy in response to recent DoD and Department of Army policies regarding services contracting have severely impacted the original milestones. The anticipated award date was revised to April 2012.

The most recent complication has been the five month analysis regarding whether the ASTEROID requirement should be combined with the Design, Development, Demonstration, and Integration (D3I) requirement being acquired by the SMDC contracting office in Huntsville.

This has virtually brought the acquisition process for ASTEROID to a stand-still. Direction was provided by the Principal Assistant Responsible for Contracting (PARC) to cancel the pre-brief to the Director, Army Office of Small Business Programs (OSBP) which was originally scheduled for January 2011 and postpone issuance of the draft Request for Proposal (DRFP) scheduled for release on 15 March 2011. Regardless of whether the two acquisitions are combined or remain separate, the delays have caused the acquisition to lose a considerable amount of time which cannot be recovered. The only feasible solution is to add time to the milestones, which in turn means the current COSMIC contract must be extended.

The current ASTEROID acquisition is valued at $950M, with the Decision Authority designated as the Deputy Assistant Secretary of the Army (Procurement) (DASA(P)). If ASTEROID and D3I are combined the new dollar value will be $XXX. Acquisitions greater than $1B must be formally reviewed by the Under Secretary of Defense (Acquisition, Technology and Logistics) (USD(AT&L)). This would add another layer of review and approval in addition to the DASA(P) review and approval. Past experience has shown the DASA(P) reviews to take at least 5 months or more. With the added USD(AT&L) reviews, an even longer review period can be assumed. These delays and anticipated delays have resulted in a revised estimated award date of April 2013 at a minimum.

In July 2011, solicitations that have not yet been released will be required to follow the new DoD Source Selection guidance. This will require revising some of the documentation that has already been drafted but not approved. The policy changes have forced a longer acquisition process than could originally be anticipated.

It is critical to have a contract vehicle in place to accommodate new and follow-on task order requirements until a new award can be made and implemented. COSMIC averages about 40 task orders valued at approximately $XXX per year, between the two contractors. Both USASMDC/ARSTRAT customers and customers outside the organization continue to rely on the FWC’s Battle Lab for expertise to support their research and development efforts. It is crucial to the warfighter the current level of support remains uninterrupted.

Pursuant to FAR 6.302-1(a)(2)(iii)(B), the additional services contemplated by this contract action can only be obtained from the existing COSMIC prime contractors without creating unacceptable delays in fulfilling USASMDC/ARSTRAT requirements. Taking no action (thereby creating a gap in service) will severely limit and negatively impact USASMDC/

ARSTRAT’s ability to provide timely and cost effective R&D services. There are no other known existing contracts that these requirements can be transitioned to. Without an extension to the COSMIC period of performance, a minimum of 40 stand-alone requirements at a total approximate value of $XXXXXXXXX would have to be satisfied through new, separate acquisitions, as would new requirements that were identified prior to the award of the ASTEROID competitive contracts. The time required to create new arrangements would have a severe and negative effect on the missions of USASMDC/ARSTRAT and its partner organizations. The creation of such a high number of new, stand-alone contract actions is not possible given USASMDC/ ARSTRAT’s current manpower allocation.

6. Efforts to Obtain Competition: No efforts have been made to obtain competition for this bridge effort. Future task orders under COSMIC will continue to be competed between the two existing contractors, BAE and QRI. Strategies to ensure competition are focused on the follow-on competitive action.

7. Actions to Increase Competition: Requirements satisfied during this “bridge” period are limited and being held to minimum requirements and durations, and will be competed among the two current contract holders. There are no known barriers to competition. For the follow-on competitive effort, the plan is to increase the number of awards from two to at least four contracts or more.

8. Market Research: Initial market research was conducted for the ASTEROID follow-on competition in July 2010 and was ongoing through January 2011. The results demonstrated no small business would be able to meet the 50% performance requirement if a set-aside was used.

This was confirmed during one-on-one discussions held with small businesses. The conclusion was ASTEROID, like the previous contracts, would be conducted as full and open competition with a small business reservation. No other market research was performed specifically for this proposed period of performance extension. The incumbents will perform during the extension to avoid a lapse and disruption of service and is based on the immediate need for continuation of services. The Government will receive the same services and each task order will continue to be evaluated for level of effort and fair and reasonable pricing. COSMIC did not utilized FAR Part 12.

9. Interested Sources: As required by FAR 6.305, this Justification and Approval will be synopsized within 14 days of approval and made available for public inspection and comment to inform interested parties of the determination to extend the current contracts. Any responses or inquiries will be addressed and any offers that demonstrate clear and convincing evidence this extension is not the most advantageous to the Government will be considered. As evidenced by numerous phone calls, interested sources have already surmised the COSMIC contracts will need to be extended because of the considerable delay in the ASTEROID acquisition. To date, no sources have written to express an interest in the COSMIC contracts.

10. Other Factors:

a. Procurement History: The predecessor contracts to COSMIC began with the Space Technology Exploitation and Planning Support contracts awarded competitively in August 1997 and the Space Technology Applications and Requirements Support (STARS) contracts awarded competitively in September 2001.

In 2005, the requirement changed to include the system integration function, as well as all other requirements previously accomplished under STARS to include definition, planning, development and execution of space exploitation initiatives to support the Space and Missile Defense Battle Lab, the Army Space Community and the Army in support of the transformation force. Based on the changes in the projected requirements for the Space and Missile Defense Battle Lab, it was determined the STARS contracts would not be recompeted. A new effort, Concepts and Operations for Space and Missile Defense Integration Capabilities (COSMIC) was competed and awarded in September 2006. Two contracts were awarded under this MAIDIQ, Cost-Plus-Fixed-Fee acquisition.

(1) The following represent the procurement history of the STARS and COSMIC contract vehicles:

Contract No. Contractor Award Date DASG62-01-D-0002 ARINC Sept 2001 $147.5M

Contract Ceiling

DASG62-01-D-0003 MEVATEC (novated to BAE Systems) Sept 2001 $145.4M

W91260-06-D-0005 BAE Systems Sept 2006 $561M W91260-06-D-0006 Quantum Research International Sept 2006 $449M

(2) Each of the above MAIDIQ arrangements were competitive acquisitions. Both STARS and COSMIC were based on full-and-open competition with a small business reservation. For STARS, ARINC received the large business award and MEVATEC received the small business award. MEVATEC was later purchased by BAE Systems, a large business. For COSMIC, BAE Systems received the large business award and QRI received the small business award.

b. The COSMIC SOW did contain some Contract Advisory & Assistance Services (CAAS). As defined by the contract, CAAS services are considered to be incidental if they are less than 15% of the total effort and not a significant component of the contract. An analysis was recently conducted of CAAS requirements accomplished under the COSMIC contracts. Approximately 7.2% of CAAS measured on awarded ceiling has been awarded to date. The analysis included both active and expired tasks, as of 7 Mar 2011. Few task orders have been awarded that were strictly CAAS. Normally, CAAS is imbedded within the whole requirement and is a minor portion of the work. This was taken into consideration when the task orders were reviewed.

They were categorized based on the largest portion of the total costs for the task order, not just the labor costs. The amount of CAAS on a task order was estimated based on the overall requirement. The 7.2% is based on those estimates. This overall percentage meets the definition of incidental established at the start of the contracts. Therefore, the minor amount of CAAS on COSMIC would not preclude an extension beyond the five year limitation. FAR 16.505( c)(2) states the 5-year limitation does not apply when – (ii) The contract is for an acquisition of supplies or services that includes the acquisition of advisory and assistance services and the contracting officer, or other official designated by the head of the agency, determines that the advisory and assistance services are incidental and not a significant component of the contract.

c. A J&A for other than full and open competition was approved by the USASMDC/ARSTRAT XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX, on 2 June 2009. The original contract ceiling for BAE Systems Technology of $482,311,130 was increased by $78,500,000 due to a much higher than anticipated demand for task orders. This resulted from a combination of increased interest by both USASMDC/ARSTRAT and external customers due to the contract’s flexibility in quickly implementing contract actions that would support the Global War on Terrorism (GWOT), its convenience to offer integrated in-theater support to the warfighter and its ability to expedite GWOT efforts with high visibility at the Joint, Secretary of Defense, and State Department levels. Because of these unanticipated requirements, usage had far exceeded expectations and exhausted the ceiling for BAE. XXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX.

The loss of the BAE contract would have significantly impacted cost, schedule, and performance on a number of programs that were critical to the Army. No other J&A’s have been accomplished for COSMIC until now.

d. Acquisition Data Availability: N/A

e. Subcontracting Competition: N/A

11. Technical/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.

Signature: //Signed// Date:

Holly B. Story 24 May 2011

COSMIC Program Manager

12. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost for these contract actions will be fair and reasonable. All task orders issued under these contracts will be priced using existing contract rates that were evaluated and determined fair and reasonable during the original competition. This action will not affect or change the task order pricing rates incorporated into each of the two existing contracts included in this J&A.

Therefore, in accordance with FAR 15.403-1(b)(1), certified cost and pricing data shall not be required as the rates and prices that will be utilized to award subsequent task orders are based on adequate price competition.

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

Signature: //Signed// Date:

Teresa T. Lee 24 May 2011

Contracting Officer

APPROVAL

Based on the foregoing justification, I hereby approve an extension to contracts W91260-06-D- 0005 with BAE Systems Technology and W91260-06-D-0006 with Quantum Research International, for the continued procurement of concept development, wargaming, prototyping and experimentation on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1) as implemented by FAR 6.302-1, subject to the availability of funds, and provided that the services and property have otherwise been authorized for acquisition.

Date: 1 June 2011 Signature:

Teresa T. Lee //Signed//

Contracting Officer