Redacted_JA_0142_15.pdf

FOR OFFICIAL USE ONLY Control No. 2015-01

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

WIDEBAND SATELLITE COMMUNICATIONS

(SATCOM) OPERATIONS & TECHNICAL SUPPORT

(WSOTS)

1. CONTRACTING ACTIVITY:

Department of the Army, Army Contracting Command – Redstone Arsenal (ACC-RSA-CCAM- CAC), Peterson Air Force Base, CO 80914-4912

2. DESCRIPTION OF ACTION:

Request approval to modify contract W91260-12-C-0001 to add additional ceiling totaling for contract option years three and four. Contract W91260-12-C-0001 was initially procured as a competitive acquisition and was awarded as a Cost-Plus-Fixed-Fee (CPFF) type contract with a one year base period and six one year options. The current total contract value is estimated at . The contract is currently in option year three with an estimated ceiling totaling for sustainment work and for system adaptation work). Option year four has an estimated ceiling totaling for sustainment work and for system adaptation work). The proposed ceiling increase will be utilized in option years three and four to support new system adaptation work requirements.

There are a total of eight new requirements which will be negotiated separately under the proposed ceiling increase. Two of the eight requirements will be funded by United States Army Space & Missile Defense Command/Army Forces Strategic Command (USASMDC/ARSTRAT) with Army Operations and Maintenance Appropriations (OMA) funds. The remaining six requirements will be funded by partnering non-USASMDC/ARSTRAT customers with either OMA, Research, Development, Test & Evaluation (RDT&E) or Other Procurement Appropriations (OPA) funds. Contractor fee arrangements will be similar to those currently accepted on contract and range between , depending on nature of the work and weighted guidelines analysis.

3. DESCRIPTION OF SUPPLIES/SERVICES:

The purpose of the Wideband Satellite Communications (SATCOM) Operations & Technical Support (WSOTS) contract is to provide USASMDC/ARSTRAT with site support and non-personal services for the Wideband SATCOM Operational Management System (WSOMS). The WSOMS supports planning, management, and control for Wideband Global SATCOM (WGS) and Defense Satellite Communications System (DSCS) satellite system operations. WSOMS is a complex configuration of systems that is constantly being adapted in multiple stages at multiple interconnected sites simultaneously. The original hybrid contract award included two types of work, with the first type of work for specific ongoing sustainment support for WSOMS and the second type of work is for individually negotiated contract modifications called “system adaptation” work. System adaptation work is needed to support ongoing operations, enabling efficient, incremental operations and logistical supportability improvement of Government-owned WSOTS systems. The proposed ceiling increase will enable purchases of additional labor, travel and materials needed in support of new WSOMS system adaptation requirements in contract option years three and four. The efforts identified in the following table will be performed within the established contract performance periods.

DESCRIPTION

Option 3 Period of Performance 01Feb2015 - 31Jan2016

Option 4 Period of Performance 01Feb2016 - 31Jan2017

TOTALS

DSCS Operations Control System Training System

Labor

Travel

Materials

Ka-STARS Post Production Software Support

Labor

Space Control Operational Support (Materials Only)

Defense Network Operations Centre (DNOC) Upgrade

LOC Transition

Transmission Controllers (Labor Only)

WSOMS Workstation Upgrade

Labor

Landstuhl Operations Center (LOC) Upgrades

Labor Totals

Travel Totals Material Totals

Labor Hours (CMEs)

Totals

4. AUTHORITY CITED:

10 U.S.C. 2304(d)(1)(B), as implemented by FAR 6.302-1(a)(2)(iii), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. REASON FOR AUTHORITY CITED:

Exelis, Inc., 12978 Worldgate Drive, Herndon, Virginia 20170-6008, Cage Code: 9M715 is the incumbent prime contractor for WSOTS contract W91260-12-C-0001. Exelis Inc. (formally ITT Systems) has performed successfully for the past years under three separately competed USASMDC/ARSTRAT contracts. Exelis’ uniqueness derives from their one-of-a-kind experience developing and integrating WSOMS subsystems, their experience as operator/maintainer/trainer of all equipment, and their position as computer network administrator controlling the network and all network equipment. Other contractors can often provide subsystems via other contracts, however only Exelis has provided both the hardware and sustainment support needed to create and integrate all the hardware modifications contemplated by this requirement, an unprecedented combination of diverse equipment upgrades being made in unique systems being operated worldwide 24/7/365, even while the upgrades are taking place.

As the manufacturer and integrator of the existing WSOMS equipment, the Replacement Satellite Configuration Control Element (RSCCE) subsystem, for example, Exelis has had over years of cradle to grave experience developing, building, installing, testing, and maintaining WSOMS equipment which has been successfully operated for as long as a decade. They fully understand WSOMS system-wide technical and operational needs both for new equipment, itself, and the rest of the equipment it’s connected to, directly or indirectly. They also understand how to do incremental installations both within individual operations centers and between operations centers simultaneously able to control the same satellites. Their unique insights into both what WSOMS needs from new subsystems, compatibility-wise, as well as everything needed to integrate new equipment into the overall WSOMS system is essential to seamless upgrades needed via this contract action.

As the current contract sustainer for this equipment, Exelis, Inc. also has daily involvement in the configuration, operational status, and capabilities of this communication equipment and is the only contractor capable of independently accomplishing the pending system adaptation requirements within the established timelines. Exelis is the only contractor capable of supporting these elements of the USASMDC/ARSTRAT mission without significant duplication of efforts.

Equipment supported by this contract is in use 24/7/365, and requires updates/integration in midst of ongoing real-world operations. Changes, though necessary, endanger not only local operations but also the deployed operations depending on uninterrupted communications services this equipment provides. It is unacceptable to allow any independent/stand-alone efforts to take place (i.e. work without incumbent contractor involvement) without a complete understanding of system interdependencies and vulnerabilities, integration of new equipment can not only cause the subsystems being modified to fail, but also cause connected subsystems, resulting in mission failure for DoD-wide communications enabled by WSOMS and related equipment, including sensitive deployed operations. Exelis sustainment efforts have kept it abreast of not only recently upgraded equipment, but also the needs of the antiquated systems which are no longer in production and have limited technical specifications or vendor support available. Other contractors would not only have to become familiar with the requirements of their particular subsystems they would be supporting, they would also have to become experts in the rest of the extensive, worldwide subsystems, before they could start their portion of the work.

Outside contractors would also have to obtain Exelis assistance with actual installations due to networking and configuration requirements. As system administrator for the network and only contractor in the world with daily involvement in system-wide operations, Exelis has unique responsibilities for computer security, configuration control, and operations. If Exelis was not actually making all the changes to the network to accommodate new equipment, at the very least they would have to oversee 100% of outside contractor work on the WSOMS network to ensure all changes made were correctly coordinated, implemented, documented, and as necessary, adjusted for elsewhere in the network, beyond the immediate installation site/equipment.

Cost is not the only factor, but it is a major factor for not using a new contractor on these efforts wherein there is little time to gain sufficient savings to offset expected duplication of costs while new employees learn about these non-commercial systems. Government estimates new contractor employees would spend between months, depending on the complexity of various equipment being serviced, duplicating many of the efforts already paid for by the Government on predecessor contract modifications when equipment was first being developed and previously sustained. Collectively, a new contractor would have to spend months for all employees expected to be involved in the more complicated aspects of support at a cost of approximately to obtain the necessary proficiency. Exelis also already employs exactly the same kind of employees needed for this work at worldwide locations, providing both immediate access to like services and staffing flexibility making possible savings of another man-months due to cross-utilization possibility with existing personnel already in place for other system support, saving another compared to a separate contract.

6. EFFORTS TO OBTAIN COMPETITION:

Competition was pursued at the onset of the WSOTS contract under the original solicitation in 2011. Three highly competitive proposals were received from large business prime contractors.

Market research for the original WSOTS acquisition showed there was limited interest from large businesses and a limited number small businesses showed interest in participating as a subcontractors due to the complexity and scope of the overall requirement. All efforts to obtain competition will be focused on the follow-on acquisition and not for this ceiling increase.

In accordance with FAR 5.201(b)(1)(ii), a notice of the Government’s intent to award a sole source modification was posted as a special notice on 23 December 2014 to Army Single Face to Industry (ASFI)/Federal Business Opportunities (FedBizOpps). ACC-RSA-CCAM-CAC determined the special notice satisfied the requirement to request information from interested parties, which was approved in the Market Research/Commerciality Determination. There were no responses received from industry which confirms the Government’s belief there are no other contractors capable of providing the required services more competitively than the incumbent contractor. Based on the information provided in paragraph 5 above, competition for this requirement is not feasible.

7. ACTIONS TO INCREASE COMPETITION:

The government is encouraged by the on-going interest from industry shown by small business outreach inquiries and Freedom of Information Act (FOIA) requests for information on the WSOTS requirements during the original competition. A Request for Information/Sources Sought Notice will be published on FebBizOpps, and additional market research will be accomplished, prior to the competition for the follow-on contract. Competition is expected for the follow-on contract.

8. MARKET RESEARCH:

Market research was conducted in accordance with FAR 10.002. The services required to support the WSOTS requirements do not meet the definition of commercial items as defined in FAR 2.101; and are therefore determined to be non-commercial. The WSOTS tasks are military specific with support functions that are not available to the general public. Requirements are for support of legacy SATCOM management systems that are non-standard and have been developed uniquely for the Government. The unique nature of the WSOTS mission coupled with the military unique command, control and information assurance requirements require Government specific solutions to satisfy mission support requirements. As these services are considered non-commercial, FAR Part 12 will not be utilized.

Market research was conducted by technical experts within USASMDC/ARSTRAT and ACC- RSA-CCAM-CAC for this requirement between October 2014 and January 2015. This market research included personal knowledge in procuring services of the type related to the specific WSOTS requirements. Additionally, contact was made multiple times with knowledgeable experts within the Government, regarding the commercial nature of the requirement and services.

were contacted during the 2014-2015 period. As the technical experts, both advisors confirmed the non-commercial nature of the military unique specialized SATCOM support. Further, a search for similar SATCOM systems and services was conducted during this period in the public databases with no comparable results found.

9. INTERESTED SOURCES:

In accordance with FAR 5.201(b)(1)(ii), a notice of the Government’s intent to award a sole source modification was posted to Army Single Face to Industry (ASFI)/Federal Business Opportunities (FedBizOpps) on 23 December 2014, with a closing date of 08 January 2015. This notice was published under the Special Notice category on FedBizOpps and this notice meets the intent of a Request for Information (RFI) or Sources Sought (SS) notice as determined by ACC- RSA-CCAM-CAC on 20 February 2015. No other sources have expressed an interest in writing.

Any bid proposals received shall be considered.

10. OTHER FACTS/OTHER FACTORS:

a. Procurement History: Exelis Inc. (novation from ITT Systems) has supported the USASMDC/ARSTRAT SATCOM mission for the past years under three full and open competed contracts which were all CPFF hybrid type contracts including both sustainment and system adaptation work in support of USASMDC/ARSTRAT. The below table provides the contract history with Exelis Inc.:

b. Acquisition Data Availability: There are no restrictive rights or other obstructions that would preclude competition for the follow-on acquisition. A PWS will be made available for the follow-on acquisition.

c. Subcontracting Opportunities: Exelis Inc. is a large business and the current WSOTS contract W91260-12-C-0001 includes the appropriate subcontracting clauses, including FAR 52.244-5 Competition in Sub-Contracting and DFARS 252.219-7003 Small Business Subcontracting Plan (DOD Contracts).

Based on Exelis’ historical subcontracting efforts for labor and material purchases for similar work, the Government estimates will be subcontracted with small business.

11. TECHNICAL/REQUIREMENTS CERTIFICATION:

12. FAIR AND REASONABLE COST DETERMINATION:

13. CONTRACTING OFFICER CERTIFICATION:

APPROVAL

Based on the foregoing justification, I hereby approve a modification to the CPFF contract W91260-12-C-0001 with Exelis Inc., 12978 Worldgate Drive, Herndon, Virginia 20170-6008, Cage Code: 9M715 to increase the ceiling in option year three by and option year four by for a total increase of for additional labor , travel and materials needed in support of new WSOMS system adaptation requirements to be performed within the established contract performance periods. This approval is issued on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(d)(1)(B) as implemented by FAR 6.302-1(a)(2)(iii), subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

DATE:_____________________ SIGNATURE: ____________