Justification_and_Approval_for_Other_than_Full_and_Open_.pdf

Control Number: 15-103

JUSTIFICATION REVIEW DOCUMENT

FOR OTHER THAN FULL AND OPEN COMPETITION

Program/Equipment: DATRON Family of , Ancillary Equipment, Spare Parts, Installation Kits and Field Service Representative support for the country of .

Authority: 10 U.S.C. 2304(c) (1) as implemented in FAR 6.302-1 (a)(2)(ii) & (iii), Only One

Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Amount: $6,500,000

Prepared By:

DSN:

Electronics Engineer

Procuring Contracting Officer:

Contracting Officer

Technical Representative:

Requirements Representative:

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

Director, Security Assistance Management:

Typed Name:

Date: 18 Sep 2015

Legal Counsel:

Typed Name: DSN:

Signature: Date: 18 Sep 2015

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: U.S. Army Contracting Command

Aberdeen Proving Ground

ATTN: CCAP-SCD

Aberdeen Proving Ground, MD 21005

2. Description of Action: The proposed action is for a firm-fixed price “P” contract with

Datron World Communications, Inc, in support of Pseudo-Foreign Military Sales (FMS) requirements. This J&A will enable the Government to procure needed communication equipment, accessories, and related services for the country . Planned award date is 30 September 2015 with a period of performance not to exceed twelve (12) months.

3. Description of Supplies: This acquisition is for Datron and services with a contract value of $6,500,000. The Datron to be acquired consists of the following:

Qty Item Price

87 PRC1099 HF manpack radios

25 PRC 1077 VHF Mobile Radios

21 RT7000 Base Station Radios

6 PRC 1077 12V VHF Radios

107 PRC 1077 Vehicle Radios

1 Spares

108 Batteries and Battery Chargers

122 Tactical Headsets

90 Antenna and Antenna Kits

1 FSR Support

Total Value $6,500,000

*FSR Support is required in an effort to sustain the entire current and future Datron inventory in theatre. This support was required beginning in January 2014 to help assist in the transition of U.S. forces .

Security Forces Funds will be used to procure this effort. The is authorized to be used to train, equip and provide related assistance to including the provision of equipment, supplies, services, facility repair, renovation and construction. Requirements for cases are received from the

Combined Security Transition Command - Pseudo Letters of Offer and Acceptance (LOAs) are not signed by the partner nation that will ultimately receive the articles and/or services, but serve to document the transfer of articles to the USG Requesting

Authority. Congress authorizes and appropriates funds to the Department of State (DoS) and other USG agencies for security cooperation and security assistance activities.

4. Authority Cited: 10 U.S.C. § 2304(c) (1) as implemented in FAR 6.302-1 (a)(2)(ii) & (iii),, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency

Requirements.

5. Reason for Authority Cited: The proposed source for this action is Datron World

Communications, Inc., 3030 Enterprise Ct., Vista, CA 92081-8347. Datron is the original equipment manufacturer of the aforementioned . Datron designed these commercially available ancillary items, spare parts, and installation kits, and is the only source that produces these items.

The Datron equipment provides Command, Control, and Secure that are essential to support the requirement for equipment that is interoperable with the country’s existing equipment, including prior procurements of Datron The Datron family of is equipped with which is proprietary to Datron. Unlike some encryption systems that are separate from the systems they are interfaced to, this encryption is embedded within applicable Datron it cannot be extracted and used as a separate capability. This fact, as well as its proprietary nature, makes the Datron inaccessible to other manufacturers. Other manufacturers cannot incorporate

Datron's encryption standard into their systems.

Only Datron possesses the technical data needed to manufacture the products and provide the required FSR support with the unique cryptographic and

Datron, alone, owns the proprietary rights to Datron-unique required to ensure compatibility with existing inventories of customer Datron informed the Government on April 20, 2015 that it was not interested in selling their proprietary Technical Data Package (proprietary

) to the Government. To date, Datron has not licensed their proprietary Datron to any contractor. For this reason, Datron is the only source who can meet recurring requirements to procure systems compatible with customer inventories of Datron The Government of has not requested data rights to Datron If it were possible to obtain such data rights from Datron, a resultant concern to the US Government would be whether a

FMS customer should be allowed to obtain such sensitive proprietary information. Also, the

Government of will not provide funding for non-recurring efforts such as for reverse engineering purposes. It is estimated that the use of any other source would result in delivery delays of at least five years. This delay is based on the time to re-engineer and retrofit the customer’s current fleet of Datron equipment, spare and ancillary parts, and provide training on new equipment for users. Significant tactical and strategic mission failures will occur during this time frame as the struggles to maintain operational command and control without the benefit of Re-procuring the entire fleet of Datron radios, spare and repair parts is not cost effective. No cost savings would be achieved through competition.

The items for this acquisition are required immediately, but the contractor will need 270 days to deliver the Reverse engineering, redesign, and initiating production of equivalent is estimated to require at least five years. This is an unacceptable delay.

The rapid downsizing of coalition forces to support defense against insurgents requires the procurement of these systems. Without the immediate execution of this procurement, will be without communications capabilities when needed to command and control current and near-term future operations. The need for

FSR support and equipment presents an immediate need, but the contractor needs approximately 270 days to produce for delivery.

Since 2002, numerous Datron systems have been purchased for

Historically, the 270 day timeframe is in line with other actions of this size with this vendor. It is essential that the equipment that is acquired provide critical secure communication capabilities employed with the and more importantly be interoperable with the country’s existing equipment. The equipment must also be compatible with existing logistical maintenance and training infrastructure.

Procurement of these ancillary items, spare parts, and installation kits is consistent with the FAR 12.101(b) policy to acquire commercial items when they are available to meet the needs of an agency because Datron markets their products both to governments and commercial enterprises using a published catalog of products. Because these are commercial products, the US Government does not possess detailed specifications or drawings that would permit another manufacturer to produce these items.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section of this document. This effort did not yield any additional potential sources or subcontractors that can meet the Government's requirements. There is no competition anticipated for this acquisition. There is no subcontractor competition anticipated for this acquisition.

Subcontracting Competition: In accordance with FAR 19.702(b)(1) subcontracting plans are not required from small business concerns. However, the Government encourages competition through subcontracting to other small and small disadvantaged businesses.

7. Actions to Increase Competition: The Government does not own the Technical Data

Package (TDP) required for competition and does not plan to pursue procurement of the

TDP as this contract is in support of Pseudo-FMS because of the proprietary technology capabilities that have not been licensed to any other U.S. or international company for the manufacture of Datron . The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future actions to be competed.

8. Market Research: Technical personnel within the CECOM-LCMC Logistics and

Readiness Center (LRC) performed market research by posting a Sources Sought

Announcement (SSA) on the Federal Business Opportunities (FedBizOpps) Page, from June

19 to June 26, 2015. The SSA indicated that the purpose of the Market Research was to identify sources that could manufacture and supply tactical military and public safety equipment, manufacture and deliver Datron (or Datron form/fit/function compatible)

, installation kits, spares and training. It further stated that the contractor must be able to provide service support of the equipment.

The Government received only one response to the announcements which was from Datron.

Datron responded that it could provide the required equipment and services as described in the SSA. Based upon this market research, and the responses received from Datron, the

Government's technical experts determined that only Datron can meet the Government's requirements.

9. Interested Sources: In accordance with FAR 5.201, the synopsis for the proposed action shall be published 15 days before issuance of solicitation of sole-source action. Any responses that are received will be evaluated.

10. Other Facts:

a. Procurement History of Datron contracts for FMS: The Base ID/IQ contract

W15P7T-09-D-D212 pseudo FMS ceiling was awarded to Datron as a sole-source based on 10 U.S.C 2304c FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements. Subsequent increases in ceiling on the ID/IQ were also sole-source based on 10 U.S.C 2304 (c) FAR 6.302-1 Only one responsible source and no other supplies or services will satisfy agency requirements. The J&A to support the previous acquisition of Datron called for future market research to attempt to increase competition, which was done in preparation of the present J&A. Results of the market research described in paragraph 8 indicate circumstances surrounding the previous acquisition have not changed; no other sources were identified that are capable of meeting this requirement.

Contract # Mod # Award Date Modification Reason for Mod

DAAB07-02-D-M012 Base 30 Apr 2002 First Indefinite Delivery/Indefinite Quantity

(ID/IQ) contract to Datron for FMS. W15P7T-09-D-D212 Base 2009 Mar 27

W15P7T-09-D-D212 P00001 2009 Sep 01 Expanded scope

FROM: $300,000,000.00

BY: $51,950,279.00

TO: $351,950,279.00

The Government and the contractor agreed to modify the contract to expand the scope of the contract to cover the urgent and other non-FMS

Government requirements. From:

$300,000,000.00 BY: $51,950,279.00 TO:

$351,950,279.00

W15P7T-09-D-D212 P00003 2010 Feb 19 Pseudo-FMS Ceiling increased

FROM: $51,950,279.00

BY: $76,000,000.00

TO: $127,959,279.00

This modification was issued to increase the ordering ceiling for Pseudo-FMS requirements for the issuance of delivery orders for urgently

, ancillary items, and installation kits as follows:: FROM: $51,950,279.00 BY:

$76,000,000.00 TO $127,950.279.00

W15P7T-09-D-D212 P00005 2010 Aug 31 Expanded Scope/increased ordering ceiling

FROM: $427,950,279.00

BY: $78,500,000.00

TO: $506,450,279.00

The purpose of this modification P00005 to

Contract W15P7T-09-D-D212 was to expand the scope of the contract to cover additional Non-

FMS Government requirements by increasing the ordering ceiling as follows: FROM:

$427,950,279.00 BY: $78,500,000.00 TO:

$506,450,279.00

W15P7T-09-D-D212 P00007 2011 Apr 06 Expanded Scope/Increased Ordering

Ceiling

FROM: $506,450,279.00

BY: $85,500,000.00

The purpose of this modification P00007 to

Contract W15P7T-09-D-D212 was to expand the scope of the contract to cover additional Non-

FMS Government requirements by increasing the

TO: $591,950,279.00

ordering ceiling as follows: FROM:

$506,450,279.00 BY: $85,500,000.00 TO:

$591,950,279.00

W15P7T-09-D-D212 P00008 2011 Aug 31 Expanded Scope

Incorporate Services Incorporate

Service Rates

Increased Ordering Ceiling

FROM: $591,950,279.00

BY: $85,500,000.00

TO: $677,450,279.00

Incorporate into this Foreign Military Sales contract the clauses for the purposes of Theatre

Business Clearance for training OCONUS.

Incorporate the Line Items into contract to provide for Services. Incorporate into Section J of the contract Attachment 0004 and Attachment

0005 as revised Statement of Work with Services and QASP. Incorporate into contract the rates as contained in the contractor's proposals and service descriptions. To expand the scope of the contract to cover additional Non-FMS

Government requirements by increasing the ordering ceiling as follows: $591,950,279.00 BY:

$85,500,000.00 TO: $677,450,279.00

W15P7T-09-D-D212 P00012 2014 Mar 25 Exercised 1 Year Option

Extended contract until March 25, 2015 and attached new price list for

The purpose of this modification P00012 to contract W15P7T-09-D-D212 was to exercise 1 year option at CLIN 10 which extends contract until Mar 25, 2015. Mod also attaches a new price list for 2014.

b. Acquisition Data Availability: The Government only possesses a broad-based Statement of Work, and the technical data and the rights to that data customarily provided to the public with a commercial item.

11. Technical Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Signature: Date: 18 Sept. 15

12. Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Signature: Date: 18 Sep 2015

Chief, CENTCOM Division, SAMD

13. Fair and Reasonable Cost Determination. I hereby determine that the anticipated price to the

Government will be fair and reasonable based on comparison of proposed prices with an

Independent Government Estimate. Certified cost and pricing data is exempted in accordance with FAR 15.403-1(b)(3).

Procuring Contracting Officer

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

Procuring Contracting Officer

Approval

Based on the foregoing justification, I hereby approve the award of a Firm-Fixed-Price contract with an ordering ceiling of $6,500,000 for the acquisition of the Datron including ancillary equipment, spare parts, and Field Service support. This action is authorized on an other than full and open competition basis pursuant to the authority of 10 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 the availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition. If the proposed contract action is not completed within 180 days from the below date, this Justification and

Approval shall be returned to the Competition Advocate for revalidation. Additionally, if any changes to the requirements, basis for the justification, market conditions or increases in the estimated value of the proposed action occur at any time, the Contracting Officer shall document these changes in a memorandum and obtain review/concurrence from the Competition Advocate.

Signature: Date: 18 Sept 2015

Special Competition Advocate