A03_Redacted_JA_C5-B-UFA_Wolfhound_Redacted.pdf

JA-D-17-726

Version – February 2017 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: The Afghanistan National Army (ANA) is procuring Wolfhound Radio Direction Finding System (Afghanistan Wolfhound) spare parts under Foreign Military Sales (FMS) case C5-B-UFA.

Authority: 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1 - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: Estimated contract value is

Prepared by: Mark Conrad DSN: 648-7013 Electronics Engineer Date: 28 Aug 2017 Email: mark.g.conrad.civ@mail.mil

Contracting Officer: Lonny Matesky DSN: 298-4296 Contracting Officer Date: 28 Aug 2017 Email: Lonny.j.matesky.civ@mail.mil

Technical: Mark Conrad DSN: 648-7013 Contracting Officer Date: 28 Aug 2017 Email: mark.g.conrad.civ@mail.mil

Requirements: Stacey Mchugh DSN: 648-7008 Weapon System Manager Date:

Email: Stacey.a.mchugh2.civ@mail.mil

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

Program Manager:

Typed Name: Wilma Y. Solivan

DSN: 648-8432

Signature:

Legal Counsel: Not Applicable

Special Advocate for Competition: Not Applicable

SOLIVAN.WILMA.YO

LANDA.1182158557

Digitally signed by

SOLIVAN.WILMA.YOLANDA.1182158557

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=SOLIVAN.WILMA.YOLANDA.1182158557 Date: 2017.09.06 08:17:22 -04'00'

FAR Part 6 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 U.S. Army CECOM Security Assistance Management Directorate (SAMD) requests a Firm-Fixed Price (FFP) new contract with Praemittias Systems LLC (Praemittias or PGI.) The Government projects award for December 2017. Foreign military sales (FMS) funds under FMS case C5-B-UFA will be used. An acquisition plan is not required because this procurement does not meet the threshold at Defense Federal Acquisition Regulation Supplement 207.103(d)(i)(B).

This action is a follow-on to contract W91CRB-15-C-5027. That contract was competed under authority 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1 - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. Paragraph, 7 “Actions to Increase Competition” of the previous justification, stated: “The US Government does not own the Technical Data Package (TDP) required for competition. Because PGI (Praemittias) has not licensed proprietary Wolfhound designs to any other U.S. or international company for the manufacture of Wolfhound systems and spare parts, increased competition is not substantiated. The US Government will continue to conduct market research (as in the FedBizOpps notice of 19 June 2015, see Market Research section below,) to ascertain if there are changes in the market place that would enable future actions to be competed. Additionally, market research will be conducted before exercising the options. However, it is anticipated that follow-on acquisition will need to be conducted on a sole source basis.”

Those actions were accomplished by conducting internet and FedBizOpps market research for the current effort to determine if there have been any changes in the market for Wolfhound systems.

3. Description of Supplies/Services: Supplies to be provided are spare parts for the Afghanistan Wolfhound Radio Direction Finding System. Afghanistan owns and uses the AN/PSS-7 Wolfhound man-packable radio direction finding system. Through previous FMS cases, Afghanistan has acquired AN/PSS-7 Wolfhound systems to identify and locate adversary transmissions in support of counter-terrorism operations. These systems require compatible spare and repair parts in order to remain operational to support these on-going counter-terrorism missions. Supplies include component spare and repair parts listed below:

COMPONENT QTY

Host Component Assembly 7 Remote Antenna – X BNC Assembly 10 Earpiece, 3.5 MM 27 ME3 Wireless Router 10 6-Inch BNC Antenna 60 12-Inch BNC Antenna 60 Display Head 15 BB-2590 TO ME3/HC Cable Assembly 15 HC and Wireless Router Power Supply 7 2-Meter Remote Antenna Cable Assembly 7 5-Meter Remote Antenna Cable Assembly 7 23-Meter Remote Antenna Cable Assembly 5 ME3 Power/Ethernet Cable Assembly 7 Mast Assembly 7 Antenna Used With ME3 Wireless Router 25 ME3 2-Foot Custom Cable Assembly 20 Battery, Rechargeable BB-2590 10 Sharp Liquid Chrystal Display 12 Power Switch Cable 11

Period of Performance: December 2017 to October 2018.

Total Value: $

4. Authority Cited:

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:

(a) As described at FAR 6.302-1(a)(2)(ii)(A), 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.

Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in substantial duplication of cost to the government that is not expected to be recovered through competition.

The proposed sole source contractor is Praemittias Systems, LLC. Praemittias is the Original Equipment Manufacturer (OEM) of the Afghanistan Wolfhound Radio Direction Finding System and is the only source that produces spare parts that are form, fit, and function compatible with the current fleet of Afghanistan systems.

If CECOM SAMD were to compete this effort with other contractors, the entire system would have to be designed, engineered, developed, tested and produced as a new development item. Assuming the contractor possessed facilities, equipment, and skilled technical staff needed to perform development, an estimate of at least twice the Praemittias rough order of magnitude (ROM) of would be required to develop a new radio direction finding system equivalent to Wolfhound.

If the contractor did not possess all the necessary facilities, equipment, and skills needed to develop a Wolfhound-like capability, costs would be four or five times the ROM cost of to acquire the necessary skilled system and radio engineering and software personnel to design the hardware, RF scanning capabilities, and signal processing algorithms replicating Wolfhound capabilities. Skilled personnel are also required to perform the mechanical engineering to design and fabricate ruggedized versions of the RF receiver, signal processor, and directional antenna.

The contractor would need to establish unique facilities and test, diagnostic, and measurement equipment (TMDE) to support development and fabrication of these new systems. These costs would be unrecoverable, as FMS customers do not fund non-recurring costs of engineering and development. Having developed the new system, the FMS customer would then have to replace their current fleet of 120 Wolfhound systems with the new fleet before procuring spare parts needed to establish a maintenance support inventory.

Add to this customer costs of procuring a complete new fleet of systems prior to establishing an inventory of spare and repair parts, validates that competing this effort will result in substantial non-recoverable costs to the US Government, as well as substantial duplication of costs to the FMS customer.

As discussed above, Wolfhound designs are proprietary to Praemittias, the OEM, which contributes to the non-recoverable and duplicative costs that would be encountered if the effort were to be competed. Competing this effort would also delay by 2-to-4 years delivery of the required spare parts in order to develop a new radio direction finding system.

The Wolfhound is a brand unique radio direction finding system proprietary to Praemittias with impacts as discussed above.

Other direction finding systems similar in function to Wolfhound do exist (

) However, these systems are designed for urban law enforcement organizations operating as vehicular-based systems. They are not ruggedized and configured for man-packable field use. The configuration and design of components are such that they are not form, fit, and function compatible with the Wolfhound system.

The US Government does not own the Technical Data Package (TDP) required for competition; only the original equipment manufacturer (OEM) owns the intellectual property rights to Wolfhound detailed designs and specifications. Praemittias has not licensed proprietary Wolfhound designs to any other U.S. or international company for the manufacture of Wolfhound systems and spare parts. The US Government will continue to conduct internet and FedBizOpps market research to ascertain if there are changes in the market place that would enable future actions to be competed.

(b) Alternatives: Sub-paragraph a (above) addresses alternatives to a sole-source contract with Praemittias that are available to the Government. These include funding a new development effort, using other off-the-shelf systems (such as Stingray,) and waiting until competitive solutions become available through market forces. None if these alternatives to a sole source contract with Praemittias are acceptable. Funding a new development effort will cost of non-recoverable costs because FMS customers will not fund non-recurring development costs. Furthermore, this alternative requires the customer procure a completely new fleet of radio direction finding systems. Added to US Government development costs and the customer’s cost of procuring a new fleet of radio direction finding systems would be the customer’s cost in time and money to re-train system operators and maintainers. Other existing systems are designed as non-ruggedized, racked or vehicle borne systems, rather than man-packable systems and would not provide a viable solution to the requirement. These alternatives, as well as the alternative of waiting for market forces to present additional solutions are not viable because spare parts for the Afghanistan Wolfhound are required now in order to bring systems in disrepair to operational status so units can support on-going tactical missions.

(c) Other Applicable Considerations.

1) The verified minimum requirements are to sustain Afghanistan’s capability to conduct radio direction finding operations. The operational readiness of the current fleet of Wolfhound systems is degrading due to inadequate maintenance support, primarily because of insufficient spare and repair parts. The quantity of parts listed in paragraph 3, above, is required to sustain Afghanistan Wolfhound systems needed to support near-term operations and missions likely to be required over the next two years.

2) Given the current tactical situation in Afghanistan, the 2-to-4 year delay needed to allow competition and develop and re-build a new fleet of radio direction finding systems cannot be tolerated. Without spare a repair parts, more of the existing 120 Wolfhound systems will fall into disrepair negatively impacting offensive and defensive capabilities to target and identify insurgent radio communications and defeat insurgent adversaries. This lack of support will result in failed missions and severely retard Afghanistan’s current and on-going efforts to free themselves of insurgent forces.

3) This requirement originates from the Combined Security Transition Command – Afghanistan (CSTC-A) in Kabul. Referencing Afghanistan National Army Trust Fund (ANATF) Project Number 229/S(17X), CSTC-A’s 24 February 2017 Memorandum of Request (MOR) 17-N1C-103 (attached) states the requirement for the Wolfhound Sparing Package in paragraph 2e. The document explains that not approving this action will result in a significant increase in overall maintenance failures, a quantifiable decrease in Afghanistan mission effectiveness, and a corresponding increase in loss of life and destruction of property.

4) Schedule requirements are related to current and on-going operations Afghanistan is engaged in to defeat insurgent forces. Wolfhound radio direction finding systems that are not fully operational must be repaired to support these near-term operations. Spare parts listed in paragraph 3, above, are needed to effect these repairs. Paragraphs 2 and 5, above, describe the proprietary nature of Praemittias Wolfhound designs.

Praemittias has not licensed these designs to other manufacturers or the US Government, contributing to restrictions on competition.

5) Above paragraphs state that Wolfhound radio direction finding system spare parts listed are required to support current and on-going missions to defeat Afghanistan’s insurgent adversaries. Wolfhound is required to support these missions by identifying and locating sources of adversary radio transmissions. Locating these transmissions permit Afghanistan tactical units to either collect information to support future counter-insurgency operations, or to direct fire and maneuver units to engage enemy insurgents and remove these adversaries from the battlefield. Without the Wolfhound spare parts, Wolfhound systems in disrepair will remain out of operation. Afghanistan units will have fewer systems needed to locate adversary units using radio communications. As the number of operational Wolfhound systems decreases due to disrepair, the number of insurgent units that remain on the battlefield to conduct operations against Afghanistan and allied forces will increase, resulting in additional loss of property and life, as suggested by CSTC-A.

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.

(a) Effective Competition: Because this is a sole source action, effective competition is not applicable.

(b) Subcontracting Competition: Subcontracting competition will be achieved by including FAR clause 52.244-5 within the solicitation and subsequent contract to assure that the prime contractor obtains as much competition as possible.

7. Actions to Increase Competition: The US Government will continue to conduct internet and FedBizOpps market research to ascertain if there are changes in the market place that would enable future actions for both the Wolfhound prime system and spares to be competed. Paragraph 6(b), above, explains that solicitations and contracts will include FAR clause 52.244-5 to assure that the prime contractor obtains as much competition as possible.

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 sources sought market survey was posted to Federal Business Opportunities (FedBizOpps) item 6177-1 on 10 May 2017 for 20 days.

9. Interested Sources: See Paragraph 6 for the synopsis information.

10. Other Facts:

a. Procurement History:

(1) Contract numbers and dates of the last several contracts for similar requirements are listed in the table, below.

CONTRACT

NUMBER

AWARD

DATE

PERFORM

PERIOD KTR

AUTHORITY (FAR

EXCEPTION)

W15P7T-12-C- C501*

31-Aug-

31 Aug 12– 27 Jun 13 PGI

Not Competed Under 10 USC 2304C(2) and FAR 6.302-2 "Unusual and Compelling Urgency"

W15P7T-13-P- 0017 27-Jul-13

30 Jul 13 - 28 Sep 13 PGI

Not Competed Under 10 USC 2304C(1) and FAR 6.302-1 "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements"

W91CRB-14-P-

17-Sep-

17 Sep 14 - 25 Jan 15 PGI

Not Competed Under 10 USC 2304C(1) and FAR 6.302-1 "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements"

W91CRB-15-P-

5009 3-Apr-15

6 Apr 15 - 5 Jul 15 PGI

Not Competed Under 10 USC 2304C(1) and FAR 6.302-1 "Only One Responsible Source and No Other Supplies or

Services Will Satisfy Agency Requirements"

W91CRB-15-C-

25-Sep-

25 Sep 15 – 30 Sep 16 PGI

Not Competed Under 10 USC 2304C(1) and FAR 6.302-1 "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements"

*Contract for US Army.

(2) The competitive status of these actions. All of these contract actions were awarded under other than full and open competition.

(3) Authority previously cited if less than full and open competition was used. The first procurement of Wolfhound systems was competed under “Unusual and Compelling Urgency” (FAR 6.302-2. All other listed awards were not competed based on 10 USC 2304C(1) and

FAR 6.302-1.

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results. The circumstances involved in previous efforts to procure Afghanistan Wolfhound systems were the same as circumstances encountered in this current procurement effort.

Praemittias has not licensed proprietary Wolfhound designs to any other U.S. or international company for the manufacture of Wolfhound systems and spare parts. Previous actions to increase competition included continued conduct of market research. As explained in paragraph 8, above, more recent market research has revealed no sources other than Praemittias for Afghanistan Wolfhound systems and spare parts.

(5) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the procurement and whether there have been any significant changes. The previous procurement of complete Afghanistan Wolfhound systems and spare parts under contract W91CRB-15-C-5027 was under less than full and open competition because, as with this procurement, the original equipment manufacturer (Praemittias) had not licensed Wolfhound designs to any other U.S. or international companies for manufacture. In order to ensure compatibility with Afghanistan Wolfhound systems already in the field, complete systems and spare parts were required to be form, fit, and function compatible with the existing fleet of Wolfhound radio direction finding systems.

Only systems and spare parts with the same technical design as the Praemittias designs could meet this requirement, justifying less than full and open competition. Attempting to use other sources would incur in non-recoverable costs to the U.S. Government, the cost to the customer country of procuring an entire new fleet of 120 radio direction finding systems and the cost of re-training operators and maintainers, as well as a 2-to-4 year delay in re-equipping Afghanistan’s fleet of radio direction finding systems.

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.

Typed Name: Mark G. Conrad Date: 28 August 2017 Title: Engineer 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 of my knowledge and belief.

Typed Name: Stacey A. Mchugh Date: 28 August 2017 Title: Weapon System Manager Signature:

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable. This determination will be made using the following: Price Analysis and IGCE.

As a part of this basis, certified cost or pricing data will not be required and the following exceptions apply (FAR 15.403):

(a) A commercial item is being acquired.

(b) The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

Typed Name: Lonny J. Matesky Date: 28 August 2017 Title: Contracting Officer Signature:

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

Typed Name: Lonny J. Matesky Date: 28 August 2017 Title: Contracting Officer Signature:

CONRAD.MARK.GEORGE.10306

63965

Digitally signed by CONRAD.MARK.GEORGE.1030663965 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=CONRAD.MARK.GEORGE.1030663965 Date: 2017.08.29 08:19:49 -04'00'

MCHUGH.STAC

EY.A.139993848

Digitally signed by

MCHUGH.STACEY.A.1399938488

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=MCHUGH.STACEY.A.1399938488 Date: 2017.09.05 11:10:03 -04'00'

MATESKY.LONNY

.J.1274790942

Digitally signed by

MATESKY.LONNY.J.1274790942

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=MATESKY.LONNY.J.1274790942 Date: 2017.09.05 13:54:10 -04'00'

MATESKY.LONN

Y.J.1274790942

Digitally signed by

MATESKY.LONNY.J.1274790942

DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=MATESKY.LONNY.J.1274790942 Date: 2017.09.05 13:54:41 -04'00'

Approval

Based on the foregoing justification, I hereby approve the procurement of Afghanistan Wolfhound radio direction finding system spare parts 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 Part 6.302-1 - Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. This action is subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

Typed Name: Lonny J. Matesky Date:

Title: Contracting Officer Signature:

MATESKY.LONNY.J.127

4790942

Digitally signed by MATESKY.LONNY.J.1274790942 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=MATESKY.LONNY.J.1274790942 Date: 2017.09.05 13:55:05 -04'00'