Provide RQ-20A Puma AE II M3/M4 Systems, Contractor Logistics Support (CLS), and Reconnaissance, Surveillance, Target Acquisition (RSTA) Kit

Justification and Approval
For Other Than Full and Open Competition

1. CONTRACTING ACTIVITY

Army Contracting Command-Aberdeen Proving Ground, Natick Contracting Division
ATTN: CCAP-SCN, General Greene Avenue, Natick, MA 01760

2. DESCRIPTION OF ACTION
Approval is requested to solicit on the basis of other than full and open competition for a new contract.
The contract is in support of;
FMS- Country of Egypt
Type of contract contemplated: Fixed Price.
Reason for type of contract:
Program Manager Unmanned Aircraft Systems (PM UAS) International Programs Office requests a new contract for the purchase ofRQ-20A Commercial Digital Data Link (DDL) Puma Block II, Reconnaissance, Surveillance and Target Acquisition (RSTA) kits, Initial Spares, Contractor Logistics Support, and training for the country of Egypt. FMS case EG-B-VHL implemented 13 September 2017 and FMS. funds are available for this effort. The estimated total contract value of $10,387,470 will be awarded as firm fixed price. Of the total dollar amount, $3,992,351 for 10 RQ-20A Commercial DDL Puma Block II, $905,639 for initial spares package, $308,385 for twelve (12) RSTA kits, $3,702,025 for CLS, and $499,077 for training. Estimated contract award date is 17 April 2018.
Funding information:
Multiple MIPRs from TUAS Program Office
Fiscal Year: 18
Type of Money to be used:
select one ...
FMS Country Funding

3.DESCRIPTION OF SUPPLIES/SERVICES
Award of a Firm Fixed Price Contract to AeroVironment (AV), Inc, 181 W. Huntington Drive, Suite 202, Monrovia, CA 91016, in support of Foreign Military Sales (FMS). Funds from the country of Egypt will be utilized. The total estimated value of the proposed action is
$ I 0,387,470. This requirement is from the country of Egypt for the purchase of ten (1 O) each
RQ-20A Puma Unmanned Aircraft Systems (UAS). The requirement includes Initial Spares
Package (JSP), Contractor Logistics Support (CLS), twelve (12) RST A Kits, and New
Equipment Training for twenty (20) students; specified in FMS case EG-8-VHL. Basic case
was implemented 13 September 20I7.

4.AUTHORITY CITED
The statutory authority permitting other than full and open competition is 10 U.S.C.
2304(c)(I), 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:
AV designed the Puma UAS and currently retains title to technical data relating to the Puma
system, while the United States Government (USG) possesses Limited Data Rights on the radio
only. Even though the USG has Limited Data Rights on the radio, no other firm has
manufactured this type system. Therefore, AV is the only source capable of satisfying the FMS
order. The FMS case cited above specifically requests RQ-20A Puma systems. Therefore, AV is
the only responsible source to provide the systems.

6.EFFORTS TO OBTAIN COMPETITION:
Efforts have been made to create a competitive Indefinite Delivery, Indefinite Quantity (IDIQ)
contract for Tactical Unmanned Aircraft Systems (TUAS). However, the full technical data
rights are not available at this time to other manufacturers. AV is the only source able to
produce complete RQ-20A Puma systems. See paragraph 8 Market Research

7.ACTIONS TO INCREASE COMPETITION:
As stated in paragraph 6 above, efforts were made to increase competition by awarding an IDTQ
for TUASs. However, the competitive IDIQ is not viable for the acquisition of complete systems r
fom other vendors because the full technical data rights still reside with AV. Of the vendors
that currently participate ln the IDIQ contract, AV is the only vendor that has the ability to
produce a complete system unless the USG were to acquire the complete data rights. At this
time, the USG has no program funding or plans in place to acquire a complete data rights
package for TUAS from AV. There is no proposed date to acquire the technical data package. Until the time that the USG acquires the complete data rights, or another source produces the RQ-20A and the system is qualified, there is no alternative source.

8.MARKET RESEARCH
Market research has been ongoing for the life of the RQ-20A program. The facts detailed International Unmanned Aircraft Systems (UAS) Program Office during the previous 12 months. Methods used on this specific acquisition involved contacting knowledgeable individuals in
Government and industry regarding market capabilities to meet requirements. The
aforementioned competitive IDIQ for TUAS demonstrates additional vendors in the market
space however, to date, no vendor other than AV has produced, or has the ability to produce a RQ-20A system.
 
9. INTERESTED SOURCES:
To date, no other sources have written to .express an interest.
This J&A has an exemption to synopsis IA W FAR 5.202(3) direction of a foreign government reimbursing the agency for the cost of the acquisition.

10. OTHER FACTS:
Discuss any other facts supporting use of other than full and open competition, such as the
following:

a. Procurement H1story
(l) Contract W91 IQY-l3-D-0073 was awarded on 12/21/2012 for Puma systems. (2) Contract W9 l l QY-17-C-O 13 t was awarded on 09/06/2017 for Puma systems. (3) Contract W911QY-l7-C-0125  was awarded on 09/07/2017 for Puma-systems.

(2) The statutory authority permitting Other Than Full and Open Competition is l O USC 2304( c) (1 ), as implemented by Federal Acquisition Regulation (FAR 6.302-1 ), "Only one responsible source or only from a limited number of responsible sources and no other supplier or services will satisfy the agency requirements."

(3) Actions to Increase Competition: As stated in paragraph 6 above, efforts were made to
increase competition by awarding an IDIQ for TUAS's. This competitive IDIQ is not viable
because the technical data rights still reside with AV.

(4) No unusual patterns have been revealed by reviewing the purchase history of the Puma
systems.

(5) AeroVironment designed the Puma UAS and currently retains title to technical data relating to the Puma systems, while the United States government possesses Government Purpose
License Rights. Even though the United States government has rights to the data, no other firm has manufactured the system, therefore, AV is the only source capable of satisfying the FMS order. The FMS case cited specifically requests AV Puma systems, therefore, AV is the only responsible source to acquire the systems. There have been no significant changes since the
previous Puma procurements.

b. Acquisition Data Availability
Aero Vironment designed the Puma systems and currently retains title to technical data relating to the Puma systems. Since AV owns the rights to the technical data packages AV will be the only source to provide the Puma systems until a license for the technical data rights is purchased by
the government or the technical data is made available to other manufacturers.

c. Unusual and Compelling Urgency
N/A

d. Subcontracting Competition
N/A

e. Follow-on Contracts
N/A