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FBO DAILY - FEDBIZOPPS ISSUE OF MARCH 22, 2013 FBO #4136
SOLICITATION NOTICE

A -- AN/ARC-234 Airborne Integrated Terminal Group (AITG) Embedded Cryptographic Modernization (ECM) Production-Representative Engineering Development Models (PREDMs) - J&A for H94003-04-D-0006-0267

Notice Date

3/20/2013
 

Notice Type

Justification and Approval (J&A)
 

NAICS

541330 — Engineering Services
 

Contracting Office

Other Defense Agencies, Defense Microelectronics Activity, Defense Microelectronics Activity, 4234 54th Street, McClellan, California, 95652, United States
 

ZIP Code

95652
 

Archive Date

4/14/2013
 

Point of Contact

Colten J, Murray, Phone: 9162311517
 

E-Mail Address

murray@dmea.osd.mil
(murray@dmea.osd.mil)
 

Small Business Set-Aside

N/A
 

Award Number

H94003-04-D-0006-0267
 

Award Date

3/15/2013
 

Description

J&A for H94003-04-D-0006-0267 Justification for an Exception to Fair Opportunity Advanced Technology Support Program III (ATSP3) Indefinite Delivery / Indefinite Quantity (ID/IQ) Delivery Order Contract I. Contracting Activity: Defense Microelectronics Activity (DMEA)/ MEE Contracting Office, McClellan, CA. II. Nature and/or Description of the Action Being Approved: The US Air Force has a need to upgrade the AN/ARC-234 Airborne Integraged Terminal Group (AITG) communication system to comply with NSA Central Security Service (NSA/CSS) Policy 3-9 Cryptographic Modernization Initiative (CMI). This task is a logical follow-on to the design and development effort being accomplished under H94003-04-D-0006-0187. This new delivery order will run concurrently with the initial order and will build hardware necessary for integration in the aircraft platforms. III. Description of the Supplies/Services Required To Meet the Agency's Needs (including the estimated value): The contractor shall build five (5) Baseband Input/Output (BBIO) Production Representative Engineering Development Models (PREDMs) and install one each into an AN/ARC-234 Airborne Integrated Terminal Group (AITG) radio set for integration and test by the RC-135 platform. The estimated value of this effort is $700K. IV. Identification of the Exception to Fair Opportunity (Authority Cited): FAR 16.505 requires the Contracting Officer to provide each awardee under a multiple award contract, a fair opportunity to be considered for each order exceeding $3,000 unless a statutory exception applies. The specific exception that precludes the fair opportunity process for this acquisition is: FAR 16.505(b)(2)(i)(C), The order must be issued on a sole-source basis in the interest of economy and efficiency as a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order. V. Supporting Rationale for Exception to Fair Opportunity: BACKGROUND: The Joint Chiefs of Staff have mandated the use of narrowband secure voice and established interoperability standards for the use of 5 kHz and 25 kHz DAMA non processed UHF transponders. All users were to be narrowband secure voice (NBSV) capable and demand assigned multiple access (DAMA) capable as of 1 October 1996. MCM 89 94, 28 July 1994, and CJCSI 6251.01C, 20 Nov 2007, require UHF SATCOM compliance with MIL STDs 188 181, 182, and 183. The AITG is a single AITG Radio Set (AN/ARC 234) consisting of five line replaceable units (LRUs). The five LRUs are the Radio Receiver Transmitter (AIT), Remote Control Unit (RCU), Fill Panel, Low Noise Amplifier/Diplexer (LNAD), and Mounting Tray for the AIT. The National Security Agency (NSA) mandated a modernization of the AN/ARC-234 in CJCSN 6510. Requirements for the updated system are listed in NSA Central Security Service (NSA/CSS) Policy 3-9 Cryptographic Modernization Initiative (CMI). This effort will require modernization of both the hardware and software of the AITG communication system. Requirements of CM are to undertake the research, development, test, and evaluation (RDT&E) effort to upgrade the AITG communication system. In an effort to accelerate fielding of the AITG to meet mandated NSA need dates, the RC-135 program office requested the AITGs containing the PREDM BBIO to conduct platform integration and testing. RELATIONSHIP BETWEEN THE INITIAL ORDER AND THE FOLLOW-ON ORDER: The initial order for development of the cryptographically modernized AN/ARC-234 radio is H94003-04-D-0006, Delivery Order 0187, awarded 27 Apr 2011 to Raytheon after all awardees were given full opportunity to be considered. The original delivery order is a $26.5M, 27 month effort to design, develop, build, and integrate modern cryptographic capability into the AN/ARC-234 radio. Its Period of Performance is due to end 31 Jul 2013. The follow-on order will build five (5) BBIO PREDMs to be installed on five (5) AN/ARC-234 radios for use by the RC-135 program for platform integration and testing. The five radios will be provided to Raytheon as Government Furnished Equipment approximated six months prior to installation of the BBIOs into the radios. The 5 PREDMs will be the same form, fit, and function as the prototype built by Raytheon for developmental testing. The new delivery order will run concurrently with the initial order. RATIONALE FOR FOLLOW-ON EXCEPTION TO FAIR OPPORTUNITY: Raytheon is the developer of the crypto-modernized Baseband Input/Output (BBIO) module to be installed in the AN/ARC-234 radio. Raytheon is also the sole developer, manufacturer and maintainer of the AN/ARC-234 radio. Raytheon owns the data rights to the radio. The crypto-modernized BBIO is still under development, and Raytheon maintains configuration control, and controls the design. The PREDM BBIO procured under this delivery must be identical to those developed under the original delivery order. Raytheon is the only vendor that can produce the BBIO and install them into the AN/ARC-234 radio. The ARC-234 is a piece of highly-specialized equipment, requiring extensive National Security Agency (NSA) Type 1 certification processes for both the device and the facility in which it is produced. A Type 1 product is a device or system that has been certified by the NSA for use in cryptographically securing classified US Government information. Type 1 is the highest level of NSA Information Assurance certification possible. It includes testing and formal analysis of cryptographic security, functional security, tamper resistance, emissions security, and security of the product development and manufacturing processes. Therefore, this acquisition will be a follow-on contract for the highly-specialized equipment. Another device cannot be substituted for the ARC-234 without a significant redesign and a lengthy certification process. OTHER ALTERNATIVES CONSIDERED: Competition under the existing ATSP3 ID/IQ contracts was considered. However, upon further analysis and discussions at the Acquisition Strategy Board, a follow-on contract to Raytheon is the only feasible alternative due to the nature of the program. IMPACT IF THIS EXCEPTION TO FAIR OPPORTUNITY IS NOT APPROVED: If the Exception to Fair Opportunity is not approved, five BBIO PREDMs will not be built and installed in the AN/ARC-234 radios. Platform integration of the crypto-modernized AN/ARC-234 will be delayed until the availability of production units, extending the cryptographic vulnerability of the radio past its due date. VI. Efforts to Obtain Competition None. This is a one-time procurement of a Production-Representative Engineering Development Models for integration and testing purposes. VII. Actions to Increase Competition: This is a one-time procurement of Production Representative Engineering Development Models for the express purpose of supporting the platform integration and testing of the RC-135. There are no plans for further procurement of these development units. VIII. Market Research: There has been substantial market research conducted over the life-cycle of the AN/ARC-234 radio that contribute to this justification. The original AN/ARC-234 radio contract was awarded through competition in FY98 with the following program characteristics: limited or no data rights to design or software, no depot support equipment, post production engineering support and contractor logistics support. Since the initial award, there have been several sources sought synopses published to solicit interest in follow-on work with respect to the AN/ARC-234 Sustainment Support, SMC/LGKM, 10 Mar 2006 AN/ARC-234 Sustainment Support, SMC/PKL, 10 Feb 2012 ARC-234 Repair, ESC/HNK, 6 Jun 2012 Production of Radio Encrypter Modification on the ARC-234, ESC/HNK, 30 Aug 2012 Responses to the sources sought have been negative. IX. Interested Sources: None. X. Other Facts Supporting the Exception to Fair Opportunity: None.
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/notices/d1852382fe43ea8ba49526c7fdf5f98a)
 

Place of Performance

Address: 4234 54th Street, McClellan, California, 95652, United States

Zip Code: 95652
 

Record

SN03016111-W 20130322/130320234131-d1852382fe43ea8ba49526c7fdf5f98a (fbodaily.com)
 

Source

FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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