Purchase of (2) RQ-20A Digital Data Link (DDL) Puma Block II Systems, RSTA Kits, Initial Spares, and Contractor Logistics Support (CLS)

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 A venue, Natick, MA O 1760 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 Latvia 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 Digital Data Link (DDL) Puma Block II Systems, Reconnaissance, Surveillance and Target Acquisition (RSTA) kits, Initial Spares, and Contractor Logistics Support for the country of Latvia. FMS case LGB-UCW implemented 28 August 2017 and FMS funds are available for this effort. The estimated total contract value of $1,963,299 will be awarded as firm fixed price. Of the total dollar amount, $856,474 for two (2) RQ-20A DDL Puma Block II Systems, $185,628 for initial spares package, $ I 09,248 for three (3) RST A Kits and $345,548 for CLS. Estimated contract award date is 03 April 2018. Funding information: Multiple MIPRs from TUAS Program Office Fiscal Year: 18 Type of Money to be used: select one ... FMS Country Funding g 3.DESCRIPTION OF SUPPLIES/SERVICES Award of a Firm Fixed Price Contract to AeroVironment (AV), Inc, 181 W. Huntington Drive, Suite 202, Monrovia, CA 910 l 6, in support of Foreign Military Sales (FMS). Funds from the country of Latvia will be utilized. The total estimated value of the proposed action is $1,963,299. This requirement is from the country of Latvia for the purchase of two (2) each RQ-20A Puma Unmanned Aircraft Systems (UAS). The requirement includes Initial Spares Package (ISP), RST A Kits, and Contractor Logistics Support (CLS); specified in FMS case LGB-UCW. Basic case implemented 28 August 2017. 4.AUTHORITY CITED The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(l), 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 IDIQ for TUASs. However, the competitive IDIQ is not viable for the acquisition of complete systems from other vendors because the full technical data rights still reside with AV. Of the vendors that currently participate in 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 (paragraphs 5,6, 7) have been gathered based on ongoing program requirements of the International Unmanned Aircraft Systems (VAS) 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 History (1) Contract W91 l QY-13-D-0073 was awarded on 12/21/2012 for Puma systems. Contract W91IQY-l7-C-0131 was awarded on 09/06/2017 for Puma systems. Contract W91lQY-l7-C-O125 was awarded on 09/07/2017 for Puma systems. (2) The statutory authority permitting Other Than Full and Open Competition is IO USC 2304(c) ( 1 ), as implemented by Federal Acquisition Regulation (FAR 6.302-l ), "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 AeroVironment 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