Counter-Man-Portable Air Defense System (MANPADS ...

Counter-Man-Portable Air Defense System (MANPADS)Development and DemonstrationSolicitation RA-023 October 2003Points of ContactAgreements OfficerMr. Doug RoarkDHS(S&T)7 th and D Streets, SWWashington, DC 20407Phone: (202)358-1355Email: douglas.roark@dhs.govProgram ManagerMr. Jim TuttleDHS(S&T)7 th and D Streets, SWWashington, DC 20407Phone: (202) 692-4377Email: james.tuttle@dhs.gov

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02be more operationally economical and suited to commercial aviation. The DIRCM concept hasbeen under development for some time by the Department of Defense for protection of militaryand other government aircraft.One or two contracts will be awarded for Systems Development and Demonstration (SD&D) of aDIRCM for commercial aircraft; however, the solicitation will also encourage responses forconcepts other than DIRCM, with a single award contemplated should a mature alternative beoffered that will be likely to meet performance, operational, and cost constraints. The RDT&Estrategy is to issue a two-phase solicitation for a SD&D program, with potential awards tomultiple contractors.1.3 Briefing to IndustryThe Counter-MANPADS Special Projects Office (SPO) within the Department of HomelandSecurity intends to hold a Briefing to Industry on 15 October 2003 at the Grand Hyatt Hotel(1000 H Street NW, Washington, D.C., USA. 20001; Telephone: (202) 582-1234). Onlineconference registration information is available via the Internet website athttps://www.enstg.com/Register/passthru.cfm?RT123=MAN30404 .This one-day briefing will include a program briefing followed by a question and answer session.The program briefing will include Counter-MANPADS SPO organization, introduction of keypersonnel, goals and objectives, schedule, funding posture, and contracting approach (OtherTransactions for Prototyping) used for the DHS Counter-MANPADS solicitation. Attendees willbe limited to three per company.1.4 ObjectivesThe major objective of the DHS Counter-MANPADS Program is to migrate the technologiesthat will best protect commercial airliners from MANPADS. DHS will therefore be neutral andnot advocate any particular solution until proven operationally and cost-effectively viable.Program participants shall implement a streamlined approach to program management thatincludes team member cooperation, small staffs, abbreviated oversight, face-to-facecommunications, real-time decision making and problem solving, and short, direct lines ofauthority. Program participants should be prepared for the formal exchange of technicalinformation with the SPO and other participants, subject to Federal regulations (5 CFR2635.703) or signed non-disclosure agreements, as applicable.1.5 Schedule OverviewThe effort under this solicitation will be divided into two phases. Offerors shall prepareproposals encompassing both phases. Phase I will be a Preliminary Design Phase with anemphasis on adaptation and suitability of the design for commercial aviation use. Phase I shalllast approximately six months and will end with a comprehensive Preliminary Design Review.The results of that review and the contractor’s performance to that point will be the basis for adecision whether to proceed to Phase II (subject to available funding).It is the government’s intent to select and fund two or more proposals resulting from thissolicitation and fund those through Phase I. Following the Preliminary Design Review at the endof Phase I, it is the government’s intent to then select and fund the options for up to two efforts4 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02for continuation into Phase II. Phase II will be a prototype development and qualification phaseand will last approximately eighteen months resulting in the demonstration and flight testing oftwo prototype systems.A notional program execution schedule is provided in Section 2.5 below.1.6 Other TransactionsDHS(S&T) intends to award this effort as an Other Transactions for Prototype (OT forPrototype) under Section 831(a)(2) of P.L. 107-296. As part of the OT for Prototype agreement,the Government will receive government purpose rights 1 in the technology and share all fundeddevelopment data between program participants for all government funded DHS(S&T)MANPADS. Additionally, DHS(S&T) MANPADS program participants will demonstraterobust methods to assure cost control and quality of work. Given the speed in which thedevelopment is to advance, participants must implement streamlined processes for team buildingand subcontracting.1.7 FundingThe government intends to make two or more awards for Phase I for no more than $2 M eachand two awards for Phase II for no more than $ 45 M each. Award for Long Lead Items, ifoccurring during Phase I, will be drawn from Phase II funds. .1 “Government purpose rights” means the right to use, modify, reproduce, release,perform, display, or disclose data within the Government without restriction; andrelease or disclose data outside the Government and authorize persons to whom releaseor disclosure has been made to use, modify, reproduce, release, perform, display, ordisclose that data for United States government purposes.5 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-022 TECHNICAL SCOPEThe DHS is initiating an aggressive two-phase Systems Development and Demonstration(SD&D) program for antimissile devices for commercial aircraft. DHS will investigate directedinfrared countermeasures (DIRCM) and other technologies to provide protection against manportableair defense systems (MANPADS). DHS does not intend for this program to developnew technologies, but rather migrate existing technologies to the commercial airline industry.2.1 Phase IThere are several issues associated with the DIRCM concept, as well as with other potentialantimissile concepts, that the DHS proposes to explore in the program described herein. Phase Iof the SD&D Counter-MANPAD program, which will result in a Preliminary Design Review,will be an intensive six-month effort to design solutions to the potential threat of MANPADS tocommercial aircraft. Phase I of the program will examine:• System concept and concept of operations• System design to meet commercial aviation protection requirements• Airframe & avionics integration analysis and FAA certification issues• Reliability and failure rate analysis• Operating and Maintenance analysis and trade-off approaches• Lifecycle costs analysis, including acquisition cost, integration, and operating andsupport costsThe potential for multiple awards under Phase I exists. Down-selection may occur betweenPhases I and II.The Counter-MANPADS Special Projects Office (SPO) will be provided full and completeaccess to the contractors’ analytic and other means by which their respective design claims aresupported. The Preliminary Design Review (PDR) and Preliminary Design Document (PDD) atthe end of Phase I will form the primary basis for any decision to proceed to Phase II. The PDRand PDD shall be in sufficient detail to form assessment of the system effectiveness, totallifecycle costs, aircraft integration issues, reliability analyses, and supportability approaches forthe civil aviation environment. A more detailed description of what shall be covered in the PDRis described below in Section 4.1.5 below.2.2 Phase IIPhase II of the program will develop, integrate, test, and certify two prototypes for each viableconcept. Some of the activities that will be necessary to achieve the Phase II objectives willinclude:• Finalizing the designs and software development• Completion of the test articles and integration onto a single airframe type• Hardware-in-the-loop testing and reliability & maintainability testing6 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02• Finalizing operations and supportability plans and activities• Modeling and assessing reliability, failure rates, and supportability• Analyzing recurring operating support costs• Finalizing the maintenance approach• Finalizing training requirements and developing training materials• Finalizing systems engineering.Operational testing will include flight testing and possibly live-fire aerial cable testing to validateperformance assumptions. An FAA certification will also be conducted during this phase. Atthe end of Phase II, a full report of findings will be published to support a production decision.2.3 Program PlanOfferors shall provide a Program Plan that meets the Phase I and Phase II program objectives asa part of their proposal. The government intends to discuss and approve the Program Plan as anelement of the OTA negotiation process, and the Program Plan will be included as Appendices ofthe Other Transaction Agreement. The Program Plan shall consist of the following documents:• Task Description Document (TDD)• Integrated Master Schedule (IMS)• Management Plan• Payment Milestone Schedule• System Engineering PlanDescriptions of each document are included in Section 6.4 below.2.4 Technical Development ActivitiesAs a minimum, the Counter-MANPAD SD&D Program will include the development activitieslisted below in Phases I and II. The list below is provided for guidance, it is not consideredcomplete, nor intended to indicate the complete scope of the effort. As a part of the ProgramPlan, offerors will provide a complete work definition and Work Breakdown Structure (WBS) inthe Task Description Document (TDD).Phase I – Preliminary Design & AnalysisSectionSystem DesignDevelop Detailed Functional & System RequirementsSystem Requirements Review (SRR) 4.1.1System Requirements Document (SRD) 4.1.2Develop Preliminary System DesignModel System Effectiveness (M&S) 4.1.9Interim Design Review 4.1.3Develop Concept of Operations 4.1.8Preliminary Design Review (PDR) 4.1.5Preliminary Design Document (PDD) 4.1.4Preliminary Integration ActivitiesDevelop Aircraft & Avionics Design & Integration Plan 4.1.10Preliminary Operations & Supportability ActivitiesModel Reliability & Failure Rates 4.1.14Assess Reliability and Supportability 4.1.14Develop Maintenance Approach 4.1.137 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02Phase I – Preliminary Design & AnalysisSectionDevelop Operations & Support Plan 4.1.15Develop Lifecycle Costs Analysis 4.1.17Security, Safety & Certification ActivitiesDevelop Security Management Plan 4.1.18Conduct Safety Evaluation and Certification 4.1.19Manufacturing Rate Assessment 4.1.16Systems EngineeringDevelop and Monitor Technical Performance Measures 4.1.11Master Test & Evaluation Plan (MTEP) 4.1.12Program ManagementPeriodic Management Reports 4.1.20Phase II – Prototype Development and TestingPrototype DevelopmentDetailed DesignCritical Design ReviewSoftware DevelopmentPrototype FabricationAirframe IntegrationDetail Integration DesignDetail Integration PlanIntegration ActivitiesFAA CertificationSystem Test & EvaluationTest PlanningCritical Item TestingTest Readiness ReviewHardware-in-the-Loop TestingReliability & Maintainability TestingOperational/Flight/Live Fire TestingTest AnalysisFinalize Operations & Supportability ActivitiesModel Reliability & Failure RatesAssess Reliability & SupportabilityAnalyze Recurring Operating Support CostsMaintenance ApproachHandling & Special Test EquipmentTraining Requirements and DevelopmentOperations & Support PlanSystems EngineeringTechnical Performance MeasurementConfiguration ManagementManufacturability PlanningSafety Analysis and EngineeringDrawing PackageProgram ManagementPeriodic Reviews and ReportingPhase II Summary Review2.5 Notional Program ScheduleThe effort performed following awards under this solicitation will be divided into two phaseswith multiple awards for the duration of the first 6-month phase. The following depicts anotional tasking schedule. The contractor shall provide a detailed plan/schedule; however, thePhase I end-date shall remain six-months following award. The offeror’s schedule shall ensuredeliverables stipulated in Section 4.1 below are provided to the SPO with sufficient time for theSPO to review and return comments to the contractor. The first phase is described in further8 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02detail in Section 4.1. Upon completion of the first phase and after consultation with agovernment review team, DHS(S&T) may choose to exercise options for the second phase ofthis solicitation for an additional 18 months (see Section 4.2).Months After Award 1 2 3 4 5 6Phase I AwardPhase I ActivitiesSystem Design ActivitiesSystem Requirements ReviewInterim Design ReviewLong Lead Items ListPreliminary Reports & DocumentsFinal Phase I ReportPreliminary Design ReviewSRR($)IDR($)LLF($)Notional Schedule. SRR=Systems Requirements Review, IDR=Interime Design Review,PDR=Preliminary Design Review, LLF=Long-Lead Funding Release; ($) Funding MilestonesPDR($)Months After Award 9 12 15 18 21 24Phase II ActivitiesProgram ManagementPeriodic ReviewsSystems EngineeringPrototype DevelopmentAirframe IntegrationFAA CertificationSystem Test & EvaluationPhase II Summary ReviewProduction Decision($) ($) ($) ($) ($)($)Notional Schedule. Payment Milestones for illustration only; to be proposed & negotiated.2.6 Top Level Performance ObjectivesThe following are top-level performance parameters for the proposed missile defense system.These parameters are in fact the first iteration of a set of top-level system requirements. As apart of the proposal process, the offeror will comment on these performance parameters anddevelop (for discussion and negotiation) a set of top-level performance requirements, includingthreshold and goal performance levels.These parameters place heavy emphasis on operating costs, both direct (support andmaintenance) and indirect (added fuel costs and lost revenue), and reliability (high availabilityand low false alarm rates). These considerations take into account the economic burden realitiesof placing such a system on the U.S. civil aviation industry. These parameters are not intendedto be the final set of requirements for the objective system, but rather a starting point for theproposal development, negotiations, and Phase I effort. The Phase I Systems RequirementReview will further develop the requirements and baseline the requirements to be met in thePhase II prototype development stage.9 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-022.6.1 System Performance Parameters2.6.1.1 ThreatThe system must be capable of protecting commercial airliners during take-off and landingagainst the range of MANPADS represented by first generation (SA-7 or equivalent) throughthird generation (Stinger Basic, SA-18 or equivalent) systems.2.6.1.2 Probability of SuccessThe installed and integrated system should have a probability of success of 90% or greateragainst a multiple launch MANPADS attack, where success is measured by the effectivemiss-distance greater than the lethal envelopes of first-through-third generation MANPADS.The system should have a probability of success of 80% for two simultaneous (time ofimpact) threat engagements. A uniform probability of launch over the threat engagementenvelope should be assumed. An atmospheric ozone concentration of 120 parts per billionshould be assumed in missile warning performance computations.2.6.1.3 False AlarmA false alarm is an instance in which the system takes defensive measures in the absence ofan actual attack. The system should have false alarm rate of no more one per 100 take-offsor landings, or one per 17 hours, whichever is fewer. False alarms should not impedecountering simultaneous threat missile launches at a target aircraft.2.6.1.4 CoverageThe system should be capable of effective operation against a MANPADS attack within a theten minutes preceding landing and ten minutes following take-off, with 360-degree azmuthalcoverage (if aircraft-based), and elevation angles commensurate with typical commercialflight profiles and MANPADS profiles.2.6.1.5 AircraftIf aircraft-based, the system should be capable of being installed on commercial aircraft thesize of a Boeing 737 or larger (if aircraft based, vice airport or land based).2.6.1.6 WeightIf aircraft-based, the system should have an installed weight of no more than 1000 pounds.2.6.1.7 Prime powerIf aircraft-based, the system should draw unconditioned power from existing aircraft powersources.2.6.1.8 Induced DragIf aircraft-based, system should not induce greater than 1% excess drag at cruise altitude andspeed.2.6.1.9 Common Aircraft InterfaceIf aircraft-based, a common, non-proprietary means of attaching countermeasures equipmentto the aircraft is desired. A removable pod or fairing is one way to achieve this goal.10 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-022.6.1.10 Protection of Sensitive TechnologyProvide built-in security safeguards for the system, such as self-erasure or other protectivemeasures should the systems be accessed or opened by unauthorized personnel.2.6.1.11 Emergency Notification:The system should transmit an electronic ground notification of a detected missile launchevent. Techniques should be used to minimize any possible false notifications to themaximum extent possible. Geo-location of the missile launch location is very desirable.2.6.2 Operations and Supportability Parameters2.6.2.1 AvailabilityThe system should be operationally available without imposing any delays to take-off orlanding preparations. System predicted reliability greater than 3000 hours in the commercialaircraft operating environment.2.6.2.2 MaintainabilityIf aircraft-based, system line replaceable units should be removable and replaceable byexisting airline maintenance personnel using standard tools. The system should not requirespecial test equipment at the flight line level for installation, alignment, removal, ormaintenance. Non-incidental maintenance should occur during scheduled maintenanceintervals and not during operational turnarounds.2.6.2.3 InterferenceThe system shall not cause any electrical, safety, or operational interference with surroundingflight operations.2.6.2.4 SafetyThe system shall not cause an issue with safety of flight, safety to personnel on the ground orin the surrounding area, or safety to onboard or nearby equipment or structures.2.6.2.5 EnvironmentalThe system shall pose no environmental hazards.2.6.3 Cost Parameters2.6.3.1 Operations and Support CostThe system should have an operational cost of less than $500 per take-off and landing.Operational cost includes the use of any expendables, escort aircraft, maintenances costs, andrepair costs.2.6.3.2 Unit CostsIf aircraft based, the system should have a unit cost of no more than $ 1 M for the 1000th unitdelivered. If ground based, the system should have a unit cost of no more than $ 10 M forthe 150th unit delivered.11 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-022.6.3.3 Integration CostsIf aircraft based, the system should take no more than 4 days to install, check-out and certifyon a retrofitted aircraft. If ground based, the system should take no more than one day ofairport operations down time to check-out and test.2.6.3.4 Lifecycle CostsOne of the highest priority goals of the Counter MANPADS program is to minimize the totallifecycle cost of the developed system. See Section 4.1.17 below for additional information.12 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-023 PROGRAM MANAGEMENT3.1 Special Program Office OrganizationThe DHS(S&T) Counter-MANPADS Special Program Office (SPO) is responsible for theoverall program management. The SPO will use a diverse team to evaluate proposals, conductmilestone reviews, and provide findings and recommendations to DHS(S&T). The governmentteam will consist of a Program Manager from DHS(S&T), a Systems Engineering and TechnicalAssistance (SETA) contractor, and representatives from organizations such as FAA, TSA, andDoD. Special working groups will be formed to include a Technical Advisory Group (TAG)comprised of top national experts in the fields crucial to the success of the program. The TAGchair will review of the program quarterly and report to the SPO PM and DHS(S&T) leadership.The SPO will coordinate communications and liaison with external stakeholders such as theairlines, aircraft manufacturers, the military, civil aviation authorities (including the FAA andNTSB), airport authorities and operators, aviation suppliers, and aviation maintenanceorganizations. All of theseorganizations will have a stakein establishing therequirements for theMANPADS Countermeasuressystem. The Counter-MANPADS SPO is responsiblefor establishing requirementsfor the system.Figure 1 gives the initialorganization, which is subjectto revision, of the Counter-MANPADS SPO andindicating government andSETA personnel.3.2 SPO ActivitiesSETA contractors and the government will work with the community to develop viableoperational concepts for the use of the system under Phase I. Contingent on the analytic, designand developmental efforts, and cost-effectiveness and operational suitability assessmentsconducted under Phase I of this program, attainment of cost objectives, attainment of KeyDecision Point objectives, and available funding, Phase II activities would include thecompletion of the test articles and their integration onto a single airframe type. Phase II will alsoinclude hardware-in-the-loop testing and, possibly, live-fire testing to validate performanceassumptions.The SPO, including the SETA Contractor, will perform the following functions:• Program Management• Joint Program Reviews:13 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02• System Requirements Review• Interim Design and Preliminary Design Reviews• Independent Reviews and Analyses of:• Concept of Operations Definition• Modeling and Simulation and Performance Prediction• Life Cycle Cost Estimate• Systems Engineering and Test & Evaluation• Operations and Supportability• Acquisition• Coordination and Liaison with TAG and Stakeholders3.3 DoD Expertise and FacilitiesDHS is aware of multiple acquisition and S&T activities currently ongoing within DoD. It is theintent of DHS to expand the current working relationship with DoD to minimize overlappingefforts and utilize DoD expertise and facilities during the Development and Demonstration ofDHS’s MANPADS program. During the development of DHS’s program plan, various DoDactivities within both the S&T and acquisition communities will be actively engaged. During theprogram’s T&E activities, numerous DoD facilities and expertise will be utilized.3.4 Related ProgramsA Broad Agency Announcement released 16 May 2003 by the DHS under the auspices of theTechnical Support Working Group (TSWG) explicitly requested proposals for options forprotection of aircraft from the man-portable missile threat. Concepts developed under theTSWG solicitation may lead to awards for concepts that require more research and developmentthan envisioned for the program described above, which is focused on the research, development,test and evaluation of near term concepts. DHS may choose at some time in the future tomanage any of these TSWG efforts within the Counter-MANPAD program.3.5 Supportability Integrated Product TeamThe Counter-MANPADS SPO will work with the contractor to establish a combinedindustry/government Supportability Integrated Product Team (SIPT). This team will collaborateto lead and manage the joint efforts to develop a supportable and effective countermeasuressystem. Representatives from the commercial air transport industry will be key members of theSIPT, and will be invited to participate by the Counter-MANPADS SPO. Contractors may haveincidental direct interface in SIPT meetings, but these will only be as called and directed by theCounter-MANPADS SPO. During Phase I of the program the SIPT will establish the structureand content for a supportability program that will be documented during Phase II in asupportability program plan.14 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-024 PROGRAM ACTIVITIES4.1 Phase I Objectives & DeliverablesThis section describes the objectives to be addressed in Phase I. Phase I of the Counter-MANPAD program will explore through an intensive six-month effort to quantify solutions tothe potential threat of MANPADS to commercial aircraft.Deliverables will document these findings, while a series of technical interchange meetings willbe held to refine analyses, approaches, and findings. The Government (including supportingSETA contractors) will be provided full and complete access to the analytic data and tools usedto support these findings. A Phase I Interim Design Review will be held to discuss progress-todateand plans for completing the Phase I objectives, including the identification of long-leaditems that may be procured during Phase I.The result of the Phase I efforts is a preliminary design of the system, said design to be describedin the Preliminary Design Review (PDR) and Preliminary Design Document (PDD). To providean expeditious and efficient start to the Phase II efforts, this section describes those elements andobjectives the government will review at the end of Phase I. That review (consisting of the PDR,a review of the PDD, and internal government review) will form the basis for decisions toproceed with Phase II. Phase I of the Counter-MANPAD program (and the PDD and PDR) willaddress in detail the objectives stipulated in Technical Scope, Section 2 above. Phase Ideliverables include the following documents and reviews:4.1.1 Systems Requirement ReviewA 2-day System Requirements Review (SRR) will be held 4 weeks after award. The SRR willrefine the goals and establish top-level requirements.4.1.2 System Requirements DocumentThe Systems Requirements Document will cover the baseline systems requirements allocated tomajor configuration items and a test and verification strategy. It will provide a description of theproposed system, including a description of the key system components, its recommendedconcept of operation, and key mechanical and electro-optic parameters. It will set the functionaland system requirements for counter-MANPADS system(s) that will achieve and extend, wherepracticable, the top level performance objectives set forth in Section 2.6 above.4.1.3 Interim Design ReviewA design status and progress review held approximately mid-way through Phase I.4.1.4 Preliminary Design DocumentThe Preliminary Design Document (PDD) shall cover all aspects of the system design, includingsegment, sub-system, and major configuration item requirements allocation, allocation offunctions, operating modes and sequences, internal and external interfaces and system predictedperformance.15 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-024.1.5 Preliminary Design ReviewA Preliminary Design Review (PDR) will be held following delivery of the PDD to the SPO,allowing at least two weeks for the SPO to review the PDD prior to the PDR. The PDR shallcover PDD and other Phase I deliverables and shall last no more than three days.4.1.6 Long Lead Items ListThe contractor shall identify long-lead items for procurement such that delivery optimizes PhaseII execution timelines. The contractor shall develop its schedule for delivering the Long LeadItems List to the SPO, including sources, costs, and justifications for each item, and allowingsufficient time for the SPO to assess the list and release justifiable funding to facilitate the timelyacquisition of those items.4.1.7 Modeling and Analysis ReportModeling and simulation will be used to validate preliminary design concepts. The contractorshall perform countermeasures system effectiveness analyses and perform signature analyses fortarget aircraft (TBD) and subject threats. The contractor shall provide resulting probability ofcountermeasure effectiveness calculations and identify any unique effectiveness concernsassociated with other commercial aircraft types.4.1.8 Concept of Operations DocumentThe Concept of Operations Document shall define and describe:• The designed operating scenarios,• The operating sequence of events and time line; and• The functions performed by the system, aircraft, aircraft crew, ground personnel, airportoperations, and ground equipment.4.1.9 System Effectiveness DocumentThe System Effectiveness Document shall describe the results of modeling and analysis of thepredicted system performance (probability of success, probability of false alarm, etc) under thedesigned operating scenarios listed in the Concept of Operations Document. A description of themodeling and analysis methodology used shall be included.4.1.10 Aircraft and Avionics Integration PlanThe Counter-MANPADS SPO is very interested in controlling and managing the costs ofintegrating countermeasures systems into civil aircraft. For aircraft based systems, a common,non-proprietary means of attaching and integrating the countermeasures equipment to the aircraftis required. A removable pod or fairing is one way to achieve this goal. The Aircraft andAvionics Integration Plan shall include an aircraft interface technique (e.g., pod with lugattachment, fairing with lug attachment), including power required, digital and discreteinterfaces, weight of countermeasure system and proposed attachment locations on16 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02representative aircraft types. The intellectual property associated with the aircraft interface willbe provided to the government with unlimited rights 2 .4.1.11 Technical Performance MeasuresThe contractor shall develop and monitor Technical Performance Measures (TPM) to monitordesign and development progress maturity. The initial list of TPM shall be reviewed by thegovernment and progress presented at design reviews.4.1.12 Master Test and Evaluation PlanThe Master Test and Evaluation Plan shall cover the planned Phase I and Phase II testing, andwill include test planning, critical item testing, test readiness review(s), hardware-in-the-looptesting, maintainability testing, operational/flight/live fire testing, test analyses, and associatedT&E facility costs. Contractor is responsible for all T&E costs incurred through performance ofits T&E plan.4.1.13 Maintenance Approach DocumentThe contractor shall develop, evaluate and document a maintenance approach for the deployedsystem(s), based on a modular easily maintainable solution that minimizes the amount of onaircraftsystem maintenance. The Maintenance Approach Document should:• Address the spares, skill levels, numbers of maintainers, tools, scheduled maintenance,unscheduled maintenance, maintenance training, and any other factors that may benecessary to support the deployed systems (including depot maintenance andtransshipment of parts, if required).• Define all handling and special test equipment, keeping in mind that a goal is to avoidrequirements for special test equipment at the flight line level for installation, alignment,removal, or maintenance.• Describe the results of trade studies to couple design alternatives toward achievingrequired maintenance levels.• Describe how specified maintainability requirements will be achieved in design;• Describe the modeling of flight-line maintenance concept, requirements, and procedures;• Describe component maintenance concept, requirements, and procedures;• Recommend the infrastructure required to provide the level of support required tominimize the impact to airline operational reliability and costs;• Provide a definition of the operational interface between the system and the currentmaintenance communication and reporting functions on the aircraft;2 "Unlimited rights" means the right of the Government to use, disclose, reproduce, prepare derivative works,distribute copies to the public, and perform publicly and display publicly, in any manner and for any purpose, and tohave or permit others to do so.17 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02• Determine additional mechanic training costs and methods to minimize the costs ofmaintenance manual changes, mechanics training time, and other associated trainingcosts; and• Assess and quantify the predicted maintainability levels in terms of Airline Costs.4.1.14 Reliability Analysis and PlanThe contractor shall model and analyze in detail the reliability and failure rate of the proposedsystem. Because the development philosophy is to modify existing technology for commercialaviation, vendors will establish a reliability baseline for the notional commercial system usingdata derived from existing system components. Traceability shall be provided for any reliabilitydata cited in this analysis (e.g. reliability test reports, reliability predictions). The offerors shallinclude an assessment of the reliability baseline in their proposals for Phase I. The ReliabilityAnalysis and Plan shall include:• A reliability growth program plan. This plan shall identify the system reliability baseline,and identify components that will be improved though a test-analyze-and-fix or testanalyze-and-redesignprocess. Component reliability budgets will be established anddocumented in the reliability growth plan.• Detailed reliability predictions for re-designed components, using standard tools andpractices. These predictions will be based upon relatively high-level (subassembly level)characterizations of the components that will be redesigned during Phase II. Analysisand predictions shall be performed to baseline the system’s reliability levels withintypical environmental stress factors of commercial aviation.• Modeling of system reliability based on a bottoms-up model and comparison to keyreliability requirements in the design.• Compatibility with airline maintenance models, operational reliability requirements andeconomic drivers.• Assess and quantify the predicted reliability levels in terms of failure rates and airlinecosts.4.1.15 Operations and Support PlanThe contractor shall develop an Operations and Support Plan (OSP). This operational andsupport plan (OSP) shall cover all aspects of supporting the system by the airlines and assessoperational impacts to them. The Plan shall address:• Plans for support of the system, how the support system interfaces with the existingmaterial and maintenance support of aircraft systems currently operating on commercialaircraft.• Approach for providing support to a wide range of aircraft operators who have currentsupport systems that differ in many different respects.• Provisions for easy upgrade of the protection system in the future for new threats, toreduce operational costs, and for other reasons.18 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02• Any ground, flight, and cabin crew training requirements and costs, including crewtraining manual revisions, simulator modifications, and additional crew training time, ifany.• Protection of the military classified information and components in the protection system.• Supply chain management and infrastructure support for timely turn-around for sparesbetween all required suppliers and airline maintenance locations.• Technical documentation required for all crew/maintainer training and for the airlines.• All handling and special test equipment, keeping in mind that a goal is to not requirespecial test equipment at the flight line level for installation, alignment, removal, ormaintenanceThe OSP document will be delivered two weeks before the PDR. The SPO will have directimpact on any Phase II decision.4.1.16 Manufacturing Rate AssessmentThe Government will need to evaluate options to purchase developed systems at varying deliveryrates. Contractors will be asked to assist in this assessment by analyzing current productioncapacity (in excess of that currently employed for military purposes), and makingrecommendations regarding capital investment that could increase capacity to meet theGovernments requirements.Contractors shall evaluate and document the capacity of their current production facilities,equipment, and personnel to deliver systems and associated spares and test assets at a rate of 300systems per year. If current production capacity will not satisfy this requirement, the contractorshall assess what capital investment, training, test facilities, supplier relationships/capacities andother factors must be enhanced to achieve this production capacity.4.1.17 System Lifecycle Cost DocumentOne of the highest priority goals of the Counter MANPADS program is to minimize the totallifecycle cost of the developed system. For this effort, lifecycle cost is defined as the sum ofacquisition and operations and support costs. Acquisition cost is defined as the total programcost including development, integration, qualification, and recurring production and installationcost of the hardware, and logistics program (support equipment, trainers/training, documentation,spares, etc.). Operations and support costs include all costs associated with using the systemafter it is installed in commercial aircraft, including direct and indirect costs. Direct costincludes such items as spares, scheduled and unscheduled maintenance, training, replenishment,flight line support, and similar. Indirect costs include lost revenue due to displaced capacity incarrying the system, additional fuel costs due to induced drag, cost of additional inspectionsrequired to maintain airworthiness, and other costs attributed to impacts caused by theintroduction of the system into the civil aviation community.4.1.17.1 Life Cycle Cost AnalysisThe contractor shall perform a Lifecycle Cost (LCC) analysis for the program to includedevelopment, all production phases and operations and support. This LCC analysis shall be the19 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02basis used for all design and supportability trade-off analyses. The contractor shall establish abaseline LCC to be used for all subsequent trade-off analyses performed. The LCC analysisshall be conducted at the lowest feasible equipment level. The LCC baseline shall be updated asinput data is further defined or changed. The LCC baseline and trade-off analyses shall bereviewed at each review. The SPO will perform an independent LCC.4.1.17.2 Life Cycle Cost ModelThe contractor shall prepare a lifecycle cost model for the system. The lifecycle cost model willbe maintained throughout system definition and development. The model shall be sensitive toreliability, maintainability, unit production cost, and logistics program planning factors (sites,number of units, etc.). In addition, the model shall provide the capability to quantify sensitivitiesof overall LCC to changes in key input parameters and logistics philosophy. The contractor shalldevelop/select an LCC model that meets these requirements, accounts for both domestic andforeign operations. The contractor’s recommendation and rationale for their LCC model shall bepresented within 2 months after Contract Award. The Contractor and the SPO will use the costanalysis tool to assess the impact of development and support alternatives on the total cost ofownership. Cost analysis tools and input data shall be shared fully with the SPO.The SPO desires to develop a standard LCC model to enable a common programmatic baselinefor the SPO and contractors to utilize for developing LCC estimates. During the first couple ofmonths after contract award, the SPO will be working with the awardees to develop this standardLCC model. This is essential for the SPO to have a common structure to ensure consistency ofeach of the contractors’ independent LCC estimates. At a minimum, we will work to developand identify a level III Work Breakdown Structure (WBS) that the contractors will utilize. Thiswill minimize disconnects between contractor cost estimates caused by bookkeeping and willenable the SPO to fully understand, anticipate and report program costs.4.1.17.3 System Lifecycle Costs DocumentThe contractor shall deliver two weeks prior to the PDR a System Lifecycle Costs ReductionStrategy Document that models and establishes the overall cost of the system. All aspects of thecost will be scrutinized with initiatives developed and baselined for cost reduction in the DesignPhase, the Material / Procurement Phase, the Manufacturing Phase, and the Production SupportPhase. Additionally, the contractors shall:• Determine potential team members and their roles in manufacturing.• Identify cost drivers and indicate approaches to minimize the acquisition, integration,operations, and support costs.• Develop a detailed cost analysis for the Operations and Support Plan (OSP) (applicable tothe deployed system).• Include in the detailed plan/schedule presented at the PDR the initial cost and plannedblock upgrades. The plan shall detail the projects required to achieve the contractoridentifiedcost objectives, including the required non-recurring engineering (NRE),associated savings, detailed risk assessment, and scheduled implementation.20 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02Lifecycle cost is one of the key factors in the assessment of Phase I performance, and will be akey selection criterion for contractors who continue into Phase II of the program. The SPO willperform an independent detailed analysis of the contractor’s System and Lifecycle CostsDocument.4.1.18 Security Management PlanMilitary systems that may form a basis for this effort may contain sensitive technology that mustbe protected in accordance with applicable law and policy. Commercial aircraft will flyinternationally with the systems developed under this effort. Many of the foreign airports wherethese aircraft land will have various levels of security and background assurance for airportworkers. It may have to be assumed that any aspect of proposed systems may be compromised.The Security Management Plan shall describe means by which sensitive technology will beprotected, minimizing wherever possible the burden on the airlines, and to the extent practicable,provide safeguards for the system, such as self-erasure or other protective measures should thesystems be accessed or opened by unauthorized personnel. The Security Management Plan shallidentify the Government stakeholders in the sensitive technology (Department of Defense(program offices), National Security Agency, Department of State, etc.).4.1.19 Safety Certification PlanThe Safety Certification Plan shall outline the method of ensuring and certifying the safeoperation of the aircraft with the system installed. Specifically, the contractor shall showcompliance with all the requirements in Federal Aviation Regulations (FAR). The SafetyCertification Plan shall cover the installation, test, evaluation, and operation on the target aircraftand will include plans for attaining Supplemental Type Certification/Federal AviationAdministration approval of installations.4.1.20 Monthly Management ReportsThe contractor shall provide monthly status letter reports, in contractor format, containing thefollowing at a minimum:• Management Summary• Program Cost and Schedule Data based on an earned value measurement system• Key Progress Elements• Deliverable Status• Risk Element Status Summary4.1.21 Final Phase I ReportThe Phase I Final Report shall consist of the Preliminary Design Review (PDR) viewgraphpackage and a final Management Report consisting of the items listed in Section 4.1.20 above.4.2 Phase II Objectives & DeliverablesPhase II of the program will develop, integrate, test, and certify two prototypes for each viableconcept. Offerors shall propose detailed objectives, activities, deliverables, programmatic andpayment milestones, and exit criteria that will ensure successful demonstration of a counter-21 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02MANPADS system on civil aircraft and thereby support a production decision. Offerors shalldevise an 18-month Phase II prototype development program. Phase II deliverables shallinclude, as a minimum, the following:• Two working prototype systems and associated support equipment;• System design;• Airframe & avionics integration installation plan;• FAA certification plan;• Test & evaluation plan;• Reliability and maintainability plan;• Operation and support plan;• Lifecycle costs plans and analysis.The schedule and complete description of all deliverables shall be proposed by the offeror.22 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-025 PAYMENT MILESTONESPayment will be through a payment milestone schedule. Upon completion of each paymentmilestone, the contractor will be paid an agreed upon amount. The fixed payment milestones forPhase I are as follows:5.1 Phase I Payment MilestonesAs part of the negotiated OT for Prototype agreement, payment will occur at significantmilestones, and offeror must satisfy exit criteria to receive the milestone payments, as detailedbelow.5.1.1 Payment Milestone 1 – System Requirements ReviewThe exit criteria for Milestone 1 are the successful completion of the Systems RequirementReview and acceptance of the System Requirements Document. The payment for PaymentMilestone 1 may be up to $500,000.5.1.2 Milestone 2 – Interim Design ReviewThe exit criterion for Milestone 2 is a successful Interim Design Review that shall address thefollowing:• Operations & Support Activities to-date,• Integration Planning to-date,• Security, Safety, and Certification activities to-date.• Summary of any changes to the functional requirements, system design, cost projections,or long-lead items.The payment for Payment Milestone 2 may be up to $500,000.5.1.3 Payment Milestone 3 – Long Lead Items ListThe exit criterion for Milestone 3 is the approval by the SPO of the Long Lead Items List(including sources, costs, and justifications for each item). A successful review by the SPO ofthe vendor’s long-lead items list. Success is defined as positive assessment by the SPO ofrelevant information presented by the vendor. Information to be presented shall include thejustification to consider each item a long-lead item, the cost of each item, and the deliveryschedule and risk associated with each item.5.1.4 Payment Milestone 4 – Preliminary Design ReviewThe exit criteria for the Milestone 4 are the successful completion of the Preliminary DesignReview and the submittal and acceptance of the remaining Phase I document deliverables. Thepayment for Payment Milestone 4 may be up to $1,000,000.5.2 Phase II Payment MilestonesThe number, schedule, and exit criteria for Phase II activities shall be described in the offeror’sproposal along with appropriate milestone award amount. The government shall review and23 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02negotiate the Milestone Payment Schedule and exit criteria as a part of the agreement negotiationprocess.24 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-026 PROPOSAL PREPARATION INSTRUCTIONSThis section contains the proposal procedures and general Agreement instructions for the offeror.The proposal will be in four parts:• Qualification Package and White Paper• Oral Presentation• Proposed Agreement with Attachments• Cost Proposal6.1 Qualification Package and White PaperProspective offerors will submit a preliminary written package that contains:• A white paper describing their proposed system concept, and• A description of their corporate qualifications to complete successfully both Phase I andPhase II of the Systems Studies and Technology Integration.6.1.1 White PaperThis document shall be a description of key elements and unique features of each offeror’sproposed DHS(S&T) Counter-MANPADS program. It shall describe the Technical Approach toinclude: technology identification, evaluation and solution set or alternatives to be considered;the top level performance criteria that will be met; the concept of operations; the impact onairliner systems and / or airport operations including expected availability and maintenance andoperating costs; and the logistics strategy. Additionally, the white paper should discuss anyalternative trades offs, reliability and maintainability development, and thetesting and evaluationsequence. Finally, the white paper Summary should include the top-level program schedule. Thewhite paper shall be no more than 10 pages long following the guidelines of Section 6.7.1.6.1.2 Corporate QualificationsOfferors will describe their corporate qualifications (including those of any team members) byciting up to five programs (include contract number, customer, customer contact information,period of performance, and technical and cost results) in the following areas:• Weapons system development and integration with emphasis on missile defensetechnology and fielded systems,• Systems transition to manufacturing including supportability and maintainability,• Systems integration and support design for a system integrated into a fleet of existingoperational aircraft, including airframe integration and flight certification,• Programs in which a transition to full engineering was accomplished in an acceleratedschedule,• Directed energy technology (for a DIRCM solution, other appropriate technology foralternative solutions), and25 3 October 2003

• Live fire testing.Offerors will describe:Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02• Facilities where the development effort will be carried out, including design, fabrication,and specialized testing facilities,• Integration facilities available for hardware and software testing,• Flight and airframe integration facilities to be used, and• Specialized aviation test facilities including wind tunnels to be used.Offerors will describe their adoption, level of achievement and certification in the CMMI(Capability Maturity Model® Integration) including Capability Maturity Model for Software(SW-CMM®), the Systems Engineering Capability Model (SECM), and the Integrated ProductDevelopment Capability Maturity Model (IPD-CMM) or ISO 9000 series. The CorporateQualifications package will be no more than 15 pages long following the guidelines of Section6.7.1.6.2 Oral PresentationOfferors shall deliver, at a time and location to be arranged, an oral presentation covering thesystem concept, technical approach, systems engineering, program plan, costs and personnelqualifications. The oral presentation shall be no more than four hours in length, not includinggovernment questions, and may use viewgraphs, overhead transparencies and wall charts (nomore than two). Hard copy (12 copies) of viewgraphs will be provided to the government team.To complete development in two years, the offeror must start with a mature design and systemconcept, and technical approach should be described in sufficient detail to assess that maturity.The oral presentation shall cover at least the following subjects in any order.6.2.1 QualificationsA summary of the corporate qualifications described in section 6.1.2 is permitted. In addition,the offeror will present the personnel qualifications of up to twelve key members of the offeror’steam to include their education, qualifications and experience. These qualifications shall include(but not be limited to):• Program manager• Chief engineer• Systems engineer• Reliability engineer• Logistics and supportability engineer• Aviation industry liaison• Chief testing engineerOne page resume hand-outs will be delivered with the presentation.26 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-026.2.2 System ConceptInclude the technology used, a system illustration, and system diagram, a concept of operationsto include sequence of events and required operator, pilot, or other personnel actions. Foraircraft-mounted systems, describe the mounting location and attachment concept.6.2.3 Top Level Performance SpecificationsList the proposed top-level performance specifications, using a goal / threshold designation ifdesired. Include range, response time, threat countered, reliability, and impact on aviationoperations. The government has provided a notional set of performance specifications, commenton the appropriateness of those specifications and their values, their attainability, andcompleteness.6.2.4 SensorsDescribe the sensors used to determine missile attack. Include their capabilities (sensed effects,active or passive, field of view, and sensitivity), size weight and power requirements, operationaluse and experience, stability, manufacturability and reliability.6.2.5 Nullification SystemsDescribe the systems used to thwart a MANPADS missile launch or flight. Include performancecharacteristics, flight or range envelopes, size weight and power requirements, operational useand experience, stability, manufacturability and reliability.6.2.6 System ArchitectureDescribe the top-level system architecture through a systematic identification of systemfunctions, hardware configuration items (HWCI), software configuration items (SWCI), internalinterfaces, external interfaces and messaging. For aircraft-mounted systems, describe the aircraftmechanical, electrical and data interfaces. For each configuration item, describe the maturity ofdesign.6.2.7 Key TechnologiesDescribe the key technologies crucial to the success of the proposed design. Include the risks,state of maturity, industrial base, manufacturability, reliability, and degree of successfulexperience with those technologies.6.2.8 Key Technical ParametersList the key technical performance parameters for the proposed design. Include probability ofkill (Pk) against a single attack and salvo attack, probability of false alarm (Pfa), reliability,effective range, time required to detect attack, time required to initiate nullification. Includeweight and drag for aircraft mounted systems.6.2.9 Testing to DateDescribe any testing and results to date of either complete systems or key components. Relate tothe top-level performance specification, key technical parameters, and key technologies.27 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-026.2.10 Maintenance ConceptDescribe the maintenance and support concept for a commercial aviation environment. Describethe operational, field and depot level maintenance actions required, their intervals, andmaintenance action times. Include any reload maintenance actions required after system firing.For aircraft-mounted systems, describe the integration of maintenance actions into the aircraftoperating cycles. Address the following:• Scheduled and unscheduled flight-line maintenance;• All levels of component maintenance;• Trade studies required to couple design alternatives with required maintenance levels;• Minimizing the amount of on-aircraft system maintenance;• Fault detection and isolation;• Fault tolerance;• Failure mode and effects evaluation;• How maintainability requirements will be achieved in design;• Modeling of flight-line maintenance concept, requirements, and procedures;• Modeling of component maintenance concept, requirements, and procedures;• Required infrastructure for providing the level of support necessary to minimize theimpact to airline operational reliability and costs;• Required support equipment and special handling equipment;• Operational interface between the system and the current maintenance communicationand reporting functions on the aircraft;• Additional mechanic training costs and methods to minimize the costs of maintenancemanual changes, mechanics training time, and other associated training costs; and• Predicted maintainability levels in terms of airline costs.6.2.11 Reliability and SupportabilityDescribe a top-level reliability analysis, including projected mean time between failures(MTBF), mean time to repair (MTTR), and operational availability (Ao). Include allocation ofreliability to critical components in the system architecture. Describe actions to be taken toenhance reliability and reduce cost of maintenance in a commercial aviation environment.6.2.12 TrainingDescribe any training (for pilots, maintenance personnel, aviation ground support or airportoperations) required.6.2.13 Installation ConceptDescribe the installation concept, including installation times required, and special installationequipment. If aircraft-mounted system, list time required for installation to the airframe.28 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-026.2.14 Lifecycle Costs6.2.14.1 Acquisition CostsEstimate the production costs for the 1000 th airframe unit or 100 th ground unit delivered.Estimate the production learning curve. Substantiate both estimates with analyses and data.Estimate the installation and check-out costs.6.2.14.2 Operations and Support CostsProvide an estimate of operating costs per take-off and landing assuming 1000 wide bodytype aircrafts operating 350 days/year with an average of two flights/day. For airframesystems, include drag and weight penalties. Include maintenance, consumables,organizational support, operators (if required), continued testing and validation, performanceanalysis, and training. Substantiate all estimates with analyses and data.6.2.15 Systems EngineeringThe offeror shall address the major systems engineering processes, including:• System Engineering Reviews – List the major engineering reviews with entrance and exitcriteria for each;• Technical Performance Measurement – describe the process for measuring and reportingthe progress towards attaining key performance parameters listed in the technical section;• Configuration Management and Change Control; and• Test Planning, Monitoring and Reporting.6.2.16 Test and Evaluation PlanDescribe the proposed test and evaluation plan, including the sequence of component, segmentand systems tests. Show where major system performance criteria are verified. Include a listingand description of major testing events to include integrated hardware in the loop tests, flightcertification tests, safety tests, flight tests, and any live fire tests.6.2.17 Program PlanThe oral briefing will also summarize the Program Plan, consisting of the Task DescriptionDocument (TDD), Integrated Master Schedule (IMS), Management Plan (MP), and PaymentMilestone Schedule (PMS), all described in Section 6.4 below and delivered as a part of theproposed agreement.6.3 Proposed AgreementThe offerors are required to include a Proposed Agreement to be made with DHS(S&T). Asample Model Agreement is provided for review in Section 8.0. Offerors shall prepare andsubmit review comments of the Proposed Agreement using the Model Agreement as a guide.The offerors are free to propose changes, additions, or deletions to the Model Agreement.Changes and modifications will be up for discussion during Agreement negotiations. Therationale for changes shall be added in an addendum to the Agreement. Rationale located inother areas of the solicitation response may be cross-referenced.29 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02In Article I, Scope of the Agreement, the offeror should briefly summarize the response to thissolicitation in terms of their overall vision for accomplishing the goals of this solicitation, and forcompleting Counter-MANPADS objectives.In Article III, Statement of Objectives, the offeror should re-state a set of top-level performancegoals and thresholds.In Article IV, Management of the Project, the offeror should provide a description of theofferor’s intended interaction between the offeror’s team and government. Any IntegratedProduct or Process Teams should be listed, as well as recurring reviews and reports. Theproposed lines of communication between the government and the offeror should be addressed.6.4 Proposed Agreement AttachmentsFollowing the Proposed Agreement proper is a series of Attachments, which become thefoundation of the program plan and sequence of work. The Attachments become a part of theAgreement. Requirements for these attachments are described below.6.4.1 Task Description Document (TDD)The offeror shall prepare a Task Description Document (TDD) that describes in hierarchicalfashion the work tasks required to accomplish the effort. The TDD shall be in a WorkBreakdown Structure (WBS) format broken out to at least the third level. Each task in the TDDshall describe the work to be carried out, end result of the task, the time allocated, theorganization performing the task, and the resources (labor, material and services) required. Theresources shall be costed to provide a baseline budgeted cost for the task. The TDD shall be at alevel sufficient to define the nature of the work to be carried out, measure progress, andunderstand the relationship of the tasks to one another.6.4.2 Integrated Master Schedule (IMS)The offeror shall load the tasks described in the TDD into a resource-loaded network (RLN) todevelop an overall program schedule. By using resource loaded tasks, the Integrated MasterSchedule (IMS) will become the budgeted cost of work scheduled (BCWS) baseline for theprogram. The costs will be broken out by top level WBS and month. The critical path, slack,and schedule reserves will be identified. The IMS shall be illustrated in both a Gantt Chart andNetwork Diagram format. The TDD and IMS shall be developed in commercially availableproject management software such as Scitor PS-8 or Microsoft Project and delivered to thegovernment.6.4.3 Management Plan (MP)The offeror shall develop a Management Plan (MP), in contractor format, that describes the rolesand responsibilities of the contractor team, reporting structures and mechanisms, risk assessmentand mitigation, cost and progress allocation and reporting, earned value monitoring, the baselinechange process, progress monitoring and the corporate oversight.30 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-026.4.4 Payment Milestone Schedule (PMS)The offeror shall develop a series of no less than six and no more than fourteen critical paymentmilestones, which shall be the basis for progress payments. The payment milestones for Phase Iare defined in Section 5.1 above. The offeror will propose payment milestones for Phase II,which will be negotiated as a part of the agreement. The payment amounts at each milestoneshall be listed in the schedule. The milestones shall be based on accomplishment of significantphases of the work plan as outlined in the TDD and scheduled in the IMS. For each paymentmilestone, the offeror shall propose an unambiguous quantifiable set of accomplishment criteria,which can be verified by the government, as a basis for payment. The payment milestones shallbe indicated in the IMS.6.4.5 “Other Transaction for Prototype” Questionnaire ResponseResponses to questions stated in Appendix A should detail how the Counter-MANPADSSystems Studies and Technology Integration for an “Other Transaction for Prototypes”Agreement, if awarded to your team, will contribute to a broadening of the technology andindustrial base available for meeting DHS needs. In addition, the responses should show how an“Other Transaction for Prototypes” Agreement would foster new relationships and practices thatsupport the national security of the United States. Your response will form, in part, thefoundation of a DHS(S&T) report to Congress. Responses are to be provided in the offeror’sformat.6.5 Cost ProposalThe cost proposal is to be provided in the offeror's format. However, the cost proposal shallhave a Cost Summary Sheet as the lead page to the Cost Proposal section. This page shall be aone-page summary of program costs in tabular format, broken down by Phase I, and an optionalPhase II (Phase I and Phase II are each nominally six months and 18 months); prime offeror /consortium lead, sub-tier participants / team members, and funding to federal laboratories andagencies; cost of major facility utilization (such as wind tunnels), and industry cost sharing.6.5.1 General InstructionsAllocation of costs by work breakdown structure, schedule and activity will be described in theTDD (section 6.4.1).If a teaming arrangement is proposed, the above cost information shall be provided for all teammembers.Certified cost or pricing data is not required. However, in order for the Government to assessprogram risk and determine the reasonableness, realism, and completeness of your cost proposal,the following data, must be provided for each team member and in a cumulative summary. Eachitem and category must be broken out by Phase I and Phase II.6.5.2 LaborTotal labor includes direct labor and all indirect expenses associated with labor, to be used forthe Phase I and Phase II periods of performance.31 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-026.5.3 Direct MaterialsTotal direct material that will be acquired and/or consumed in the Phase I and Phase II periods ofperformance. List only major items of material (>$20,000). Include major facility requirementssuch as wind tunnel testing or flight research vehicles, either specific or generic, government orcommercial. Include estimates of total facility occupancy and test time. At its discretion,DHS(S&T) may choose to make bulk purchases of facility time in one or more major testfacilities and apportion that test time to program participants.6.5.4 SubcontractsList efforts to be subcontracted, the source, and estimated cost and the basis for this estimate.Breakout subcontract costs by labor (amount and hours), material and other direct charges.6.5.5 Other Direct CostsAny direct costs not included above. Break out by categories.6.5.6 Government Furnished Equipment or InformationThe offeror shall explicitly list all assumed government furnished equipment (GFE) andgovernment furnished information (GFI) and the assumed delivery schedule for both. Thisinformation should be in sufficient detail for the government to assess the realism of providingsuch information or equipment and the costs of providing both.6.5.7 Cost SharingCost sharing is not required, but will be used to evaluate whether the proposed effort requirescost sharing and cost risk. If the offeror chooses to provide cost sharing information, theestimate should include the type of cost share, i.e. cash or in-kind. If in-kind is proposed, theofferor should provide a discussion of how the cost share was valued. If IR&D, a total estimatedamount of major IR&D projects and whether each IR&D program is dedicated or shared.6.6 Proposal ProceduresProposals that do not satisfy the following form and format requirements will be rejected withoutreview and returned to the offeror.6.6.1 Qualification Package and White PaperThe offeror’s qualification package and white paper shall be submitted as a single volume in astandard three-ring, loose-leaf binder with individual pages unbound and printed single sided.The entire proposal, excluding section dividers, should not exceed 25 pages. The evaluationteam will not consider pages submitted in excess of the page limit. One original and five copiesare required.6.6.2 Oral PresentationThe oral presentation shall cover the material described in section 6.2 and will be in standardviewgraph format. The oral presentation will be video recorded and will take no longer than fourhours exclusive of questions and breaks. Questions will be asked either at the end of a majorpresentation topic and at the end of the presentation. Two computer based projectors with32 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02screens will be available. The offeror should also supply twelve hard copies of the viewgraphsto be presented in a standard three-ring, loose-leaf binder with individual pages unbound andprinted single sided. The offeror may place no more than two viewgraphs per page. Themaximum number of viewgraphs is 250; however, the briefing must be completed in the allottedtime. The government reserves the right to consider or not consider, at its sole discretion, anyviewgraph not orally presented. In addition, the offeror may provide the following hard copymaterial for reference purposes along with the viewgraphs:• A cross reference of the proposal requirements by viewgraph• An index and list of acronyms• Resumes of key individuals• A wall chart or fold out covering the Integrated Master Schedule (IMS) and resourceloaded network.6.6.3 Proposed Agreement and Cost VolumeThe offerors Proposed Agreement, with Attachments, and the Cost Volume should be submittedas a single volume in a standard three-ring, loose-leaf binder with individual pages unbound andprinted single sided. Both should not exceed 80 pages excluding section dividers. Theevaluation team will not consider pages submitted in excess of the page limit. One original andfive copies are required.6.7 Proposal Submission SummaryThe following summarize the submission required of potential offerors:VOLUME SECTION DESCRIPTION Max # PagesIi Transmittal Letter 1White ii Cover Page 1Paper and 1 White Paper 10Quals2 Corporate Qualifications 15Sub-total 27IIViewgraphPackage1 Outline 42 Cross Reference 23 Resumes 124 Viewgraph Package 2505 Wall Chart 16 Index 57 List of Acronyms and Abbreviations 274IIIProposedAgreementi Transmittal Letter 2ii Cover Page 11 Proposed Agreement 2033 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-022 Proposed Agreement Attachments 303 Cost Proposal 304 Section 845 Questionnaire 2Sub-total 856.7.1 Page and Print InformationEach page should be on an 8-1/2” x 11” sheet with a font size of not less than 12 points;however, figures, charts, labels, headers and footers may be submitted with a font size of not lessthan eight points. Margins should be at least 1 inch on all sides. Fold out pages will be countedas multiple pages with the exception of the Integrated Master Schedule Gantt Chart. The IMSNetwork Charts, which may be included as an enclosed wall chart, will be counted against thepage count as a single page. Any proposal pages containing restrictions on the dissemination ofinformation must have a legend placed on each affected sheet/page.6.7.2 Proposal Delivery InformationAuthorized representatives of the offeror must sign proposal volumes. Responses not received atthe address and time specified below will be considered as a late proposal and will not bereviewed.6.7.2.1 Delivery LocationsThe delivery address for Volumes I and III is:Department of Homeland SecurityScience and Technology DirectorateAttention: Mr. Doug Roark[address to be provided]Volume II, the Viewgraph Package will be delivered at the commencement of the oralpresentation6.7.2.2 Proposal Schecule and Deadlines• The deadline for receipt of Volume I, White Paper and Qualifications is 20 October 2003,4:00 PM Eastern standard Time.• The deadline for receipt of Volume III, Proposed Agreement, is 26 November 2003, 4:00PM Eastern Standard Time.• The deadline for receipt of Volume II, the Viewgraph Package, is the commencement ofthe Oral Presentation.• The Oral Presentations are tentatively scheduled for the week of 1 December 2003. Eachofferor’s presentation will commence at 8:00 am on their assigned day. The order ofpresentations and assignment of days will be determined by lottery.34 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02.6.7.3 Electronic InformationOfferors are also required to submit their proposal in electronic format, on a CD-ROM,Microsoft Office compatible.6.7.4 Submission of Classified InformationOfferors intending to include classified information or data as part of their submissions shallcontact, in advance of providing their proposals to DHS(S&T), the POC for this solicitation, Mr.Doug Roark, (202)358-1355.6.7.5 Solicitation Questions and AnswersCommunication between industry and the Government is highly encouraged throughout thiseffort. Contractors may contact the Government focal points listed in the solicitation for anyquestions or clarifications up until the time that proposals are received. Questions will bereviewed and answered on a Frequently Asked Questions (FAQ) link from the DHS(S&T)Solicitations web page for this particular RA. Once proposals have been received, theGovernment Evaluation Team may contact the offeror with questions or clarification requestsabout the proposal. During the evaluation period, offerors should initiate all inquiries throughthe Agreements Officer, except when responding to a government evaluation team question.6.7.6 Regulations Governing Objections to Solicitation and AwardAny objections to the terms of this solicitation or to the conduct of receipt, evaluation, or awardof Agreements must be presented in writing within ten calendar days of (1) the release of thissolicitation, or (2) the date the objector knows or should have known the basis for its objection.Objections should be provided in letter format, clearly stating that it is an objection to thissolicitation or to the conduct of evaluation or award of an Agreement, and providing a clearlydetailed factual statement of the basis for objection. Failure to comply with these directions is abasis for summary dismissal of the objection. Mail objections to the address listed in theproposal delivery information.6.7.7 Non-Government ExpertsThe Government intends to use support contractors, plus other independent experts to assist inprocessing and administering proposals during the Source Selection, and to provide advicerelative to selected technical areas. These personnel are restricted by their contract fromdisclosing information contained in any proposal for any purpose to anyone outside of the SourceSelection for this effort. Moreover, all personnel used in this capacity are required to enter intoseparate Organizational Conflict of Interest/Non Disclosure Agreements to this effect. Bysubmission of its proposal, a team agrees that proposals may be disclosed to these personnel forthe purpose of providing this assistance.35 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-027 EVALUATION CRITERIA AND AWARD7.1 IntroductionPhase I selection will be made based on the evaluation of proposals based on the criteria outlinedin this section. Each proposal will receive a subjective, integrated evaluation by a single multidisciplinaryboard; this evaluation will form the basis for award selection. The governmentreserves the right to make award selections without discussions.7.2 Evaluation CriteriaThe government will evaluate all proposals based on the following criteria for each majorproposal section.7.2.1 Corporate Qualifications and White PaperDoes the offeror have the background, experience, and successful record of accomplishment thatwould indicate it has a high probability of success in the Counter-MANPADS SD&D effort?7.2.1.1 Corporate QualificationsCorporate experience will be evaluated against the qualifications listed in Section 6.1.2above. Particular attention will be paid to an assessment of whether the offeror has asuccessful record of accomplishment with similar accelerated developments, in a civilaviation and military environment.7.2.1.2 White PaperThe White Paper will be evaluated for the expected effectiveness of the design and systemconcept. Additional factors that will be considered include the technologies being pursued(the government may elect to pursue a mix of technologies to lower risk), the maturity of thesystem concept and design, and operations concept.7.2.2 Technical EvaluationThe technical evaluation will be based on the Oral Presentation. It will consider the followingfactors:• An evaluation of the system concept ability to meet the needs of the program, includingoperational concept in a civil aviation environment• The top level performance specifications proposed, including whether they meet theprogram needs and their realism• The effectiveness, design maturity and reliability of the sensors to be used• The effectiveness, design maturity and reliability of the nullification system to be used• The system architecture, including whether it is well-founded and reflects a flexible andexecutable design• The key technologies used including their risks, maturity, and industrial base• The key technical parameters, both those specified and offeror supplied• The testing done to date and the degree to which it adds confidence to the design andconcept• The maintenance concept, including its impact on civil aviation operations36 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02• The reliability and supportability analysis to include the quality of the analysis and itsresults• The training requirements• The installation concept and its impact on civil aviation operations• Estimated life cycle costs to include acquisition costs and operations and support costs• The systems engineering approach and systems engineering plan for risk reduction• The testing and evaluation plan to include an evaluation of the degree to which itprogressively verifies performance and reduces risk7.2.3 Management EvaluationThe management evaluation will be based on the oral presentation, submitted resumes and thesubmitted program plan (the TDD, IMS, and Management Plan) and will be evaluated for thefollowing factors:• The experience and qualifications of the top management team• The organization of the team, including clear division of responsibility and authority andlines of communication• Completeness of the plan;• Ability to meet the schedule within the resources planned;• Program risks and methods to mitigate those risks;• Soundness of the schedule network including its sensitivity to unexpected delays;• The schedule critical path;• The assignment of resources to the appropriate phases of work; and• Visibility into the progress, costs, and risks in the development.7.2.4 Cost RealismCost realism for this development effort will be evaluated in the Cost Volume and the TDD. Theobjective of this criterion is to assess the risk in the proposed program. The evaluation criteriabelow are used to evaluate the commitment of the offeror:• Costs are realistic relative to the scope of the proposed program;• Ability to cost-out separable tasks.7.3 Basis for AwardThe government expects to make two or more awards. The process by which the governmentmakes selections is as follows:7.3.1 Evaluation by CriteriaSuccessful Phase I proposals will incorporate a balanced approach that responds to all fourselection criteria. The criteria listed in section 7.2 above will be evaluated.7.3.2 Qualification Package and White PaperBased on the Qualifications and White Paper volume, an evaluation will be based on systemconcept, technical approach, technologies proposed and corporate qualifications. Adetermination of qualified or not qualified will be made. Those offerors determined to bequalified will be those deemed likely to be able to complete a development program of this37 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02nature in the time schedule allowed and will be invited to submit an program plan and oralpresentation. Those offerors deemed not qualified will not be further considered.7.3.3 Cost and Cost RealismThe government has stated the funding available for this effort and each development in section1.7 above. Payment is based on a fixed price paid at pre-defined Payment Milestones, with theexception of Phase I Milestone 4 (Long Lead Items). In this situation, the contractor assumes themajor share of the cost risk. Offerors may bid any total cost and combination of payments theydeem realistic. The cost proposals will be evaluated for the reasonableness of costs, and the riskthat the development costs could escalate to the point that the combination of government andcorporate funding will not allow completion of the program. The government will evaluate thePhase I and Phase II costs for realism.7.3.4 SelectionFor qualified proposals that have evaluated realistic costs that meet the cost goals listed insection 1.7 above, the selection will be based on the technical approach and management criteriaweighted approximately two to one in that order. The qualification score and costs are of lesserimportance and will be weighted in that order. The government will first consider proposals thatmeet these criteria.For qualified proposals that have evaluated realistic costs that exceed the cost goals listed insection 1.7 above, the selection will be based on a combination of technical approach andmanagement criteria weighted in that order combined with costs. Cost will increase inimportance as a factor as the costs increase to the limit that acceptance of the offerors proposalwould not allow the government to select two developers in Phase II.The government intends to select offers which give an overall portfolio that minimize the risks inachieving the goals of the program.38 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-028 MODEL AGREEMENT(THIS MODEL IS MERELY A GUIDE. VARIOUS ARTICLES ARE NEGOTIABLE.)AGREEMENTBETWEEN(INSERT COMPANY OR CONSORTIUM NAME AND ADDRESS)ANDTHE DEPARTMENT OF HOMELAND SECURITY7 TH AND D STREETS, SWROOM 4318-9WASHINGTON, DC 20407CONCERNINGCOUNTER-MAN-PORTABLE AIR DEFENSE SYSTEMS STUDIESAND TECHNOLOGY DEVELOPMENTAgreement No.:Procurement Guidance No.:Total Estimated Government Funding of the Agreement: $Company/Consortium's Cost Share/Contribution: $Funds Obligated: $Authority: Section 831(a)(2) of P.L. 107-296Line of Appropriation: AAThis Agreement is entered into between the United States of America, hereinafter called theGovernment, represented by the Department of Homeland Security and the (INSERT NAME ofConsortium) pursuant to and under U.S. Federal law.FOR (INSERT CONSORTIUM's NAME)FOR THE UNITED STATES OFAMERICA – THE DEPARTMENT OFHOMELAND SECURITY(Signature)(Signature)(Name, Title) (Date) (Name, Title) (Date)39 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02TABLE OF CONTENTSARTICLESPAGEARTICLE IARTICLE IIARTICLE IIIARTICLE IVARTICLE VARTICLE VIARTICLE VIIARTICLE VIIIARTICLE IXARTICLE XARTICLE XIARTICLE XIIARTICLE XIIIScope of the AgreementTermManagement of the ProjectAgreement AdministrationObligation and PaymentDisputesPatent RightsData RightsForeign Access to TechnologyCivil Rights ActPropertyGovernment Furnished Equipment or InformationAgreement DeliverablesATTACHMENTSATTACHMENT 1ATTACHMENT 2ATTACHMENT 3ATTACHMENT 4ATTACHMENT 5Task Description DocumentsIntegrated Master ScheduleManagement PlanPayable Milestone ScheduleSystem Engineering Plan40 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02ARTICLE I: SCOPE OF THE AGREEMENT(This article should state your vision and goals for the System Studies and TechnologyDevelopment Phase of the DHS(S&T) Counter-MANPADS Program and describe how yourproposed program satisfies the statement of objectives. This article should summarize the scopeof the work and business arrangement you are committing to by entering into this Agreement.In addition, this article should discuss the way you will interact with the DHS(S&T) programteam.)ARTICLE II: TERMA. The Term of this AgreementThis Agreement commences upon the date of the last signature hereon and continues for theduration of the System Studies and Technology Development Phase. For planning purposes, theestimated period of performance for the System Studies and Technology Development phase isdate of award through six months.B. Termination ProvisionsSubject to a reasonable determination that the program will not produce beneficial resultscommensurate with the expenditure of resources, the Government may terminate this Agreementby written notice to (COMPANY/CONSORTIUM NAME), provided that such written notice ispreceded by consultation between the Parties. In the event of a termination of the Agreement, itis agreed that disposition of Data developed under this Agreement, shall be in accordance withthe provisions set forth in Articles X, Data Rights. The Government and(COMPANY/CONSORTIUM NAME) will negotiate in good faith a reasonable and timelyadjustment of all outstanding issues between the Parties as a result of termination. Failure of theParties to agree to a reasonable adjustment will be resolved pursuant to Article VIII, Disputes.C. Extending the TermThe Parties may extend by mutual written agreement the term of this Agreement if fundingavailability and research opportunities reasonably warrant. Any extension shall be formalizedthrough modification of the Agreement by the Agreements Officer and the(COMPANY/CONSORTIUM NAME) Administrator.ARTICLE III: MANAGEMENT OF THE PROJECT(PROVIDE A PLAN FOR THE MANAGEMENT OF THE PROJECT INCLUDINGINTERACTION WITH DHS(S&T) PERSONNEL.)41 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02ARTICLE IV: PAYABLE EVENT SCHEDULE AND DELIVERABLESA. Payment ScheduleThe Team shall perform the work required by Task Description Document in Attachment 1. TheTeam shall be paid for each Payable Milestone accomplished and delivered in accordance withthe Schedule of Payments, Accomplishment Criteria and Payable Milestones set forth below.Both the Schedule of Payments and the Funding Schedule set forth below may be revised ormodified in accordance with subparagraph C of this article. For Phase I, however, the number ofpayable milestones and the payment amount received at each milestone is fixed and will not bechanged.B. Schedule of Payments and Payable Milestones(Add in schedule, accomplishment criteria and payable milestones)C. Modifications1. At any time during the term of the Agreement, progress or results may indicate that a changein the Task Description Document and/or the Payable Milestones would be beneficial to theprogram objectives. Recommendations for modifications, including justifications to support anychanges to the Statement of Objectives and/or the Payable Milestones, will be documented in aletter and submitted by the Team to the SPO Program Manager with a copy to the DHSAgreement Officer. This letter will detail the technical, chronological, and financial impact ofthe proposed modification to the research program. Any resultant modification is subject tomutual agreement of the parties. The Government is not obligated to pay for additional orrevised Payable Milestones until the Payable Milestones Schedule is formally revised by theSPO Agreements Officer and made part of this Agreement.2. The SPO Program Manager shall be responsible for the review and verification of milestoneaccomplishment criteria and any recommendations to revise or otherwise modify the AgreementTask Description Document, Schedule of Payments and Payable Milestones, or other proposedchanges to the terms and conditions of this Agreement.3. For minor or administrative Agreement modifications (e.g., changes in the paying office orappropriation data, changes to Government or Team personnel identified in the Agreement, etc.),the Government shall make these types of changes unilaterally4. The Government will be responsible for effecting all modifications to this agreement.ARTICLE IV: AGREEMENT ADMINISTRATION42 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02Administrative and contractual matters under this Agreement shall be referred to the followingrepresentatives of the parties:DHS(S&T): Mr. Doug Roark, Agreements Officer, Tel: (202)358-1355CONSORTIUM:(INSERT NAME) (INSERT TITLE) (INSERT TELEPHONE NUMBER)Technical matters under this Agreement shall be referred to the following representatives:DHS(S&T): Mr. Jim Tuttle, Agreements Officer’s Technical Representative, Tel: (202)692-4377CONSORTIUM:(INSERT NAME) (INSERT TITLE) (INSERT TELEPHONE NUMBER)Each party may change its representatives named in this Article by written notification to theother party.ARTICLE V: OBLIGATION AND PAYMENT (OTHER OPTIONS MAY BE CONSIDERED)A. Obligation1. The Government’s liability to make payments to the Consortium is limited to onlythose funds obligated under this Agreement or by modification to the Agreement. DHS(S&T)may incrementally fund this Agreement.2. If modification becomes necessary in performance of this Agreement, pursuant toArticle IV, paragraph C, the DHS(S&T) Agreements Officer and Consortium Administrator shallexecute a revised Schedule of Payable Milestones consistent with the then current Program Plan.B. Payments1. In addition to any other financial reports provided or required, the Consortium shallnotify the DHS(S&T) Agreements Officer immediately if any contribution from a ConsortiumMember is not made as required.2. Prior to the submission of invoices to DHS(S&T) by the Consortium Administrator,the Consortium shall have and maintain an established accounting system that complies withGenerally Accepted Accounting Principles, and with the requirements of this Agreement, andshall ensure that appropriate arrangements have been made for receiving, distributing andaccounting for Federal funds. The Parties recognize that as a conduit, the Consortium does notincur nor does it allocate any indirect costs of its own to the Consortium Member cost directlyincurred pursuant to this Agreement. Consistent with this, an acceptable accounting system willbe one in which all cash receipts and disbursements are controlled and documented properly.3. The Consortium shall document the accomplishments of each Payable Milestone bysubmitting or otherwise providing the Payable Milestones Report. The Consortium shall submitan original and one (1) copy of all invoices to the Agreements Officer for payment approval.After written verification of the accomplishment of the Payable Milestone by the Agreements43 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02Officer’s Representative, and approval by the Agreements Officer, the invoices will beforwarded to the payment office within fifteen (15) calendar days of receipt of the invoices atDHS(S&T). Payment approval for the final Payable Milestone will be made after reconciliationof DHS(S&T) funding with actual Consortium contributions. Payments will be made by DHS,Dallas Finance Center, P.O. Box 561567, Dallas, TX 75356-1547, Attention: Bolton/Sheffield.Subject to change only through written Agreement modification, payment shall be made to theaddress of the Consortium Administrator set forth below.4. Address of Payee: (INSERT NAME AND ADDRESS OF PAYEE)5. Government funds shall be maintained in an interest-bearing account prior todisbursement to Consortium Members. This account shall not be in U. S. Treasury Notes. Anyinterest earned shall be remitted annually to the DHS(S&T) Agreements Officer, or designee.Interest payments shall be made payable to the U. S. Treasury. Interest amounts less than $250per year may be retained by the Consortium for administrative expenses.6. Payments shall be made in the amounts set forth in Schedule of Payments and PayableMilestones, provided the DHS(S&T) Agreements Officer’s Representative has verified theaccomplishment of the Payable Milestones. It is recognized that the quarterly accounting ofcurrent expenditures reported in the “Quarterly Business Status Report” is not necessarilyintended or required to match the Payable Milestones until submission of the Final Report;however, payable milestones shall be revised during the course of the program to reflect currentand revised projected expenditures.7. Limitation of Funds: In no case shall the Government’s financial liability exceed theamount obligated under this Agreement.8. Financial Records and Reports: Financial Records and Reports: The Consortium'srelevant financial records associated with this Agreement are not subject to examination or auditby the Government, except as noted below, since the confirmed accomplishment of theappropriate milestone completes the obligation of both parties.9. The Comptroller General, at its discretion, shall have access to and the right toexamine records of any party to the agreement or any entity that participates in the performanceof this agreement that directly pertain to, and involve transactions relating to, the agreement for aperiod of three (3) years after final payment is made. This requirement shall not apply withrespect to any party to this agreement or any entity that participates in the performance of theagreement, or any subordinate element of such party or entity, that has not entered into any otheragreement (contract, grant, cooperative agreement, or “other transaction”) that provides for auditaccess by a government entity in the year prior to the date of this agreement. This paragraphonly applies to any record that is created or maintained in the ordinary course of business orpursuant to a provision of law. All the terms of this paragraph shall be included in all subagreementsto the agreement.ARTICLE VI: DISPUTESA. General44 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02Parties shall communicate with one another in good faith and in a timely and cooperative mannerwhen raising issues under this Article.B. Dispute Resolution Procedures1. Any disagreement, claim or dispute between DHS(S&T) and the Consortium concerningquestions of fact or law arising from or in connection with this Agreement, and, whether or notinvolving an alleged breach of this Agreement, may be raised only under this Article.2. Whenever disputes, disagreements, or misunderstandings arise, the Parties shall attempt toresolve the issue(s) involved by discussion and mutual agreement as soon as practicable. In noevent shall a dispute, disagreement or misunderstanding which arose more than three (3) monthsprior to the notification made under subparagraph B.3 of this article constitute the basis for reliefunder this article unless the Undersecretary of Department of Homeland Security for Science andTechnology, in the interests of justice, waives this requirement.3. Failing resolution by mutual agreement, the aggrieved Party shall document the dispute,disagreement, or misunderstanding by notifying the other Party (through the DHS(S&T)Agreements Officer or Consortium Administrator, as the case may be) in writing of the relevantfacts, identify unresolved issues, and specify the clarification or remedy sought. Within five (5)working days after providing notice to the other Party, the aggrieved Party may, in writing,request a joint decision by the DHS Senior Procurement Executive and senior executive (nolower than (INSERT A LEVEL OF EXECUTIVE FAR ENOUGH REMOVED FROM THEPROGRAM TO MAINTAIN A GREATER LEVEL OF IMPARTIALITY) level) appointed by theConsortium. The other Party shall submit a written position on the matter(s) in dispute withinthirty (30) calendar days after being notified that a decision has been requested. The DHS (S&T)Senior Procurement Executive and the senior executive shall conduct a review of the matter(s) indispute and render a decision in writing within thirty (30) calendar days of receipt of such writtenposition. Any such joint decision is final and binding.4. In the absence of a joint decision, upon written request to the Undersecretary of Departmentof Homeland Security for Science and Technology, made within thirty (30) calendar days of theexpiration of the time for a decision under subparagraph B.3 above, the dispute shall be furtherreviewed. The Undersecretary of Department of Homeland Security for Science and Technologymay elect to conduct this review personally or through a designee or jointly with a seniorexecutive (no lower than (INSERT A LEVEL OF EXECUTIVE FAR ENOUGH REMOVEDFROM THE PROGRAM TO MAINTAIN A GREATER LEVEL OF IMPARTIALITY) level)appointed by the Consortium. Following the review, the Undersecretary of Department ofHomeland Security for Science and Technology or designee will resolve the issue(s) and notifythe Parties in writing. Such resolution is not subject to further administrative review and, to theextent permitted by law, shall be final and binding.ARTICLE VII: PATENT RIGHTS(The offeror should propose provisions that (1) allow for innovation in processing, handling andownership of rights in patents, conceived or first reduced to practice under this agreement, and45 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02(2) demonstrate express mutual advantages to the Government and the offeror. The followingterms and conditions are included as a point of departure.)A. Definitions1. “Invention” means any invention or discovery which is or may be patentable or otherwiseprotectable under Title 35 of the United States Code.2. “Made” when used in relation to any invention means the conception or first actual reductionto practice of such invention.3. “Practical application” means to manufacture, in the case of a composition of product; topractice, in the case of a process or method, or to operate, in the case of a machine or system;and, in each case, under such conditions as to establish that the invention is capable of beingutilized and that its benefits are, to the extent permitted by law or Government regulations,available to the public on reasonable terms.4. “Subject invention” means any invention of a Team Member conceived or first actuallyreduced to practice in the performance of work under this Agreement.B. Allocation of Principal RightsThe Team shall retain the entire right, title, and interest throughout the world to each subjectinvention consistent with this Article and 35 U.S.C. § 202. With respect to any subject inventionin which the Team retains title, DHS(S&T) shall have a non-exclusive, nontransferable,irrevocable, paid-up license to practice or have practiced on behalf of the United States thesubject invention throughout the world. Notwithstanding the above, the Team may elect toprovide full or partial rights that it has retained to Team Members or other parties.C. Action to Protect the Government's Interest1. The Team agrees to execute or to have executed and promptly deliver to DHS(S&T) allinstruments necessary to (i) establish or confirm the rights the Government has throughout theworld in those subject inventions to which the Consortium elects to retain title and to enable theGovernment to obtain patent protection throughout the world in that subject invention.2. The Team shall include, within the specification of any United States patent application andany patent issuing thereon covering a subject invention, the following statement: “This inventionwas made with Government support under Agreement No. (agreement number will be inserted attime of award) awarded by DHS(S&T). The Government has certain rights in the invention.”46 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02D. Lower Tier AgreementsThe Team shall include this Article, suitably modified, to identify the Parties, in all subcontractsor lower tier agreements, regardless of tier, for experimental, development, or research work.E. Reporting on Utilization of Subject InventionsThe Team agrees to submit a final report on the utilization of a subject invention or on efforts atobtaining such utilization that are being made by the Team or its licensees or assignees. Thereport shall include information regarding the status of development, date of first commercialsale or use, gross royalties received by the Team subcontractor(s), and such other data andinformation as the agency may reasonably specify. The Team also agrees to provide additionalreports as may be requested by DHS(S&T) in connection with any march-in proceedingsundertaken by DHS(S&T) in accordance with paragraph G of this Article. Consistent with 35U.S.C. § 202(c)(5), DHS(S&T) agrees it shall not disclose such information to persons outsidethe Government without permission of the Team.F. Preference for American IndustryNotwithstanding any other provision of this Article, the Team agrees that it shall not grant to anyperson the exclusive right to use or sell any subject invention in the United States or Canadaunless such person agrees that any product embodying the subject invention or produced throughthe use of the subject invention shall be manufactured substantially in the United States orCanada. However, in individual cases, the requirements for such an agreement may be waivedby DHS(S&T) upon a showing by the Team that reasonable but unsuccessful efforts have beenmade to grant licenses on similar terms to potential licensees that would be likely to manufacturesubstantially in the United States or that, under the circumstances, domestic manufacture is notcommercially feasible.G. March-in RightsThe Team agrees that, with respect to any subject invention in which it has retained title,DHS(S&T) has the right to require the Team, an assignee, or exclusive licensee of a subjectinvention to grant a non-exclusive license to a responsible applicant or applicants, upon termsthat are reasonable under the circumstances, and if the Team, assignee, or exclusive licenseerefuses such a request, DHS(S&T) has the right to grant such a license itself if DHS(S&T)determines that:47 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-021. Such action is necessary because the Team or assignee has not taken effective steps,consistent with the intent of this Agreement, to achieve practical application of the subjectinvention;2. Such action is necessary to alleviate health or safety needs that are not reasonably satisfied bythe Team, assignee, or their licensees;3. Such action is necessary to meet requirements for public use and such requirements are notreasonably satisfied by the Team, assignee, or licensees; or4. Such action is necessary because the agreement required by paragraph (I) of this Article hasnot been obtained or waived or because a licensee of the exclusive right to use or sell any subjectinvention in the United States is in breach of such Agreement.ARTICLE VIII: DATA RIGHTS(The offeror should propose provisions that (1) allow for innovation in processing, handling andownership of rights in patents, conceived or first reduced to practice under this agreement, and(2) demonstrate express mutual advantages to the Government and the offeror. The followingterms and conditions are included as a point of departure.)A. Definitions1. “Government Purpose Rights”, as used in this article, means rights to use, duplicate, ordisclose Data, in whole or in part and in any manner, for Government purposes only, and to haveor permit others to do so for Government purposes only.2. “Unlimited Rights”, as used in this article, means rights to use, duplicate, release, or disclose,Data in whole or in part, in any manner and for any purposes whatsoever, and to have or permitothers to do so.3. “Data”, as used in this article, means recorded information, regardless of form or method ofrecording, which includes but is not limited to, technical data, software, trade secrets, and maskworks. The term does not include financial, administrative, cost, pricing or managementinformation and does not include subject inventions included under Article VII.4. “Limited rights” as used in this article means the rights to use, modify, reproduce, release,perform, display, or disclose technical data, in whole or in part, within the Government. TheGovernment may not, without the written permission of the party asserting limited rights, releaseor disclose the data outside the Government, use the technical data for manufacture, or authorizethe technical data to be used by another party.B. Allocation of Principal Rights48 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-021. This Agreement is performed with mixed Government and Team funding. The Parties agreethat in consideration for Government funding, the Team intends to reduce to practical applicationitems, components and processes developed under this Agreement.2. The Team agrees to retain and maintain in good condition until (INSERT NUMBER OFYEARS) (___) years after completion or termination of this Agreement, all Data necessary toachieve practical application. In the event of exercise of the Government's March-in Rights asset forth under Article VII or subparagraph B.3 of this article, the Team, acting through its TeamLead, agrees, upon written request from the Government, to deliver at no additional cost to theGovernment, all Data necessary to achieve practical application within sixty (60) calendar daysfrom the date of the written request. The Government shall retain Unlimited Rights, as definedin paragraph A above, to this delivered Data.3. The Team agrees that, with respect to data necessary to achieve practical application,DHS(S&T) has the right to require the Team to deliver all such data to DHS(S&T) in accordancewith its reasonable directions if DHS(S&T) determines that:(a) Such action is necessary because the Team or assignee has not taken effective steps,consistent with the intent of this Agreement, to achieve practical application of the technologydeveloped during the performance of this Agreement;(b) Such action is necessary to alleviate health or safety needs which are not reasonablysatisfied by the Team, assignee, or their licensees; or(c) Such action is necessary to meet requirements for public use and such requirementsare not reasonably satisfied by the Team, assignee, or licensees.4. With respect to data delivered pursuant to Attachment 3, Reports (and listed below), theGovernment shall receive Government Purpose Rights, as defined in paragraph A above. Withrespect to all Data delivered, in the event of the Government's exercise of its right undersubparagraph B.2 of this article, the Government shall receive Unlimited Rights.C. Marking of DataPursuant to paragraph B above, any data delivered under this Agreement shall be marked withthe following legend:“Use, duplication, or disclosure is subject to the restrictions as stated in Agreement(appropriate agreement number will be inserted at time of award) between the Governmentand the Team.”D. Lower Tier AgreementsThe Team shall include this Article, suitably modified to identify the Parties, in all subcontractsor lower tier agreements, regardless of tier, for experimental, developmental, or research work.49 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02ARTICLE X: FOREIGN ACCESS TO TECHNOLOGYThis Article shall remain in effect during the term of the Agreement and for (INSERT NUMBEROF YEARS) ( ) years thereafter.A. Definition1. “Foreign Firm or Institution” means a firm or institution organized or existing underthe laws of a country other than the United States, its territories, or possessions. The termincludes, for purposes of this Agreement, any agency or instrumentality of a foreign government;and firms, institutions or business organizations which are owned or substantially controlled byforeign governments, firms, institutions, or individuals.2. “Know-How” means all information including, but not limited to discoveries,formulas, materials, inventions, processes, ideas, approaches, concepts, techniques, methods,software, programs, documentation, procedures, firmware, hardware, technical data,specifications, devices, apparatus and machines.3. “Technology” means discoveries, innovations, Know-How and inventions, whetherpatentable or not, including computer software, recognized under U.S. law as intellectualcreations to which rights of ownership accrue, including, but not limited to, patents, trade secrets,maskworks, and copyrights developed under this Agreement.B. GeneralThe Parties agree that research findings and technology developments arising under thisAgreement may constitute a significant enhancement to the national defense, and to theeconomic vitality of the United States. Accordingly, access to important technologydevelopments under this Agreement by Foreign Firms or Institutions must be carefullycontrolled. The controls contemplated in this Article are in addition to, and are not intended tochange or supersede, the provisions of the International Traffic in Arms Regulation (22 CFR pt.121 et seq.), and the Department of Commerce Export Regulation (15 CFR pt. 770 et seq.)C. Restrictions on Sale or Transfer of Technology to Foreign Firms or Institutions1. In order to promote the national security interests of the United States and toeffectuate the policies that underlie the regulations cited above, the procedures stated insubparagraphs C.2, C.3, and C.4 below shall apply to any transfer of Technology. For purposesof this paragraph, a transfer includes a sale of the company, and sales or licensing ofTechnology. Transfers do not include:(a)sales of products or components, or(b) licenses of software or documentation related to sales of products orcomponents, or50 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02(c) transfer to foreign subsidiaries of the Consortium Members for purposesrelated to this Agreement, or(d) transfer which provides access to Technology to a Foreign Firm orInstitution which is an approved source of supply or source for the conduct of researchunder this Agreement provided that such transfer shall be limited to that necessary toallow the firm or institution to perform its approved role under this Agreement.2. The Consortium shall provide timely notice to DHS(S&T) of any proposed transfersfrom the Consortium of Technology developed under this Agreement to Foreign Firms orInstitutions. If DHS(S&T) determines that the transfer may have adverse consequences to thenational security interests of the United States, the Consortium, its vendors, and DHS(S&T) shalljointly endeavor to find alternatives to the proposed transfer which obviate or mitigate potentialadverse consequences of the transfer but which provide substantially equivalent benefits to theConsortium.3. In any event, the Consortium shall provide written notice to the DHS(S&T)Agreements Officer’s Technical Representative and Agreements Officer of any proposed transferto a foreign firm or institution at least sixty (60) calendar days prior to the proposed date oftransfer. Such notice shall cite this Article and shall state specifically what is to be transferredand the general terms of the transfer. Within thirty (30) calendar days of receipt of theConsortium’s written notification, the DHS(S&T) Agreements Officer shall advise theConsortium whether it consents to the proposed transfer. In cases where DHS(S&T) does notconcur or sixty (60) calendar days after receipt and DHS(S&T) provides no decision, theConsortium may utilize the procedures under Article VI, Disputes. No transfer shall take placeuntil a decision is rendered.4. In the event a transfer of Technology to Foreign Firms or Institutions which is NOTapproved by DHS(S&T) takes place, the Consortium shall (a) refund to DHS(S&T) funds paidfor the development of the Technology and (b) the Government shall have a non-exclusive,nontransferable, irrevocable, paid-up license to practice or have practiced on behalf of the UnitedStates the Technology throughout the world for Government and any and all other purposes,particularly to effectuate the intent of this Agreement. Upon request of the Government, theConsortium shall provide written confirmation of such licenses.D. Lower Tier AgreementsThe Consortium shall include this Article, suitably modified, to identify the Parties, in allsubcontracts or lower tier agreements, regardless of tier, for experimental, developmental, orresearch work.ARTICLE XI: CIVIL RIGHTS ACTThis Agreement is subject to the compliance requirements of Title VI of the Civil Rights Act of1964 as amended (42 U.S.C. 2000-d) relating to nondiscrimination in Federally assistedprograms. Each Consortium Member company has signed an Assurance of Compliance with thenondiscriminatory provisions of the Act. The Parties recognize that since the Consortium has noemployees, that compliance is the responsibility of each Consortium Member.51 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02ARTICLE XII: TITLE AND DISPOSITION OF PROPERTYA. DefinitionsIn this article “property” means any tangible personal property other than property actuallyconsumed during the execution of work under this agreement.B. Title to PropertyTitle to each item of property acquired under this Agreement with an acquisition value of $5,000or less shall vest in the Consortium upon acquisition with no further obligation of the Partiesunless otherwise determined by the Agreements Officer. Should any item of property with anacquisition value greater than $5,000 be required, the Consortium shall obtain prior writtenapproval of the DHS(S&T) Agreements Officer. Title to this property shall also vest in theConsortium upon acquisition. The Consortium shall be responsible for the maintenance, repair,protection, and preservation of all property at its own expense.C. Disposition of PropertyAt the completion of the term of this Agreement, items of property with an acquisition valuegreater than $5,000 shall be disposed of in the following manner:1. Purchased by the Consortium at an agreed-upon price, the price to represent fairmarket value, with the proceeds of the sale being returned to DHS(S&T); or2. Transferred to a Government research facility with title and ownership beingtransferred to the Government; or3. Donated to a mutually agreed University or technical learning center for researchpurposes; or4. Any other DHS(S&T)-approved disposition procedure.ARTICLE XIII: GOVERNMENT FURNISHED EQUIPMENT OR INFORMATIONThe consortium shall list all government furnished equipment, services or information that isexpected to be provided in order to carry out this effort, sufficiently identifying the items to bedelivered, the schedule, place and method or form of delivery.ARTICLE IX: AGREEMENT DELIVERABLESThe consortium shall list the agreement deliverables and the schedule date for delivery for theSystem Studies and Technology Development Phase.52 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-028.1 “Other Transactions for Prototypes” QuestionnaireOfferors shall submit responses to each of the two questions, below, with their proposal. PleaseDO NOT provide “Boiler Plate” answers to these questions. Your response will form thefoundation of a submission to DHS(S&T) and Congress.It is preferable that the response to each question consumes no more than one page. (A series ofthought provoking questions are provided to assist you in formulating your responses.)Responses are to be provided in offeror format.1. To what extent will the DHS(S&T) Counter-MANPADS “Other Transactions forPrototypes” agreement (if awarded to your team) contribute to a broadening of the technologyand industrial base available for meeting commercial as well as Department of HomelandSecurity needs? Your discussion must focus on how the use of this “Other Transactions”agreement will contribute to a broadening of the technology and industrial base available formeeting DHS(S&T)/DoD needs.2. To what extent will the DHS(S&T) Counter-MANPADS “Other Transactions forPrototypes” agreement (if awarded to your team) foster new relationships and practices thatsupport the national security of the United States? The discussion must focus on how the use ofan “Other Transactions” agreement has fostered new relationships and practices that support thenational security of the United States.When formulating your responses to the two “Extent” questions, above, please consider thefollowing:The intention is for your answers to provide a brief explanation of the ways in which the use of a“Other Transactions for Prototypes” agreement (if awarded to your team), rather than a standardprocurement contract/cooperative agreement, will assist the Department of Homeland Security inbetter meeting U.S. national security policy goals and objectives. Specifically:1. Will the use of the “Other Transactions for Prototypes” agreement allow you toinvolve any commercial firms in the project that would not otherwise have participated? If so:a. Which firms are they?b. Are there provisions of the DHS(S&T) Counter-MANPADS “Other Transactions forPrototypes” agreement, or features of the award process, that will enable their participation? Ifso, specifically what they are?c. What are the expected benefits of your team’s participation (e.g., technology that isbetter, more readily available, or less expensive)? Please be specific about the benefits andexplain why you expect to realize them.d. Why would other firms not participate if a standard instrument were used? For example:Do the firms in question normally not do business with the Government? Do they do businesswith the Government only through “Other Transactions” or contracts for commercial items? Or,53 3 October 2003

Department of Homeland SecurityCounter-MANPADS Development and Demonstration – Solicitation RA-02do they limit their volume of Federal contracts to avoid exceeding a threshold beyond which theywould have to comply with cost accounting standards or some other Government requirement?2. Will the use of the DHS(S&T) MANPADS “Other Transactions for Prototypes”agreement allow you to create new relationships among for-profit firms at the prime or subtierlevels; allow you to create new relationships among business units of the same firm; or, allowyou to create new relationships between firms and nonprofit performers that will helpDHS(S&T) get better technology in the future? If so:a. Between which participants were the new relationships formed?b. Why does your team believe that these new relationships will help DHS(S&T) get bettertechnology in the future?c. Were there provisions of the DHS(S&T) MANPADS “Other Transactions forPrototypes” agreement, or features of the award process, that will enable your participation? Ifso, specify what they are.3. Will the use of the DHS(S&T) Counter-MANPADS “Other Transactions forPrototypes” agreement allow traditional Government contractors to use new business practices inthe execution of this prototype project that will help DHS(S&T) obtain better technology, getnew technology more quickly, or get it less expensively? If so:a. Who are those contractors and what are the new business practices?b. What specific benefits do you believe DHS(S&T) will obtain from the use of these newpractices, and why do you believe that to be so?c. Were there provisions of the DHS(S&T) Counter-MANPADS “Other Transactions forPrototypes” agreement, or features of the award process, that will enable the use of these newpractices? If so, specify what they are.4. Are there any other benefits of the use of the DHS(S&T) Counter-MANPADS “OtherTransactions for Prototypes” agreement that you perceive will help the Department of Defensebetter meet its objectives in carrying out this prototype project? If so, what are they; how dothey help meet defense objectives; what features of the DHS(S&T) Counter-MANPADS “OtherTransactions for Prototypes” agreement, or award process, will enable DHS(S&T) to realize?Please be specific.54 3 October 2003