GPS_III_J A_LL_SV5_6.docx

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION I. CONTRACTING ACTIVITY

Contract Number: FA8807-12-C-0001

Contractor: Lockheed Martin Space Systems Company (LMSSC) P.O. Box 8048 Philadelphia, PA 19101-8048

Acquisition Office: Space and Missiles Systems Center

Contracting Office Location: SMC/GPK 483 North Aviation Boulevard El Segundo, CA 90245-2808

Contract Negotiator:

Contracting Officer:

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

This individual Justification and Approval (J&A) is for the authority to award a sole source Fixed-Price Incentive (Firm Target) (FPI(F)) type contract to Lockheed Martin Space Systems Company (LMSSC). The authority for this action is 10 U.S.C. § 2304 (c) (1) as implemented by FAR 6.302-1 (a)(2)(ii)(A), Only One Responsible Source and Not Other Supplies or Services Will Satisfy Agency Requirements due to substantial duplication of cost to the Government that is not expected to be recovered through competition.

III. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY'S NEEDS

Under the contemplated contract action, LMSSC will provide long lead parts for GPSIII Space Vehicle (SV) 5 and SV 6. These parts include, but are not limited to: (1) attitude control system assemblies, (2) Ultra High Frequency (UHF) receive cylinders, (3) pyro cartridges, (4) relays, (5) battery cells, (6) solar array yokes/booms, (7) circuit card assemblies, (8) transistors, (9) transformers, (10) plexers, (11) crystal oscillators, (12) atomic frequency standards, (13) feed support panel, (14) UHF beam forming network, (15) cable cutters, (16) diodes, (17) solar array cells, (18) propulsion tanks, (19) inductors, (20) single board computers, (21) amplifiers, (22) oscillators, (23) antenna elements, (24) hinges, (25) solar array drive assemblies, (26) capacitors, solar array substrates, (27) transducers, (28) on-board computer, (29) integrated circuits, (30)

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(31) hybrids, (32) filters and (33) field programmable gate arrays. The delivery dates for the long lead parts for SV 5 and SV 6-are 8 May 2017 and 6 Aug 2017, respectively.

The estimated cost of this proposed contract action is $75M and Procurement funds (3020 appropriations) will fund the effort.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION

This request is made pursuant to the authority of 10 U.S.C. § 2304(c)(l) as implemented by FAR Part 6.302-1 (a)(2)(ii)(A), Only One Responsible Source and Not Other Supplies or Services Will Satisfy Agency Requirements due to substantial duplication of cost to the Government that is not expected to be recovered through competition.

V. DEMONSTRATION THAT THE CONTRACTOR'S UNIQUE QUALIFICATIONS OR NATURE OF THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY OF AUTHORITY)

In accordance with FAR 6.302-1(a)(2)(ii)(A), full and open competition is not required when it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

As such, given the following reasons, the Government would incur substantial duplication of cost that would not be recovered through competition:

As the developer of the GPS III SVs, LMSSC is in a unique position to provide fully compliant long lead parts for SV 5 through SV 6. LMSSC fully understands the requirements of the GPS III contract. They have successfully accomplished a Critical Design Review (CDR), have all the personnel and facilities in place to manufacture GPS III SVs, have commenced manufacturing GPS III SV 1 and SV 2 and have begun long lead procurement for SV 3 and 4.

The Government estimates that another source would have to expend at least $1B to provide the supplies described in Section III above. This estimate is based upon the fact that under the current GPS III contract for SV1-SV4, LMSSC has expended almost $1 B over the past 3 ½ years to complete engineering, manufacturing and design work, including a successful CDR in August2010, to produce a design that satisfies all requirements of that contract, and which will be suitable for production and deployment. All of the supplies described in Section III above are critical GPS III SV components whose design the Government approved during the CDR, which LMSSC will rigorously test in accordance with the requirements of the contract prior to the Government approving the use of those components Any other source would have to recreate the LMSSC design, ensure the components it would design would be compatible with LMSSC's design, develop new Source Control Drawings that comply with the requirements of LMSSC's GPS III SV1-SV4 contract, identify new suppliers, and delivery those long lead parts to the Government

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

On 3 June 2011, the Contracting Officer posted a Sources Sought Synopsis to the Government wide Point of Entry (Federal Business Opportunities, www.fedbizopps.gov) in accordance with FAR 5.201. The notice stated the Government's intent to award a sole-source modification to the GPS III contract for the supplies and services described in Section Ill above and required interested offerors to provide a Statement of Capability within 15 calendar days of publication. The only offeror who provided a response was LMSSC.

This substantiates the government's position that only one responsible source is capable of performing the work in accordance with FAR 6.302-l(a)(2)(ii).

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

Based on (1) the Government's Program Office Estimate, (2) certified cost and pricing data to be obtained from LMSSC, (3) DCAA rates and factors review, (4) DCMA recommendations, and (5) technical evaluations conducted by the Government, the Contracting Officer will have adequate information to ensure that the cost/price to the Government for this acquisition is fair and reasonable.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR A STATEMENT OF THE REASONS MARKET RESEARCH WAS NOT CONDUCTED

As described in Section VI above, market research, in accordance with FAR Part I 0, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. The only offeror who provided a response was LMSSC.

IX. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COMPETITION

None.

X. LIST OF SOURCES, IF ANY, THAT EXPRESSED INTEREST IN THE ACQUISITION

See Section VI above.

XI. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING SUBSEQUENT ACQUISITIONS FOR THE SUPPLIES OR SERVICES REQUIRED

The supplies described in Section III above are the only long-lead components that will need to be installed into GPS III SV 5 and SV 6 satellites. As a result, the Government does not anticipate any need to procure additional quantities of those items pursuant to any subsequent acquisition.

XII. CONTRACTING OFFICER'S CERTIFICATION

The Contracting Officer's signature on the Coordination and Approval Document evidences that she has determined this document to be both accurate and complete to the best of her knowledge and belief. (FAR 6.303-2(b))

XIII. TECHNICAL/REQUIREMENTS PERSONNEL'S CERTIFICATION

As evidenced by the signatures on the Coordination and Approval Document, the technical and/or requirements personnel have certified that any supporting data contained herein, which is their responsibility, is both accurate and complete. (FAR 6.303-2(c))