RDC Redacted J&A.pdf

J&A No: 19-0024

Contract No: HQ0147-18-D-0002

MISSILE DEFENSE AGENCY

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Introductory Paragraph.

Upon the basis of the following justification, I, as Director of the Missile Defense Agency

(MDA), hereby approve the issuance of the contractual action discussed below using other than full and open competition pursuant to the authority cited herein.

2. Agencies and Contracting Activity, (FAR 6.303-2(b)(1)).

This Justification and Approval (J&A) is for the MDA Sensors Directorate (MDA/SN).

3. Nature and Description of the Action Being Approved, (FAR 6.303-2(b)(2)).

The action approved by this J&A is the award of follow-on Sole Source Indefinite Delivery/

Indefinite Quantity (ID/IQ) task orders for the highly specialized radar development services available from Raytheon Company, Integrated Defense Systems (IDS), (hereafter referred to as

Raytheon), Woburn, Massachusetts. The radar development services under this J&A is for a family of radars comprised of, but not limited to, the Army/Navy Transportable Radar

Surveillance and Control Model 2 (AN/TPY-2) Terminal Mode (TM) and Forward Based Mode

(FBM), and the Sea-Based X-band (SBX) Radar. This contract action(s) follows the 1st Quarter

Fiscal Year 2018 (1QFY18) award of the Sole Source ID/IQ Radar Development Contract

(RDC) for highly specialized radar development services as authorized under J&A (17-0009) approved on April 25, 2017. The RDC has a five year base ordering period and one successive one-year optional ordering period. The previously approved stated maximum value for this contract was . With this J&A, MDA/SN intends to increase the contract stated maximum value by via contract modification to the existing ID/IQ contract, for a total contract stated maximum value of .

4. Description of the Supplies and/or Services Required to Meet the Agency’s Needs

(including the estimated value), (FAR 6.303-2(b)(3)).

The highly specialized services required to meet the Agency’s needs for the X-Band radars include:

Product improvement, including developmental upgrades of software and development of hardware and software to meet enhanced capabilities and risk reduction measures

Warfighter support, including wargames and exercise support

Engineering services, including engineering support for delivered and accepted radars to facilitate maintenance efforts which may include, but are not limited to, hardware obsolescence studies, hardware redesign, technology insertion and refurbishment

BMDS test subject matter expert (SME) support

Tactical X-band Radar system and software Modeling and Simulation (M&S) SME support.

Cybersecurity

After approval of J&A 17-0009, additional operational needs for the X-Band radars were identified. These capabilities were in response to emerging threats, and drove additional/accelerated in-scope requirements to meet the Agency’s needs, to include:

Additional Capability in PB20 submission

Directorate of Engineering Funding

Based on these additional and accelerated in-scope requirements, an Independent Government

Cost Estimate was developed with an amount of . This J&A incorporates these requirements, adding the appropriate value of through FY2023. This value added to the initial approved J&A value of equates to a total value of .

The adjusted Government funding profile, based on these additional capabilities over the course of the RDC ID/IQ ordering period, is shown in the table below:

The funding profile is based on a formal Independent Government Cost Estimate derived from estimating software, analogy of historical costs at similar sites, and buildup of vendor quotes, personnel labor and other direct costs.

FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Total

Additional Capability

(PB20)

*DE Funding -

Total Additional Ceiling

Value

J&A No: 19-0024

New Ceiling Value

A d d it io n al

A cc e le ra te d

In -S co p e R e q u ir e m e n ts

Original Ceiling Value (PB18)

J&A No: 17-0009

The Government will fund its efforts using Research, Development, Test and Evaluation

(RDT&E) for the AN/TPY-2 and SBX Defense-Wide appropriation funds or other funds as authorized and appropriated by Congress.

5. Statutory Authority Permitting Other than Full and Open Competition, (FAR 6.303-

2(b)(4)).

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(1) as implemented by Federal Acquisition Regulation (FAR) 6.302-1 (a)(2)(iii) where services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in unacceptable delays in fulfilling the agency’s requirements.

6. Demonstration of Contractor’s Unique Qualifications or the Nature of the Acquisition

Requires Use of the Authority Cited (FAR 6.303-2(b)(5)).

Raytheon has been the X-Band Radar original product developer for the MDA for more than 20 years. The current contract (HQ0147-18-D-0002) encompasses all RDC support for the X-Band radars, via a single multi-year ID/IQ contract that was awarded to Raytheon. This approach provided significant cost savings by combining duplicative efforts, reducing overhead expenses and scope, and prevented a gap in development. As the original product developer of the MDA

X-Band radars since 1992, Raytheon has highly specialized technical expertise to meet the aforementioned agency requirements.

Unacceptable delays in fulfilling the agency’s requirements:

The existing software architecture dictates a reliance on the product developer’s highly specialized technical expertise to operate and maintain the system.

Without Raytheon’s highly specialized expertise and knowledge of BMDS X-Band radars acquired as the developer, another source would not be able to establish a software and hardware development approach that was developed by Raytheon and successfully execute it without encountering delays that would preclude the agency from meeting its requirements to the BMDS and the persistent Warfighter sensor needs.

The need date for RDC services and support remains a constant and persistent Warfighter need.

The capability and capacity performance requirements are needed 24 hours a day 7 days a week to support the

Warfighter and their ability to counter the threat.

7. Description of Market Research Conducted (FAR 6.303-2(b)(6), (8) and (10)).

MDA/SN conducted market research to determine interest and capability for its follow-on X-

Band Radar requirements. MDA determined, via market research and its industry knowledge that there are no industry sources that can currently provide the highly specialized services to meet the Agency’s requirements to include the mission need dates addressed herein.

MDA’s industry knowledge: MDA is recognized as the Center of Excellence for Missile

Detection and “Hit-to-Kill” technology. As such, MDA requires its representatives to maintain close working relationships with industry throughout the world. The working relationships cultivated with industry allows MDA to be apprised of available technologies and manufacturing capabilities and provides a base of knowledge more extensive than would normally be obtained through a formal market survey.

8. Determination of Fair and Reasonable Cost, (FAR 6.303-2(b)(7)).

In accordance with FAR 15.402, the Procuring Contracting Officer (PCO) shall purchase supplies and services from responsible sources at fair and reasonable prices. The

Contractor will submit a formal proposal addressing all requirements of the solicitation.

MDA will conduct a thorough evaluation of the offeror’s proposed price/cost for this effort, followed by negotiations. Certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate will be required in the proposal. Raytheon’s proposal(s) will be reviewed by experienced technical analysts and contracting personnel with assistance of necessary field pricing support from Defense Contract Management Agency (DCMA) and

Defense Contract Audit Agency (DCAA). The Contracting Officer will use cost and price analysis as the basis for negotiating a fair and reasonable price.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition, (FAR

6.303-2(b)(9)).

FAR clause 52.244-5, Competition in Subcontracting will be included in the resultant contract.

Accordingly, Raytheon shall be required to select subcontractors on a competitive basis to the maximum extent practical, consistent with the objectives and requirements of the contract.

10. Actions Taken to Remove Barriers to Competition (FAR 6.303-2(b)(11)).

In order to remove the barriers to competition MDA/SN is in the process of examining the technical and software data that it has in-house, and will do the same for the data it has ordered but has yet to receive. This examination will assess the Government’s associated data rights and the utility of the data as it relates to future competition. MDA/SN will also pursue obtaining

Government Purpose Rights for technical data, computer software documentation, and computer software should its analysis conclude that such a step is necessary. MDA/SN will also pursue the implementation of an Open Systems Architecture when initiating systems engineering efforts. These efforts to remove barriers of competition to MDA/SN are ongoing.

In the interim MDA/SN will take steps to promote competition by increasing small business participation to grow and train small businesses for future opportunities. This includes challenging the Contractor to achieve goals above historic performance with contract requirements for a small business participation and commitment plan for first and second tier subcontractors.

The Government will require the delivery of detailed technical data, computer software documentation and computer software with the appropriate Government Rights. The technical data, computer software documentation and computer software will document the configurations developed and tested under this acquisition. Data developed under this effort will support future full and open competition for the services described in paragraph 4 above which should afford lower risk opportunities to introduce new sources.

Additionally, the use of an ID/IQ contract limits the Government’s contractual obligation to a minimum dollar value; which is anticipated to be met early in the contract period of performance. This will allow the Government to capitalize on opportunities for competition as they emerge rather than after the period of performance of the subject contract concludes.

Finally, the RDC contains DFARS clause 252.246-7001 (Warranty of Data) ; therefore, the

Contractor must warrant that all of the technical data delivered under the contract conforms to the specifications and all other requirements of the contract. Consequently, technical data found to be nonconforming will be corrected or replaced at the contractor’s expense. Such a step will afford sources other than the original contractor a greater opportunity to utilize data obtained with taxpayer dollars in future competitions.

J&A No: 19-0024 Contract No: IIQ0147-18-D-0002

11. Tcchnicul/Rcquircmcnts Ccdificution (FAR 6.303-2(c)): ·' I certify this justification for other than full and open competition is made in good foirh and that the supporting data and information are accurat..: and compleie to the best ormy knowledge and belier I rurther certify that this request is not the result or a lack or advance planning."

12. Contracting Officer (FAR 6303-2(b)(l2)): ··1 have determined that the anticipated cosr to the Government wil I be fair and reasonable and ccrt i IY that the justification is ac.:curate and complete to the best or my knowb.Jge ,md ability. ··

13. Legal Counsel. ·'I have n:viewed the justification and determined it to be legally sufficient. "

I 4. Contrncting Director (Prngrnm Level) . .. I have reviewed the justification and recommend it be approved ...

J &/\ No: 19-00:24 Contruct No : 1 IQO 14 7- 1 X-1)-0002

15. Rccornmcnda1i11n ol" C ompcri1ion Advocalc. " I rctom1rn: 11 J ,1rprov al of'1hc ahovc _ju.,1i i"1 cm io11 .··

16. l)i1·cc101· of C 11n11·acts. " I ha 1·1: r'l: vic wcd the ,iu,:til .,cil tiun arid n:co1111 11cnd it lit: arprovcd .""

17. l)ircc!Or for .'\cquisi1io11. " I hu \'c r1:1·1c wcd th<.: iustilic,ll1011 and rc ..: ommcnd ii he approvcd .·

18. Approval (FAR 6.30 -l). "l n acc: ordanc<.: with l't\R (1 .• HJ:.J . the ,thov-: justil 11.:u1i on fo r other than rull a11 tl npc n co mpetiti on is hcn:h! app rn vcd.··

.l . 1~ V ic<.: /\dm irnl. [ IS!\:

l) ir<.: c:t ,11· l)