DEPARTMENT OF WAR

MISSILE DEFENSE AGENCY

5700 18th STREET

FORT BELVOIR, VIRGINIA 22060-5573

Go Fast, Think BIG!

J&A No:

Amendment No:

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION - REVOLUTIONARY

FEDERAL ACQUISITION OVERHAUL PART 6

Program/Equipment: This Justification and Approval (J&A) is for Operations and Sustainment (O&S) support for the family of Missile Defense System X-Band Radars (XBR) and the associated equipment performed under the Contractor Logistics Support (CLS) contract (HQ014718D0001). The scope provides for sustainment support of the Sea-Based X-Band Radar (SBX) and the 13 Army Navy/Transportable Radar Surveillance and Control Model 2 (AN/TPY-2) Radar systems and unassigned Major End Items (MEIs) (i.e., Prime Power Unit [PPU], Cooling Equipment Unit [CEU], Antenna Electronic Unit [AEU], and Electronic Equipment Unit [EEU]), fleet spares, and support equipment. This Amended J&A only applies to AN/TPY-2.

Authority: The statutory authority permitting other than full and open competition is 10 United States Code (U.S.C.) 3204(a)(1) as implemented by Revolutionary Federal Acquisition Overhaul (RFO) 6.103-1(C)(2)(ii), When awarding a follow-on contract for the continued development or production of a major system or highly specialized equipment and, for Department of War (DoW), National Aeronautics and Space Administration (NASA), and the Coast Guard, for the continued provision of highly specialized services, would result in unacceptable delays in fulfilling the agency s requirements

Amount: The total cost of this amended J&A is $489.86 Million (M) (Note: 25% buffer added to Independent Government Cost Estimate [IGCE] to account for unknown Real-World Events [RWEs] included in this value); aggregate amount of $3.095 Billion (B).

1. Agency and Contracting Activity (RFO 6.104-1(a)(1)).

This J&A for Other Than Full And Open Competition is for Theater-Based Defense, Mobile Land-Based Sensors (TBS) Development and Sustainment Product Office (TBSX). The contracting activity is Theater-Based Defense Contracting Office (TBK). The point of contact is

Contracting Officer, Controlled by: Mobile Land-Based Sensors (TBS)

Approved for Public Release 26-MDA-12447 (29 Oct 26)

J&A No:

Amendment No:

2. Nature and Description of the Action Being Approved (RFO 6.104-1(a)(2)).

The CLS Indefinite-Delivery/Indefinite Quantity (IDIQ) contract was awarded as an IDIQ on a sole source basis on October 17, 2017, to the Original Equipment Manufacturer (OEM), Raytheon Technologies (hereafter referred to as RTX), for the procurement and maintenance of highly specialized radars, spares, and services. The CLS contract was originally awarded with a three year base ordering period ending October 31, 2020. Four successive one-year option ordering periods were exercised extending the ordering period through October 31, 2024. The IDIQ contains a combination of Cost-Plus-Incentive-Fee (CPIF), Cost-Plus-Fixed-Fee (CPFF), Cost Reimbursement (CR), and Firm-Fixed-Price (FFP) Contract Line Item Numbers (CLINs).

The Government uses Operations and Maintenance (O&M) and Procurement (PROC) funds for the AN/TPY-2 Radar fleet, and Research, Development, Test and Evaluation (RDT&E) for the

SBX.

The action previously approved by J&A (24-0009) was an IDIQ contract modification extending the ordering period an additional two years from October 31, 2024, to October 31, 2026, resulting in an overall CLS ordering period of nine years. In addition, it increased the stated maximum value by $859.731M for a total of $2.605B. Under the CLS IDIQ, there were multiple Task Orders issued to support the AN/TPY-2 and SBX CLS requirements. Most orders utilized a one-year base period and a one-year option period. However, the safety, training and power support requirements for the AN/TPY-2 CLS work were awarded with a four-month base period and a two-month option period.

In response to a Fiscal Year (FY) 2026 Program Decision Memorandum, the Missile Defense Agency (MDA) has been directed to transition Terminal High Altitude Area Defense (THAAD) O&S activities (which includes Terminal Mode (TM) use of the AN/TPY-2 Radar) to the United States (U.S.) Army. To mitigate the risk of a premature award, the current MDA CLS contract is being extended to ensure the new contract s scope is fully aligned with the Army s final AN/TPY-2 transition plan. While portions of the AN/TPY-2 program will be transferred to the Army as of October 1, 2026, details regarding which CLS responsibilities will fall on the Army versus MDA are still pending determination. Due to uncertainty regarding the timing of the transfer of CLS responsibilities to the Army, extending this contract will allow the Army to assess and update the requirements for its needs, conduct its own market research, and award its own contract.

The action approved by this amended J&A will modify the existing CLS contract to extend the ordering period for an additional two years through October 31, 2028, and increase the stated maximum value by $489.86M for a total of $3.095B. As a result of this extension, the overall ordering period on this contract is 11 years from October 31, 2017, to October 31, 2028. In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) RFO 217.201- 270 (a)(3), the ordering period may not exceed 10 years unless the head of the agency determines in writing that exceptional circumstances require a longer ordering period. The approval of this J&A documents the determination that the aforementioned exceptional circumstances require the CLS contract to have a longer ordering period than 10 years, in accordance with DFARS RFO 217.201-270(a)(3).

3.

(including the estimated value) (RFO 6.104-1(a)(3)).

The O&S provided by RTX are critical for supporting a family of XBRs comprised of, but not limited to, AN/TPY-2 Forward-Base Mode (FBM) and THAAD TM, and the SBX radar. The programs encompass the following efforts:

AN/TPY-2 Requirements o Radar Operation and Maintenance Support (at multiple sites)

Diagnose Hardware and Software Failures Provide Software and Hardware Maintenance as primary maintainer for all levels of maintenance o Logistics Support Establishment and maintenance of permanently deployed site support team at Outside the Continental United States (OCONUS) locations Establishment and maintenance of deployable site support team at Continental United States (CONUS) locations Line Replaceable Unit (LRU) Repair and Return Inventory Control and Management Spares Management Logistics Operations o Sustaining Engineering Support for all AN/TPY-2 Radars to facilitate maintenance efforts, which may include but are not limited to trade studies and analysis, hardware obsolescence studies, hardware redesign, technology insertion, and refurbishment efforts Engineering Analysis and Studies Sustainment of legacy software Builds Failure Review and Corrective Action System (FRACAS) Mission Assurance/Quality support Obsolescence Management

SBX Requirements o XBR Sustainment

O&S of the XBR System Software Installation and Checkout Hardware maintenance of sensitive/critical Radar Troubleshooting of system faults and Root Cause Corrective Action Preventative maintenance checks and service o XBR Logistics Support LRU repair and return Inventory control management Spares management Logistics operations o XBR Sustaining Engineering XBR modernization and enhancements

AN/TPY-2 Radars in

The contractor is required to diagnose failures and resolve issues with the radars while they are fielded and operational. RTX possess unique, highly specialized system knowledge that makes it the only entity capable of executing these critical field repairs and real-time diagnostics during active, real-world operations. RTX is the only contractor that has access to all the technical data needed to provide such support as portions of the technical data are proprietary. Furthermore, RTX has the production and quality control processes in place used for manufacture and repair of the radars. The Product Office would face significant challenges in maintaining the qualified processes without the availability of the OEM technical data. Given that the radars are currently in service, lapse in O&S support while the Product Office replicates the technical data would represent an unacceptable operational risk. of the c

6. Efforts to Obtain Competition (RFO 6.104-1(a)(6)).

The agency continues to assess opportunities for future competition for O&S support for the family of Missile Defense System XBRs and the associated equipment.

The Agency believes it will have the ability to compete at least some of the CLS scope for FY 2026 and beyond.

In accordance with RFO 6.104-1(a)(6), the Procuring Contracting Officer (PCO) used the most recent AN/TPY-2 Market Research from March 6, 2025, and determined that only one source, . Further, a Request for Information (RFI) posted to SAM.gov on November 5, 2024, related to AN/TPY-2 future requirements for production, development, inclusive of models and simulations, and O&S, revealed that a new RFI or sources sought notice would not likely generate any additional relevant information to support full and open competition. Results of the most recent RFI are discussed in Section 10 below.

Engineering evaluations of the responses concluded that no source other than the OEM, RTX, possesses the test equipment, software integration environments, and manufacturing fixturing necessary to perform operations services, Repair and Return (R&R), and spares fabrication within required operational schedules.

The Government and RTX have engaged in extensive reviews regarding technical data rights and the feasibility of establishing a competitive sustainment baseline. The Government currently possesses Government Purpose Rights (GPR) in certain data elements generated under prior development and production contracts. Under DFARS 252.227-7027 (Deferred Ordering), the Government retains the right to order technical data generated in contract performance at the direct cost of reproduction. The program office has initiated a data audit to identify, itemize, and exercise deferred ordering for all qualifying data items RTX is contractually obligated to deliver to complement the Contract Data Requirements List (CDRL) deliveries already provided.

Even if the Government obtained an exhaustive Level 3 design Technical Data Package (TDP) at zero cost, technical, industrial, and tooling barriers serve as an independent, insurmountable obstacle to competition across each scope element. The AN/TPY-2 operation, diagnostic, and repair capabilities are conducted through dedicated Software Integration Laboratories (SIL), compiler toolchains, hardware-in-the-loop (HWIL) simulators, tooling/fixturing, and robust manufacturing facilities and associated verified processes. A third party lacking similarly equipped facilities and verified processes cannot provide the requisite operational engineering services without multi-year facility duplication and recertification. Further, a manufacturing TDP consists of design drawings; it does not contain the maintenance work requirements, fault isolation trees, wear tolerances, or teardown inspection manuals necessary to conduct depot-level overhaul and component repair. Crucially, diagnosing and recertifying failed units requires RTX's Automated Test Equipment (ATE), Interface Test Adapters (ITAs), and calibrated diagnostic test benches. Much of this equipment is proprietary capital property and cannot be provided as . An alternate repair source would need to reverse-engineer and qualify all test benches and repair procedures, introducing unacceptable delays to arfighter readiness. Fabricating new replenishment spares requires specialized casting tooling, precision alignment jigs, and custom calibration fixtures. A new supplier would be required to design, fabricate, and calibrate all production tooling from the ground up, followed by First Article Testing (FAT) and environmental qualification. Engineering estimates project that qualifying a new production source would require a minimum of for TDP plus production cost, resulting in an unsupportable fleet grounding risk.

MDA has outsourced repair and refurbishment of certain components to facilities. A sufficient OEM Technical Data package has been delivered and the efforts conducted by will continue. Not every service that the OEM offers can be replicated by Further, will provide retail supply support to all AN/TPY-2 assets, both TM and

FBM. RTX still supports a small warehouse effort at supporting AN/TPY-2 assets that deploy in support of THAAD missions. MDA and Army will further examine the feasibility of transferring remaining warehousing activities to

As required by RFO 5.101, the proposed contract action notice shall be published, and any responses received shall be considered. Upon approval of this amended J&A, a redacted version will be posted to SAM.gov for 14 days along with a notice of intent to Sole Source.

a. Effective competition. There is no effective competition anticipated for this acquisition.

b. Subcontracting competition. The AN/TPY-2 CLS contract includes RFO Clause 52.244-5, Competition in Subcontracting, which requires RTX to select subcontractors on a competitive basis to the maximum practical extent with objectives and requirements of the contract. MDA will also take steps to promote competition by increasing small business participation to grow and train small businesses for future opportunities.

7. Determination of Fair and Reasonable Cost (RFO 6.104-1(a)(7)).

In accordance with RFO 15.403, the PCO has determined that certified cost or pricing data will be required. This determination was based on an anticipated contract value exceeding the Certified Cost or Pricing Data threshold of $2.5M, and a preliminary assessment indicates that none of the exceptions outlined in RFO 15.403-2(b) were applicable. Specifically, adequate price competition is not anticipated, and the highly specialized nature of the required supplies and services precludes classification as commercial items.

To proactively prepare for negotiations and ensure a fair and reasonable price, the PCO will engage the Defense Contracts Audit Agency (DCAA) to conduct a comprehensive review of accounting practices and cost allowability. This DCAA review will provide a detailed understanding of RTX warrant further scrutiny. Simultaneously, the PCO will consult with the Defense Contract Management Agency (DCMA) to assess estimating system and cost realism, gathering are supported by sound estimating practices. Interactions with DCAA and DCMA are essential for establishing a well-informed and defensible Government negotiation position.

has received an IGCE, dated September 19, 2025. The IGCE was developed by a dedicated team comprised of Government experts with specialized knowledge of the AN/TPY-2 system, its technical requirements, and relevant market factors. The team leveraged historical cost data, market research, and engineering analyses to create a detailed and objective estimate of the anticipated contract costs. The IGCE, along with insights gained from the DCAA and DCMA reviews, serves as a critical benchmark against which any future proposal from RTX will be rigorously analyzed.

These proactive steps are designed to ensure that the PCO is fully equipped to assess the fairness and reasonableness of proposed price and to negotiate effectively to obtain the best possible value for the Government. The entire process will be conducted with strict adherence to the applicable regulations and policies, including ensuring compliance with RFO 6.104-1(a)(7).

8. Description of Market Research Conducted (RFO 6.104-1(a)(8)).

The following techniques were used during the market research effort:

Personal knowledge in procuring products or services of this type. The MDA Sensors Market Research Team for Modeling and Simulation (M&S) has extensive experience with developing, testing, acquiring, deploying and sustaining MDA radars and radar models. Specifically, they possess over 75+ years of combined experience. Various discussions were held with the Market Research Teams about the capability and interest of industry to meet follow-on requirements, and a focused review was completed for industry responses on an

RFI.

Review of Government and/or commercial databases for relevant information. In conjunction with the MDA Small Business Office, a search in SAM.gov was done for all entities with North American Industry Classification System (NAICS) Code of 541614 and 811210, and Product and Service Code (PSC) of L058 that have performed the work for the Government in the last five years. An additional search was completed for all small business entities using only the NAICS Code of 541330 (No Specified PSC Code).

Publication of an initial RFI. An AN/TPY-2 RFI was published to SAM.gov March 8, 2022, related to O&S Support, Radar Logistics Support, and Sustaining Engineering. On February 8, 2024, the PCO emailed the original companies that responded to the RFI and previous inquiries asking if any other capabilities had changed. An SBX RFI was posted to SAM.gov on March 7, 2024, related to XBR Sustainment, XBR Logistics Support, and XBR Sustaining Engineering.

Publication of a second formal RFI. An AN/TPY-2 RFI was published to the Enterprise-Wide Agile Acquisition Contract vendor list on October 11, 2024, to determine potential strategies and industry capabilities to execute power support, technical manuals, training and safety requirements for the AN/TPY-2 radars. On October 28, 2024, two responses were received in total to the RFI. One response was received from the incumbent contractor (RTX) and the other was received from a small business that did not demonstrate the capability to support global operations in numerous combat theaters.

Publication of a third formal RFI. An AN/TPY-2 RFI was published to SAM.gov on November 5, 2024, related to AN/TPY-2 future requirements for production, development, inclusive of models and simulations, and O&S. Twelve responses were received in total, from both large and small businesses. The Market Research Report approved on March 6, 2025, concluded that only one source, the incumbent contractor

(RTX

causing impact to sustainment under current RWEs.

Issuance of an 8a Small Business Set-Aside Request for Proposal (RFP). An AN/TPY-2 RFP was issued in April 2025 to an Alaska Native Corporation for a potential direct award for the power support requirements. The small business is the current subcontractor to RTX providing power support efforts. However, the proposal received was twice as much as what the Government is currently paying. Thus, this approach was deemed to not be in the best interest of the Government.

Exploration of utilizing an existing support agreement to transition the safety and training requirements to . However, as of July 2026, an ongoing DoW hiring freeze continues to delay the transition of the requirements to the organic contract vehicle.

A comprehensive market research effort was undertaken, using Procurement Number 24-MDA-

AN/TPY-2 radar system. To ensure a thorough assessment, an MDA Radar Program RFI, the third one for this program, was posted to SAM.gov between November 2024 and January 2025, inviting interested parties to demonstrate their qualification and experience. These requirements encompass a broad spectrum of activities including production of components, spares, fleet refurbishment, and capability upgrades; and O&S of AN/TPY-2 radars fall under NAICS code 334511 and PSC AC25. The AN/TPY-2 Next Market Research Report was approved on March 6, 2025.

Twelve companies, representing a diverse mix of large and small businesses, responded to the RFI. Each response was rigorously evaluated against pre-defined criteria, focusing on demonstrable capabilities within the O&S domain. The evaluation process prioritized verified expertise, relevant experience with similar weapon systems, availability of historical data to requirements.

The market research process concluded that RTX stands as the only responsible source capable

2 Radar System. While other respondents expressed interest and demonstrated limited capabilities in specific areas, none of the other respondents would be able to provide the necessary support without unacceptable delay.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition (RFO 6.104-1(a)(9)).

The contract includes RFO Clause 52.244-5, Competition in Subcontracting, which requires RTX to select subcontractors on a competitive basis to the maximum practical extent, consistent with the objectives and requirements of the contract. In the interim, MDA/Theater-Based Defense (TB) will also take steps to promote competition by increasing small business participation to grow and train small businesses for future opportunities.

Market research reports from 2022 2025 concluded that the existing geopolitical environment and the volume of RWEs increases the risk that the time necessary for a new O&S contractor to

Finally, the CLS Contract 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 use data obtained with taxpayer dollars in future competitions.

To mitigate the inherent limitations on competition identified in this procurement and, in accordance with RFO 6.104-1(a)(10), the following actions have been taken and will continue to be undertaken to remove or overcome barriers to competition in future AN/TPY-2 Radar System procurements:

Continued Market Research: In accordance with the above, the market research actions described in Section 8 were taken in order to monitor competitive opportunities. Going forward, additional market research will be conducted, utilizing the RFI published to the Scalable Homeland Innovative Enterprise Layered Defense list of contractors.

Strategic Teaming and Subcontracting: The contract includes RFO clause 52.244-5, Competition in Subcontracting. Accordingly, the contract requires RTX to select subcontractors on a competitive basis to the maximum practical extent, consistent with the objectives and requirements of the contract. TB will carefully consider requirements for competition to the extent practicable as emerging production needs become known to the Government; however, is the last currently documented requirement for an AN/TPY-2 radar, either U.S. or Foreign Military Sale. RTX continues to meet their small business subcontractor goals and continues to explore opportunities to increase small business participation.

Future solicitations will explicitly encourage, and potentially mandate, strategic teaming arrangements between the prime contractor and smaller businesses for specific sub-components or service areas. Mandatory subcontracting goals will be established, requiring a defined percentage of contract value to be allocated to qualified small businesses.

Modularization and Open Systems Architecture: Beginning in 2019, Modular Open Systems Architecture was partially implemented with

(Government owned, Small Business Incentive Research, etc.). Currently is implemented in two radars with plans to continue the implementation across the fleet. The Government will continue to advocate for modular design of the AN/TPY-2 system, enabling easier component upgrades or replacement by different vendors. The adoption of an Open Systems Architecture, utilizing open standards and interfaces, will be promoted to enhance interoperability and foster competition. Where feasible, the Government will control the definition and documentation of key interfaces, enabling multiple vendors to develop compatible components.

Data Rights and TDP Strategy: In 2025, a partial TDP CDRL delivery for was received by the Government and is in use however, the TDP contained corrupt files and is incomplete. The Government received the TDP for the AEU, EEU, and CEU. RTX still owes the Government the TDP for the PPU. The Government is working with the contractor to receive the TDP CDRL delivery that is required. The Program Office is currently in the planning and conceptual design phase for the successor system slated to eventually replace the AN/TPY-2 radar. For the next generation system, TB will develop an intellectual property strategy as required by 10 U.S.C 3774 and Department of Defense Instruction (DoDI) 5010.44 prior to execution of an acquisition strategy, which will explicitly mandate the procurement of the appropriate technical data from the outset of the development phase. By securing these rights at program inception, the Government will prevent the challenges currently experienced with the AN/TPY-2 fleet, enabling full and open competition for future production, sustainment, and modernization of the successor system.

In order to remove barriers to competition for O&S, the Program Office will execute a technical data rights assessment that includes detailed evaluation of the portions of the TDP that the OEM asserts limited rights in comparison with the rights that the Government may have.

This assessment will explicitly address and discuss which data rights the Government possesses, which rights the contractor has asserted, which assertions have been adjudicated and/or rejected by the Government. The assessment will also review which data or technical information were subject to a deliverable and in fact delivered, and if not subject to a deliverable, whether deferred ordering should be used to obtain that data or technical information.

Opportunities to Expand the Depot Program: On September 8, 2025, TBSX implemented a Public/Private Partnership between RTX and to improve utilization. The transfer of all spares warehousing activities was completed in February 2026. TBSX is continuing to expand depot program involvement to encompass a broader range of activities including PPU, CEU, and EEU modernization. There are plans to explore Transmit/Receive Integrated Microwave Modules repair and configuration management. Simultaneously, efforts are underway to provision AN/TPY-2 parts within the DoW supply system, ensuring wider availability and competitive sourcing. To enhance internal expertise, TBSX is exploring the use of to develop higher level maintenance (-20) manuals, supporting Army-led repairs.

To eliminate vendor lock-in and remove barriers to competition, the program successfully transitioned key logistics and maintenance operations from proprietary contract systems to organic Army capabilities and enterprise systems of record. Specifically, relocating the Material Consolidation Point from RTX established an organic Government-controlled warehouse, capturing $5.5M in an immediate one-time savings. Simultaneously, migrating maintenance tracking from legacy Automated Logistics Control System to the standard Global Combat Support System-Army transitioned data custody into the public domain, eliminating contractor system overhead and securing $1.75M in recurring annual savings. By reclaiming Government ownership of these core operational functions and data streams, the Government has dismantled proprietary dependencies, paving the way for future outsourcing. has performed corrosion efforts to support fielded systems in lieu of RTX CLS performing. is afforded an opportunity to independently propose emergent field repairs when RTX offers its proposed cost.

TB Logistics performed an informal evaluation with the U.S. Army Combined Arms Support Command (CASCOM) to determine if organic arfighters have the requisite skill set to support

CLS efforts at fielded radar sites. CASCOM determined that two Military Occupational Specialist (MOS) 94S and a 948 Warrant Officer could perform the majority of the tasks. However, this would require Doctrine, Organization, Training, Materiel, Leadership and education, Personnel, Facilities, and Policy (DOTmLP-F) investment and approximately two requirement.