D_Final_Signed_J A_for_Increase_of_Technical_Instruction_Hours_with_Redactions_FINAL.pdf

J&A No: 16-0031 Contract No: HQ0147-12-C-0004

JUSTIFICATION AND APPROVAL

. FOR OTHER THAN FULL AND OPEN COMPETITION

INCREASE TASK INSTRUCTION HOURS FOR GROUND-B~SED MIDCOURSE DEFENSE

DEVELOPMENT AND SUSTAINMENT C(])NTRACT

SPECIAL STUDIES AND PROJECII'S

1. Introduction.

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, (Federal Acquisition Regulation (FAR) 6.303-2(b)(l)).

The Ground-Based Midcourse Defense (GMD) Joint Program Office (JPO) plans to award a contract modification by means of "other than full and open competition". The contracting activity is the GMD Contracts Office (MDA/DACN). The point of contact for this action is Ms. Janice Olson, Contracting Officer, GMD JPO, at 256-450-1434 or janice.olson@mda.mil.

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

The GMD Program is the strategic anchor of the Ballistic Missile Defense System (BMDS) managed by MDA. It provides the Warfighter the capability to destroy incoming ballistic missiles in the exoatmosphere before they can break through the earth's atmosphere and inflict significant and possibly catastrophic damage to the United States and its allies. In order to continue to fulfill its mission, GMD has a requirement to modify the Development and Sustainment Contract (DSC), HQ0147-12-C-0004, to increase Direct Program Labor Hours (DPLHs) for Statement of Work (SOW) Paragraph 3.7 "Special Studies and Special Emphasis Projects" from 2,640,000 to 3,640,000. This effort will increase the overall pool of Task Instruction (TI) DPLHs to support completion of Enhanced Homeland Defense (EHD) and to develop Robust Homeland Defense (RHD) analyses and special projects/tasks prior to the end of DSC Period of Performance (PoP) of December 29, 2018.

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)).

DSC SOW Paragraph 3.7 states the performance requirements and efforts used by the Government to "conduct special emphasis tasks that include implementation of technical study results or recommendations; procurement of material; drawing updates/engineering releases posted to the Integrated Digital Environment; facility changes; technical support to Government Modeling and Simulation independent assessments; support to materiel release activities and transition/transfer the GMD Weapon System (full or partial) to a Service, ground/flight test shadowing, and Glory Trips."

The use of these DPLHs for studies and special projects allows the Government to conduct risk reduction activities, which in tum allows the Government to make informed technical and programmatic decisions prior to committing to expensive and complex Contract Change Proposals.

The DSC, as initially awarded, included 700,000 DPLHs, which were available for use across the seven year contract PoP, for an average of 100,000 per year. In June 2015, an additional 600,000 hours were authorized under a Justification and Approval (J&A) signed by the Director of Contracts, MDA. These additional hours were required based on the emerging ballistic missile threat environment, which increased the projected use ofDPLHs under DSC Task Instructions for GMD Homeland Defense requirements. At that time, the GMD JPO anticipated that evolving threats would result in an increased requirement for the use of DPLHs, which would remain elevated for the duration of the DSC. As predicted, the evolving threat environment has consistently increased the requirement for award of DPLHs under DSC Task Instructions. Additionally, an increase of 450,000 was authorized under a J&A signed by the Director, MDA in September 2015 to support Redesigned Kill Vehicle (RKV) requirements. An amended J&A was signed by the Director, MDA in June 2016 authorizing an additional 890,000 hours to execute the RKV Acquisition Plan. .

As the ballistic missile threat continues to evolve, GMD program priorities remain subject to rapid adjustment to ensure the Warfighter has the needed capabilities to defend against the current anlaidd future threat of ballistic missile attack. Therefore, the pool of DPLHs available for DSC Task Instructions has continued to be awarded at a faster rate than projected over the PoP of the DSC.

Requirements for a Redesigned Kill Vehicle (RKV) and Congressional mandates for emplacement of 44 Ground-Based Interceptors (GB Is) by 2017 have compounded the shifting of priorities within the GMD program. Based on close coordination with all program stakeholders, the GMD JPO predicts that an additional 1,000,000 DPLHs will be required for the remainder of the DSC PoP. The additional hours will allow continued use of a flexible contracting vehicle for Task Instructions under DSC to meet critical program requirements for GMD in a timely and efficient manner. This enhances GMD and BMDS capability to meet evolving threats and greatly reduces the need for Undefinitized Contract Actions or Unpriced Change Orders. The requested increase in hours is critical to meeting the Agency's commitments for Enhanced Homeland Defense and Robust Homeland Defense.

For cost estimating purposes, these additional hours are expected to result in the following increase to contract value.

FY16 FY17 FY18 I (Through Total <Remainder) 29 Dec2018) FY16-18

TI DPLH Requested $26.125M $156.75M $26.125M $209M (1,000,000)

**Dollars based on labor rate of $209/hour

Task Instruction Rates were established competitively with the DSC award on December 30, 2011. Due to increasing complexity of GMD Task Instructions, an equitable adjustment for Global DPLH rates has been proposed by the contractor and negotiations are in the process.

DSC Task Instructions are planned to be funded with Research, Development, Test and Evaluation and/or Operations and Maintenance appropriation funds as authorized and appropriated by Congress.

5. Statutory Authority Permitting Other than Full and Open Competition, (FAR 6.302-1 (a)(2)(ii). I

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(l), as implemented by FAR 6.302-l(a)(2)(ii): only one responsible sourlbe and no other supplies or services will satisfy Agency requirements:

(ii) Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued developmen or production of a major system or highly specialized equipment, including major components thereof when it is likely that award to any other source would result in (a) substantial duplication of cost to the Government that is not expected to be recovered through competition;

or (b) unacceptable delays in fulfilling the Agency's requirements.

In this case, "follow-on" is defined as the additional 1,000,000 DPLHs requested. The one responsible source is the current DSC prime contractor, The Boeing Company (herein Boeing), and its subcontractors.

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)).

Boeing competed and was selected for the DSC with a PoP beginning December 30, 2011 and ending December 29, 2018. Boeing is the responsible source containing the institutional technical knowledge critical for the successful completion of the GMD system requirements described in this J&A, and within established program constraints. Boeing, as the current prime contractor for the development, test, operations, and sustainment of the GMD Weapon System, is the only responsible source to perform this effort without unacceptable delay to critical program schedules and unaffordable duplication of system development, engineering, and integration costs. Additionally, the TI DPLHs are not severable from the rest of the DSC effort.

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

The DSC was awarded on full and open competition, and thorough market research was conducted in support of that effort. This modification is an integral part of the execution of the existing contract and is not severable.

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

In accordance with FAR 15.402, the Contracting Officer shall ensure that all supplies and services ordered under this contract are procured at a fair and reasonable price. IThe DPLH rates were initially established as fair and reasonable based on adequate price competition as a result of the full and open competition for DSC. For negotiation of adjusted DPLH rates for individual Task Instructions and for Boeing's proposed Global DPLH rate adjustment to DSC, certified cost or pricing data and sufficient information to support accuracy and reliability of the estimate is required by the Contracting Officer for determination of fair and reasoriable pricing. The data will be reviewed by experienced technica l ana lysts and contract specialists with the assistance of necessary field pricing support from the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA). The cost/price analys is wi ll concentrate on

I completeness, reali sm, reasonableness. a ll owability, and a ll ocability. In accordance with FAR I 5.406-3 , current sta tus of cont ractor systems as well as any unus ~1al or proposed deviations from approved Disc losure Statements and standard accounting practice~ will be verified through the DCAA and DCMA, and will be thoroughly documented for each megotiated contract action. The Contracting Officer wil l utili ze the cost and price analys is as the basis fo r negotiating fai r and reasonable pricing.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition (FAR Part 6.303-2(b)(9)).

During the DSC competition, MDA had multiple offerors as Prim~s. These Prime had the same GMO Ori ginal Equipment Manufacturers (OEMs)/key suppliers on their teams . . f AR clause 52.244-5 Competition in Subcontracting wa included in this so licitation and stipulated in the resultant contract. Accordingly. the Prime Contractor is requ ired to select subcontractors on a competitive basis to the maximum practical extent, con istent with the objectives and requirements of the contract. The O EMs are the deve lopers of the JRHD capabilities . The DSC provides the contractual mechanism for these OEMs to develop and implement RHO capabilities fo r current Agency priorities. Continuation of mission criti cal RHD development and capability enhancements require MDA to maintain the req uired skill s and caqabilities possessed by the incumbent OEM contractor team . The proposed contract act ion wil l ma intain the O EM workforce and will ensure a stable development environment that f ill deliver RHO capabi lities with minimal technica l, cost. and sched ul e risk. , JO. Actions Taken to Remove Barriers to Competition (FAR 6.303-2(b) (11)).

I The acquisition of the add itiona l Tl DP LHs \.v iii be so le source. However. f'ulure and fo llow-on acquisiti ons are subj ect to compe titi o n. C urrent market research a 1~ d acquisition planning is underway for GMD Future Development, Operation, Sustai nment. and Production competiti ve alternatives.

11. Technical/Requirements Official Certification (FAR Part 61303-2 ( c)).

"1 certify that thi s justification for other than full and open competition is made in good fa ith and that the support ing data and informati on is accurate and complete tb the best of my knowledge and belief I further ceiti fy that this request is not the res ult of a la1k of advance planning.··

12. Cont meting Officer (F:\R Part ().30.~ (h) ( 12)).

"I h:t\ · de1ermi1 1cd th <ll lhc a11ticip:1kd cost tll the (iu\ crrnnent \\ill he l~tir and rc:1su11ahlc ;111d 1.:erti(\ tha t the justilicatit111 is ;tccur:tte ;111d complctL· tn the lk'st 01 1 111~ · k1W\\ kdge and abi lit: .··

IJ. Legal Counsel.

1-4. Con trading Director (l'rog1·;1111 Ln cl).

IS. Progrnm F\ecuti\'l' Certification .

.. 1 lta\L' l'L' \ "iL' \\Cd thL' justilic1liPll dl!li J'L' C\)Jlll11Clld it he :tppl'll\ Cd."

16. Recommenda tio n of Competi tio n Advoca te.

··1 recommend approval ol' the above justification ...

17. Director of Con tracts .

.. , have rev iewed the justificati on and reco mmend it be apprn\'ed."

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18. Di rector for Acquis ition.

" I have rev iewed the justification and recornrncnd it be appro ed ."

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19. Director of Agency Approval (FAR 6.304).

"In accordance with FAR 6.304, the above justification for other than full and open competition to increase DPLHs by an additional 1,000,000 hours at an estimated value of $209,000,000 for GMD Development and Sustainment Contract Task Instructions on contract number HQ0147-12-C-0004 is hereby approved."