Final_Signed_Maverick_J A_Nov_2015_Redacted.pdf

Justification and Approval (J&A) for Other Than Full and Open Competition

I. Contracting Activity.

United States Air Force (USAF)

AFLCMC/EBHKA

6072 Fir Avenue, Building 1233 Hill AFB UT, 84056-5825 Contracting Officer:

DSN:

Purchase Request Number: FD2020-16-50086

II. Nature and/or description of the action being processed.

A. Upon approval to use other than full and open competitive procedures, the U.S. Air Force (USAF) will issue a follow-on non-commercial Indefinite Delivery/Indefinite Quantity (IDIQ) to procure Maverick Air-to-Ground Missile (AGM-65L/E2), Laser Guidance and Control Section (GCS) to:

Raytheon Missile Systems (RMS) 1151 E Hermans Road Tucson AZ, 85756-9367 Cage Code: 15090

B. Contract Type: USAF anticipates awarding a Firm Fixed Price (FFP) IDIQ with a five year ordering period. The estimated date of award is July 2016 with the ordering period through July 2021.

C. Estimated value is .

D. Type of J&A: Individual

III. Description of supplies/services required to meet agency needs.

A. This requirement is a supply contract for procurement of AGM-65L/E2 GCS; the NSNs, part numbers, and delivery dates are listed in Table 1 below. RMS will provide upgraded AGM-65L/E2 GCSs to the USAF and U.S. Navy (USN). The AGM-65A/B GCSs will be upgraded to AGM-65L/E2 by replacing A/B Vidicom camera optics with new Semi Active Laser optics.

B. The AGM-65L/E2 is a tactical, air-to-surface guided missile designed for close air support with low collateral damage, and particularly for defeating high speed moving targets. It uses a LASER seeker, is controlled by a digital computer, and has a heavyweight (300 pound) blast-fragmentation penetrator warhead. The AGM-65L/E2 GCS contains the optics, detectors, computer and other associated electronics that acquire and guide the missile to its target. The guidance software is specific to the LASER Maverick tactical missile and its training variant, the Captive Air Training Missile (CATM-65L).

C. The basic IDIQ contract is estimated to be awarded July 2016. The ordering period for this contract will begin upon award starting July 2016 and orders may be placed through July 2021. Approval request is for more than one fiscal year because the government is not able to provide a predetermine quantity, above the minimum quantity of AGM- 65L/E2 GCS units that will be required during the contract period. Furthermore, there are no feasible actions that could be developed to obtain competition during the period of performance of this acquisition as described in Section V below.

D. This is a continuation in fulfillment of the original requirements stated in Laser Maverick AF Form 1067, Modification Proposal, dated 17 Aug 2007, and AF 1067 AGM-65 E2 (/L) Annex.

Table 1. CLIN Structure for Delivery Order 0001

CLIN NSN Part Nbr Descripti on

AF

QTY

USN

QTY Unit Price Ext. Price

Est Del Date After Receipt of

Order (ARO)

0001 1427-01-587-4713 2299100-

AGM-

65L GCS

Tactical

108 12 Months ARO contract

0002 1427-01-587-4713 2299100-

AGM-

65E2

GCS

Tactical

134 12 Months ARO contract

0003 6920-01-599-9819 2299099-

CATM-

65L GCS

6 12 Months ARO contract

0004 Data 1 1 IAW CDRL

E. Funding will include a combination of AF (3020) and Navy (1507) Investment funds, Overseas Contingency Operations (OCO) and Exchange Allowances, generated through the USAF Maverick Missile Exchange program reference Table 2. Anticipated funding through fiscal year 2021 are shown below:

Fund Types FY15 FY16 FY17 FY18 FY19 FY20 FY21

AF Investment $0 $9,639,000 $284,000 $290,000 $294,000 $299,000 TBD

OCO $0 $5,720,000 $0 $0 $0 $0 TBD

AF Exchange Allowance $11,312,260 $361,000 TBD TBD TBD TBD TBD Navy 1507 $13,274,935 $2,970,000 $0_____ $0_____ $0_____ $0_____ $0____

TOTAL $24,587,195 $18,690,000 $284,000 $290,000 $294,000 $299,000 TBD

Table 2. Exchange Parameters and Credit/Allowance Values

Component Part Number Serial Number Exchange Credit Value 1 - 125 126 - 299 300+

AGM-65A Missile 3102300-2-1 5000-10000 7729252-10 Any

AGM-65A

GCS

3102454-1-2 5000 and above

AGM-65A

CAS

3327450-1-2 Any

7926825-10 Any

AGM-65B Missile 3327400-1-1 19546 and above 7926826-10

AGM-65B

GCS

3327410-1-1 Any

AGM-65B

CAS

3327450-1-2 Any

7926825-10 Any AGM-65G Missile 3647125-100 7004700 and above

3647125-100 7700925 and above AGM-65G 3647127-100 7700400 and above

GCS

3647127-100 7102364

AGM-65G

CAS

3647126-100 20XXXXX range

IV. Statutory authority permitting Other than Full and Open Competition.

10 USC 2304 (c) (1) as implemented by FAR 6.302-1, Only One Responsible Source.

V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

A. The above authority was selected because this requirement is for highly-specialized precision guided missiles.

The AGM-65 is an air-to-ground missile with a modular design that allows one of several different guidance control units (electro-optical, charge coupled device, infrared or LASER) to be combined with one of two different warheads (either 125 lbs. shape charge or 300 lbs. penetrator blast fragmentation) in the rocket motor section to produce missiles capable of destroying targets in any environment. The AGM-65 has a “launch and leave” capability that enables a pilot to fire the missile and leave the area while the missile guides itself to the target; the missile can also be released from a safe range minimizing the exposure to the enemy’s air defenses. Because of its accuracy and lethal warhead, the AGM-65 provides a high single-pass kill probability. The AGM-65 weapon system is a complex and unique weapon that has been neither duplicated nor replaced in the Air Force inventory.

The AGM-65L/E2 is an air-to-ground missile with a Semi-Active LASER guidance control section which is combined with a 300 lbs. blast-fragmentation penetrator warhead in the rocket motor section. The AGM-65L locks onto a specific LASER signal from the launch aircraft, another aircraft providing “buddy guidance” or a ground LASER designator. The AGM-65L is the USAF’s solution for hitting high-speed moving targets in the close air support interdiction defense suppression mission environment. Therefore, this acquisition will be a follow-on contract for the continued production of a highly specialized precision guided missile system.

B. The AGM-65 Maverick missile is effective against a wide range of tactical targets to include armor, moving and stationary. In the late 1960s – early 1970s, Hughes Aircraft Corporation (HAC), Tucson, AZ, developed and designed the electro-optical (television) seeker technology on the first Maverick missile – a technology which did not exist in the defense industry and whose data rights and intellectual property were owned by HAC. In the late 1970s, early 1980s, HAC developed the INFARED seeker GCS, which was fully compatible with the existing Center Aft Sections (CAS). In the mid-1980s, an agreement was reached between HAC and RMS, which allowed RMS to become a second source of manufacture for the AGM-65 Maverick missile; during that time, the Government was procuring hundreds or thousands of AGM-65s annually, so the government motivated HAC to reach an agreement with RMS to be a second source of manufacture. The Government benefitted from fierce competition between the two sources for a decade; however, by the mid-1990s, both the United States Air Force and United States Navy had ceased annual procurements of AGM-65s.

C. The Maverick System Program Office (SPO) estimates award to another source would result in substantial duplication of cost to the government that is not expected to be recovered through competition. The cost to develop Precision Guided Munitions (PGM) with the same capability as the Maverick Missile would exceed that of the Joint Direct Attack Munition (JDAM) Research, Development, Test and Evaluation (RDT&E) cost, which was reported in 1995 as in CCARS. The JDAM costs include design, development, technical orders, fielding, support and test equipment to include all the start-up costs of the Original Equipment Manufacturer (OEM). Thus the captures all known costs (government and contractors) from the initial design to fielding of a PGM with the capabilities of the 1995 JDAM. By way of comparison, the technical complexity of the AGM-65 exceeds that of the JDAM because the AGM-65 is an all-weather missile whose development costs would include design and testing of a 300 lb. warhead and a rocket motor. JDAM is a guidance kit that converts “dumb” bombs into all weather “smart” munitions. While JDAM is certified for use on more platforms than the AGM-65, the associated flight testing is conducted to assure safe separation of the dropped munition from the air vehicle and assure desired weapons effects on target, so after the threshold platforms- flight tests only 1 or 2 weapons would be dropped to add platforms. For the AGM-65, there is an added risk of rocket motor ignition on the wing prior to safe separation from the air vehicle which means more weapons are required in flight testing from each platform. Because of these technical differences, the cost to develop a PGM like the AGM-65 would exceed the RDT&E cost of JDAM. Table 3 below delineates the capabilities of the two weapon systems.

Table 3. JDAM & AGM-65 “MAVERICK” CAPABILITY COMPARISON Missile/Munition Capability

Joint Direct Attack Munitions

(JDAM)

Infrared (IR), Charged Coupled Device (CCD) or LASER Maverick Missile

Precision Guided Munitions

Guidance Tail kit developed for existing warheads

Missile w/internal warhead and rocket motor

Seeker GPS/INS Electro-Optical, IR, CCD or LASER w/ synthetic video feedback to cockpit

Weather/Limitations all-weather/none all-weather/none

Warhead 500 lbs., 1000 lbs., 2000 lbs.

general purpose bombs

125 lbs, 300 lbs. unique to AGM-65

Propulsion guide/glide rocket motor

Targets Armored, Fixed, Relocatable, Moving

Armored, Fixed, Relocatable, Moving (including high-speed)

User Service USAF & DoN USAF & DoN

No. of Platforms 18 (USAF & DoN) 4 (USAF & DoN)

Drop/Launch Drop Launch

Standoff IAW platform parameters IAW platform parameters

D. The last attempt to obtain the Government purpose data rights was 1 Aug 2015. Raytheon’s Maverick Missile Programs Director indicated that RMS is currently not in a position to provide price or sell the Government purpose data rights to the AGM-65 Maverick Missile System. The RMS Program Director requested that the SPO pursue the request for the Government purpose data rights at a later date. In 1997, RMS acquired HAC and all associated data, data rights and intellectual property making RMS the sole qualified manufacturer of the AGM-65 Maverick missiles.

E. Accordingly, RMS is the only firm capable of providing the supplies described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A. Sources Sought Synopsis: A sources sought synopsis was issued 30 July 2015, Solicitation number FD2020-15- 51082, for market survey to identify potential sources that possess the engineering and manufacturing knowledge for the Maverick Air-to-Ground Missile (AGM-65), Laser Guidance Control Section (GCS). Synopsis closed 31 August 2015; no other company has expressed interest in this requirement.

B. This requirement will be synopsized in FedBizOpps as a notice of proposed contract action in accordance with

FAR 5.201.

C. Other Actions: None

D. Qualifying Country Sources: None

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The following steps will be taken to ensure that the anticipated cost of this acquisition will be fair and reasonable.

The Contracting Officer will comply with procedures and criteria contained in Federal Acquisition Regulation (FAR) under Part 30 - Cost Accounting Standards, Part 31 - Contract Cost Principles and Procedures, Subparts 15.4 - Contract Pricing; to include technical evaluations and audits, as appropriate. Additional steps to ensure price reasonableness will be under the guidance of the Contract Pricing Reference Guides jointly developed by the Federal Acquisition Institute and the Air Force Institute of Technology. The Contracting Officer will obtain certified cost & pricing data IAW FAR 15.403; and detailed documentation and justification of price reasonableness will be disclosed in the official PNM, to be prepared upon completion of negotiations.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

A. As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. To date, no other company has expressed interest in this requirement.

B. Market research consisted of reviewing existing Government programs to identify other USAF weapons that utilize Laser technology and general internet searches via Google.

1. Inquiries to the Paveway, JDAM, and HELLFIRE SPOs and applicable industry partner did not identify a direct Form Fit Function option for existing AGM-65L/E2 produced by RMS.

2. On 3 June 2015, a review of commercial catalogs and other product literature was completed and determined this part to be “ non-commercial.” The review indicated no other alternate commercial items or non-developmental item (NDI) will meet the requirement, nor can the requirement be modified to permit use of existing commercial items or NDIS.

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.

Currently, the contractor is unwilling to sell the data rights necessary to be able to foster a competitive environment for Laser Maverick, see Section V above. However, the Government will continue to perform market research and request the necessary data rights in attempts to overcome barriers to competition in the future.

XII. Certification by the Contracting Officer.

The contracting officer's signature on the Coordination and Approval Document evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief (FAR 6.303-2(b)(12)).

XIII. Certification by the technical/requirements personnel.

As evidenced by their 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).