Redacted_Approved_Griffin_JA.pdf

COORDINATION AND APPROVAL DOCUMENT

(Also known as Justification Review Document)

Contracting Activity: AFLCMC/PZJ, Eglin AFB FL 32542 Purchase Request/Local Identification Number: FA8656- l 4-D-0241 Project/Program Name (and Program Element, if applicable): Griffin Procurement and Support Estimated Contract Cost (including options): $85,500,000 Type Program: Other Contracting Authority: 10 U.S.C. 2304(c)(l), as implemented by FAR 6.302-1 (a)(2)(ii) Type J &A: Class

COORDINATION:

8/6/2014

X Benjamin Marshall lit Benjamin N.Marshall Acqu i&ion Program Manager,SOCOM/SOAL FW ...

Signed by: MARSHALLBENJAMINNE I .1298824848

8/6/2014

X Melissa A. Campbell

Melssa A. Ca171>bell Procurement Contractng Officer, AFLCMC/PZJ ~ned by: CAMPBELLMEUSSA.A. '087428083

8/7/2014

X Paul A. Luthy Paul A. Luthy Legal Reviewer, 96 TW/JAQ Signed by: LLJTHY.PAUL.A .1042452900

8/7/2014

X Audrea J. Feist Audrea J. Feist Con-petibnAdvocate, AFLCMC/PK-OLEglin Signed by: FEIST.AUDREA. JEANETIE.1068996470

8f7/2014

X Thomas D. Ficklin UColThomas D. Ficklin Director of Contracting, AFLCMC/PK-OL Eglin Signed by: FICKUN.THOMAS. D.'044345915

APPROVED:

Thorras D. Robinson, SES

Director Of Contracting, AFLCMC/ PK

I. CONTRACTING ACTIVITY

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

The contracting activity for this class Justification and Approval (J&A) action is the Air Force Life Cycle Management Center (AFLCMC), Eglin Operating Location, Rapid Acquisition Cell (RAC), AFLCMC/PZJ, Eglin AFB, FL 32542. The Procuring Contracting Officer is Melissa Campbell, 850-883-3933.

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

This Class J&A is for the procurement of Griffin Missiles, equipment, and system support using a new Indefinite Delivery Indefinite Quantity (IDIQ) contract for the United States Special Operations Command (USSOCOM) and Army, Marine, Navy, and Air Force units procuring Griffins through SOCOM Det-1, Eglin AFB. The basic contract will contain unpriced options for years 2 and 3 which will be negotiated and priced just prior to option exercise. This contract will be awarded to Raytheon Missile Systems (RMS) Company, 1151 E Hermans Rd, Tucson, AZ 85756-9367. Anticipated contract types are Fixed-Price (FP) for Griffin missiles and equipment, Cost-Plus-Fixed-Fee (CPFF) for system support, and Cost Reimbursable (CR) No-Fee, for travel. The IDIQ ordering period will be three (3) years to align with the earliest expected date on-going industry investments may generate a viable competitor to the Griffin missile. Periods of performance will be specified on individual delivery/task orders. The initial contract award is anticipated to be in September 2014.

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

Under the contemplated contract, RMS will provide the following supplies and services: (1) Griffin missiles, to include but not limited to Griffin A Telemetry (TM), Griffin A All-Up-Round (AUR), Griffin A Guided Test with Propulsion Round (GTP), Griffin B Telemetry (TM), Griffin B All-Up-Round (AUR), and Griffin B Guided Test with Propulsion Round (GTP), as well as new missile variants as they become available; (2) Griffin support equipment, including but not limited to, Captive Air Training Munitions (CATMs), test and training equipment, launchers, and simulants; (3) system support, including integration on air, surface, and sea platforms, sustainment of combat capability, test and training, repairs, product improvements, logistics, and technical data. This effort is anticipated to be funded via multiple appropriations: procurement (missiles, equipment, support for procurement funded activities); RD&TE (missiles, equipment, product improvements and support to RDT&E funded activities); and O&M (support for operations with fielded capability).

The minimum and maximum order values will be $90,000 and $85,500,000, respectively.

IV. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. 2304(c)(l), as implemented by FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

V. DEMONSTRATION THAT THE CONTRACTOR'S UNIQUE QUALIFICATIONS OR NATURE OF

THE ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED ABOVE (APPLICABILITY

OF AUTHORITY)

Subsection 1: Under an Advanced Concept Technology Demonstration (ACID), USSOCOM established the Standoff Precision Guided Munition (SOPGM) architecture for integrating weapons onto Special Operation Forces platforms. The SOPGM architecture sets functional and physical interfaces, making it possible to incorporate contractor-developed munitions. To date, two munitions are compatible with these interfaces, Page 1of4

Northrup Grumman's Viper Strike and RMS's Griffin missile. USSOCOM fielded both mumtions and subsequently

At this time, there is no viable alternative to the Griffin. The Griffin's specialized combination of characteristics include: (1) 50 lb class powered munition employable from the SOPGM Common Launch Tube (CLT); (2) compatible with internal and external and roll on, roll-off employment from fixed and rotor aircraft; (3) high lethality with low collateral damage; ( 4) and demonstrated reliability of 95%. It is the only armament compatible with several Special Operations Forces platforms actively engaged in combat operations. Without continued procurement of Griffins, these platforms will not be able to sustain armed operations beyond May 2015, resulting in missed opportunities to prevent enemy forces from killing or injuring allied forces and civilians.

The Griffin missile was developed by Raytheon Missile Systems using corporate internal research & development funding. RMS is the designer, developer, and sole qualified producer of the Griffin missile, which meets safety certifications established by Department of Transportation (DOT), Federal Aviation Administration (FAA), military service safety boards, and the airworthiness authority for host platforms. In accordance with USSOCOM Directive 70-1 and the USSOCOM Acquisition Decision Memorandum, the Griffin program is a Commodity Procurement Project.

RMS is currently providing Griffin missiles and support to USSOCOM via contract FA8677-12-D-0037. This contract, awarded by AAC/PK.E on 17 May 12, was awarded sole source to RMS under FAR 6.302-1 , "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements" authority. The contract period of performance will end 17 May 2015; however, the approved J&A dollar amount has been reached. This contemplated IDIQ contract acquisition will be a follow-on effort for continued production and support of this highly specialized equipment. USSOCOM purchases of Griffins peaked in FY14 and are anticipated to be lower each year in FY's 15-17 as SOCOM diverts Program Objective Memorandum (POM) funds to purchase larger weapons for some of their aircraft. Additionally, SOCOM expects potential competitors to Griffin to mature in 2-3 years. Consistent with these plans, this contract will have a three year ordering period and maximum value of $85.5M.

Subsection 2: RMS has an active production line that is capable of producing Griffins that will meet USSOCOM's combat deployment requirements. RMS has designed, fabricated, and successfully delivered similar products under extremely aggressive timelines and has extensive experience in meeting the requirements of DOT, FAA, military service safety boards, and Operational Safety, Suitability and Effectiveness (OSS&E) authorities for Department of Defense (DoD).

Subsection 3: USSOCOM, Det 1 believes that award to any other source would result in substantial duplication of cost to the Government and is not expected to be recovered through competition and unacceptable delays in fulfilling USSOCOM requirements. AFLCMC/XZWG conducted an assessment of all candidate Standoff Precision Guided Munitions (SOPGMs) that fall within the 50 lbs. maximum weight requirement. Their results indicate Viper Strike, Griffin, and 2.75 inch rockets are the only munitions currently in production. USSOCOM platforms use the Common Launch Tube (CLT) to employ SOPGMs. Hence, 2.75 inch rockets are not viable candidates because they are not compatible with the CLT.

Other candidates identified include Small

Glide Munition, Hammer, Hatchet, Raser, G-Claw, Saber, and Nemesis. All of these are still in development.

The investment to bring any of these munitions to a combat ready maturity will be at least $25M and take 18 months or more. This investment includes the cost and time to complete munition development, integrate unto aircraft currently employing Griffin, conduct flight testing, generate technical orders, produce support equipment, train operational units, and support deployment to operating locations. The cost and time estimates do not account for potential design changes that could be necessary to achieve reliability comparable to Griffin. The 18 month timeline does not meet operational requirements to sustain operations. To meet training and combat

Page2 of4 operations, USSOCOM must begin receiving missiles from this contract by May 2015 at a rate of 20 or more per month. The Government has not procured the Griffin technical data package (TDP); therefore, the ability to qualify another producer is restricted.

Should the Government decide to purchase the Griffin TDP, it will take 24 months (or longer) and $5M-$10M (does not include cost of Griffin reprocurement package) for another supplier to produce first articles, conduct qualification tests, and obtain safety and airworthiness certification. USSOCOM currently has no standing inventory of Griffins and cannot sustain operations past May 2015 without additional missile deliveries and at a rate of 20 or more per month.

Subsection 4: Raytheon Missile Systems Company is the only contractor capable of providing the missiles and support described in Section III above within the timeline required to sustain training and combat operations.

VI. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED FROM AS

MANY POTENTIAL SOURCES AS DEEMED PRACTICABLE

AFLCMC/PZJ posted a Sources Sought (FA8656_MR_0001), on 31March2014 with a response deadline of 11 April 2014. The Sources Sought described the requirement for a powered Standoff Precision Guided Munition, support equipment, and engineering support for Special Operations Forces platfonns. It was stated the munition must be compatible with carriage and employment from the Common Launch Tube (CLT) and specifications for the CLT were authorized for distribution to DOD and US DOD Contractors only. The only response was from Raytheon. In addition, for this IDIQ contract, in accordance with FAR 5.20l(b)(l), a notice of contract action synopsis (FA8656-14-R-0241), was posted on 24 Jun 14 at FedBizOpps. No proposals have been received in response to this synopsis. if proposals are received in response to this synopsis, they will be evaluated against USSOCOM's requirements.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO

THE GOVERNMENT WILL BE FAIR AND REASONABLE

The Contracting Officer will ensure that the negotiated price is fair and reasonable to the Government. Steps taken to ensure the final contract price is fair and reasonable will include: (1) accomplishing a price analysis by comparing proposed prices to recent contract actions for like items; (2) using rates set forth in the current Forward Pricing Rate Agreement (FPRA) and/or Forward Pricing Rate Recommendation (FPRR) for cost analysis purposes; (3) obtaining a DCAA audit of the Contractor's proposed costs; (4) getting a technical evaluation from the Program Manager that evaluates the proposed labor mix, hours, materials, travel, and shipping for reasonableness; (5) using the Weighted Guidelines (WGL) tool to determine the appropriate profit/fee; and (6) in accordance with the Truth in Negotiations Act (TINA) and FAR 15.403-4, upon conclusion of negotiations, the Contracting Officer will obtain a Certificate of Current Cost or Pricing Data from the Contractor.

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 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. In April 2014, AFLCMC/XZWG conducted an assessment of all candidate Standoff Precision Guided Munitions (SO PG Ms) that fall within the 50 lbs. maximum weight requirement. USSOCOM subsequently conducted market research, incorporating the AFLCMC/XZWG assessment. The results of this market research (summarized in Section V Subsection 3) confirmed that Raytheon Missile Systems Company is the only contractor capable of successfully meeting the needs of

Page 3of4 the warfighter.

Estimates of the cost and timeline to mature any of the other 50 lbs class munition concept currently being pursued by DoD and industry is $25M or more and 18 months or longer. There is no expectation the Government will realize a return on such an investment given the low volume of Griffin purchases. Additionally, the timeline does not support USSOCOM's need to begin receiving deliveries by May 20 15 to avoid deployed inventory shortfalls that will result in failure to meet Special Operations Forces "armed overwatch" operational commitments. USSOCOM will continue to monitor industry and other Government organizations for potential competitors to Griffin as well as conduct assessments of other weapons that have potential to meet the needs of the warfighter.

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

COMPETITION

None. See Sections IV, V, VI, and VIII.

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 Government is promoting competition by providing interested contractors the SOPGM architecture interface requirements and maintaining a "carry-on" SOPGM carriage, release, and battle management capability to support flight demonstration of non-development items on commercial or military aircraft. Market research indicates there are several commercial businesses pursuing munition concepts with the potential for integration into the SOPGM architecture. The Government will continually monitor the progress of these investments. If one or more of these companies demonstrates a product within the next two years that meets the SOPGM architecture requirements, has performance comparable to Griffin, and is combat ready, the Government will pursue competition for follow-on purchases.

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 IA W FAR 6.303-2(b )(12).

XIII. TECHNICAL/REQUIREMENTS PERSONNEL'S CERTIFICATION

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 IAW FAR 6.303-2(c).

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