Redacted_J A_Lots_26-33_dtd_27_Sep_2011_for_FBO.pdf

COORDINATION AND APPROVAL DOCUMENT

AFMC CONTRACTING ACTMTYfn=r:~ cg~~ii'i'Ar:MClE~~eemJii~r=Alr 03wJ~~oc~ Djvlsloo. AIM· 120 <Air loterC§pl Ml§slle> productlQ _____ _:__J f;J ______ SI _______ !_ __ Q FL ____ _

PU~CHASE REQUEST NUM13l:R/LOCAL IDENTIFICATION NUMBER: E[;8675·12·R-0003

PROGRAM/PROGRAM ELEMENT: AtdBMM Production and ~ustalnmenl Lots 26-33 <FY12·f'{19)

ESl'IMATED PROGRAM COST:~

PROGRAM TYPE: PEO Program

AUTHORITY: 10 U.8.C. 2304Co)(1l. as lmplemeo!ed by FAR 6.30fi·1(.al{2)(11)

TYPE J&A: Class

CONTRACTING OFFICER;

AMUMM PRODUCTION/

SUSTAINMENT MATERIEL

LEADER:

LEGAL COUNSEL:

COMPETITION ADVOCATE:

AIR FORCE PROGRAM ·

EXECUTIVE OFFICER FOR

WE:APONS:

DATE

DATE

ti

...... DATE

DATE

DATE

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DEPUTY ASSISTANT

SECRt;TARY FOR

CONTRACTING, ASSISTANT

SECRETARY FOR

AC<~UISITION:

APJ•ROVEO:

AIR FORCE SERVICE

ACQUISITION EXECUTIVE:

DATE

CLASS JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

I. CONTRACTING ACTJVITY

The Air Force Materlel Command, Air Armament Center, Armament Directorate, Air Dominance Division, AIM-120 (Air Intercept Missile) Production/Sustainment Brat1ch (AAC/EBAC), Eglin Air Force Base FL 32542 Is the contracting activity for this Class Justification an~ Approval for Other Than Full and Open Competition.

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

This Class Justification and Approval (J&A) supports multiple, new cont(act actions In support of Air Dominance Division requirements to be Issued on a sole source basis to Raytheon Company, Raytheon Mlsslle Systems, 1151 East Hermans Ro~d, Tucson AZ 85756-9367. The AMRAAM program is an Acquisition Category (ACAT) 1 C program assigned to the Air Force Program Execuflve Offlper for Weapons (AFPEO/WP). This J&A supports follow-on, sole source contract actions to Raytheon for Lots 26-33/FY12-FY19 AMRAAM Missile Production!

Sustainment. The US G<.>Vernment Intends to pursue annual prod~1cHon lot buys for AMRAAM Procluctlon Lots 26, 27 and 28. Congresslonal approval wlll be sought for a multi-year procurement for AMRAAM Production· Lots 29 through 33. In the event congressional approval Is not granted, the Governmeilt desires a basic production contract with priced optlon(s) or annual productfon lot buys. The type of contracts planned are Firm Fixed Price (FFP), but may Include cost-reimbursement CLINs as appropriate, for the United States Air Force (USAF), United States Navy (USN), United States Army (USA) and Foreign Military Sales {FMS) customers.

Ill. DESCRIPTION OF THE SUPPLIES/SERVICES R!;QUIRED TO MEET THE AGENCY'S Neeps

Raytheon will produce and sustain the AIM-120C7 and AIM-1200 missiles (USAF/USN/USA) and AIM-120 missile variants authorized for release to Forelg~. Ill ary Sales ~!al estimated value for production/sustainment under this Class J&A ls-over this.--i Since there are no feasible actions that could develop. future competition, It ls reasonable to seek approval for more than one fiscal year's requirements.

Production: The AMRAAM production program consists of AIM-120C7 and AIM-1200 mlsslles, Captive Air Training Missiles (CATMs), warranties, support Items (Including AMRAAM Captive EqLilpmer:it (ACE), Programmable Advanced System Interface Simulator (PASIS), Telemetry Units, Speclal Test Vehlcles (STVs), and AMRAAM Air Vehlcle Instrumented (AAVI), FMS offset administration costs, software/hardware upgrades lo support production missiles, associated data, and any other supplies or services needed to produce the AMRAAM missile and test equipment for the life of the system. Production !iantltles, Including All Up Roun .. d (AUR) mlsslles and Captive Air Training Missiles (CATMs), are estimated at based t1pon a maximum of missiles per year. As referenced in the US Government P-Docs, approximately AMRAAMs per year or total are anticipated for FMS customers. Authority to purchase these FMS quanttt!es (and anclllary effort) is covered within this document and will not require a separate International Agreement Competitive Restrictions (!ACR) document. The Produclion contract length of months per lot accommodates lead-time. of months to purchase materials and manufacture parts, followed by months of mlsslle assembly. These production quantities are for planning purposes and are anllclpated~cured across eight years beginning with the Lot 26 (FY12) production Lot. The estimated dollar value ls .-per year tttlllzlng Procurement (Missiles);

Research, Development, Test and Evaluat!on (RDT&E); Operations and Maintenance (O&M) and FMS funding based upon customer requirements.

Sustajnrnent; AMRAAM Contractor Logistics Suppor.t (CLS) Includes AMRAAM system repair, Infrastructure required to support repairs at a steady pace, and a Service Life Prediction Program (SLPP} for all AMRAAM variants. CLS serves the repair needs of USAF, USN and FMS countries and Includes the following of the AMRAAM system: Depot~level repair of Non-Warranty AIM-120 missiles, AAVI missiles, non-warranted CATM- 120Bs, 120Cs and_ 1200s, 'felemetry Units (Including re.-cerUficatlon to verify the mlsslfe perrormance), containers, and repairable/replaceable components of these.end Items. Also covered under CLS are spares/spares salvage management, special tooling and special test equipment maintenance, and hardware dernilitarlzat!on/dlsposal. The AMRAAM Service Lire Prediction Program (SLPP) evaluates AMRAAM mlsslles in the US fielded Inventory. The program's purpose Is to predict changes ln missile safety, performance and reliabll!ly as a function of age and captive carry usage. It Is anticipated that CLS CLINs wlll be Included on each production contract. These are annual sustainment etrorts, which typically represents less than 1% of the total planned procmernent, will coincide wlth production Lots 26-33/FY12-FY19. Due to the many years of CLS

Page 3 of5 history, these efforts are anticipated to be placed as Firm-Fixed Price CLINs. The estimated dollar value is per year utlllzlng Operation and Maintenance (O&M) appropriations and FMS funding· based upon customer requirements.

IV. STAIUTOBYAUTHORf!Y PERMITTING OTHER THAN FULL AND OPEN QOMPl!'flllON

The stat~t9ry authority for these efforts Is authorized under 10 U.S.C. 2304(c)(1) as Implemented by FAR 6.302- 1(a)(2)(11), "Only One Responsible Source and no other supplies or services will satisfy agency requirements."

V. REMONSTRATION THAT THE CONTRACTOR'S UNIQUE QUALIFICATONS OR NATURE OF Tt;iE ACQUISITION REQUIRES THE USE OF THE AUTHORITY Cl'l'EP ABOVE (APPLICABILITY OE AUTHORIT)'I

(1) Only One Responsible Source (FAR 6.302-1): This effort Is a follow-on contract for continued production of a major system. The AMRAAM program is a mature, major defense acquisition program (ACAT 1 C) that has successfully passed Its full rate prodt.1ct1on acqulslllon milestone. The previous Class J&A covered Production Lots 21-26. Lot 24 (FA8676-10-C-0014) has been awarded and Lot 25 is anticipated to award In July 2011.

The ref ore, this acquisition wfll be a follow-on contract for the continued production/sustainment of a major system.

(2) The AIM-120 Production/Sustainment Branch believes that award to any other source would result In substantial duplication of cost to the Government that Is not expected to be recovered lhrough competition for the USAF/USN/USA and FMS customers. .

a. The AMRAAM sy.been fielded and In production since 1991. In 1986, as part of <ii competitive acquisition strategy, as Invested In qtiallfylng the Raytheon Company as a second source to · Hughes Missile System ompany {HMSC) for the production and sustainment of the AMRAAM system. The Government Invested in Special Toollng/Speclal Test Equipment (ST/STE), facflilies, and other Investments as necessary for testing and qualification of AMRAAM hardware and software. In 1997, before the Government recouped their second source Investment, r~aytheon Company and HMSC merg~d Into Raytheon Missile System (RM~) becoming the single contractor capable of developing, producing and sustaining AMRAAM hardware and software.

b. To qualify another so~rce for production and su~talnment, a conservative estimate of-would be re ulred to ua!lf the facllitles, hardware and sofl\vare and procure the Technlc.al Data Package (TDP) at an

This estimate Is. derived from professional experience and technical judgment. The AMRAAM design ts g 1 y complex, the factory test requirements are extensive and detailed, and the manufacturing processes across the supply cl1aln are extremely complicated. A second source would be required to procure and establish the .necessary facllltles and equipment to complete mlsslle qualification testing. Duplication of Raytheon's systems would be lmpracttcal ·because of obsolescence Issues. Actions for requallflcatlon lt1c!ude procurement of the TOP, development of capita! facllitles and test methodologies for both hardware and software. In many cases, existing level two specifications (below the System Performance requirements) are specific lo. Raytheon's capital facllltles and environment and would be of no va_lue to the second source. Once qualification is complete, It Is estimated it would take--for re-verification and re-validation of the equipment and processes against the Missile Performan~on (MPS).

c. After coinpleflon of the cjualiflcatlon of the second source, on .. would remain under this J&A.

Based upon current year budget documentation, an estimated S missiles, at a total b~1dget of_ would be available to benefit from this second sourcing. Hlstor ca ata shows that the AMRAAM program anticipated a savings of approximate! based on competition. If a similar perc. a e were to be applied to a projected total dollar value of potential savings would be approximately based on the s U limately, qualifying a second source Is est mated at __ The savings from ~e Is approximate~ e se nd source would be-

d. The Government does not own a TDP In a form that would pennll manufacture by another source;

furthermore, the TDP would not be available for the AIM-1200 mlsslle untll the oompletlon of the on-going -Developmental Test/Operational Test phase. Raytheon has been given responslblllty for maintenance of the

· AMRAAM TOP and has configuration control for changes that do no.t affect mlsslle pe~onnance. ·

(3) Accordingly, Raytheon Mlsslle Systems (Raytheon Company) Is the only firm capable of providing the supplies and services described In Section Ill above without the USAF/USN/USA and FMS cust<?mers experiencing substantial duplication of cost that could not be expected to be recovered through competifio~t

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

SOURCES AS DEEMED PRACTICABLE

A pre-sollcltatlon synopsis was posted In FedBlzOps on 12 Jan 11, synopsis number FA8675-12-R-0003, for the productlonfsustalnment requirements of AIM-120C7 and AIM-120D missiles (USAFfUSN) and AIM-120 missile variants authorized for release to Foreign Military Sales (FMS). The synopsis welcomed any Interested parties to Identify their interest and capability by submitting a capabilities package for the Government's evaluation. No responses have been received for any of the efforts. A review of market research, synopses and source lists of previous AMRAAM contracts failed to reveal any ot11er Interested parties.

VII. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE GOVERNMENT WI LL

BE FAIR AND REASONABLE .

The contracting officer anticipates the cost to the Government will be fair and reasonable based on cost analysis · in accordance with FAR Subpart 15.4 and supplements using certified cost or pricing data. The steps to ensure the final contract price will be fair and reasonable will Include a comparison against the should cost estimate produced by MCfEBAC in 2011, a full technical evaluation by AMRAAM subject area focal points for each contract Issued under the authority of this J&A, analysis from Defense Contract Audit Agency (DCM) and use of the most current rates recommendedfnegotlated by the Defense Contract Management Agency (DCMA), along with utilization of Weighted Guidelines to determine fee or profit. At the conclusion of negotiations, a Certificate of Current Cost or Pricing Data will be obtained.

VIII. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS

As described in Section VI above, market research, In accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition for the purpose of advising Industry of the pending acquisition and soliciting Inquiries from Interested parties. Previous procurements of AIM-120 productlonfsustalnment efforts have been synopsized, with no other source Interested. An examination of previous acquisition history has shown that Raytheon is the only contractor who possesses the technical knowledge and experience required to accomplish the AMRAAM system efforts. From reviews of open source data and participation In conferences such as the Air Armament Symposium, AMRMM Program Office program management and technical personnel are not cognizant of any viable companies that could compete in the AMRAAM development, production or sustainment activities. This market research provides a high level of confidence that no other qualified sources exist.

Furthermore, alternative equipment or substitutes are not feasible.

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

Not Applicable

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 BAR RU: RS TO COMPETITION BEFORE MAKING SUBSEQUENT ACQUISITIONS FOR THE SUUPPLIES OR SERVICES REQUIRED

As discussed above, no further steps will be taken to obtain competition on this missile system production and sustainment requirement. Based upon the previous loss of competition when Raytheon acquired Hughes and lack of industry Interest, the Government does not Intend to seek further competition. Seeking more than one year is the most efficient way to proceed since competition Is unlikely to occur. Reference section V, paragraph 2b.

XII. CONTRACTING OFFICER'S CERTIFICATION

The contracting officer's signature on the Coordination and Approval Document (CAD) evidences that she has determined this document to be both accurate and complete to the best of her knowledge and belief.

XIII. TECHNICAL/REQUIREMENTS PERSONNEL'S CER!IFICATION

As evidenced by their signatures on the CAD, the technical andfor requirements personnel have certified that any supporting data contained herein, which Is their responsibility, is both accurate and complete.

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