Joint Strike Missile JSM JA_Redacted.pdf

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

March 2023 Page 4 of 8March 2023 Page 4 of 8 critical OI #3 gap.

The JSM is a long-range, air-to-surface missile with offensive capability to strike against surface combatants and capable of performing as a stand-alone system requiring minimal integration onto a host platform. Technology Readiness Levels (TRLs) assess the maturity level of a particular technology. JSM is a non-developmental, in-production weapon system technology with an assessed TRL of 8, meaning JSM technology has previously been flight qualified, flight tested, and proven to work in its final form under expected conditions. Having a TRL of 8 postures KDA as the sole-source technical knowledge base required for implementation of this missile system.

The JSM PO at Eglin Air Force Base developed the Acquisition Strategy, approved 14 June 2023, which validates and approves the sole-source procurement from KDA, the Original Equipment Manufacture.

Production includes, but is not limited, to All-Up Rounds (AURs), test and training assets, shipping and protection containers, and support equipment.

Additional sole-source contracts will be awarded to KDA for Aircraft Integration Engineering Support. KDA is currently working JSM integration on USAF F-35's in support of the Norwegian Defence Materiel Agency (NDMA). The PO is working with NDMA to leverage these integration efforts for the USAF's F-35A. The resulting contracts will provide level-of-effort (LOE) Engineering and Technical Support Subject-Matter Expert (SME) services necessary to support the JSM PO's delta integration requirements for the F-35A.

Activities will include but are not limited to, flight test, integration, training, modeling & simulation (M&S), failure review and mitigation, risk assessment and mitigation, studies and analysis and course of action (COA) development, systems engineering, mission planning, technical order (TO)/technical manual development, cybersecurity, communications security (COMSEC) management, technical information and drawings, maintenance concept/plan development, technical translation services, and technical exchange and planning meeting participation.

The planned period of performance for the entire production and integration requirement will be ninety

(90) months from date of first contract award. The initial proposed acquisition is to procure a HAF/A5 Inventory Objective (IO) of JSMs and any additional provisioned items required. The anticipated acquisition will be for approximately $950,000,000 of 3020 procurement funds.

IV. Demonstration that the contractor's unique qualifications or the nature of the acquisition requires use of the authority cited above.

The contracting action covered by this Class J&A falls within the authority found at 10 U.S.C. 2304(a)(1), as implemented by Federal Acquisition Regulation (FAR) 6.302-1(a)(1), Only One Responsible Source and no other supplies or services will satisfy agency requirements.

This acquisition will be for the production of a weapon system capable of fulfilling SecAF's OI #3. The JSM Program is being established to acquire a new capability for engaging long-range surface threats with a state-of-the-art missile system with advanced seeker and guidance systems capable of penetrating sophisticated air defense systems.

Sufficient time does not exist for the design, development, test, and production of a new system to meet the ACC need by date. The Government does not own the required Technical Data Package (TDP) to

March 2023 Page 5 of 8March 2023 Page 5 of 8 support a full and open competition for this procurement. The JSM was developed by the NDMA and they, along with KDA, own the JSM TDP. NDMA will not allow missile production by any other source other than KDA, to protect Norwegian critical technology.

During a March 2023 Government to Government meeting in Norway, the JSM PO specifically engaged NDMA to determine the Norwegian Government's willingness to convey the JSM TDP to the USAF. While very supportive of assisting the USAF in procuring the weapon, NDMA made it clear they would not convey the TDP now or anytime in the future. Therefore, the JSM PO has determined that award to any other source would result in unacceptable program and schedule delays in filling the Government's critical operational requirement.

If the Government was able to obtain the TDP it estimates it would take, at minimum, six (6) to seven (7) years to qualify another source to produce JSM. The estimate encompasses the activities listed below with some being completed simultaneously to obtain the estimate. An extended time frame for production, operational testing requirements, and certification, would compromise USAF fielding requirements.

The estimates of delay and duplicative effort are based on the following considerations:

A. Any new source would be required to establish engineering and logistics facilities (office space, labs, storage, production) for execution of the development, test, manufacture, integration, qualification, and analysis tasks required for the execution of hardware development, production, and in-service support. It is estimated it would take approximately two (2) to three (3) years to complete.

B. Development efforts would include build of test assets for operational testing (OT). It is estimated it would take approximately two (2) years to build the OT assets. In addition, a new source would be required to conduct intensive munitions tests and packaging, handling, storage, and transportation qualification.

C. A new source would be required to provide duplicative tooling and specialized test equipment required to produce and test JSM components and sub-assemblies to support qualification and troubleshooting of missile production. Duplicative tooling and test equipment would be necessary for a source other than KDA because the existing tooling and test equipment would have to be maintained at KDA to support on-going production, and therefore, could not be provided to a new contractor as Government Furnished Equipment. It is estimated it would take approximately four (4) years to complete and qualify the new equipment.

D. Any source other than KDA would have to establish systems engineering baselines and develop software and tools to support simulation, software modifications, and facilities to develop, qualify, and analyze performance of a new missile configuration. This would require duplication of specialized Software-in-the-Loop/Hardware-in-the-Loop facilities at the new contractor facility to put the necessary capabilities in place to support the JSM program. After establishment of a new facility, the uniqueness for the weapon system hardware would mandate considerable training for the new source. It is estimated this effort would take approximately five (5) years to complete development of the necessary software and firmware tools, source specialized equipment and personnel for lab test, and conduct training for a new sole source to become qualified to satisfactorily perform necessary work.

March 2023 Page 6 of 8March 2023 Page 6 of 8

The estimated delay of six (6) to seven (7) years to qualify another source to produce JSM would significantly impact the ACC operational need for this weapon system by August 2026. Accordingly, KDA is the only firm capable of providing the supplies and services described in Section III above without the Government experiencing substantial unacceptable delays in addressing the SecAF's OI #3.

V. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under

FAR 5.202 applies.

As stated in Section III above, since JSM is the only non-development weapons system with current production capacity to meet OI #3 and the identified capability gap, the market research focused on procuring JSM's and providing its Aircraft Integration and Engineering Support.

On March 15, 2023, AFLCMC/EBDJ posted two separate Sources Sought Synopsis's on the beta.SAM.gov website seeking feedback from companies capable of Production (FA8681-23-JSM-SourceSought- Procurement) and Integration (FA8681-23-JSM-SourceSought-Integration) of the JSM on the F-35A.

Two (2) responses were received for Production, one from KDA and one from Raytheon. KDA responded that they are the Original Equipment Manufacturer (OEM) and are the only contractor approved by NDMA to access the entire JSM Technical Data Package (TDP), making them fully capable to produce the JSM. Raytheon Missiles & Defense (RMD) responded that they are only capable of supplying the JSM as a partnership with KDA, and not as the OEM.

A total of seven (7) responses were received for integration from HEBCO, Intrepid, Integrated Solutions for Systems, KUOG, LoneStar, RMD, and KDA. KDA is the only respondent deemed qualified as the OEM and only contractor approved by NDMA to access the entire JSM TDP and software to perform the weapons integration portion on the F-35A. Due to data and software rights and access, contract award to any contractor other than KDA would result in a complete subcontract back to KDA, increasing government costs and lengthening timelines. Additionally, ongoing weapon integration efforts between KDA and the Norwegian Ministry and Defence (NorMoD) allows the USAF to expedite testing and integration timelines, and access to all lessons learned.

VI. 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 prices awarded under this J&A are fair and reasonable to the Government. A Fixed price contract type is anticipated for Production and a Cost type contract for Aircraft Integration Engineering Support. Cost analysis is expected to be performed for each cost element using the following steps to ensure the final contract price is fair and reasonable: (1) Obtaining a Defense Contract Audit Agency (DCAA) Europe and Defense Contract Management Agency (DCMA) Europe audits of the contractor's proposed costs, where needed; (2) Obtaining a technical evaluation from the technical team familiar with past, similar and current efforts, and qualified to make a recommendation on proposed labor hours, material, and other direct costs for reasonableness; (3) Conducting cost analysis using DCAA and DCMA recommended rates; (4) Comparing the proposed prices

March 2023 Page 7 of 8March 2023 Page 7 of 8 with the JSM PO Independent Government Estimate; (5) Using the Weighted Guidelines tool to determine the appropriate profit/fee; and (6) In accordance with the Truth in Negotiations Act 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. The Price Negotiation Memorandum will detail the cost and price analysis as well as document how the price was determined to be fair and reasonable.

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

As described in Section V above, Market Research was conducted IAW FAR Part 10 by posting sources sought on March 15, 2023, for all of the quantities/requirements listed in Section II. The posted notices to beta.SAM.gov, stated that the Government was seeking contractors capable of producing the JSM weapon system and integrating it on the F-35A aircraft. KDA was deemed the only company capable of acting as prime contractor since they are the OEM and the only contractor approved by NDMA to access the full TDP. KDA is the only source with the requisite manufacturing expertise, qualified sources and design, production, and support capabilities to fulfill the Government's requirement without unacceptable schedule delays and operational impact.

VIII. Any other facts supporting the use of Other Than Full and Open Competition.

Additional facts supporting “Only One Responsible Source” as the relevant authority of this acquisition as cited in Section V above are contained herein: NDMA along with KDA own the JSM TDP. The NDMA will not allow missile production by any other source other than KDA or transfer of TDP, to protect Norwegian critical technology.

IX. List of any sources that expressed, in writing, an interest in the acquisition.

See Section V above.

X. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

Based on HAF direction to date, JSM is an immediate to near-term gap-filler to contribute toward meeting SecAF's OI #3. There has been no HAF commitment to date to purchase more than the current IO of missiles. JSM fills a void until other weapons currently in development are fielded later in the decade. By the time the production period of performance mentioned in this document expires, the USAF preferred weapon of choice will be available to the COCOMs. For that reason, the PO has no current or future plans to pursue or compete future contracts for the types of supplies and services covered by this document. If the IO is updated and more JSMs are required and directed by the COCOM and HAF, the JSM PO will request a new J&A.

With regards to product support, spares are not being purchased and KDA has stated that JSM has a 10-year inspection cycle which must be accomplished at the contractor facility. The PO is waiting for KDA to finish/complete environmental testing to validate the 10-year service inspection requirement. Once that technical information is gathered, the PO will make a decision on the type of logistics support that should

March 2023 Page 8 of 8 be put on contract via a separate vehicle and J&A. The PO is not pursuing CLS at this time since KDA has not finalized their actual maintenance timelines. The JSM PO has had discussions with multiple Air Force Sustainment Center offices at Hill AFB and Robins AFB about future product support and sustainment approaches for the weapon. Subsequently, Robins AFB was chosen as the future JSM sustainment location and the JSM PO initiated and completed a Memorandum of Agreement (MOA) with that office in July 2023. This MOA will help guide decisions for the best support and sustainment pathway.

XI. Certification by the Contracting Officer.

As evidenced by my signature above, I certify that this justification is accurate and complete to the best of my knowledge and belief.

XII. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.