TFSC J A.pdf

J&A NO: 07-0017

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Introductory Paragraph. Upon the basis of the following justification, I, as Senior Procurement Executive 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, (FAR 6.303-2(a)(l)). This Justification and Approval (J&A) for Other Than Full and Open Competition is for the NIDA, Terminal High Altitude Area Defense (THAAD) Project Office. The contracting activity is MDAIDAC THAAD Project Office (MDAIDACD). The point of contact is Mr. Edward L. Mobley, 256,450-1440.

3. Description of Action Being Approved (FAR 6.303-2(a)(2).

a. This J&A addresses a sole-source action to Lockheed Martin Space Systems Company (LMSSC) in support of the THAAD weapon system. The effort is for the new THAAD Field Support contract. Subject to availability of funds, this effort will be funded'with Research, Development, Test and Evaluation (RDT&E) funds or other funds as authorized and appropriated by Congress. The THAAD Field Support contract is planned for award in lSt Qtr FY09, with performance through FY 13 with five-one year options that extend period of performance to FY 18.

b. The planned contract type is Indefinite DeliveryIIndefinite Quantity, with cost reimbursement with fee, fixed price, and cost without fee task orders to be issued. The maximum ordering quantity will be task orders totaling $449M, which is the value of the contract. The minimum ordering quantity will be task orders totaling $14.4M.

c. An Acquisition Plan is included with this J&A and requires approval.

4. Description of Supplies and/or Services Required to Meet the Agency's Needs (Including the Estimated Value, (FAR 6.303-2(a)(3)). This effort consists of Operations and Sustainment support of the THAAD Fire Units. A THAAD Fire Unit is comprised of THAAD-developed items, as well as many common items already in the US Army inventory (e.g. trucks, generators, radios). The THAAD-developed items include the interceptor, THAAD Fire Control and Communication (TFCC), launcher, radar, and peculiar support equipment (PSE), which are integrated with the common items into a weapon system. The contractor will be responsible for all tasks associated with operations and sustainment support of the THAAD-developed items in the field and at the depot maintenance level, with the exception of the radar component. The Ballistic Missile Defense System (BMDS) Consolidated-Contactor Logistics Support (C-CLS) contract will provide field and depot maintenance support at the "field and sustainment level" for the radar component. The tasks for this requirement include but are not limited to development and documentation of logistics performance requirements, maintenance, supply, training and training support, forward stationing for theater support; exercises;

logistics information capabilities; management of spares and repair parts; post deployment sofhvare support; product assurance; information assurance security; safety, missile support and engineering services related to the THAAD Fire Units. The US Army will continue to perform the tasks necessary for the operations and sustainment of the common items. The estimated maximum value of this contract is $449 Million. The following is a breakout by fiscal year: FY09 - $14.396M; FY 10 - $19.578M; FY 11 -

$4.1.934M; FY12 - $46.157M; FY13 - $50.564M; FY14 - $52.081M; FY15 -

$53.643M; FY 16 - $55.253M; FY 17 - $56.910M; FYI8 - $58.618M.

5. Statutory Authority Permitting Other than Full and Open Competition, (FAR 6.303-2(a)(4)). The proposed action is authorized under the provisions of 10 U.S.C.

23 04(c)(1), as implemented by Federal Acquisition Regulation (FAR) 6.3 02- 1,which authorizes other than full and open competition when the required supplieslservices are available from only one responsible source, or only from a limited number of responsible sources, and no other supplies or services will satisfy agency requirements. In particular, such an instance involves a situation where a substantial duplication of cost to the Government that is not expected to be recovered through competition or an unacceptable delay in fulfilling the agency's requirements is likely.

6. Demonstration of Contractor's Unique Qualifications (FAR 6.303-2(a)(5)).

a. LMSSC is the only responsible source that can provide the required support without substantial duplication of previously expended cost, which would not be recovered through full and open competition without an unacceptable support degradation of critical fielded THAAD weapon system and the overall BMDS development and without unacceptable schedule impacts

b. The above source 1imitations1restrictions are justified by the following facts and circumstances: No source other than LMSSC, the prime contractor for the THAAD development contract, can perform the role of the overall system integrator. The role of the system integrator provides the war-fighter with a critical single field support interface for the entire THAAD Fire Unit. Such an interface ensures an effective and efficient means of world-wide support for the dynamic Ballistic Missile Defense mission to deploy as soon as technologically possible. Any source other than LMSSC would have to acquire, in a very limited timeframe, the extensive knowledge, experience, facilities andlor equipment, which the current prime has amassed over the last eight years.

Furthermore, the cost to the Government of such duplicated effort would not be recoverable through price competition from other sources. An estimated duplication cost of approximately $4 - $5 Billion is based on an engineering estimate of costs associated with acquiring the Technical Data Package (TDP) and development of the design technology associated with acquisition of the weapon system. In addition, it would take 3

- 5 years to duplicate the knowledge base, proficiency level, unique processes, manufacturing and test facilities associated with development of the deployable THAAD system components. Such a duplication of effort would cause several near-term milestones currently in the THAAD Integrated Master Schedule (i.e., DTIOT testing - 4th QTR FY08, Collective Training, Force Developmental Experimentation and Fielding - 2" QTR FY09) to experience substantial delays.

7. Market Research, FedBiz Ops and listing of Interested Sources, FAR 6.303-2a.

a. For reasons as stated in paragraph 6 above, a formal market survey was not conducted for this requirement. However, an informal Market Survey has been completed and the acquisition was synopsized on 3 Jul07 in the FedBizOps, in accordance with FAR 5.2, advising industry of the pending acquisition and soliciting inquiries from interested parties. To date, no responses have been received; any forthcoming responses will be reviewed.

b. The MDA is recognized as the Center of Excellence for Missile Detection and Hit to Kill technology. As such, MDA representatives maintain a close working relationship with industry throughout the world. This working relationship with industry permits MDA to stay constantly abreast of the available technologies and the manufacturing capabilities throughout the manufacturers worldwide, providing a base of knowledge more extensive than would normally be obtained through a formal market survey.

8. Determination of Fair and Reasonable Cost, (FAR 6.303-2(a) (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. The Contractor will submit a formal price proposal with certified cost or pricing data and sufficient information to support the accuracy and reliability of the estimate. The Contractor's proposed cost will be reviewed by experienced technical analysts and contract specialists with the aid of necessary field pricing support. Analysis will be based on historical cost and rate information provided by field pricing support agencies. The Contracting Officer will use the cost and price analysis as the basis for negotiating a fair and reasonable price with LMSSC.

9. Actions Taken to Remove Barriers to Competition (FAR 6.303-2(a)(11).

The THAAD Field Support and Logistics requirements beyond the initial Delivery Order will be carefully considered for competition to the extent practicable as emerging needs become known to the Government. It is assumed that sufficient Life Cycle Cost data will be available to allow future contract competition through the Performance Based Logistics (PBL) process. Furthermore, the Technical Data Deferred Ordering Clause resident in the existing development contract will be utilized, as practicable, to develop second sourcing opportunities for parts and services procured in the coming years. As required by FAR 16.505, (a)(3), "performance-based acquisition methods must be used to the maximum extent practicable, if the contract or order is for services" (see 37.102(a) and Subpart 37.6)." In particular, the contract employs various methods of data collection to support ongoing PBL decisions including operational readiness and incentive fee clauses as well as various Contract Data Requirements List (CDRL) crafted to gather pertinent data.

10. Other Facts. The THAAD Field Support solicitation and resultant contract will contain FAR clause 52.244-5, encouraging subcontract competition to the maximum extent practicable.