Redacted_J&A.pdf

TC

DEPARTMENT OF DEFENSE

MISSILE DEFENSE AGENCY

5700 1 8 TH STREET

FORT BELVOIR, VIRGINIA 22060-5573

J&A No: 16-0049 (Amd OJ) Contract No: HQ0147-11-C-0006

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Introduction (FAR 6.303-2(b)(l)). (no change) Upon the basis of the following justification, I, Director 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(b)(l)). (no change) The MDA Targets and Countermeasures (TC) Program Office plans to contract by means other than full and open competition.

3. Nature and Description of the Action Being Approved (FAR 6.303-2(b)(2)).

In order to meet the requirements of the tarest Integrated Master Test Plan (IMTP), the MDA intends to execute a contract ettange"9ffieF action on the TC Orbital Sciences Corporation (OSC) (a wholly mrned subsidiary of Northrop Grumman Innovation Systems) contract, HQ0147-1 l-C-0006, to procure the following: additional Intercontinental Ballistic Missile (ICBM) Kits; Gcll3aeility ~grade Type 2 Configuration 2 (T2C2) Kits; and a corresponding extension of the period of performance-for GclJ3aeil-ity ~graae T2C2 Kit development, integration, and launch support services through Fiseal Year ~4 (-F~4j 2025

(FY 2025) .

4. Description of the Supplies and/or Services Required to Meet the Agency's Needs (including the estimated value) (FAR 6.303-2(b)(3)).

In order to meet the MDA's test requirements, the TC Program Office has a requirement to re pri-se Option 2- and revise the Intermediate Ballistic Missile (IRBM)IICBM requirements as follows:

• ICBM Kits, consisting of the remaining approved kits from the 2012 Acquisition Strategy Panel (ASP), plus additional kit;

• Establish Gcll3aeil-ity-Ypgrade T2C2 Kits ( details are provided in a classified briefing) and associated non-recurring engineering (NRE) costs;

• Establish prices for option kits currently included on Attachment 13 for exercise, from A4& FY 2018 through~ FY 2025;

• Extend the period of performance for the associated support services beyond A4& FY 20 I 8, through~ FY 2025, and establish prices under new CLINs to include flight test support and engineering services required for both the Intermediate Range-Balttstie-Missite-flRBM1 and ICBM targets.

Approved for Public Release 19-MDA-10007 (10 Apr 19)

J&A No: 16-0049 (Amd OJ) Contract No: HQ0147-11-C-0006

The estimated value of these requirements to support the IMTP through FY 2025 is , broken out in the table below:

5. Statutory Authority Permitting Other than Full and Open Competition (FAR 6.303- 2(b )( 4)). (no change)

The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(l) as implemented by FAR 6.302-1 (a)(2)(ii), only one responsible source and no other supplies or services will satisfy agency requirements :

(ii) Supplies may be deemed to be available only from the original source in the case of a follow-on contract for the continued development or production of a major system or highly specialized equipment, including major components thereof when it is likely that award to any other source would result in - (a) Substantial duplication of cost to the government that is not expected to be recovered through competition; or (b) Unacceptable delays in fulfilling the agency ' s requirements.

6. Demonstration of Contractor's Unique Qualifications or the Nature of the Acquisition Requires use of the Authority Cited (FAR 6.303-2(b)(5)).

Contract HQ0147-l l -C-0006 was competitively awarded to OSC on March 7, 2011. At the time of the contract award, OSC had tip to tail responsibility for production and subsequent launch of the entire target vehicle. Shortly after contract award, the Program Executive for Programs and Integration (DP) determined that it would be in the best interest of the Government to provide the Modified Ballistic Re-entry Vehicles (MBRVs) as Government Furnished Equipment (GFE).

Subsequent to that determination, a stop work order was issued on the targets. This invalidated the price of Option 2 and required this option to be re-priced before exercising.

As a part of the initial competitive solicitation, offerors were required to propose pricing for the IRBM Type 1 targets (Launch and Target Object) and retrofit kits for IRBM Type 2 capabilities not included in the baseline IRBM configuration/design in accordance with the Target System Performance Specification (TSPS). The contract was awarded with various IRBM Type 2 retrofit kits (NRE and recurring engineering). These priced options were valid through F¥l--8 FY 2018. The NRE for the majority of the retrofit kits has already been completed. In accordance with the latest IMTP requirements, prices for these retrofit kits need to be negotiated through

~ FY2025 .

The associated support services, including Integrated Logistics Support (ILS), engineering services (Task Instructions), and flight test support options are valid through~ FY 2018. An extension of these support services, engineering services, and flight test options is required to support the IMTP through F--¥24 FY 2025. These associated services directly support the target integration and launch of OSC built targets delivered under this contract. If another contractor were to perform these same services, it would result in additional costs and could potentially cause delays.

Following a February 2012 AetJllisitien-&rategy-Paflel ASP briefing, DP approved the acquisition of up to ICBM Kits. ICBM Kits were authori::ed in October 2017 under BM DS Acceleration J&A No: 17-0051 . ' -approved k-its-were-arul-awaroed-i-n-Marnh of 20l-4,- The-remai-ning -IGBM-Ktts-are-sti-!--l-authorized pursuant to the-~l-2-~sitioo.-strategy-deeisien,--bl:lt-have--net-beefl-proetH'ea: The alffeflt requirement-m-IMTP ~ requires a total of ICBMs; as a result, additional ICBM Kit must be authorized for procurement to meet this need.

Only OSC (NG/S) is able to deliver the additional ICBM Kits, applicable IRBM Kits, and execute the associated support services without requiring additional NRE, resulting in duplicative costs. To date, the MDA has spent over in NRE costs associated with the development ofIRBM Kits and in NRE costs associated with the ICBM Kits.

Additional costs associated with qualification testing would be required if a new contractor were to deliver the additional ICBM Kits and applicable IRBM Kits. These costs would not be recouped through a competition. Furthermore, the nominal timeline to develop and produce a new first article, to include the increasingly stringent qualification testing, is five plus (5 +) years.

While the MDA recognizes that there is a competitive environment for this capability, are <;!riving changes to the IMTP that will not allow the approximate five (5) years required to go through a full competition and still meet the current flight test schedule.

While-the The new ICBM Gapability--Ypgraee T2C2 option wetttd-reqtiire-additienal-NR£, i-t will build on the current Kit 15 capability on contract with OSC (NGIS)

The MDA will not be able to satisfy the defined test objectives on the established schedule in the IMTP ~ without this these enhanced eapability capabilities . The complexity of this capability development, in combination with the NRE cost already incurred through hardware qualifi<:ation, software development, etc., during the current Kit 15 development and the need date for the delivery of the first flight unit eemg-approximately-three yeaf5-away occurring in 4QFY2 J, precludes the utilization of a full and open competition.

7. Description of Market Research Conducted (FAR 6.303-2(b)(6), (8) and (10)). (no change)

Based on NRE and development/production timelines, no further market research was deemed necessary as no potential offerors would be able to meet the current schedule and budgetary requirements of this acquisition. The MDA competitively awarded contract HQOI47-l l-C-0006 on March 7, 2011 to OSC, for IRBM launch vehicles, including launch support services, kits, and engineering s~rvices.

On February 29, 2012, the TC Program Office conducted an MtftHSit-ioo Strategy-PaRe! ASP briefing presented to MDA/DP. This panel sought approval of the acquisition strategy and release of a Request for Proposal (RFP) for ICBM Booster Kits for BMDS flight testing in~

--F-¥+.& FY 2015 - FY 2018.

Modification P0007I, dated August 6, 2013, awarded ICBM Phase 1 to OSC, awarding two ICBM Kits based on the previously outlined NRE investment in the current ICBM configuration and the projected timeline associated with new development.

8. Determination of Fair and Reasonable Cost (FAR 6.303-2(b) (7)). (no change) 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 proposal addressing all requirements of the RFP. The MDA will conduct a thorough evaluation of the offeror's proposed cost/price for this effort. \ertified cost or pricing data and sufficient information to support accuracy and reliability of the estimate shall be required in the proposal. The OSC proposal will be reviewed by experienced technical analysts and Contract Specialists with the assistance of necessary field pricing support from Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA). The cost and price analysis will concentrate on completeness, realism, reasonableness, .allowability, and allocability. Rates and factors will be verified through the DCMA and DCAA activities, as well as any unusual or proposed deviations from OSC's approved Disclosure Statement and standard accounting practices. To the maximum extent possible, historical data from the current IRBM/ICBM contract with OSC will be used as part of the analysis. The Contracting Officer will utilize a combination of the cost and price analysis and the technical evaluation, as well as the Independent Government Cost Estimate (IGE) as the basis for negotiating a fair and reasonable price.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition (FAR Part 6.303-2(b)(9). (no change)

The MDA did not practice the inclusion of Technical Data Packages (TDP) in solicitations at the time of contract award. Negotiation of costs and data rights for the complete TDPs would take an extended period of time and impose an unacceptable delay and cost in fulfilling the MD A's requirement for these ICBM Kits

Additionally, revisions to the technical design specifications of the targets and their components occur throughout the ongoing production process.

Contract No: HQ0147-ll-C-0006

10. Actions Taken to Remove Barriers to Competition (FAR 6.303-2(b)(ll)).

At this time, there are no further IMTP requirements for the current IRBM or ICBM configuration beyond~ FY 2025. The MDA is currently in the early stages of developing requirements to inform the formulation of a future acquisition strategy for all target classes, to include IRBM and ICBM configurations. A Request for Information (RFI) is-affiieipate4-ia F-¥H was released in July 2018 lrith re.\ponses received in August 2018. Based on NRE already expended and development/production timelines, no potential offerors would he able to meet the current schedule and budgetary requirements of this acquisition. Substantial duplication <1/'cost to the Government is not expected to he recovered through competition. Similar to the competitive acquisitionfi>r the Medium Range Ballistic Missile (MRBM) T3c2 target, +his this future competition will utilize tfle-J*€'Viffif5 options for the acquisition of TDPs awareeEl-m f*e¥i€ttl5-+G-eefltfa€f-awards. ffiftReFmere,the-futttt:e.-eem13eti-tioo-wil+-eefittfltle·te-mclHde-tlte acquisitioo-ef.+fWs-ef.the-He*f-getteffitIBR--ef.lefl.g-ffiRge-targets.

11. Technical/Requirements Official Certification (FAR 6.303-2( c)). (no change) I certify that this justification for other than full and open competition is made in good faith and that the supporting data and information are accurate and complete to the best of my knowledge and belief. I further certify that this request is not the result of a lack of advance planning.

V> ~ 2.cl( Y- Date :

Program Director Targets & Countermeasures

12. Contracting Officer (FAR 6.303(b)(l2)).

I have determined that the anticipated cost to the Government will be fair and reasonable and certify that the justification is accurate and complete to the best ofmy knowledge and ability.

Date:

Contracting Officer

13. Legal Counsel. a_7 re.J1~~J ~ I have reviewed the justificatio~and determined it to be legally sufficient.

General Counsel

/o/~(zo1 <i Date :

14. Contracting Director I have reviewed the justification and recommend it be approved.

Director of Contracts Targets & Countermeasures

15. Recommendation of the Competition Advocate I recommend approval of the above justification.

16. Director of Contracts

20 Sep 2018

Zi!f 52p 20 I 8;

Date :

I have reviewed the justification and recommend it be approved.

Director of Contracts

17. Director of Acquisition I have reviewed the justification and recommend it be approved.

J&A No : 16-0049 (Amd OJ) Contract No: HQ0147-ll-C-0006

,.A ':)~~(? \ O \i

Director for Acquisition

Date : ·

18. Approval (FAR 6.304).

Contract No: HQ0147-11-C-0006

In accordance with FAR 6.304, the above justification for other than full and open competition is hereby approved.

Lieutenant General, USAF Director

T2C2 Amd 01 J&A_Redacted - PA Statement