Amended_JA_20_August_2019-Redacted_Final_(PA_approved).pdf

Approved for Public Release 19-MDA-10177 (13 Aug 19)

B d t d t t C2BMC b u 1ge e cos s or ,y year C ·tr ) s m m1 ions ource: C2BMC 1 N fi PBR 12 f26 0 10- or - as o ct

FY12 FY13 FY14 FY15 FY16 Total

$161.9 $234.8 $240.8 $240.0 $207.3 $1,085 (3 quarters)

Amendment 1:

The incremental budget reductions and schedule impacts discussed above increase the life-cycle cost of S8.2 development and deployment. The total budgeted contract ceiling needed for this procurement required an additional $870M (FY2017-FY2021). This increase in ceiling was required to support the mandated European Phased Adaptive Approach (EP AA Phase III) deployment schedule, the increased costs associated to operating, maintaining and sustaining the aging S6.4 currently in the field for an additional two years, as well as the additional years of program management support, testing and training development. The extended funding profile for the C2BMC procurement under this effort is illustrated in the table below:

Bud eted costs for C2BMC b ear (in millions)

FYl 7 FY18 FY19 2FY20 Total

$221.9 $195.5 $161.0 $155.1 $136.5 $870.0 2 FY20 and FY2 I are based on 3% escalation

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

2304(c)(l) as implemented by far 6.302-l(a)(2)(ii) which authorizes other than full and open competition when the required supplies and services are available from only the original source in the case of follow-on contracts for the continued provision of highly specialized services or only from a limited number of responsible sources, and no other supplies or services will satisfy Agency requirements. Award to any other source would result in a substantial schedule delay and duplication of cost to the Government that is not expected to be recovered through competition, and unacceptable delays in fulfilling the Agency's requirements.

Amendment 1: No Change

Amendment 2: The proposed action is authorized under the provisions of 10 USC

Hawaii. As an integrating element of the BMDS, any disruptions to the existing S6.2, S6.4, and future S8.2 will have a negative 'ripple effect' through all of these MDA program elements.

The current arrangement with Lockheed Martin Corporation as the prime contractor and its subcontractors (Raytheon, Boeing, Northrop Grumman and General Dynamics) performing as a team, offers the unique benefit of reach-back capability when operational problems arise due to the team's intimate knowledge of the BMDS resulting in faster resolution of the issues, decreased downtime of the system, and lower the risk of fielding

S8.2 on schedule. This unique benefit would be lost if this requirement was awarded to a new contractor.

Awarding a new contract to other than the incumbent team would require the duplication of existing facilities and test laboratories for new software development at an estimated cost of $40M ( combined with the schedule delay described above, the duplicated cost is $117M).

The critical expertise available with Lockheed Martin offers the unique benefit of institutional knowledge when operational problems arise due to the intimate knowledge of the BMDS resulting in faster resolution of the issues, decreased downtime of the system, and lower risk to the BMDS. This unique benefit would be lost if these requirements were awarded to a new contractor.

Program office analysis determined that awarding to a new contractor would require complex software development of the existing S8. 2 code base, resulting in extensive re work of the development activities at an estimated cost of $92M and a schedule delay of approximately 44 months. Additionally, if a new contractor were utilized, a significant learning curve would also complicate the ongoing development process. Specific BMDS capability delivery milestones currently exist for C2BMC and any delay would result in delays and/or delivery of capability to fulfill a stated war.fighter requirements for Expanded Regional and Homeland Defense. Therefore, the cost and time delays to the Government to reconstitute this experience, the learning curve, and the technical data documentation would result in unacceptable time delays in fulfilling the Agency's mission.

7. Description of Market Research Conducted (FAR Part 6.303-2(b)(6), (8) and (10)). Prior to the award of this sole source contract to Lockheed Martin Corporation, a two-phased formal market analysis was conducted. The initial market analysis relied on internal program office knowledge and an open source database to identify potential sources. The initial market analysis identified seventeen BMC3 Systems sources currently supporting the Department of Defense (DoD). At least one MDNTB team member is involved with all of the sources identified.

Secondly, a Request for Information (RFI) (in accordance with FAR Subpart 5.2) was submitted to FedBizOpps on May 20, 2010. This RFI advised industry of the pending acquisition and solicited inquiries from interested parties. It yielded seven responses.

19. Approval (FAR 6.304): "In accordance with FAR 6.304, the above justification for other than full and open competition is hereby approved."