Posting_-_Redacted_JA.pdf

TC

[B>ARJN9lT OF DEFENSE

MISS ILE DEFEHE KBC'(

5700 181h STREET

RRT BEL\A'.>IR, VIRGINIA 22060-5573

J&A No: 18-0013 Contract No: HQ0147-14-C-0001

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Introduction (FAR 6.303-2(b)(l)) Upon the basis of the following justification, I, as 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)) The MDA Targets and Countermeasures (TC) Program Office plans t~ other than full and open competition. The point of contact for this action is ~ Contracting Officer, at or

- 3. Nature and Description of the Action Being Approved (FAR 6.303-2(b)(2)) In order to accomplish the Congressionally-mandated Joint Emergent Operational Need (JEON) activities in support of US Forces Korea, the MDA requires a modification to the Aerojet Rocketdyne Coleman Aerospace (Coleman) contract, HQ0147-14-C-0001, to reallocate one (1) Medium Range Ballistic Missile (MRBM) Type 1/Type 2 (Tl/T2) target vehicle for JEON specific tests. The use of this target will result in an overall contractual shortage of MRBM Tl/T2 target vehicles to meet MDA Integrated Master Test Plan (IMTP) requirements for planned Ballistic Missile Defense System (BMDS) Testing. Specifically, the Coleman contract provides for quantity six (6) target vehicles, one (1) of which was reallocated to JEON activities.

This Justification and Approval (J&A) authorizes procurement of an additional one (1) MRBM Tl/T2 target vehicle (as borrow/ payback for the JEON-allocated target) and options for up to eleven (11) more MRBM Tl/T2 target vehicles for potential future MDA test missions not currently baselined in the IMTP - for example, increased Terminal High Altitude Area Defense (THAAD) and/or Aegis testing associated with the latest real-world threats, or other advanced concepts requiring medium range capabilities. The Coleman contract, as competitively awarded, included priced options for up to twelve (12) additional target vehicles and associated mission su ort. However, due to the 1- ear dela in com etitive award,

- the option pricing for the twelve (12) additional targets has expired for exercise and is no longer valid. This contract action will re-price the options to accommodate not only the JEON borrow/payback but also the potential for other emergent IMTP requirements, should any arise.

This J&A also provides for an immediate contract extension of the period of performance through FY25 to accommodate currently baselined IMTP tests with the existing six (6) targets on contract - the latest~ urrently allocated to a The PoP may be extended through F~ event additional target options are exercised with BETDs in and/or - . In concert with the PoP extension through FY25 (and potentially FY27), this J&A authorizes an increase in the Direct Productive Labor Hours (DPLH) for Engineering Services

Approved for Public Release 19-MDA-10114 (19 Jun 19)

Memorandum (ESM) activities as set forth in the Statement of Work. Specifically, individually negotiated ESMs (previously referred to as Task Instructions) provide for a quick-tum, pre priced solution to execute BMDS engineering services for modeling and simulation, analysis, test, failure investigation and engineering modifications to the baseline system (to include design and re-design work). The contract, as competed, included approximately o execute ESM-type requirements. Previously issued Task Instructions, coupled with the recent JEON effort - a significant amount of which was initiated via ESM - have completely exhausted the balance of hours. Moving forward, given the addition of up to 12 target vehicles with performance through FY25, it is critical that the ESM vehicle be available to provide for a quick turn, pre-priced solution to address emergent requirements such as failure investigations, analysis, and/or design changes driven by the evolving threat requirements of the IMTP.

Accordingly, this J&A provides authorization for an increase of up to

- for emergent ESM requirements through FY25.

- 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)) TC's current requirement to support the US Forces Korea JEON established the need to accelerate Coleman baseline MRBM Tl/T2- to support a JEON-specific flight test.

This J&A authorizes immediate procurement of quantity one (1) MRBM Tl/T2 target vehicle as "payback" to align with the flight test requirements of the IMTP, as currently baselined. In addition, this J&A authorizes procurement for up to eleven (11) additional target vehicles, as previously set forth in the competitively awarded contract. One (1) of the twelve (12) targets will be renegotiated as a replacement target for the baseline mission that was previously to be supported by - and the eleven (11) remaining targets will be repriced as options for availability to support future MDA testing associated with the latest real-world threats or other advanced concepts requiring medium range capabilities should future requirements be realized that are currently not supported by existing contracts. In parallel with the addition of up to twelve (12) targets, this J&A also provides for the addition of up to to address urgent, emergent ESM-type requirements through FY25.

The estimated value of these requirements to support a base of one (1) target with Should MDA re uire all additional o tion targets to be exercised, the total estimated costs could be up t The estimated value of the 175,000 additional ESM DPLH is

5. Statutory Authority Permitting Other than Full and Open Competition (FAR 6.303- 2(b)(4)) 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, only one responsible source and no other supplies or services will satisfy Agency requirements without unacceptable delays:

11. 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)(S)) Contract HQOI47-14-C-0001 was competitively awarded to Coleman on October 31 , 2013 , for a base quantity of six (6) and option quantity of twelve (12) MRBM Tl /T2 target vehicles. Only Coleman is able to deliver the one (1) additional MRBM Tl /T2 without incurring significant additional Non-Recurring Engineering (NRE) resulting in duplicative cost. To date, the MDA has spent over- on NRE costs associated with development of the MRBM Tl /T2 tar~ vehicle - which must be compatible with a Government-furnished re-entry vehicle - and in NRE costs associated with the development of MRBM kits. Additional costs associated with qualification testing would be required if a new contractor were to develop and deliver the additional MRBM boosters and associated kits. Furthermore, the nominal timeline to develop and produce a new first article, to include the increasingly stringent qualification testing, is.

months.

- One (1) current IMTP-manifested MRBM Tl /T2 target vehicle was previously reallocated to support JEON mission requirements - Previou~ testing drives the need for the procurement of the "payback" target option for - which requires exercise not later than-

While MDA recognizes that there is a competitive environment for this capability, evolving threats - to include new regional capability test requirements for JEON - will not allow the time required to go through a full competition and still meet the current flight test schedule or to award on a sole source basis to another contractor and complete a full development and qualification. The MDA will not be able to satisfy the defined test objectives of both the JEON and the baseline IMTP without this additional target launch vehicle. In addition, another full competition would substantially duplicate NRE costs to the government associated with this particular target platform. Moving forward, however, MDA is in the early stages of its acquisition planning for next-generation target solutions, ~ vehicle deliveries forecasted in FY23. Given the competitive timeline and the notional --lead time for development activities, the Request for Proposals for this effort is tentatively slated for release in 1QFYI9.

7. Description of Market Research Conducted (FAR 6.303-2(b)(6), (8) and (10)) The Government is in the early stages of acquisition planning for its entire family of ballistic missile target vehicles, to include not only MRBM, but also the various intermediate and inter continental range classes. This comprehensive strategy will result in one (1) or more competitive actions. In the near-term, the MDA is also competing its requirements for T4 subscale target vehicles. Based on the market research conducted for the T4 competition, plus the fact that

MDA currently procures AUR target classes from three (3) different vendors, there is clearly a competitive market for the MRBM class targets. However, in the near term, the duplicative NRE costs I incurred to date), coupled with the considerable NRE/developmental timeline make competition untenable for meeting the current and emerging IMTP requirements and real world events.

8. Determination of Fair and Reasonable Cost (FAR 6.303-2(b) (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 proposal addressing all requirements of the Request for Proposal. The MDA will conduct a thorough evaluation of the offeror' s proposed cost/price for this effort.

Certified cost or pricing data and sufficient information to support accuracy and reliability of the estimate shall be required in the proposal. The Coleman 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. DCMA and DCAA will verify all rates and factors as well as any unusual or proposed deviations from Coleman's approved Disclosure Statement and standard accounting practices. To the maximum extent possible, historical data from the current MRBM Tl /T2 contract with Coleman 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 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) A Technical Data Package (TDP) requirement was not included in the solicitation for this competitively awarded contract. Negotiation of costs and data rights for a complete TDP would take an extended period of time and impose an unacceptable delay and cost in fulfilling the MDA's requirement for these target vehicles. Acquisition strategy planning for a post-FY23 , next-generation family of targets is currently underway and it is anticipated that a complete TDP will be mandated as part of that requirement.

10. Actions Taken to Remove Barriers to Competition (FAR 6.303-2(b)(ll)) Due to the inability of any other contractor to support the MDA's near-term needs without unacceptable delays based on the time required to award a new contract - as well as the time required to complete a new development and qualification effort - there are no actions the MDA can take to remove the barriers to competition. However, as previously mentioned, MDA is planning for a competitive RFP in FYI9 for the next-generation family of targets, with the first articles being delivered in the FY23 timeframe.

11. Tcchnical/H<.'fluircmcnt~ Official Certification (F.'\H 6.JOJ-2(t·)) I .:1.·nit~ 1ha1 thi-; justi lica1io11 for other 1ha11 rull anJ 1)rc11 nimfk'litinn is 111 atk in ~,,,id t:1 ith ;111 d 1hat lhc surporting dala and inforrnalion arc accuralc anJ ·ornplctc In 1hc hc -.t or' 111.' l-.n,1 ,, k d!!1.' and hd11.·L I further cert if~ that thi:-. reques t is rnit the resul 111r a lad of ;1d, anc1.' pl;11111111g l'rngram D1r1.·c 11,1 I argct, and ( ·ountenn1.·a:-.urc,,;

12. Contracting Officrr (FAR 6.JOJ(h)(12))

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IS. Recommendation of th e Competition Adrncatc I recommend appro\'al of the abO\c_justilication.

Compc:1itio11 Ad, ocak

16. l> ircclor of Contrac ts I ha\ c rcvic \\ed the justification and recnrnmcnd it be approved .

17. Director of Acqui ition I hme re, ie,,cd the jmtilication and rccnmrncnd it he appron:d .

Date :

18. Approva l (FA R 6.30-' )

In accordance ,,ith F/\R 6 .30-1. the ahon· justilication for other than full and open compl·tition is hcreh) apprO\ ed .

Date : 27 ~?