Approved_Redacted_J&A_GA-EMS.pdf

DEPARTMENT OF DEFENSE

MISSILE DEFENSE AGENCY

5700 18TH ST R E ET

FORT BELVOIR, VIRGINIA 22060-

DV J&A No: 17-0023 Amd 2 Contract No: HQ0277-l7-C-0001

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND

OPEN COMPETITION

1. Introductory Paragraph.

No change. Upon the basis of the following justification, I, as the Director of Contracts for the Missile Defense Agency, 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 Part 6.303 -2(b) (1)).

This Justification and Approval (J&A) is for the Missile Defense Agency, Sensor and Laser Technology Program Office (MDA/DVL). The contracting activity is DV Contracts (DACV). The point of contact for this action is

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

This J&A is for the award of 24-month (base + option) period of performance sole source cost-plus fixed fee contract to General Atomics–Electro Magnetic Systems (GA-EMS) group, for MDA-configured MQ-9 Remotely Piloted Aircraft (RPA) flight test and collection of airborne sensor tracking data. The contract supports MDA-configured MQ-9 test participation in two FY 2018 test sequences and one (1) priced option. The option will have a one (1) year period of performance that will support additional flight test sequences. The contract provides MQ-9 aircraft use cost and maintenance, government furnished equipment (GFE) installation and checkout, MDA-configured MQ-9 aircraft test participation, aircraft de-modification, and post-test analysis activities. This is a follow-on contract to HQ0147-11-0013 that completes passive airborne sensor flight test started under Task Order (TO) 0003, Airborne Tracking and Targeting System (ATTS) Technology Development and Demonstration.

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

This procurement provides the government the use of two (2) GA-ASI Company Owned Company Operated (COCO) Block 1 MQ-9 RPA, one (1) Block 5 MQ-9 Big Wing RPA and one (1) or more Ground Control Station(s) (GCS). The contractor shall integrate the airborne sensor mission equipment into the COCO aircraft, check out the MDA-configured aircraft system on the ground and in the air, and participate in flight tests. The contractor shall provide program management, pilots, sensor operators, test operators, test directors, maintenance and technical support. The contractor will conduct launch and recovery operations for MDA-configured aircraft at Gray Butte, CA, for checkout flights and target of

DISTRIBUTION STATEMENT A

Approved for public release; distribution is unlimited 18-MDA-9829 (1 Nov 18) opportunity launches from Vandenberg Air Force Base, while flying over Edwards Air Force Base, CA and over the ocean off the coast of California. The test series culminates with launch and recovery operations for checkout and mission nights at Government approved Test Support Positions (TSPs).

Under this contract, launch and recovery will occur from the Pacific Missile Range Facility (PMRF), Hawaii, Kwajalein, or optionally from Kadena Air Base Japan or an alternate remote deployment location. This contract also includes a small amount of airborne processor (ABP) software development to address differences in target tracking parameters, CONUS risk reduction flights to verify performance, delivery of a remote GPN display and an option for Big Wing deployment support if direct transit to a remote launch and recovery location is deemed high risk. The MDA-configured aircraft, GCS and GPN configurations for this contract are the same as developed and tested under contract HQ0147-11-D-0013. The total estimated cost of is the revised Independent Government Cost Estimate (IGCE) based on historical cost of the MDA Configured MQ-9 aircraft participating in BMDS tests from Gray Butte and PMRF, and the following cost drivers.

The primary drivers for cost increases are:

Fact of life changes associated with General Atomics restructuring the ATTS program under

General Atomics Electromagnetic Systems Group from Aeronautical Systems, Inc New DCMA rates burden DCMA changes in allowable rates to Multispectral Targeting System repair rates Increased contractor support to test requirements for safety and Hardware in the loop participation Additional support equipment required to forward deploy Block 5 Inmarsat equipped aircraft Participation in additional test events as a Developmental System Under Test (SUT).

MQ-9 assembly/disassembly at OCONUS locations is included in the IGCE. Direct transit of Big Wing aircraft will result in a cost savings. RDT&E funds are anticipated to be used in funding however, O&M funds may be used for applicable activities.

5. Statutory Authority Permitting Other than Full and Open Competition (FAR Part 6.303- 2(b)(4)).

No change. The statuary authority permitting other than full and open competition is 10 U.S.C. 2304 (c)(1), is implemented by Federal Acquisition Regulation (FAR) 6.302-1 (a) (2) (ii); only one responsible source and no other supplies or services will satisfy agency requirements.

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

Under contract HQ0147-11-D-0013 GA-ASI developed, integrated and tested MDA-configured MQ-9 RPA, a unique MQ-9 configuration. GA-ASI modified a standard Block 1 Reaper with a GA-ASI designed "chin mount''. The chin mount repositions the standard belly mounted MTS sensor to a nose position to allow unobstructed missile tracking. GA-ASI is also integrating and testing a MDA-configured Block 5 Big Wing MQ-9. The Big Wing configuration increases the MQ-9's altitude and endurance. The same GFE mission equipment that converts a Block 1 Reaper into a MDA configuration converts a Block 5 Big Wing MQ-9 into a MDA configuration. The exception is the chin mount. The chin mount is unique to a specific series of aircraft. e.g. Block 1 versus Block 5 versus another type of

RPA .

Funding reductions delayed FEV-01 and now FY 2017 test de-confliction actions will move the test well outside the contract HQ0147-11-D-0013 period of performance. In FY 2018, MDA/D directed additional MDA-configured MQ-9 participation in Glory Trip and BMDS tests and changed MQ-9 participation status from Associated Operations to Developmental SUT. In addition, recent discussions with Pacific Air Forces indicate growing support for further MDA-configured MQ-9 test participation with launch and recovery at Kadena Air Base, Japan in 2018 or alternate location. A follow-on sole source contract to complete passive MTS testing is most advantageous from a cost, schedule and risk standpoint.

GA-ASI is the only firm capable of supplying MQ-9 s in the MDA configuration to support this requirement based on the following:

a. GA-ASI is the sole manufacturer of the Block 1 MQ-9 Reaper and Block 5 MQ-9 RPA.

b. Only GA-ASI personnel have the knowledge required to fly. Maintain, and repair the MDA-configured (MDA sensor/ processor package) MQ-9s.

c. GA-ASI is the only contractor that offers MDA the ability to pay a use cost for the MQ-9 aircraft. Both Block 1 and Block 5 aircraft are COCO. The COCO arrangement provides MDA the flexibility to cost effectively adjust to the fluid BMD test schedule.

d. GA-ASI is the only contractor that can meet the air borne sensor FY 2018 and FY 2019 test schedule. The MDA GFE chin mount hardware and the software interfaces between the GFE sensor and ABP to the aircraft related equipment are only compatible with the MQ-9 aircraft. Other sources would require a multi-year development and test cycle to integrate and test MDA-configured aircraft or adapt the mission equipment to another RPA.

7. Description of Market Research Conducted (FAR Part 6.303-2(b) (6), (8) and (10)).

No change. Market research techniques utilized were in accordance with FAR 10.002(b) (2) i.iv.vii. We interviewed knowledgeable individuals (i.e. Chief Engineer. Technical Director, Program Managers, etc.) in government and industry regarding market capabilities to meet test requirements. We queried the government wide database of contracts, and reviewed generally available product literature published by manufacturers.

MDA/DV awarded the original development and test contract from the Advanced Technology Innovation (ATI) Broad Agency Announcement (BAA), which met the requirement for full and open competition. The MDA-configured MQ-9 technology demonstration program took 5 years to reach the current level of maturity. The MDA airborne sensor GFE has only been integrated into and tested on the MQ-9 aircraft. The database query showed GA-ASI is the only source for MQ-9 aircraft.

GA-ASI built a sufficient number of MQ -9 aircraft under company funds to support a wide customer base to include MDA's test needs. The MQ-9 aircraft are available under a COCO use arrangement for the period of performance of this contract that significantly reduces MDA' s airborne sensor test cost.

Instead of procuring, maintaining, and operating MQ-9 aircraft, MDA has the flexibility to pay a use fee, as necessary, to meet short duration test events. DVL published an “Intent to Award" a sole source contract to GA-ASI for continued flight tests of the Discrimination Sensor Technology to the Federal Business Opportunities (FBO) website on February 14, 201 7. DVL did not receive any responses or inquiries to the sole source FBO notice.

8. Determination of Fair and Reasonable Cost (FAR Part 6.303-2(b) (7)).

The original IGCE based on contract HQ0147-11-0-0013, TO 0003 actuals, was updated based on the programs transfer to Electromagnetic Systems Group revised rates, and aircraft lease costs. The Contracting Officer reviewed the IGCE update and concurs with the methodology used and the resulting IGCE of this effort. A separate IGCE to add three additional test sequences to the option and extend the period of performance through September 2019 used this same methodology.

The IGCE for the extension is Additionally, the Government will perform a technical evaluation and cost/pricing analysis or the contractor's proposal for this effort. This data set will be used to negotiate a fair and reasonable price for this effort prior to award.

9. Any Other Facts Supporting the Use of Other Than Full and Open Competition (FAR Part 6.303-2(b) (9).

No change. Operational MQ-9 Reaper aircraft are a high demand asset. Obtaining aircraft from the Air Force, or other owner/operators, and transitioning the MDA-owned GFE and technology to them for integration and test will not support the test schedule and would significantly increase costs. These technology demonstrations are the last passive stereo track tests planned by MDA. Qualifying a second contractor source now will require at least two (2) years of additional development, integration and test and does not support the test schedule.

A Big Wing MQ-9 RPA’s production cost is and operations and maintenance costs on average /day for fielded assets under a limited use scenario. The increased contract cost and associated lease costs are significantly less than this and still provides MDA a cost effective airborne sensor testbed. The Government identified multiple areas during their technical evaluation for cost savings. The Government will continue a dialogue with General Atomics to reach a fair and reasonable price for this effort prior to award.

10. Actions Taken to Remove Barriers to Competition (FAR Part 6.303-2 (b) (11)).

No change. This J&A justifies a sole-source acquisition to continue the testing or the MDA configured MQ- 9 aircraft and does not prohibit future competition. The MDA-configured MQ-9’s missile tracking capability is primarily the function of the software hosted by the ABP controlling the MTS. The MTS is a stock Raytheon sensor purchased by the Government and remained in the stock configuration. The Government provided the ABP as GFE to GA-ASI under contract HQ0147-11-D-0013 and subsequent ABP changes were configuration controlled and delivered back to the Government. Any additional changes to ABP software under this new contract will be a deliverable to the Government. Future use of this technology could be competed.

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11. Technical/Requirements Official Certification (FAR Part 6.303-2(c)). " 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 th is request is not the result of a lack of advance planning."

12. Contracting Officer (FAR Part 6.303-2(b) (12)). "l 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 of my knowledge and belief."

13. Legal Counsel. " I have reviewed the justification and determined it to be legally sufficient."

14. Contracting Director (Program Level). "l have reviewed the justification and recommend it be approved."

15. Recommendation of Competition Advocate. " In accordance with FAR Part 6.304, the above justification for other than full and open competition is hereby approved."

16. Approval (FAR Part 6.304): "In accordance wi th FAR Part 6.304, the above amendment to the justification for other than full and open competition is hereby approved."